EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market...

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EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN ASEM Green Independent Power Producers (IPPs) Network – First Regional Workshop 24-25 October 2002, Sofitel Silom, Bangkok, Thailand Ludovic Lacrosse: Project Coordinator Romel M. Carlos: Financial Advisor Mr. Thomas Hernoe: Environmental Advisor EC-ASEAN COGEN Programme Asian Institute of Technology, Energy Bldg., PO Box 4 Klong Luang, Pathumthani 12120 Thailand Tel: +662 524 5399; Fax: +662 524 5396 Website: http://www.cogen3.net; E-mail: [email protected]

Transcript of EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market...

Page 1: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN

ASEM Green Independent Power Producers (IPPs) Network – First Regional Workshop24-25 October 2002, Sofitel Silom, Bangkok, Thailand

Ludovic Lacrosse: Project CoordinatorRomel M. Carlos: Financial Advisor

Mr. Thomas Hernoe: Environmental Advisor

EC-ASEAN COGEN ProgrammeAsian Institute of Technology, Energy Bldg., PO Box 4

Klong Luang, Pathumthani 12120 ThailandTel: +662 524 5399; Fax: +662 524 5396

Website: http://www.cogen3.net; E-mail: [email protected]

Page 2: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

• Market conditions and outlook for biomass in ASEAN

• Barriers and possible solutions

OutlineOutline

Page 3: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

An economic cooperation programme: European Commission (EC) & Association of South East Asian Nations (ASEAN)

• Funded by the EC (25 M €)• Implementation: January 2002 – December 2004• Coordinated by Asian Institute of Technology (AIT) & SYCON-Carl Bro • 3rd Phase (COGEN 3)

• Objectives:• Increase the use of cogeneration in ASEAN • Promote the use of proven, clean and efficient European cogeneration

technology• Create business opportunities for cogeneration within the ASEAN

industrial sectors using biomass, coal and gas as fuels

EC-ASEAN COGEN ProgrammeEC-ASEAN COGEN ProgrammeEC-ASEAN COGEN ProgrammeEC-ASEAN COGEN Programme

Page 4: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

ASEAN - Electricity Sector ReformASEAN - Electricity Sector Reform

Page 5: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Biomass fuels Available in ASEANBiomass fuels Available in ASEANRice husk, Sugar bagasse, Palm oil, Pulp and paper

Rice husk, Sugar bagasse, Palm oil, Pulp and paper

Rice husk, Wood residuesRice husk, Wood residues

Rice husk, Sugar bagasse, Pulp and paper, Wood residuesRice husk, Sugar bagasse, Pulp and paper, Wood residues

Rice husk, Palm oil, Wood residuesRice husk, Palm oil, Wood residues

n.a.n.a.

Rice husk, Sugar bagasse, Palm oil, Pulp and paper, Wood residues

Rice husk, Sugar bagasse, Palm oil, Pulp and paper, Wood residues

Rice husk, Sugar bagasse, Palm oil, Pulp and paper, Wood residues

Rice husk, Sugar bagasse, Palm oil, Pulp and paper, Wood residues

Rice husk, Wood residuesRice husk, Wood residues

n.a.n.a.

Page 6: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Energy situation

• Old cogeneration plants (20 to 50 years) with low pressure boilers and less efficient turbines

• Not possible to sell electricity in the past

• Seasonal operation using only bagasse

Emerging trend

• Need to replace old cogeneration system

• Good potential for high pressure boilers and efficient turbines

• Excess power exported to grid

• Use of multi-fuel boilers and plant operation throughout the year

• Already few sugar mills started implementing efficient cogeneration

Sugar millsSugar millsProcess energy required:25-30 kWh/tonne of sugarcane0.4 tonne of steam

Waste:290 kg Bagasse ~ 100 kWh

1 tonne of sugarcane

100 - 121 kgsugar

Page 7: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Sugar industries: Fuel availability and cogeneration potential

Sugar industries: Fuel availability and cogeneration potential

Country Sugar cane production (1,000 tonnes)

Bagasseproduction

(1,000 tonnes)

Max. Power Generation Potential (GWh/year)

Indonesia 31,000 8,990 2,997

Philippines 21,000 6,090 2,030

Thailand 54,000 15,660 5,220

Vietnam 12,000 3,480 1,160

Total 118,000 34,220 11,407

Bagasse = Sugar cane * 0.29; 1 kWh = 3 kg of bagasse (including steam for process)

Page 8: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Energy situation• Only few plants implemented so far

• Revenue from ash sales

• Rice husk plants are also fired with wood waste and bagasse

• Dumping or open burning is common

Emerging trend• Good potential for high pressure boilers

and efficient turbines

• Excess power exported to grid

• Separate isolated plants generating only power is also popular

Rice millsRice millsProcess energy required:

Paddy milling and drying: 30-60 kWh/tonne paddy

1 tonne ofpaddy

650-700 kgwhite rice

Waste:220 kg husks ~ 150 kWh

Page 9: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Rice industries:Fuel availability and cogeneration potential

Rice industries:Fuel availability and cogeneration potential

Country Paddy production (1,000 tonnes)

Rice husk production(1,000 tonnes)

Max. Power Generation Potential (GWh/year)

Indonesia 51,000 11,220 7,480

Malaysia 2,000 440 293

Philippines 11,000 2,420 1,613

Thailand 22,000 4,840 3,227

Vietnam 28,000 6,160 4,107

Total 114,000 25,080 16,720

Rice husk = Paddy * 0.22; 1 kWh = 1.5 kg of rice husk (including steam for process)

Page 10: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Rice husk plant in ThailandRice husk plant in Thailand

2.5 MW Steam turbine

Boiler: Capacity 17 tph, 35 bar, 420 oC

In operation since 1997

COGEN phase 2 Full Scale Demonstration Project

Steam used for drying of rice paddy

Ash sold to steel industries (export)

Rice husk plant in ThailandRice husk plant in Thailand

2.5 MW Steam turbine

Boiler: Capacity 17 tph, 35 bar, 420 oC

In operation since 1997

COGEN phase 2 Full Scale Demonstration Project

Steam used for drying of rice paddy

Ash sold to steel industries (export)

Page 11: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Energy situation

•Old cogeneration plants (20 to 50 years) with low pressure boilers and less efficient turbines

•Not possible to sell electricity in the past

•Seasonal operation using only fibre and shell

Emerging trend

•Need to replace old cogeneration system

•Good potential for high pressure boilers and efficient turbines

•Excess power exported to grid

•Use of empty fruit bunches, fibre and shell

•Plant operation throughout the year

•Already few palm oil mills started implementing efficient cogeneration systems

Palm oil millsPalm oil mills

1 tonne of freshfruit bunches

Process energy required:20-25 kWh/t0.73 tonne of steam

Waste:600-700 kg POME ~ 20 m3 biogas190 kg fibers + shells230 kg empty fruit bunches

200 kgpalm oil

1 tonne of freshfruit bunches

Process energy required:20-25 kWh/t0.73 tonne of steam

Waste:600-700 kg POME ~ 20 m3 biogas190 kg fibers + shells230 kg empty fruit bunches

200 kgpalm oil

Page 12: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Palm oil industries: Fuel availability and cogeneration potential

Palm oil industries: Fuel availability and cogeneration potential

Country FFB production (1,000 tonnes)

Residue production(1,000 tonnes)

Max.Power Generation Potential (GWh/year)

Indonesia 25,000 10,500 4,200

Malaysia 42,000 17,640 7,056

Philippines 300 126 50

Thailand 2,300 966 386

Total 69,600 29,232 11,693

Residue = Fresh Fruit Bunch * 0.42; 1 kWh = 2.5 kg of residues (including steam for process)

Page 13: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Energy situation

• Inefficient boilers for heat requirements

• Very few power/cogeneration plants implemented

• Bark and other wood processing wastes are more common

• Saw mills and ply mills generate large amount of waste (up to 50%)

Emerging trend

• Good potential for high pressure boilers and efficient extraction condensing turbines

• Used together with rice husk, sugar bagasse and coal

• Excess power exported to grid

• Plant operation throughout the year

Wood industriesWood industries

Page 14: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Wood complex in MalaysiaWood complex in Malaysia

1.5 MW steam turbine• Condensing 900 kW• Back pressure 600 kW

Boiler: Capacity 16 tph, 22 bar, 280oC

In operation since 1995

COGEN phase 2 Full Scale Demonstration Project

Steam is used for timber drying

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Wood complex in MalaysiaWood complex in Malaysia

1.5 MW steam turbine• Condensing 900 kW• Back pressure 600 kW

Boiler: Capacity 16 tph, 22 bar, 280oC

In operation since 1995

COGEN phase 2 Full Scale Demonstration Project

Steam is used for timber drying

-

Page 15: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Sector Biomass Coal Nat.gas TotalPulp and paper 3 2

IPP and utility 5 4

Textile 1 1 2

Rice mill 4

Pineapple 1

Sugar 8

Cement 1

Rubber 1

Gas and oil companies

Palm oil 6

Wood industri 2

Hotels, cheramics, chemical 2

Recycling 1

Biogas 1

Total no. of projects 33 7 10 50

Total MW 563 MW 84 MW 487 MW 1,134 MW

MinMax

0.6 MW150 MW

9 MW 45 MW

0.08 MW 350 MW

What is going on in ASEANWhat is going on in ASEAN

Page 16: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

• Technical

• Human

• Information

• Organisation

BarriersBarriers

Page 17: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Components Barriers Possible solution

Technical

lack of successful references seen as complicated to operate the quality of biomass as a fuel

is not homogeneous

implementation of demonstration projects

suppliers to simplify operation; training of operators

adequate testing of samples

Human energy not a core business of potential users

risk of being the first to fail

create awareness of benefits and opportunities

references in similar environment; demonstration projects

Page 18: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

Components Barriers Possible solution

I nformation

lack of institutions giving information and advice

lack of awareness among users on government rules and incentives

not enough technical and economic information to make a decision

strengthening of relevant networks

information drive availability of funds or services

to conduct feasibility studies

Organisation

structure of the industry - size of mills - transportation problems - seasonality

uncertainty of biomass fuel supply

policy, legal and government issues

financial barriers

thorough investigation of these aspects in the feasibility of projects

initiatives to boost yield and

productivity government incentives/

support measures? innovative financial strategies;

government incentives?

Page 19: EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN.

EC-ASEAN COGEN Programme Phase IIIClean Efficient Biomass, Coal, Gas

Cogeneration

For more information, please visit COGEN 3 Web Site at:-

http://www.cogen3.net

Thank You!