| “PowerSeraya has embarked on a path in response to climate change by enhancing the efficiencies of our power plant operations as well as our shift to cleaner fuels such as natural gas.”
Climate change which was once a possibility is now a reality. According to the Stern Review published in October 2006, the power industry creates about 25% of the world’s greenhouse gas emissions. It also points out that if mankind follows the business-as-usual path, there is an increasing risk of serious, irreversible impact.
PowerSeraya recognises climate change as an important issue that cannot be ignored. The Stern Review also estimates that deep cuts in greenhouse emissions will come with a cost and it estimates that the annual costs of stabilising emissions at 500-550ppm (parts per million) would be around 1% of world GDP by 2050. (When the Stern Review was published, the level of greenhouse gas in the atmosphere was around 430ppm CO2 equivalent, compared to only 280 ppm before the Industrial Revolution.)
PowerSeraya is prepared to face up to the challenge of balancing economic, environmental and social factors in building a sustainable outcome for the company, the community and the environment.
Diagram 6.1: Proportion of GHG emissions by source
According to studies by the International Energy Agency, energy efficiency has the potential to be the biggest single source of emissions savings in the energy sector. Improvements in energy-supply efficiency and switching to less carbon-intensive fuel have been identified as key mitigation technologies that can be deployed in the shorter term.
Consistent with these reports, PowerSeraya focuses on enhancing the efficiencies of our power-plant operations as well as making a shift to cleaner fuels such as natural gas. Between 2002 and 2007, our overall power-plant efficiency increased from 38.43% to 42.45%, and the composition of power generated from natural gas increased by over 30%. This combination of fuel switching and greater energy efficiency has led to a reduction in carbon dioxide intensity (CO2 metric tons per MWh) of over 15%.
In addition, PowerSeraya’s holistic approach towards climate change takes us beyond our current plant operations to include raising environmental awareness at the workplace and the community (please refer to Section 7: ‘Environmental Performance’).
Diagram 6.2: PowerSeraya’s carbon dioxide intensity improvements from 2002 to 2007
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