Energy developer to sell fly ash soon
Energy developer to sell fly ash soon
Lao Holding State Enterprise (LHSE) plans to spend about 23 billion kip (US$2.7 million) this year to prepare for its fly ash business that will commence operations next year.
The expenditure will include the construction of offices, a laboratory and dormitories for the staff at the project site in Hongsa district, Xayaboury province, according to LHSE last week.
“So far all the construction works are about 15 percent complete, which is ahead of schedule. They are expected to reach completion by early next year,” said General Manager of LHSE, Dr Somboune Manolom, at a biannual meeting in Vientiane to review the operations of the enterprise.
The preparations will also include the construction of a warehouse to store the ash, the construction of which was about 72 percent complete by June.
Fly ash, a by-product of fuel combustion in electricity generation, can be sold to the construction industry as it is used in cement and concrete factories in Laos. Fly ash can be mixed with concrete to reduce the cement requirement by 15 to 20 percent.
So far there are some companies in Laos, Thailand and China interested in buying the ash.
A local company demands about 500,000 tonnes of ash per year and a Thai one hopes to purchase about 1 million tonnes annually.
“LHSE has signed memorandums of understanding on the ash purchases with both companies,” Dr Somboune said.
“LHSE will also continue the ash purchase negotiations with a Chinese company that is also interested to buy about 300,000 tonnes of ash per year,” he said.
LHSE is preparing to start its fly ash business operations after it r eceived approval from the Ministry of Energy and Mines early this year, after receiving the completed feasibility study into the fly ash business in Laos commissioned by LHSE.
Dr Somboune said LHSE employed a New Zealand consultancy company AECOM to conduct the feasibility study.
The New Zealand company confirmed that the fly ash business would operate profitably and efficiently were LHSE to invest in it.
LHSE, through the Lao government, will have access to a free supply of fly ash for a period of 25 years once the Hongsa Mine-Mouth Power Project in Xayaboury starts commercial operations, which is expected to be in 2015.
In Laos, the product will be used in the construction of dams, roads and buildings, as well as the production of bricks and roof tiles.
At the company's annual meeting last year to review its 2012 operations, LHSE General Manager, Dr Somboune Manolom, said that based on the initial study, LHSE could earn about 64 billion kip (US$8 million) annually from fly ash sales. That would yield about 1.6 trillion kip (US$200 million) over the 25 year period.
Thailand's Ratchaburi Electricity Generating Holding Public Company reported in October 2010 that the Hongsa power plant will produce about 2 million tonnes annually of residual ash once electricity generation commences.
It is expected to burn about 14 million tonnes of lignite per year to generate electricity, with the residual ash a by-product of the power generation process.
Ratchaburi Electricity Generating Holding Public Company owns a 40 percent stake in the project, while Thailand's Banpu Power Ltd owns a 40 percent and LHSE holds the remaining 20 percent.
vientiane times
