As part of PowerSeraya’s Clean Development Mechanism (CDM) application for carbon credits under the CDM of the Kyoto Protocol, PowerSeraya held a Stakeholders’ Consultation session on 2 Nov 2007 in which it provided background information on the project to interested parties. The intention was to seek feedback and provide clarification on the project. PowerSeraya has documented the questions raised, during the session, and its corresponding replies for public information.

Q: What is the confidence level of achieving 317ktons CO2?

A: Fairly confident, probably within a plus or minus 10% range. Estimates will be verified before any Certified Emissions Reduction units (CERs) are issued. The emission estimates is based on our model projections on how the plant is run and it is consistent with our baseline projection on how we want to dispatch the MW into the grid to achieve required returns for this project, so we believe that the consistency is high and that we will achieve this. Going forward, we do not know what electricity prices will be and if prices are advantageous to us, we will run harder and the numbers will go higher. This is assumed to be a base load plant, not a peaking plant.

Q: Is the PCS equivalent to the EIA?

A: The Singapore government has no regulation which requires an Environmental Impact Assessment (EIA). Current regulation only requires a Pollution Control Study (PCS) to be conducted which is the local equivalent to an EIA.

Q: Are there any other projects which are also applying for CDM in Singapore? How much is the value of the carbon credits PowerSeraya is applying for?

Ecowise is ahead and their project is already posted on the United Nations Framework Convention on Climate Change (UNFCCC) website. There is a third CDM project (apart from PowerSeraya and EcoWise) which will be talked about next week at the Carbon Forum Asia. Our estimates assume $15 per credit.

Q: The Kyoto Protocol ends in 2012, what is the view after that?

A: As long as there is a market, one can sell the credits. One signal that bears up a post-2012 carbon market is that in the EU, there is a third period in the EU Emissions Trading Scheme that operates post 2012 and there are already forward trades for EU Allowances post 2012.

Q: What is your overall company policy in addressing the bigger picture? Are you investing in research and development or alternative technology?

A: We have looked at carbon capture technology but there is no specific amount of money allocated to research and development.

Q: Your presentations refer to waste water treatment, would you be able to elaborate on what you are currently doing and what you plan to do both in terms of solvent waste as well as waste?

A: Waste water treatment is actually very early days for us. Part of our study is to understand what are the wastes are involved for treatment.