ASIA-ENERGY: Economic Engine Set to Run on Atomic and Coal Power

By Suvendrini Kakuchi Reprint | | Print |

Analysis - Suvendrini Kakuchi and Suganthi Singarayar

TOKYO, Oct 16 1995 (IPS) - Plans by Japan and Australia to fuel their own and Asia’s dynamic economies with atomic power and coal-fired energy, are being frowned on by the environmental community.

Both countries are in a strong position to substantially meet the needs of the region — Japan with its advanced nuclear technology and Australia with its wealth of coal resources — and recognise that export opportunities in Western markets are likely to be undermined by a loud environmental outcry.

The separately taken initiatives not only reflect a more inward- looking Asia making a statement to West that the pendulum of economic power is gradually shifting, but also is a reflection of how quickly the South-east Asian economies are developing.

Energy officials in Japan and Australia justify their plans by saying they are responding to calls from a region which is expected to double its energy consumption between 1992 and 2010.

But this is not to say the two countries are in any way acting on humanitarian grounds. On the contrary. The two are competing for the same market and their sales pitches are by the very nature of their products vastly different.

Alan Broome, managing director of Australia’s coal consulting and research company ACIRL told a New Zealand Coal Producers seminar in May: “There is no energy source alternate to coal to meet the expectation of the community and the world at large in the next 20- 30 years so the challenge is to use it efficiently.”

On the other hand, the Japanese make the point that the high rate of air pollution which leads to global warming is in part attributed to the increased burning of coal.

At the widely attended World Energy Congress in Tokyo last week, Chief of Tokyo Electrical Power Co., Shoh Nasu told delegates that it is important to move away from fossil fuels and rather promote the effective use of other energy sources.

Based on a government policy that promotes nuclear technology on the assumption that it is cleaner than other sources and more dependable, Japan is therefore promoting atomic energy as the best source available for the future.

“Uranium is a primary energy source that, in the form of nuclear power, is available for unlimited use, depending on how we make use of it,” Nasu said.

Nasu’s speech reflects Japan’s nine rich energy companies’ ambitions of being major players in the planned construction of nuclear power plants in Asia where electricity demand from fast developing economies is growing at eight per cent per year.

“Nuclear power technology is important from the viewpoint of achieving the best mix, globally and inter-regionally,” he said.

Australia on the other hand is more than keen to help in the development of coal resources in its export markets. David Beddall, Australia’s Minister for Resources, made this point at a meeting of Australia’s mining industry’s export association (Austmine) last month.

“Paradoxically, increasing the viability of domestic supply could enhance the prospects for imported coal by overcoming negative environmental perceptions, reducing political concerns about potential job losses caused by imports and establishing facilities that use a blend of local and imported coal.”

Black coal is Australia’s biggest export, grossing eight billion dollars in 1993-94. According to the New South Wales Minerals Council, Australia has 51 billion tonnes of economically recoverable black coal, which at the current rate of production could last another 300 years.

In view of such reserves, the competitiveness of the world market, the search for more environmentally friendly, renewable sources of energy, Australia wants a “sustainable” market.

As such, it is promoting an export package that includes coal, coalmining technology and services — with its stated targets being Indonesia, Philippines, Vietnam and Malaysia.

Dr. Dam Truong, ACIRL’s manager of business development in Asia, predicts a successful market drive “if we can develop the right strategy and the right network”.

Statistics tell a tale. Energy consumption has grown, during the past five years, by an annual average of four per cent in China, 11.9 per cent in Thailand and 9.2 per cent in Indonesia.

The bottom line is that the dynamic Southeast Asian region needs energy to service its burgeoning industrial development. And they want it readily available — and this factor, it would seem, will override environmental concerns.

Based on this policy Japan has launched a controversial programme that involves importing weapons-grade plutonium from France for the development of fast-breeder reactors that feeds on the highly toxic material.

Japan’s first fast-breeder reactor, Monju, began experimental operations in June after a delay of almost two years due to technical problems. Full use is only planned for around the year 2030.

But the government and electric companies remain determined to succeed — even if the going is slow — and continue to pump in millions of dollars into the project.

Environmental groups monitoring the energy congress in Tokyo, acknowledged that nuclear power is a potential source of lucrative business for Japanese companies.

“Profits are enormous for companies constructing a nuclear power plant,” said Mika Obayashi, a researcher at the non- governmental organisation, Citizen’s Nuclear Information Network.

But, she adds: “Japan’s nuclear power industry is facing a huge barrier at home because of public opposition. This is more the reason why it is turning its eyes on Asia.”

Obayashi noted that new plants have not been constructed for the past decade in Japan because “the government is finding to very difficult to persuade local mayors to accept plants because of opposition from more and more people who are becoming of aware of the dangers of nuclear pollution”.

Obayashi and other environmental organisations suggest Japan devote more attention to development of solar and wind energy, which are safer and more appropriate for developing countries in Asia which have an abundance of such natural resources.

Japan, she says, currently devotes less than one per cent of its energy research budget on such technologies.

But demand is clearly on the side of the Japanese and Australians.

It was no accident that the World Energy Congress held its first ever meeting in East Asia in its 70-year history. Significantly as well, an estimated 3,000 delegates from 100 countries attended the seven-day meet.

ASIA-ENERGY: Economic Engine Set to Run on Atomic and Coal Power

By Suvendrini Kakuchi Reprint | | Print |

Analysis - Suvendrini Kakuchi and Suganthi Singarayar

TOKYO, Oct 16 1995 (IPS) - Plans by Japan and Australia to fuel their own and Asia’s dynamic economies with atomic power and coal-fired energy, are being frowned on by the environmental community.
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