Draft: Section1 Seat5 UTT Power Plant

7/29/2019 Draft: Section1 Seat5 UTT Power Plant

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UTT PowerPlantMiss Nittaya Narares 5331203052

Miss Nipanan Noonnak 5331203054

Miss Piraya Nujplien 5331203077

Miss Patsanee Tongdee 5331203084

Miss Wanrath Kosonnirathtiwong 5331203111

Miss Warunee Kaenkaew 5331203112

Miss Russarin Passaveedilokpath 5331203117

Miss Sarita Kettrakul 5331203130

Project Feasibility Study and Evaluation 2012

School of Management

Mae Fah Luang University


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Part I Introduction

Chapter 1Introduction


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Biomass Power Plant

Chapter 1: introduction

1.1 Background and significance of the projectElectric energy is vital things to the economy system, human activities. It is important

factors that effect to the progressive of the world. Also, Energy is a universal product that

trading around the world. However, finding the power supply and energy use are requiring

investing a lot. At now, in Thailand has rate of electricity consume increase rapidly in the

same time in our country has electric energy do not sufficiency for demand of population in

country. So, Thailand has to import electric energy from neighborhood countries in particular

of peak period that used by population. The electric energy that imported from Laos,

Malaysia, and Cambodian which impact to cost of electricity in Thailand are expensive.

Moreover, Thai government supported private company to construct the electricity-factory

for meet to sufficiency demand of population. Electricity Generating Authority of Thailand

said that In 2013, Thailand face to lack o f reserve electric problem which it can effect to

stability of energy in Thailand. According to Suthasana said that In 2012, have trend to use

electricity grow up to 8% but even estimated will increase 4-5 %. Therefore, Electricity

Generating Authority of Thailand supports private company to invest in electricity factory.

(http://www.egat.co.th/images/stories/annual/reports/2554/annual2011_eng_p86.pdf)

Thailand has extensive agriculture made with remaining materials from agriculture

such as chaff, molasses. So, biomass electricity uses remaining raw materials from other

agriculture as a fuel to produce electricity commercially. The foundation of biomass

electricity factory cause does not accept the electric coal and nuclear more in Thailand. That

increase in natural gas more. Because has the material is fuel already that supporting in

biomass electricity factory more useful in this country. In addition to use the fuel in owner

country that reduces buying from another country.

Source: http://www.egat.co.th/images/stories/annual/reports/2554/annual2011_eng_p86.pdf


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Source: Electricity Generating Authority of Thailand 2012

Figure: shown the peak period that most used in electric energy per days.

Source:http://www.eppo.go.th/power/power2554.pdf
http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.eppo.go.th%2Fpower%2Fpower2554.pdf&h=uAQG_gGmLhttp://www.facebook.com/l.php?u=http%3A%2F%2Fwww.eppo.go.th%2Fpower%2Fpower2554.pdf&h=uAQG_gGmLhttp://www.facebook.com/l.php?u=http%3A%2F%2Fwww.eppo.go.th%2Fpower%2Fpower2554.pdf&h=uAQG_gGmLhttp://www.facebook.com/l.php?u=http%3A%2F%2Fwww.eppo.go.th%2Fpower%2Fpower2554.pdf&h=uAQG_gGmL


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Source : Electricity Generating Authority of Thailand 2012

Cost of produce electric energy

Cost per unit Baht per Kwh*

Solar energy 12.5

Wind wheel 5.2

Garbage 3-5

Biomass 3-3.5Nuclear 2.79

Coal 2.94

Gas Existing 3.96

Marginal Gas 4.34

Source: Electricity Generating Authority of Thailand 2


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Compare labor cost

Minimum Wage (Baht) Province

300 Bangkok, Nakorn Pathom, Nonthaburi,

Pathum Thani, Phuket, Samut Prakarn, and

Samut Sakorn

273 Chonburi

269 Chachoengsao and Saraburi

265 Phranakorn Sri Ayuddhaya

264 Rayong

259 Phang Nga

258 Ranong

255 Nakorn Ratchasima and Prajeenburi

254 Lopburi

252 Kanjanaburi

251 Chiangmai and Ratchaburi

250 Chanthaburi and Petchburi

246 Songkhla and Singburi

244 Trang

243 Nakornsrithammarat and Ang Thong

241 Chumpon, Patthalung, Loei, Satun and

Srakaew

240 Prajuabkirikhan, Yala, Samut Songkram and

Surat Thani

239 Narathiwat, Udon Thani and Ubon

Ratchathani

237 Nakorn Nayok and Pattani

236 Trad, Buengkal, Lampoon and Nong Khai

234 Kamphaengpetch and Uthai Thani

233 Kalasin, KhonKaen, Chainart and SuphanBuri


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232 Chiangrai, Nakorn Sawan, Buriram,

Petchaboon, Yasothorn, Roi-ed and Sakon

Nakorn

230 Chaiyaphoom, Mukdaharn, Lampang,Sukothai and Nongbualampoo

229 Nakorn Panom

227 Pichit, Phitsanulok, Phrae, Mahasarakham,

Mae Hong Son, Amnartcharoen and Utraradit

226 Tak and Surin

225 Nan

223 Srisaket222 Phayao

Source: Ministry of labor in Thailand, April 2012

Number of sugar industry in North.

Name Sugar Industry Province

THIP SUGAR KAMPANGPETCH Lampang

THIP SUKOHAI SUGAR INDUSTRY Sukothai

THAI IDENTITY SUGAR INDUSTRY Uttaradit

UTTARADITSUGAR INDUSTRY Uttaradit

PHITSANULOK SUGAR INDUSTRY Phitsanulok

KAMPHAENGPETCH SUGAR INDUSTRY Kamphaengpetch

NAKHONPETCH SUGAR INDUSTRY Kamphaengpetch

RUAMPHOL NAKHONSAWAN SUGAR INDUSTRY Nakorn Sawan

KASET THAI INDUSTRY SUGAR INDUSTRY Nakorn Sawan

THAI ROONG RUANG SUGAR INDUSTRY Petchaboon

Source: Office of the Cane and Sugar Board


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Location of Biomass Power Plant

We have two alternative are Uttaradit and Nakhonsawan to be Biomass Power Plant.

Finally, we choose Uttaradit to be Biomass Power Plant because;

Uttaradit has two sugar industry and near province (Sukothai , Phitsanulok )also have sugar industry.

Uttaradit has labor cost rate cheaper than Nakhonsawan.

1.2 project objective

To study information of power plant and to know the problem about scares of electricpower in Thailand

To study feasibility for open Biomass power plant in Uttaradit province. To study and analyze that why each of private power plant can produce an electric

power to little.

To study problem, opportunity, weakness and strength of power plant. To study of feasibility of financial and analyze risk of Biomass power Plant in

Uttaradit province.

To study in power plant problem that effect to local community.

1.3 Benefits of projects

To know history, problem of power plant, and community problem. To know about risk and financial of power plant. To know about advantage and disadvantage of each type to be material for producing

the electric power.

To know how to planning and investment in power plant. To solve problems that occurs in study project.


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1.4 Frame work


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Chapter 2

Industry Profile


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Chapter 2: Industry Profile

2.1 Nature of industry

Power plant became the first light on December 31, 1879 at Menlo Park. New Jersey,

United States. In 1882, there are build of electricity system at London, England.

Power plant in Thailand was established on September 20, 1884 during in reign of

King Rama 5. Electricity Generating Authority of Thailand has become distinctly when

Denmark company ask for permission to produce electric current for propel the train and

expand electricity production by set up a permanent system.

Electricity Generating Authority of Thailand initial to involve the generation and

transmission of energy throughout Thailand for selling electricity to public on 1930s. After

that electricity is well-known and private company as possible to set up many concessions

Power plant used to change other energy become electric energy which can divide

many types that can use produce electric energy has two types.

Power plant used fuel is electricity factory that used nonrenewable to becomeelectricity energy such as coal, oil which these fuel causes of the pollution.

Power plant do not uses fuel is electricity factory that used energy from apermanent energy source such as chaff and molasses.

The advantage of the energy source is a pure energy source that doesn't burn fuel such

as biomass electricity. Therefore, we would like to establish electricity factory by Biomass

power plant classified as renewable energy used to the benefits.

Source: Electricity Generating Authority of Thailand


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2.1.1 Advantage and limitation of fuel for produce the electricity

Biomass to produce electricity

Advantage

Used benefit from remain of materialin agriculture as renewable energy

Produce the electric energy thatenvironment-friendly. It is not cause

to Greenhouse effect

To support with electric system areincrease

Limitation

Uncertain of the quantity of material Fuel managements are difficult Trend of material cost may be glow

up because demand increasing

Capability of biomass have high ofmoisture effect to happen with the

pollution

The use of coal to produce electricity.

Advantage

The cost of producing electricityfrom coal cheaper than other fuel

such as natural gas, oil, and

renewable energy.

High reserve quantity of coal that itcan use more than 200 years.

Nowadays, there is technology that

Limitation

The coal usage to produce electricityneed to use control system of air

pollution that expensive

Burn of coal is major cause of acidrain and global warming

Thailand needs to import the coalfrom aboard


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can eliminate pollution. The coal usage to produce electricityenergy need to have good

transportation.

There are against from community

Garbage to produce electricity

Advantages

Source of cheap energy Reduce the problem of garbage

disposal

Garbage electricity factory fromlandfill help reduce global warming

Limitations

Some technology have high cost ifbusiness smaller cannot make profit

Manage the garbage have expense Garbage electricity factory against

from community

Limitations of an entrepreneurcannot control garbage quantity

which cost of delay in negotiation

process

4Source:http://www.eppo.go.th/power/power2554.pdf
http://www.eppo.go.th/power/power2554.pdfhttp://www.eppo.go.th/power/power2554.pdfhttp://www.eppo.go.th/power/power2554.pdfhttp://www.eppo.go.th/power/power2554.pdf


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2.2Situation of industry

The electricity situation in Thais economic during the year 2011 lower than the same

period of the previous year because of the earthquake and tsunami in Japan. This resulting in

the production of some industry in Thailand have to s top. However, during the third quarterof 2011, the electricity demand grown 2.25 percent and 3.34 percent. From flooding in Thai

country it causes the effect to electricity consumption directly. The amount of electricity

consumed in October, November and December decline 1.7 percent, 3.5 percent and 5

percent respectively. From the situation this above in 2011 the country has peak requirement

electricity at 23,900.21 MW. These are decline to 0.46 percent when compared with statistic

of 2010. For the year 2012, the government has a policy to support growth of GDP increase

to 5 percent.

4

Affect to rate of electricity demand increase about 5-6 percent. So, the privatecompany demand estimated that will be expanded from the employment of the company and

policy of government to support the expenditure such as measurement to raise the income of

people.

Source:http://www.ubifrance.com/medias/press/1.-tfta-thai-energy-15-02-2012-copy-1_20_2_2012_8_8.pdf

4Source: http://hilight.kapook.com/view/70845


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The National Energy Policy Council (NEPC) and the Cabinet are approved the Thai

power development plan in March 2010 to significance on the electricity production by

cogeneration system. During the preparation for the adjustment of the long term power

development plan occurred flood disaster in October-September 2011 influence on all

economic. From the flooding disaster, affect to electricity demand and stability of electrical

system in Thailand. It can effect to the Energy Ministry have to revise new PDP plan are

listed as follows;5

2.2.1 New power projects

Between 2012-2019 totals 3,932.80 MW

2.2.2 Power purchasing

Independent Power Producer (IPP) Projects

Totalduring 2012-2019 a total of IPP provided 4,400 MW


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Small power producer project (SPP)

The PDP plan 2010 includes 6,430.50 MW to be purchased from small power

producers during 2012-2019 including 5,024 MW using cogeneration systems, 90

MW using renewable energy, and 1,316.50 MW using non-firm energy contracts.5

Power import from neighboring country

The EGAT purchased a total 2.913 MW from Xayaburi Hydro-electric project

in Laos. The total capacity of foreign energy purchase between 2012 and 2019 will be

4,012 MW from six projects as follows;5


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2.2.3 Research and Development

The Electricity Generating Authority of Thailand has policy give capital to

support institution including with External & Internal Research Agencies for perform

R&D project consists of ;

To replace import of electrical energy equipment, technologies and materials To develop efficiency and lower production cost to support social research for quality

of life of community around power plant.

To improve new energy alternative for electricity generation. To prevent environment and social impact caused by power operation and activity.


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2.2.4 Product and Service

Biomass Power Plants produce electricity current for sell to Electricity Generating

Authority of Thailand. Product of Biomass Power Plants is supplies and service in term of

Industrial Goods.5

5Source: http://www.egat.co.th/images/stories/annual/reports/2554/annual2011_eng_p86.pdf


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PART II Marketing

Chapter3

Market Feasibility Study


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Chapter3: Market Feasibility Study

3.1 Market Analysis

3.1.1 General Environment Analysis

Politic

Power plant in Thailand is monopoly business to sell for Provincial Electricity

Authority which they transport electricity to each department for distribute to the public.

Provincial Electricity Authority has policy develop electricity system from renewable energy,

transportation electricity system, power plant quality for each country needs and help to

manage cost effectively1.

In addition, Ministry of Energy has policy for stability in supply to electric energy

also they increase role of private for reduce cost of government and support small and

smaller business electricity system from renewable energy. As a result, Private bio mass

power plant businesses are growing up.Power Development Plan of Thailand is long term plan for respond demand, to create

stability of investment and green environment with renewable energy.

Supporting smaller business electricity in 2030 Thailand provides electricity fromrenewable energy not less than 5 present.

In 2015-2021 to buy electricity from small business electricity firm increase 2,000MW

In 2022-2030 determine quantity of small business electricity increase per year 360MW

1Source:http://www.eppo.go.th/power/power2554.pdf
http://www.eppo.go.th/power/power2554.pdfhttp://www.eppo.go.th/power/power2554.pdfhttp://www.eppo.go.th/power/power2554.pdfhttp://www.eppo.go.th/power/power2554.pdf


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Economic

Survey of CEO forecasts economic outlook for first half of year 2556 by opinion

survey of senior executives of listed companies (Ltd.) in stock exchange amount 81

companies from all 9 industries. Found that most executives of 26 companies expected that

growth rate of Thailand's economy in year 2556 will be at 4.5 to 5 percentage, while only 12

companies. See that Thailand's economy will expand more than 5 percentages when

compared to the monthly survey in April 2555 found that most executives believe that

Thailand's economy has tends to increase from the original that expected to growth 4 to 4.5

percentag2

Therefore is evident from the situation of this economy rather will is the good news in

part of establishing power plant. Because of Thailand's industrial economy have industrial

factory increased and make number of electricity consumption increased as well. So, suitable

to build a power plant to generate electricity for used distribution to respond the needs of

industry factory in Thailand.

2Source:http://www.mcot.net/site/content?id=50c6ed50150ba0af19000398#.UQlKVpv4-CU
http://www.mcot.net/site/content?id=50c6ed50150ba0af19000398#.UQlKVpv4-CUhttp://www.mcot.net/site/content?id=50c6ed50150ba0af19000398#.UQlKVpv4-CUhttp://www.mcot.net/site/content?id=50c6ed50150ba0af19000398#.UQlKVpv4-CUhttp://www.mcot.net/site/content?id=50c6ed50150ba0af19000398#.UQlKVpv4-CU


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Social

Due to the fact that demands for electricity has increased steadily. Because population

growth and economic expansion. The primary energy will decrease therefore drive to

development of renewable energy. So electricity is essential to daily life and it is important to

drive the economy. For support completely the requirement of electricity and population can

use electricity throughout and continuously.

Nowadays Thailand have a lot of biomass such as agricultural residues which not be

used that can produce more electricity. Therefore a lot of biomass were disposed incorrectly

and cause problems of environment pollution. Using biomass to produce electricity tends to

get the energy and also can decrease pollution at the same time. However a lot of burning

biomass to produce steam for generator rotation will cause pollution and health hazards that

may impact on the environment. And cause pollution and the health hazards that may impact

on the environment and public health if without proper management by we will set up

industry so far from the community to reduce pollution, toxic for preserve the environment of

the community.3

3Source:http://www.vcharkarn.com/electric/article/view.php?id=42673
http://www.vcharkarn.com/electric/article/view.php?id=42673http://www.vcharkarn.com/electric/article/view.php?id=42673http://www.vcharkarn.com/electric/article/view.php?id=42673http://www.vcharkarn.com/electric/article/view.php?id=42673


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Technology

Electricity is a necessity to us but nowadays electricity will bring various technologies

come to help. Technology that most widely used in production of electricity with biomass is

direct-Fired system is the biomass such as husk or wood chips used as a fuel for burns in

boilers. And heat transfer to the boiler and become to the hot steam and high pressure. Which

steam will spin turbines or steam engine that connected to generator causes of incurs

electricity or the production system thermal power. Mainly used in rice industry, sugar

industry and drying agricultural produces. Which point of operation size of power plants

should not be less than 5 MW for this system4.

4Source:region2.prd. (2011, September 14). Biomass power plant. Retrieved from

http://region2.prd.go.th/ewt_news.php?nid=20096&filename=letgogreen

The power of this system burns cleanly and reduces air pollution due to the

combustion chamber burns wood and smoke. This can be used to generate electricity in rural

villages with a good source of raw materials and the development of a large power plant.

4Source: http://nstda.or.th/rural/03tech-urban06.html


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3.2 Corporate Social Responsibility (CSR)

The BPP power plant is expected on effectively performance and to be good organization

of social vision. We are power plant from biomass to produce high quality of electricity,

appropriate cost, and secure. We are driving the corporation social responsibility by

"sustainable development" concept. This is a new direction of development does not expect

on progressive in economic but consider on environment and to be an ally with community

and labor to happy in work. Therefore, the committee of BPP set policies and provide

professional for responsible for corporation social responsibility operation to be a standard of

Thailand. Our policies as following;

In Human Right aspect

o Company will provide redress for community which gets impact from acompany.

In Environment aspect

o The appointment a legal authority about environment for control and check inair pollution, water, and wasting of industry. There is reporting to the

government and have an emergency plan to reduce the impact of the

environment. The process to check the quality of the environment such as air,

water, noise, soil, and variety of biological.

o To appointing a group to energy conservation for managing electricity energy.They have efficiency and saving to reduce the impact of climate change.

There is the communication about management of environmental information

with the social.

o The company choose the clean and efficiency of technology thatenvironmentally-friendly to used in process electric power as well as

compliance with legal and regulation strictly.


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o Green area projectCompany will create add green area project which this project will planting many

perennial in space inside power plant. This project will help a company reduce

amount of carbon dioxide gas. Moreover, this project can increase pure air and

mitigate global warming problem. Besides, perennials can build up good

panorama and environment inside power plant. Officers also work smoothly

because a company has a good atmosphere.

o There is the activity to reduce the waste, recycle, and reuse through variousthe project by bank of recycle consist of project to reduce used plastic and

foam, project exchange plastic to bag, the purchase of used vegetable oil,

biological agriculture sufficient, campaign the environment, reduce to use the

paper. In order to reduce the consumption of resource and pollution in

environment.

In Labor force aspect

o Company will employ local employees for support them to get work andreduce conflict between company and community.

o Company will have public relation about operation of power plant tostakeholders of company.


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In participate and developed with community

o Development community fundThe company have project to establishment of "Development

community funds nearby the power plant" for provide money to develop the

quality life of people and environment. The approach is the community nearby

power plant to be beneficiary. The public have important role to handle these

funds for improve sustainable community. From that approach as above

indicate that the benefit would be to community directly. To build strengthen

to community resulting in the well-being of people in the community better.

o childrens day eventCompany will organize childrens day event inside power plant. This

event will provide exposition about power plant knowledge and there is buses

tour within power plant. Juvenile will learn about step to produce electricity in

each activity that set by company. Besides, this activity can stimulate

conscious of juvenile to think of save energy and focus on important ofenvironment.

o Public health to community projectThe project provides medical service to the public. The company gives

the important in the community that who attend this service do not have to pay

anything in this program. This project has participant of all sector such as local

government, district, and private hospital.

o Local curriculum projectCompany will provide training for teacher in local school about energy

and environment for develop background knowledge of teachers. The goal of

this project is to increase knowledge and understanding of students


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3.3 Sales Forecast/Profit Estimation

3.3.1 Sale forecast

For sales forecast we estimate sales from rate of usage electricity increase in year

2002-2011 for base on information to calculate demand to use electricity in MW include:

Demand to use electricity in Thailand: 2002-2011

Source:http://www.egat.co.th/

We estimate percentage of usage electricity increase. From table, there is increase to useelectricity certainly by average increase about 4%.

Year MW +Increase/-

Decrease

2545 16,681.10 +3.44

2546 18,121.40 +8.63

2547 19,325.80 +6.65

2548 20,537.50 +6.27

2549 21,064.00 +2.56

2550 22,586.10 +7.23

2551 22,568.20 -0.08

2552 22,044.90 +0.12

2553 24,009.90 +8.91

2554 23,900.21 -0.46

Unit: MW (%)


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Type of Biomass Power Plant

Machine have power 10 MW Capacity to produce electricity: 10 MWh (10,000 units per hour) Keep using in firm: 0.7 MWh ( 700 units per hour ) Remained: 9.3 MWh (9300 per units) *(Sale to EGAT)

Capacity to produce electricity per day

Time of use: TOU rate (EGAT)

Price of produce

electricity

Price of transportation

electricityRate all of sale

Peak 2.8322 1.0226 3.8548

Off-peak 2.0424 - 2.0424

Source:http://www.egat.co.th/

Peak period : 09:00-22:00 Monday-Friday (13 hours/day)

Off-peak period : 22:00-09:00 Monday-Friday (11 hours/day)

00:00-24:00 Saturday-Sunday (24 hours/day)


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Calculate sale forecast electricity per day (Monday-Friday)

Peak period9300 unit 3.8548 Baht/units 35,849.64 Baht/hrs

35,849.64 Baht/hrs 13 hrs 466,045.32 Baht/ 13hrs

Total Peak period = 466,045.32Baht/day

Off-Peak period9300 unit 2.0424 Baht/units = 18,994.32Baht/hrs

18,994.32Baht/hrs 11 hrs = 298,937.52 Baht/11hrs

Total Off-Peak period = 298,937.52 Baht/day

Total Peak period + Total Off-Peak period (Monday-Friday)

= 466,045.32 + 298,937.52

= 674,982.84 Baht/day

Calculate sale forecast electricity per day (Saturday-Sunday:24hour)

Off-Peak period9300 unit 2.0424 Baht/units = 18,994.32Baht/hrs

18,994.32Baht/hrs 24 hrs = 455863.68Baht/24hrs


Total Off-Peak period (Saturday - Sunday) = 455,863.68 Baht/day


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Calculate sale forecast electricity per month

1 year = 365 day/year

365 12 = 30 day/ month

Total sale forecast electricity per month:

13,299,656.8 + 3,646,909.44 = 16,946,566.24 Baht/month

Total sale forecast electricity per year:

16,946,566.24 12 = 203,358,794.9 Baht/year

Total sale forecast electricity per 5 years:

203,358,794.9 5 = 1,016,793,974 Baht

Monday-Friday have 20 day per month 674,982.84 20 days = 13,299,656.8 Baht

Saturday-Sunday have 8 day per month 455,863.68 8 days = 3,646,909.44 Baht


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Sale forecast

For UTT Power Plant sale forecast in each month have sale equally because EGAT have condition to purchases same rate with Namthip

Sukhothai Company.

Sale Year 1 (2015)

Jan Feb Mar April May June Jul Aug Sep Oct Nov Dec Total

Electricity 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 203,358,794.9

Month

Product


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Sale Year 2 (2016)


Electricity 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 203,358,794.9

Month

Product


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Sale Year 3 (2017)


Electricity 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 203,358,794.9

Month

Product


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Sale Year 4 (2018)


Electricity 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 203,358,794.9

Month

Product


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Sale Year 5 (2019)


Electricity 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 16,946,566.24 203,358,794.9

Month

Product


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3.4 Marketing Expense

3.4.1 Market tools

Corporate Social Responsibility (CSR)Marketing expense Year 1 (2015)

Description Jan Feb Mar April May June July Aug Sep Oct Nov Dec Total

Capital to redress for

community

- - - - - - - - - - - 100,000 100,000

Green area project 300,000 - - - - - - - - - - 300,000

Development community

fund

1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 20,340

Childrens day event 36,400 - - - - - - - - - - - 36,400

Public health to community

project

- - - - - 100,000 - - - - - - 100,000

Local curriculum project - - 4,500 - - 4,500 - - 4,500 - - 4,500 18,000

Total 574,740


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Marketing expense Year 2 (2016)



community

- - - - - - - - - - - 100,000 100,000


Development communityfund 1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 20,340



project

- - - - - 100,000 - - - - - - 100,000


Total 574,740


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community

- - - - - - - - - - - 100,000 100,000





project

- - - - - 100,000 - - - - - - 100,000


Total 574,740


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community

- - - - - - - - - - - 100,000 100,000





project

- - - - - 100,000 - - - - - - 100,000


Total 574,740


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community

- - - - - - - - - - - 100,000 100,000


Development communityfund

1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 1,695 20,340



project

- - - - - 100,000 - - - - - - 100,000


Total 574,740


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3.5 Marketing Feasibility Analysis Summary

Capital to redress for communityOur company has policy for redress community 100,000 Baht per year. The

considerate of company base on amount of pollution that effect to community and

environment. Moreover, it might be protect for community problem.

Green area project1The establishment green area investing the trees only first times. Apart from that have

expenditure in wage and other material for maintenances .

Development community fundThe calculation the money from capacity of production as 0.01 % / revenue per month

Childrens day even2- The expenditure for decoration in Power Plant 3,000 Bath.- The expenditure for food 15,000 Baht.- The expenditure for 2 boards 1,000 Baht.- The expenditure for give vouchers to children 14.900 Baht.- The expenditure for instructor 500baht/persons. Have 5 instructors = 2,500 Baht.

** (Cost can be change in each year depend on the fluctuation of prices in goods,

food and wage).

1Source: Thongsri, K. (n.d.). Nanagarden. Retrieved from

http://www.nanagarden.com/^1-11.html


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Public health to community project3The company provided medical treatment to the public. All expenditure depend on

amount of people the service. (99baht/person) Measurement from population receiving the

service from these medical around 1,000 persons.

Local curriculum projectThe company employs the professional in the company to be the tutor. Professional

will give knowledge about energy environment for teacher in community.

2Source:http://www.muslimthaipost.com/main/content.php?page=sub&category=104&id=8191

3

Source:http://www.a4lcenter.co.th
http://www.a4lcenter.co.th/http://www.a4lcenter.co.th/http://www.a4lcenter.co.th/http://www.a4lcenter.co.th/


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Part III Technical Analysis

Chapter 4Investment Cost


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Chapter 4: Investment Cost

4.1 Cost of Investment

4.1.1 Pre-Operating Cost

1Source: http://www.bb.go.th

2Source:Local area;Lablae Uttaradit

3Source:Akarawat Co.,Ltd

4.1.2 Investment Cost

Land

Pre-operating cost Total cost

Landscape

Prepare-land cost1- 2 Baht per 1 hectare (1 Rai = 1,600 hectare)

*we use 100 Rai = 160,000 hectare (160,000 hactare 2)

320,000

Cover soil21 dump = 500 Baht

We use 1,200 dump (500 dump 1,200)

600,000

Drawing3 300,000

Fee 681,500

Water4 680,000 Telephone 1,500

Total 1,901,500

4Source: http://www.mwa.co.th/ewt_news.php?nid=301&filename=index


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Our company purchase land 100 Rai at DanMaeKhamMan, Lablae Uttaradit.

Calculation following;

- 55,000 baht per Rai55,000 100 = 5,500,000 baht

Power plant area ( 100Rai )

Total power plant area ( 100Rai )

Manufactory 39 Rai

Warehouse 21 Rai

Area for drying material 14 Rai

Office 400 Hectare or 0.25 Rai

Green area 20 Rai

Car Park 1 RaiOther 4.75 Rai


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BuildingBuilding Cost

- Building cost 10,000 per hectare- Our office have 400 hectare = 4,000,000 baht

(1)

(2)

(3)


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(4)


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An Engineering

Construction Contracting Company (Ware house and Office)

Company name: ch-karnchang.co.th

Address : 587 Viriyathavorn Building, Sutthisarnvinitchai Road, Dindaeng District, Bangkok,

Thailand 10400

Email : [email protected]

Contact : 66(0)-2277-0460, 66(0)-2275-0026

We choose this company because they have famous work and have experience for

long time. Moreover, they have design, construct and consult service and many specialists

team. This company has modern equipments cause of operation process quickly.

Construction Contracting Company (Machine produce electric)

Company name : K.S. GROUP

Address : 587/70 m.2

Email : [email protected]

Contact : (02)-709-748

Monitor : K.Pholakit 081-3573457

We choose this company because they have experience for long time and have

construct power plant many project both Thailand and foreign. So, this company have skill to

design and control all system in power plant. Thus, we have confident to select this company

to construct our project.


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Investment cost Tools / Equipment cost

No. Product Price Unit Cost

1. Stable HS1675+SD120I (Manager) 15,200 6 91,200

2. Stable DBR 18863 4,500 12 54,000

3. Chair MONO SA-47 1,390 28 38,920


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4. Chair PATONG/H 3,200 7 22,400

5. Meeting Table Conference2 29,400 1 29,400

6. Table SQ-6 4,290 1 4,290


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7. Sofa 6,200 2 12,400

8. Dining TableLILY 5,300 1 5,300

9. Computer Dell Inspiron one 19 (T201019TH) 22, 994 9 206,946


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10. Air condition Grand Hybrid GH-20 / 19,400 BTU 33,900 4 135,600

11. Air condition Grand Hybrid GH-25 / 25,400 BTU 41,900 3 125,700

12. BenQ MS614 Projector 15,900 1 15,900


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13. Paper Shredder DWS-1006CD 2,900 1 2,900

14. File cabinet SC1280New 4,290 8 34,320

15. CASIO FR-2650T 1,990 5 9,950


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16. CASIO DJ-240D 725 14 10,150

17. Telephone HT-828 469 8 3,752

18. Time recorder VT-810 6,990 1 6,990


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19. Printer Epson K100 4,300 3 12,900

20. Brother FAX-878 3,090 2 6,180

21. H-403 55 24 1,320

Source: http://www.officemate.co.th


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22. A4 Double A - 80 g. 550 2 1,100

23. Stapler DS-45N 169 12 2,028

24. Max Stapler 1208FA-H 59 24 1,416


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25. TR-2910/U1-24 790 6 4,740

26. Lancer Rally Two 8330 109 2 218

27. H-600G 146 6 876


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28. Plug - Smith 306B 355 3 1,065

29. Extinguisher 940 3 2,820

30. Sink NOVABATH - EP-86004 1,500 2 3,000


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31. AMERICAN STANDARD - TF2775W 3,900 2 7,800

Total Cost 855,581


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4.1.3 Location

Our location of UTT Power Plant is DanMaeKhamMan, Lablae Uttaradit.

Contact with K.Sirisak Janapichai Tel. 085-7187545.Have area 60 rai, faraway from

main road 500 m. This location is plain area, near river and faraway community so,

community dont worry about the effect to community such as pollution. This area

have road through easy to transportation raw material and suitable for build Biomass

Power Plant.


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4.1.4 Facility Layout

1. Warehouse 6. Office2. Energy Machine 7. Car Park

3. Electric Control Room 8. Information

4. Electric Control Room (2) 9.Keepers Box

5. Reservoir


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4.1.5 Machine/Tools/Equipment

We choose K.S. Group Company to construct energy machine because this company

made all construction such as set machine include with maintaining until machine canproduce electricity for sale and have guarantee a machine.

Machine Total cost

Machine

Boiler and ESP system Turbines Cooling water system Steam Condenser Generator Transformer Set process Warehouse

Total 600,000,000

*1MW = 60,000,000 baht


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4.2 Depreciation

Depreciation (Building Cost)First Year 2015

No. Product Price Unit Total cost Depreciation

(Year)

Depreciation

(5%)

Depreciation

(Per month)

1. Factory / Warehouse 600,000,000 1 600,000,000 20 30,000,000 2,500,000

2. Office 4,000,000 1 4,000,000 20 200,000 16,666.67

Total Depreciation cost 30,200,000 2,516,666.67

Second Year 2016


(Year)

Depreciation

(5%)

Depreciation

(Per month)


2. Office 4,000,000 1 4,000,000 20 200,000 16,666.67



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Third Year 2017


(Year)

Depreciation

(5%)

Depreciation

(Per month)


2. Office 4,000,000 1 4,000,000 20 200,000 16,666.67


Fourth Year 2018


(Year)

Depreciation

(5%)

Depreciation

(Per month)


2. Office 4,000,000 1 4,000,000 20 200,000 16,666.67



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Fifth Year 2019


(Year)

Depreciation

(5%)

Depreciation

(Per month)

1. Factory / Warehouse 600,000,000 1 600,000,000 20 29,999,999 2,499,999.92

2. Office 4,000,000 1 4,000,000 20 199,999 16,666.58



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Depreciation (Office Equipment Cost)First Year 2015


(Year)

Depreciation

(20%)

Depreciation

(Per month)

1. Stable HS1675+SD120I (Manager) 15,200 6 91,200 5 18,240 1,520

2. Stable DBR 18863 4,500 12 54,000 5 10,800 900

3. Chair MONO SA-47 1,390 28 38,920 5 7,784 648.67

4. Chair PATONG/H 3,200 7 22,400 5 4,480 373.33

5. Meeting Table Conference2 29,400 1 29,400 5 5,880 490

6. Table SQ-6 4,290 1 4,290 5 858 71.5

7. Sofa 6,200 2 12,400 5 2,480 206.67

8. Dining TableLILY 5,300 1 5,300 5 1,060 88.33

9. Computer Dell Inspiron one 19

(T201019TH)

22, 994 9 206,946 5 41,389.2 3449.1

10. Air condition Grand Hybrid GH-20 /

19,400 BTU

33,900 4 135,600 5 27,120 2260


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25,400 BTU

41,900 3 125,700 5 25,140 2,095

12. BenQ MS614 Projector 15,900 1 15,900 5 3,180 265

13. Paper Shredder DWS-1006CD 2,900 1 2,900 5 580 48.33

14. File cabinet SC1280New 4,290 8 34,320 5 6,864 572

15. CASIO FR-2650T 1,990 5 9,950 5 1,990 165.83

16. Telephone HT-828 469 8 3,752 5 750.4 62.53

17. Time recorder VT-810 6,990 1 6,990 5 1,398 116.5

18. Printer Epson K100 4,300 3 12,900 5 2,580 215

19. Brother FAX-878 3,090 2 6,180 5 1,236 103

Total Depreciation Office Equipment Cost 163,810 13,651


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Second Year 2016


(Year)

Depreciation

(20%)

Depreciation

(Per month)


2. Stable DBR 18863 4,500 12 54,000 5 10,800 900

3. Chair MONO SA-47 1,390 28 38,920 5 7,784 648.67

4. Chair PATONG/H 3,200 7 22,400 5 4,480 373.33


6. Table SQ-6 4,290 1 4,290 5 858 71.5

7. Sofa 6,200 2 12,400 5 2,480 206.67



(T201019TH)

22, 994 9 206,946 5 41,389.2 3449.1


19,400 BTU

33,900 4 135,600 5 27,120 2260


25,400 BTU

41,900 3 125,700 5 25,140 2,095


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15. CASIO FR-2650T 1,990 5 9,950 5 1,990 165.83

16. Telephone HT-828 469 8 3,752 5 750.4 62.53

17. Time recorder VT-810 6,990 1 6,990 5 1,398 116.5

18. Printer Epson K100 4,300 3 12,900 5 2,580 215

19. Brother FAX-878 3,090 2 6,180 5 1,236 103



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Third Year 2017


(Year)

Depreciation

(20%)

Depreciation

(Per month)


2. Stable DBR 18863 4,500 12 54,000 5 10,800 900

3. Chair MONO SA-47 1,390 28 38,920 5 7,784 648.67

4. Chair PATONG/H 3,200 7 22,400 5 4,480 373.33


6. Table SQ-6 4,290 1 4,290 5 858 71.5

7. Sofa 6,200 2 12,400 5 2,480 206.67



(T201019TH)

22, 994 9 206,946 5 41,389.2 3449.1


19,400 BTU

33,900 4 135,600 5 27,120 2260


25,400 BTU

41,900 3 125,700 5 25,140 2,095


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15. CASIO FR-2650T 1,990 5 9,950 5 1,990 165.83

16. Telephone HT-828 469 8 3,752 5 750.4 62.53

17. Time recorder VT-810 6,990 1 6,990 5 1,398 116.5

18. Printer Epson K100 4,300 3 12,900 5 2,580 215

19. Brother FAX-878 3,090 2 6,180 5 1,236 103



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Fourth Year 2018


(Year)

Depreciation

(20%)

Depreciation

(Per month)


2. Stable DBR 18863 4,500 12 54,000 5 10,800 900

3. Chair MONO SA-47 1,390 28 38,920 5 7,784 648.67

4. Chair PATONG/H 3,200 7 22,400 5 4,480 373.33


6. Table SQ-6 4,290 1 4,290 5 858 71.5

7. Sofa 6,200 2 12,400 5 2,480 206.67



(T201019TH)

22, 994 9 206,946 5 41,389.2 3449.1


19,400 BTU

33,900 4 135,600 5 27,120 2260


25,400 BTU

41,900 3 125,700 5 25,140 2,095


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15. CASIO FR-2650T 1,990 5 9,950 5 1,990 165.83

16. Telephone HT-828 469 8 3,752 5 750.4 62.53

17. Time recorder VT-810 6,990 1 6,990 5 1,398 116.5

18. Printer Epson K100 4,300 3 12,900 5 2,580 215

19. Brother FAX-878 3,090 2 6,180 5 1,236 103



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Fifth Year 2019


(Year)

Depreciation

(20%)

Depreciation

(Per month)

1. Stable HS1675+SD120I (Manager) 15,200 6 91,200 5 18,239 1,519.92

2. Stable DBR 18863 4,500 12 54,000 5 10,799 899.92

3. Chair MONO SA-47 1,390 28 38,920 5 7,783 648.58

4. Chair PATONG/H 3,200 7 22,400 5 4,479 373.25

5. Meeting Table Conference2 29,400 1 29,400 5 5,879 489.92

6. Table SQ-6 4,290 1 4,290 5 857 71.42

7. Sofa 6,200 2 12,400 5 2,479 206.58



(T201019TH)

22, 994 9 206,946 5 41,388.2 3449.02


19,400 BTU

33,900 4 135,600 5 27,119 2259.92


25,400 BTU

41,900 3 125,700 5 25,139 2,094.92


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12. BenQ MS614 Projector 15,900 1 15,900 5 3,179 264.92


14. File cabinet SC1280New 4,290 8 34,320 5 6,863 571.92

15. CASIO FR-2650T 1,990 5 9,950 5 1,989 165.75

16. Telephone HT-828 469 8 3,752 5 749.4 62.45

17. Time recorder VT-810 6,990 1 6,990 5 1,397 116.42

18. Printer Epson K100 4,300 3 12,900 5 2,579 214.92

19. Brother FAX-878 3,090 2 6,180 5 1,235 102.92

Total Depreciation Office Equipment Cost 163,791 13,649.25


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Chapter 5

Production and

Operations Analysis


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Chapter 5: Production and Operations Analysis

5.1 Product characteristics (in Detail)

Main product of Biomass Power Plant is the Electricity.

Electricity

Source: http://www.tatgreenheart.com/archives/3058

Main Component in Biomass Power Plan (machine system)

Source: http://www.trueenergy.co.th/biomass.html


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1. Boiler2. Fuel handing System3. Ash handing System4. Steam Turbine and Generator5. Water Treatment System6. Control and Instrument7. Transmission Line

5.2 Production process

1. When you receive bagasse that take biomass fuel transport to combustion chamberboiler to produce stream.

2. High pressure steam will continue to spin turbines that connect to generate electricity.3. Steam that through a steam turbine remaining heat. It will be through the condenser to

change to the water and re-fill the boiler to re-produce steam to use in the system

again. The heated cooling water from the condenser will sent to a cooling tower for

cooling and re-circulating to the cooling water in the system.

4. Electrostatic precipitator fly ash and hot steam will pass through the electrostaticPrecipitator (ESP) to trap dust before discharge to the outside.

5. Ashes stored in the trap will be loaded into containers and packaged in strong andenclosed packaging to deliver to customer such as agricultural industries, cement

industries and construction industries.

Electricity production

Source: http://www.trueenergy.co.th/biomass.html


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Operation Cost

Year : 2015

Direct

Materials*

Jan Feb Mar April May June July Aug Sep Oct Nov Dec Totals

Bagasse 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000

Husk 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000

Total cost 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 54,000,000

DirectLabors


Salaries

andwages

192,000 192,000 192,000 192,000 192,000 192,000 192,000 192,000 192,000 192,000 192,000 192,000 2,304,000

Total

cost

2,304,000

Overhead Jan Feb Mar April May June July Aug Sep Oct Nov Dec Totals

Factory

Depreciation

3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 39,999,999.96

Indirect

labors

322,800 322,800 322,800 322,800 322,800 322,800 322,800 322,800 322,800 322,800 322,800 322,800 3,873,600

Totals Cost 3,656,133.33 3,656,133.33 3,656,133.33 3,656,133.33 3,656,133.33 3,656,133.33 3,656,133.33 3,656,133.33 3,656,133.33 3,656,133.33 3,656,133.33 3,656,133.33 43,873,599.96


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Year : 2016

Direct

Materials*


Bagasse 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000

Husk 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000

Total cost 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 54,000,000


Factory

Depreciation

3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 39,999,999.96

Factory

Utilities

- - - - - - - - - - - - -

Indirect

labors

324,414 324,414 324,414 324,414 324,414 324,414 324,414 324,414 324,414 324,414 324,414 324,414 3,892,968

Totals Cost 3,657,747.33 3,657,747.33 3,657,747.33 3,657,747.33 3,657,747.33 3,657,747.33 3,657,747.33 3,657,747.33 3,657,747.33 3,657,747.33 3,657,747.33 3,657,747.33 43,892,976.96

Direct

Labors


Salariesand

wages

192,960 192,960 192,960 192,960 192,960 192,960 192,960 192,960 192,960 192,960 192,960 192,960 2,315,520

Total

cost

2,315,520


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Year: 2017

DirectMaterials*


Bagasse 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000

Husk 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000

Total cost 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 54,000,000


FactoryDepreciation

3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 39,999,999.96

Factory

Utilities

- - - - - - - - - - - - -

Indirectlabors

326,036 326,036 326,036 326,036 326,036 326,036 326,036 326,036 326,036 326,036 326,036 326,036 3,912,432

Totals Cost 3,659,369.33 3,659,369.33 3,659,369.33 3,659,369.33 3,659,369.33 3,659,369.33 3,659,369.33 3,659,369.33 3,659,369.33 3,659,369.33 3,659,369.33 3,659,369.33 43,912,431.96

DirectLabors


Salaries

and

wages

193,925 193,925 193,925 193,925 193,925 193,925 193,925 193,925 193,925 193,925 193,925 193,925 2,327,100

Total

cost

2,327,100


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Year: 2018

DirectMaterials*


Bagasse 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000

Husk 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000

Total cost4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000

54,000,000


Factory

Depreciati

on

3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 39,999,999.96

FactoryUtilities

- - - - - - - - - - - - -

Indirect

labors

329,296 329,296 329,296 329,296 329,296 329,296 329,296 329,296 329,296 329,296 329,296 329,296 3,951,552

Totals

Cost

3,662,629.33 3,662,629.33 3,662,629.33 3,662,629.33 3,662,629.33 3,662,629.33 3,662,629.33 3,662,629.33 3,662,629.33 3,662,629.33 3,662,629.33 3,662,629.33 43,951,551.96

Direct

Labors


Salaries

and

wages

195,864 195,864 195,864 195,864 195,864 195,864 195,864 195,864 195,864 195,864 195,864 195,864 2,350,368

Totalcost

2,350,368


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Year : 2019

DirectMaterials*


Bagasse 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000

Husk 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000

Total cost 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 54,000,000


Factory

Deprecia

tion

3,333,333.25 3,333,333.25 3,333,333.25 3,333,333.25 3,333,333.25 3,333,333.25 3,333,333.25 3,333,333.25 3,333,333.25 3,333,333.25 3,333,333.25 3,333,333.25 39,999,999

FactoryUtilities

- - - - - - - - - - - - -

Indirect

labors

332,589 332,589 332,589 332,589 332,589 332,589 332,589 332,589 332,589 332,589 332,589 332,589 3,991,068

Totals

Cost

3,665,922.25 3,665,922.25 3,665,922.25 3,665,922.25 3,665,922.25 3,665,922.25 3,665,922.25 3,665,922.25 3,665,922.25 3,665,922.25 3,665,922.25 3,665,922.25 43,991,067

DirectLabors


Salaries

and

wages

197,823 197,823 197,823 197,823 197,823 197,823 197,823 197,823 197,823 197,823 197,823 197,823 2,373,876

Total

cost

2,373,876


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*Reference

Cost of Raw material

Cost per Ton

Bagasse 300 BahtHusk 300 Baht

Our company buys bagasse from THAI IDENTITY SUGAR INDUSTRY.Contact: 055-407-241

Our company buys husk from T.Prasert Uttaradit Co., Ltd.Contact: K.Tai 084-3608173

Raw material to produce electricity

Per Day Per Mouth Per Year

Bagasse 250 Ton 7,500 Ton 90,000 Ton

Husk 250 Ton 7,500 Ton 90,000 Ton

Bagasse 1 : Husk 1

Note: Cost of material to produce electricity calculates by use ratio from Thipsukhothai Bio

Energy. (This company produces electricity 38 MW and use raw material 1,800 per day)

Reference of Salary

- In 20152017 Salary increase in 0.5%- In 20182019 Salary increase in 1%


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5.3.1 Logistic Management

Nowadays logistics has important of role to run business related to storage, procedure

to produce and delivery supply chain is integrated for implementing the business.

Biomass Power Plant use logistic for management the procedure to produce by

transportation bagasse to our factory. Our company will transport raw material by outsource.

Our company use Wanna Agricultural Company to transportation.

Company Wanna Agricultural companyAddress 41 M.10 T.MaeSai, Amphoe.MaeSai,

Chiangrai

Contract 053-731744 ,089-9551469


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Cost of transportation

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Truck 1 2,475,000 2,475,000 2,475,000 2,475,000 825,000 825,000 825,000 825,000 825,000 825,000 2,475,000 2,475,000 19,800,000

2 2,475,000 2,475,000 2,475,000 2,475,000 825,000 825,000 825,000 825,000 825,000 825,000 2,475,000 2,475,000 19,800,000

3 2,475,000 2,475,000 2,475,000 2,475,000 825,000 825,000 825,000 825,000 825,000 825,000 2,475,000 2,475,000 19,800,000

4 2,475,000 2,475,000 2,475,000 2,475,000 825,000 825,000 825,000 825,000 825,000 825,000 2,475,000 2,475,000 19,800,000

5 2,475,000 2,475,000 2,475,000 2,475,000 825,000 825,000 825,000 825,000 825,000 825,000 2,475,000 2,475,000 19,800,000

Total 99,000,000

NovemberApril ( 6 month )

Bagasse Husk

1 round = 2,500 Baht ( 25 Ton per round )

1 day = 22 round

1 round = 2,500 Baht ( 25 Ton per round )

1 day = 11 round

MayOctober ( 6 month )

Husk

1 round = 2,500 Baht ( 25 Ton per round )1 day = 11 round


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5.3.2Facility Management

Electricity

We are using the electricity from capacity that we can produce (average 0.7

MW per day). We calculate electricity usage depend on machine in the power plant,

electrical appliances and light in the office.

Computer

Computer use to make business in part of information compile and send

important information to customers.

Telephone

Telephone use to contract communication with customer and within

organization for convenience in operation.

Calculator

Calculator use to calculate other cost of accounting.

Fax

Fax use to send and receive document from customer or other organization.

Printer

Printer bring to electronic document and use to printing or copy important

document.


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89

Chapter 6

Administration

Analysis


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Chapter 6: Administration analysis

Organization chart

Board of directors

Riskmanagement

committee

Human resources andremuneration

committee

ChiefExecutive

officer

Audit

committee

Chief

operating

officer

Chief

financial

officer

Control

engineering

Design

engineering

Maintenance

engineeringAccounting

Manager

Management

Manager

Electrical

engineering


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6.1 Management analysis

Salary ( financial division)

1. Chief financial officer (50,000 up depend on capabilities and experiences)2. Accounting manager ( 30000-35000 Baht)

Responsibilities

Set of accounting functions, including accounting policy, month/quarter-endclosing, financial reporting, management reporting, budgeting, and taxation.

Prepare statutory reports and fillings Manage continual improvement of accounting operation process and standard

procedure

Supports budget and forecasting activities.

Monitors and analyzes department work to develop more efficient proceduresand use of resources while maintaining a high level of accuracy.

Qualification

Male or female over 30 years. Bachelor s degree in accounting. 5 years in accounting system. Leadership skill

3. Management manager (30000-35000 Baht)Responsibilities

Gather and organize information on problems or procedures. Analyze data gathered and develop solutions or alternative methods of

proceeding.

Prepare manuals and train workers in use of new forms, reports, procedures orequipment, according to organizational policy.

Design, evaluate, recommend, and approve changes of forms and reports. Plan study of work problems and procedures, such as organizational change,

communications, information flow, integrated production methods, inventory

control, or cost analysis.

Qualification

Male or female over 30 years. Master degree in business administration. 5 years experiences about operation. Good command both English and Thai.


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4. Accountant 2 position (15000-18000 Baht)Responsibilities

Report to management regarding the finances of establishment.

Establish tables of accounts and assign entries to proper accounts. Maintain or examine the records of government agencies. Analyze business operations, trends, costs, revenues, financial commitments,

and obligations, to project future revenues and expenses or to provide advice.

Develop, maintain, and analyze budgets, preparing periodic reports thatcompare budgeted costs to actual costs.

Qualification

Female 2535 years Bachelor s degree in accounting. Fluent in Computer literature i.e. Ms. Excel

5. Office management division 1 position (15000-18000 Baht)Responsibilities

Answer telephones and give information to callers, take messages, or transfercalls to appropriate individuals.

Create, maintain, and enter information into databases. Set up and manage paper or electronic filing systems, recording information,

updating paperwork, or maintaining documents, such as attendance records,

correspondence, or other material.

Maintain scheduling and event calendars. Schedule and confirm appointments for clients, customers, or supervisors.

Qualification

Female 2535 years Bachelor s degree in business administration of related field. Fluent in Computer literature i.e. Ms. Excel Communicating effectively in writing as appropriate for the needs of the

audience.


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6. Human resource division 1 position (15000-18000 Baht)Responsibilities

Prepare or maintain employment records related to events such as hiring,termination, leaves, transfers, or promotions, using human resources

management system software.

Interpret and explain human resources policies, procedures, laws, standards, orregulations.

Hire employees and process hiring-related paperwork. Schedule or conduct new employee orientations.

Qualification

Male or female 2537 years Bachelor s degree in business administration , Human resource management

or related field.

Services mind and understand sense of urgency. Interpersonal skill and problem solving skills.

7. Cooperate relation division 1 position (1500018000 Baht )Responsibilities

Respond to requests for information from the media or designate anappropriate spokesperson or information source.

Establish or maintain cooperative relationships with representatives ofcommunity, consumer, employee, or public interest groups.

Prepare or edit organizational publications for internal and external audiences,including employee newsletters and stockholders' reports.

Consult with advertising agencies or staff to arrange promotional campaigns inall types of media for products, organizations, or individuals.

Qualification

Female 2332 years Bachelor s degree infaculty of arts , faculty of journalism or related field. Interpersonal skill and problem solving skills. Good spoken and written in English.


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8. Security guard 6 position ( 85009000 Baht )Responsibility

Monitor and authorize entrance and departure of employees, visitors, and otherpersons to guard against theft and maintain security of premises.

Operate detecting devices to screen individuals and prevent passage ofprohibited articles into restricted areas.

Escort or drive motor vehicle to transport individuals to specified locations orto provide personal protection.

Qualification

Male 2538 years.

Healthy9. House keeper 2 position ( 85009000 Baht )

Responsibilities

Wash windows, walls, ceilings, and woodwork, waxing and polishing asnecessary.

Dust and polish furniture and equipment. Notify managers concerning the need for major repairs or additions to buildingoperating systems. Service, clean, or supply restrooms.

Qualification

Female over 30 years Have responsibility and diligent.


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Salary ( operating division)

1. Chief operating officer (50,000 up depend on capabilities and experiences)

2.Construction management team 4 position ( 30,000 Up depend on capability and

experience )

2.1 design engineer

Responsibilities

Plan and design project about mechanical and electrical Analysis problem about product Design purchase order in mechanical and electrical. Finding the distributor

and offer the procurement/employment relate with the installation

Monitoring about document

Supported in any activities in organization Design on electrical system in organization Advisor about electrical energy

Qualification

Maleover 23 years old Graduated in Bachelors degree about engineering course Have experience will be considering before Have knowledge in law of environment and Standard system ISO 9001/2008

and ISO 14001

2.2 electrical engineer

Responsibilities

Create report about administration in save energy to other related government. Control and organize in electrical system under the pattern of project. Create in power circuit. Control the operation of labors to following in project. Monitoring about installation and meeting with customer. Solving problem in work.


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Qualification

Male , Age not over than 30 years. Electrical engineer Bachelor or Master degree 2-5 years. Experience in preparation of engineering documentation. Good relation and willing to work as team work

2.3 Maintenance engineer

Responsibilities

Manage and control maintenance cost Responsible for fulfillment and follow up the maintenance system according

ISO9001

Looking for room of improvement of all tooling /equipment and plant utilitywith new update technology

Looking for cost saving project Coordination with production department/others for the smooth operation of

production/others activities

Control and ensure the optimum spare parts, materials and tools that necessaryfor maintenance, breakdown, etc.

Qualification

Male 25-32 years old with 3 years experience up Bachelors degree in Mechanical/Electrical Engineering or equivalent Capable of handling multiple priorities and tasks and able to work under

pressure

Good problem solving skills, including ability to identify and resolve issues achallenges

2.4 Mechanical engineering

Responsibilities

Reporting to maintenance Manager, Mechanical Section Head. Maintain and repair all mechanical equipment in the plant in safe, efficient,

economical and timely manner.

Insuring that all mechanical equipment stay well maintained and in safe workingorder.


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Qualification

Male, Age not over than 32 years. Mechanical engineer or Industrial Technology or equivalent Bachelor or Master

degree 2-5 years.

Experience in power plant maintenance will be considering before.3. Mechanical Plant 3 position ( 12000 Up depend on capability and experience)

Responsibilities

Repair the general mechanical system in the power plant . Check and test value of electrical in the work shop and onsite. Test run motor. Record information from test run motor. Connect and disconnect at substation. Turn on-off mechanical system on time. Keep information Offer the solution and comment for improve job. Protection in problem Maintenance and follow the rules in safety and environment

Qualification

Male, Age between 22-32 years old. Bachelors degree in Mechanical/Electrical Engineering or equivalent. Good healthy. Do not be allergy Can be work in part time Have responsible and attitude for public

4. Electrician 3 position ( 12000 Up depend on capability and experience)

Responsibilities

Repair the general electric system in the power plant Check and test value of electrical in the work shop and onsite Connect and disconnect at sub station Turn on-off electrical system on time Keep information of using electrical statistic Offer the solution and comment for improve job. Protection in problem Maintenance and follow the rules in safety and environment


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Qualification

Male, Age between 22-32 years old Bachelors degree in Mechanical/Electrical Engineering or equivalent Good healthy. Do not be allergy Can be work in part time Have responsible and attitude for public

5.Gardener 2 position (9900 Baht)

Responsibilities

Maintain or repair tools, equipment, or structures, such as buildings, greenhouses,fences, or benches, using hand or power tools.

Mix and spray or spread fertilizers, herbicides, or insecticides onto grass, shrubs,or trees, using hand or automatic sprayers or spreaders.

Provide proper upkeep of sidewalks, driveways, parking lots, fountains, planters,burial sites, or other grounds features.

Qualification

Male , Age between 28-45 years old Love the service have a good interpersonal skills

Source: http://www.jobthai.com

Source: http://www.onetonline.org/


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6.2 Facilities Cost

Electricity

We using the electricity from capacity that we can produced (average 0.7 MW per

day). We calculate electricity usage depend on machine in the power plant , electricalappliances and light in the office.

One peak MondaySunday from 09.00 AM to 17.00 AM

Off peak MondaySunday from 17.00 AM. to 9.00 AM.

**Ref. Thai Numtip energy Co.Ltd producing electrical for 26 MW. used own

electricity about 2 MW. Therefore, our power plant producing electricity for 10 MW. used

own electricity about 0.7 MW.

Computer

Computer use to make business in part of information compile and send important

information to customers.

Cost of computer is 22,994 baht per each computer.

Depreciation of computer is 4,598 baht per each computer.

Telephone

Telephone use to contract communication with customer and within organization for

convenience in operation.

Calculating telephone expenses

Telephone usage = times to call * telephone fee

= 300 * 3

= 900

** Telephone fee 3 baht per time


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Calculator

Calculator use to calculate other cost of accounting.

Cost of calculator is 1,990 baht per each calculator. Depreciation of calculator is 398 baht per each calculator.

Fax

Fax use to send and receive document from customer or other organization.

Cost of fax is 3,090 baht per each fax. Depreciation of fax is 618 baht per each fax.

Printer

Printer bring to electronic document and use to printing or copy important document.

Cost of printer is 4,300 baht per each printer. Depreciation of printer is 860 baht per each printer.


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Part IV Financial and Risk Analysis

Chapter 7

Financial

Analysis


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Electricity Generating Authority of Thailand (EGAT) announces increase power

purchase rate for a fixed rate based on the type of fuel VSPP for 7 years following1;

Biomass 0.3 Baht/kwh Water (50-200 kw) 0.4 Baht/kwh Water (


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Calculate sale forecast electricity per day (Saturday-Sunday:24hour)

Off-Peak period9,300 unit 2.3424 Baht/units = 21,784.32Baht/hrs

21,784.32Baht/hrs 24 hrs = 522,823.68Baht/24hrs


Total Off-Peak period (Saturday - Sunday) = 522,823.68 Baht/day

Calculate sale forecast electricity per month

1 year = 365 day/year

365 12 = 30 day/ month

Total sale forecast electricity per month:

14,838,856.8 + 4,182,589.44= 19,021,446.24 Baht/month

Total sale forecast electricity per year:

19,021,446.24 12 = 228,257,354.9 Baht/year

Total sale forecast electricity per 5 years:

228,257,354.9 5 = 1,141,286,775 Baht

Monday-Friday have 20 day per month 741,942.84 20 days = 14,838,856.8 Baht

Saturday-Sunday have 8 day per month 522,823.68 8 days = 4,182,589.44 Baht


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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Sale

Sale 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 228,257,354.88

Total Sale 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 228,257,354.88

Cost of goods sold

Raw material 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 54,000,000

Logistic 2,475,000 2,475,000 2,475,000 2,475,000 825,000 825,000 825,000 825,000 825,000 825,000 2,475,000 2,475,000 19,800,000

Salary514,800 514,800 514,800 514,800 514,800 514,800 514,800 514,800 514,800 514,800 514,800 514,800

6,177,600

Total Cost of goods sold 7,489,800 7,489,800 7,489,800 7,489,800 5,839,800 5,839,800 5,839,800 5,839,800 5,839,800 5,839,800 7,489,800 7,489,800 79,977,600

Gross Margin 11,531,646.24 11,531,646.24 11,531,646.24 11,531,646.24 13,181,646.24 13,181,646.24 13,181,646.24 13,181,646.24 13,181,646.24 13,181,646.24 11,531,646.24 11,531,646.24 148,279,755

Operatating Expense

Marketing Expense 338,095 1,695 6,195 1,695 1,695 106,195 1,695 1,695 6,195 1,695 1,695 106,195 574,740

Depreciation 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 30,363,812

Telephone 900 900 900 900 900 900 900 900 900 900 900 900 10,800

Internet 631.3 631.3 631.3 631.3 631.3 631.3 631.3 631.3 631.3 631.3 631.3 631.3 7,576

Total Operating Expense 2,869,943.97 2,533,543.97 2,538,043.97 2,533,543.97 2,533,543.97 2,638,043.97 2,533,543.97 2,533,543.97 2,538,043.97 2,533,543.97 2,533,543.97 2,638,043.97 30,956,928

Income before tax 8,661,702.27 8,998,102.27 8,993,602.27 8,998,102.27 10,648,102.27 10,543,602.27 10,648,102.27 10,648,102.27 10,643,602.27 10,648,102.27 8,998,102.27 8,893,602.27 117,322,827

Income Taxes (20%) - - - - - - - - - - - 23,464,642.97 23,464,642.97

Net Income 8,661,702.27 8,998,102.27 8,993,602.27 8,998,102.27 10,648,102.27 10,543,602.27 10,648,102.27 10,648,102.27 10,643,602.27 10,648,102.27 8,998,102.27 14,571,040.70- 93,858,184.27

Retain Earning ( 50% ) 4,330,851.14 4,499,051.14 4,496,801.14 4,499,051.14 5,324,051.14 5,271,801.14 5,324,051.14 5,324,051.14 5,321,801.14 5,324,051.14 4,499,051.14 7,285,520.35- 46,929,092.14

Divident Payment ( 50% ) 4, 330, 851.14 4,499,051.14 4,496,801.14 4,499,051.14 5,324,051.14 5,271,801.14 5,324,051.14 5,324,051.14 5,321,801.14 5,324,051.14 4,499,051.14 7,285,520.35- 46,929,092.14

For the Year Ended December 31,2015

UTT.Power Company

Income Statement


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Sale

Sale 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 228,257,354.88

Total Sale 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 228,257,354.88

Cost of goods sold

Raw material 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 54,000,000

Logistic 2,475,000 2,475,000 2,475,000 2,475,000 825,000 825,000 825,000 825,000 825,000 825,000 2,475,000 2,475,000 19,800,000

Salary 517,374 517,374 517,374 517,374 517,374 517,374 517,374 517,374 517,374 517,374 517,374 517,374 6,208,488

Total Cost of goods sold 7,492,374 7,492,374 7,492,374 7,492,374 5,842,374 5,842,374 5,842,374 5,842,374 5,842,374 5,842,374 7,492,374 7,492,374 80,008,488

Gross Margin 11,529,072.24 11,529,072.24 11,529,072.24 11,529,072.24 13,179,072.24 13,179,072.24 13,179,072.24 13,179,072.24 13,179,072.24 13,179,072.24 11,529,072.24 11,529,072.24 148,248,867

Operatating Expense

Marketing Expense 338,095 1,695 6,195 1,695 1,695 106,195 1,695 1,695 6,195 1,695 1,695 106,195 574,740

Depreciation 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 2,530,317.67 30,363,812

Telephone 900 900 900 900 900 900 900 900 900 900 900 900 10,800

Internet 631.3 631.3 631.3 631.3 631.3 631.3 631.3 631.3 631.3 631.3 631.3 631.3 7,576

Total Operating Expense 2,869,943.97 2,533,543.97 2,538,043.97 2,533,543.97 2,533,543.97 2,638,043.97 2,533,543.97 2,533,543.97 2,538,043.97 2,533,543.97 2,533,543.97 2,638,043.97 30,956,928

Income before tax 8,659,128.27 8,995,528.27 8,991,028.27 8,995,528.27 10,645,528.27 10,541,028.27 10,645,528.27 10,645,528.27 10,641,028.27 10,645,528.27 8,995,528.27 8,891,028.27 117,291,939

Income Taxes (20%) - - - - - - - - - - - 23,464,642.97 23,464,642.97

Net Income 8,659,128.27 8,995,528.27 8,991,028.27 8,995,528.27 10,645,528.27 10,541,028.27 10,645,528.27 10,645,528.27 10,641,028.27 10,645,528.27 8,995,528.27 14,573,614.70- 93,827,296.27

Retain Earning ( 50% ) 4,329,564.14 4,497,764.14 4,495,514.14 4,497,764.14 5,322,764.14 5,270,514.14 5,322,764.14 5,322,764.14 5,320,514.14 5,322,764.14 4,497,764.14 7,286,807.35- 46,913,648.14

Divident Payment ( 50% ) 4, 329, 564.14 4,497,764.14 4,495,514.14 4,497,764.14 5,322,764.14 5,270,514.14 5,322,764.14 5,322,764.14 5,320,514.14 5,322,764.14 4,497,764.14 7,286,807.35- 46,913,648.14

For the Year Ended December 31,2016

UTT.Power Company

Income Statement


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Sale

Sale 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 228,257,354.88

Total Sale 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,021,446.24 19,02

Draft: Section1 Seat5 UTT Power Plant

Documents

Transcript of Draft: Section1 Seat5 UTT Power Plant