Engineering aspects of a pellet production facility

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1 2nd Biomass & Pellets Update Asia Engineering aspects of a pellet production facility Possible association to cogeneration with ORC Victam Asia 2012

2 THE COMPANY PRODESA is a Global partner for complete WOOD PELLET plants, BIOMASS dryers and BIOMASS fueled CHP. PRODESA supplies turn key plants to treat several products and wastes, in the following areas: Thermal drying processes Biomass pelletizing Biomass CHP Gas treatment PRODESA staff consists of a professional team that allows our company to cover all the stages of our projects: Process engineering Basic and detailed engineering Laboratory analysis Manufacturing Erection and commissioning Maintenance Technical after-sales assistance

3 0.- THE OBJECTIVE: EXCELLENCE THREE DIFFERENT QUALITIES

4 0.- THE OBJECTIVE: EXCELLENCE QUALITY PARAMETERS

5 I.- WOOD PELLETS MANUFACTURING LOGS CHIPS SAWDUST RAW MATERIAL COGENERATION PLANT Hot Water DEBAKER CHIPPER HAMMERMILL BELT DRYER STORAGE PELLETS PELLETIZING LINE BUFFER SILO MILLING

6 I.- Wood pellets manufacturing: DEBARKING For all shapes of logs Capacities up to 100 ton/h Very low residual content of bark Minimun fiber loss Very low maintenance required Continuous operation 24 hours/day

7 I.- Wood pellets manufacturing: DEBARKING

8 I.- Wood pellets manufacturing: DEBARKING

9 I.- Wood pellets manufacturing: CHIPPING Rotor diameter up to mm Capacities up to m3/h of woodchips Continuous operation 24 hours/day

10 I.- Wood pellets manufacturing: CHIPPING

11 I.- Wood pellets manufacturing: wood chips milling Powered up to 560 kw Very low maintenance required Continuous operation 24 hours/day

12 I.- Wood pellets manufacturing: wood chips milling

13 I.- Wood pellets manufacturing: SCREENING Disc Screen Vibrating conveyor and metal detector

14 I.- Wood pellets manufacturing: WET PRODUCT STORAGE

15 I.- Wood pellets manufacturing: DEBARKING+CHIPPING+RECHIPPING

16 I.- Wood pellets manufacturing: THERMAL DRYING 1.- Drum dryer High temperature 2.- Belt dryer Low temperature Drying technology under the license of

17 I.- Wood pellets manufacturing: THERMAL DRYING 1.- Drum dryer. High temperature. Capacities up to 50 ton/h of water evaporation High quality of the final product Widely extended technology Low energetic consumption Complete automatic control of the process Wet product Fuel Air primary Dry product

18 I.- Wood pellets manufacturing: THERMAL DRYING 1.- Drum dryer. High temperature.

19 2.- Belt dryer. Low temperature. I.- Wood pellets manufacturing: THERMAL DRYING Capacities up to 20 ton/h of water evaporation Capable to use residual low temperature energy Very low emissions Modular design High quality of the dry product Minimum fire risk Continuous operation

20 I.- Wood pellets manufacturing: THERMAL DRYING 2.- Belt dryer - USE OF LOW TEMPERATURE RESIDUAL ENERGY HOT WATER 120 C LOW PRESSURE STEAM bar abs HOT AIR Dry air < 120 C

21 I.- Wood pellets manufacturing: THERMAL DRYING 2.- Belt dryer - MODULAR DESIGN

22 2.- Belt dryer - COMPONENTS I.- Wood pellets manufacturing: THERMAL DRYING

23 I.- Wood pellets manufacturing: THERMAL DRYING 2.- Belt dryer. Low temperature. Vielsan (B) 2 x 205 m 2 Hot water from an ORC 90ºC/70ºC 2 x 10 ton/h evaporation

24 I.- Wood pellets manufacturing: DRY PRODUCT STORAGE ü Moisture content homogenization ü Flexibility in working hours: drying vs pelletizing ü Mechanical durability PELLET QUALITY

25 I.- Wood pellets manufacturing: MILLING and PELLETIZING

26 Pneumatic product infeed I.- Wood pellets manufacturing: MILLING

27 Hammer mill I.- Wood pellets manufacturing: MILLING

28 Pneumatic product outlet I.- Wood pellets manufacturing: MILLING

29 I- Wood pellets manufacturing: PELLETIZING

30 Die and rollers I- Wood pellets manufacturing: PELLETIZING

31 I- Wood pellets manufacturing: PELLETIZING

32 I- Wood pellets manufacturing: PELLET COOLING AND SCREENING

33 I.- Wood pellets manufacturing

34 I.- Wood pellets manufacturing

35 I.- Wood pellets manufacturing

36 I- Wood pellets manufacturing: BAGGING LINE

37 I- Wood pellets manufacturing: PELLET SILOS

38 II.- CHP: ORC COGENERATION 100 % Thermal energy in the thermal oil 78 % Thermal energy 20 % Electric energy 2 % Thermal losses(radiation and generator losses) Ø Net electric efficiency: close to 20% Ø Total energetic efficiency: 98%

39 II.- ORC COGENERATION: WOOD PELLETS MANUFACTURING

40 II.- ORC Cogeneration: Scheme Thermal oil boiler ORC Biomass boiler feeding

41 II.- ORC Cogeneration: Scheme ORC Thermal oil boiler

42 Pellets production associated to an ORC cogeneration CONSIDERATIONS Moisture of raw material 50% Ambient temperature 10 ºC Working hours 7500 hours/year ORC MODEL GROSS ELECTRIC POWER THERMAL POWER PELLETS PRODUCTION metric TON/ H metric TON/YEAR CHP kw 1844 kw 1, CHP kw 2600 kw 2, CHP kw 3060 kw 2, CHP kw 4100 kw 3, CHP kw 5350 kw 5, CHP kw 7850 kw 7, CHP kw 9630 kw 9, CHP kw kw 11, CHP kw kw 15,

43 III.- ECONOMICAL STUDY: Pellets production associated to an ORC cogeneration Raw material Fuel Pellets output Working hours PROCESS DATA 50% H2O Barks and forest biomass Storage silos + Bagging and wrapping line hours/year

44 III.- ECONOMICAL STUDY: Pellets production associated to an ORC cogeneration PAY BACK (years) ,14 0,16 0,18 0,20 0,22 0,24 0,26 0,28 0,30 0,32 0,34 Electric Kwh Salles Price Fuel LHV Fuel cost CHP-4 CHP-6 CHP-7 CHP-10 CHP-14 CHP-18 CHP-22 ASSUMPTIONS BTU/lb (3,2 kw/kg) 16 $/m.ton (5.21 /MW) Raw material cost $/m.ton Electricity cost 0.1 $/kwh Pellet price 167 $/m.ton Amortization period 10 year Interest rate 4%

45 V.- CHP APPLICATION: WOOD PELLET PRODUCTION WITH ORC Economical Study I 4 3 CHP - 14 PAYBACK vs ELECTRIC Kwh SALES PRICE Fuel LHV ASSUMPTIONS BTU/lb (3,2 kw/kg) Raw material cost $/m.ton Electricity cost 0,1 $/kwh Pellet price 167 $/m.ton Amortization period 10 year Interest rate 4% Payback (years) ,14 0,16 0,18 0,20 0,22 0,24 0,26 0,28 0,30 0,32 0,34 Electric Khw Sales Price Fuel price 0 $/m.ton 14 $/m.ton 28 $/m.ton 42 $/m.ton 56 $/m.ton 70 $/m.ton 83 $/m.ton

46 III.- ECONOMICAL STUDY: Pellets production associated to an ORC cogeneration PAYBACK (years) PAYBACK vs PELLET PRICE PELLET PRICE ($/m. ton) Fuel LHV Fuel cost CHP-4 CHP-6 CHP-7 CHP-10 CHP-14 CHP-18 CHP-22 HYPHOTESIS Raw material cost Electricity cost Electricity sales price Amortization period BTU/lb (3,2 kw/kg) 16 $/m.ton (7.24 $/MW $/ m.ton 0.1 $/kwh 0,166 $/kwh 10 year Interest rate 4%

47 III.- ECONOMICAL STUDY: Pellets production associated to an ORC cogeneration Raw material Fuel Pellets output Working hours CONSIDERATIONS 50% H 2 O Bark and forest biomass Bulk from silos and plastic bags in pallets hours/year

48 III.- ECONOMICAL STUDY: Pellets production associated to an ORC cogeneration Payback (years) PAYBACK vs ELECTRIC Kwh SALES PRICE LCP fuel Fuel price CONSIDERATIONS Raw material cost Electric buyer price Pellet price Amortization period kcal/kg (3,2 kw/kg) 30 /ton (9,375 /MW) 40 /ton 0,08 /kwh 150 /ton 10 years ,10 0,12 0,14 0,16 0,18 0,20 0,22 0,24 Electric Kwh SALES PRICE ( /Kwh) CHP-7 CHP-10 CHP-14 CHP-18 CHP-22

49 III.- ECONOMICAL STUDY: Pellets production associated to an ORC cogeneration CHP - 10 PAYBACK vs ELECTRIC Kwh SALES PRICE Fuel LCP CONSIDERATIONS Fuel price Electric Kwh buyer price Pellet price Amortization period kcal/kg (3,2 kw/kg) 30 /ton 0,08 /kwh 150 /ton 10 años 7 Payback (years) ,10 0,12 0,14 0,16 0,18 0,20 0,22 0,24 Electric Kwh sales price ( /Kwh) Raw material cost 0 /ton 20 /ton 30 /ton 40 /ton 50 /ton 60 /ton

50 Fuel LCP III.- ECONOMICAL STUDY: Pellets production associated to an ORC cogeneration Raw material price CONSIDERATIONS Fuel price Electric Kwh buyer price Amortization period kcal/kg (3,2 kw/kg) 40 / ton 30 / ton 0,08 / Kwh 10 años PAYBACK vs PELLET PRICE PAYBACK vs PELLETS PRICE REE mínimo REE mínimo REE máximo REE máximo Payback (years) Payback (years) Pellets price ( /Ton) Pellets price ( /Ton) CHP-6 CHP-7 CHP-10 CHP-7 CHP-10 CHP-14 CHP-18 CHP-22 CHP-14 CHP-18 CHP-22

51 THANK YOU VERY MUCH FOR YOUR ATTENTION For further information please contact JOSE IGNACIO PEDRAJAS