Cogeneration potential in ASEAN and opportunities for European suppliers

Transcription

1 Cogeneration potential in ASEAN and opportunities for European suppliers Seminar on COGEN 3: A Business Facilitator Malmö Cannes - London

2 Outline Cogeneration potential in ASEAN Cogeneration technology in ASEAN Business opportunities and what is going on in ASEAN What to focus on for European suppliers

3 Ways to look at cogeneration potential Technical potential: Total possible effect on basis of energy demands Commercial potential: Technical potential reduced so only commercial viable projects are included sensitive to preconditions Niches: Look at incentive programmes, interesting sectors, interesting fuels, market regulations etc. How to describe the potential Total potential in electric effect Number and size of units

4 Cogeneration potential determined by demand of steam / heat and electricity Limitations in ASEAN now: Lack of updated and consistent statistics of energy demands in industries and buildings Also lack of basic energy data for individual industries and buildings COGEN 3 country coordinators will collect information Sector overview: Certain sectors suitable because of demand of steam/heat and electricity

5 Industry Sectors suitable for cogeneration (1) Sector Steam and heat requirements Temp. ( C) Press. (bar) Form Chemical Plastic sheets and products < 200 S / HW Smoked rubber sheets, blocks, and crape rubber HA Rubber products < 200 S / HW / HA Chemicals, medicine and toiletries < 200 S / HW Food Beverage S / HW Animal feeds < 200 S / HA Vegetable oils, animal oils, fats S / HA Tapioca flour and pellets < 210 S / HA Bread, cookies, noodles < 180 S Milk S Fruit , 6, 10 S Frozen food, food canning S S = steam HA = hot air HW = hot water

6 Sectors suitable for cogeneration (2) Industry Sector Steam and heat requirements Temp. ( C) Press. (bar) Form Agro and wood Palm oil Pulp and paper < S S Rice mill S Wood S / HA Sugar S Other Petrochemical (lube based oil) , 13.8 S Textile < 270 S S = steam HA = hot air HW = hot water

7 Large potential in ASEAN Electricity liberalisation and deregulation Growth in electricity consumption in ASEAN Lack of capacity: New capacity is needed

8 Potential for cogeneration Biomass potential depending on: Availability, resources and location of fuel Development and other users in sector and region Fossil fuels potential depending on: Electricity, heat and steam demands Infrastructure

9 Biomass fuels available in ASEAN: Agricultural residues Bagasse, palm oil, rice husk Pulp & Paper Black liquor and wood residues Wood residues Biomass available in ASEAN Forestry residues from saw mills (bark, saw dust, offcuts) and wood industries Food industry residues and organic waste

10 Clean Efficient Biomass, Coal, Gas Cogeneration Biomass Fuels Available in ASEAN Rice husk, Sugar bagasse, Palm oil, Pulp and paper Rice husk, Wood residues Rice husk, Sugar bagasse, Pulp and paper, Wood residues Rice husk, Wood residues Rice husk, Palm oil, Wood residues n.a. Rice husk, Sugar bagasse, Palm oil, Pulp and paper, Wood residues n.a. Rice husk, Sugar bagasse, Palm oil, Pulp and paper, Wood residues

11 Biomass fuels characteristics Rice husk Sector Residues Moisture Content (% dry basis) Mineral Content (% dry basis) LHV (MJ/kg) Rice Husks Sugar Bagasse Sugar bagasse Palm Oil Fresh fruit bunch Fibres Shells Palm oil fibres Wood Shavings, off-cuts, etc

12 ASEAN gas pipelines and gas reserves Reserves in trillion Standard Cubic Feet

13 Trans-ASEAN gas pipelines Pipeline systems in operation, under implementation or agreed on: Peninsular Gas Utilisation System (the whole length of Peninsula Malaysia, from Thailand to Singapore) Malaysia to Singapore Pipeline Myanmar (Yadana) to Thailand Myanmar (Yatagun) to Thailand MTJA to Malaysia and Thailand Malaysia- Vietnam Joint Area to Vietnam and Malaysia West Natuna (Indonesia) to Singapore South Sumatra to Singapore South Sumatra to Java Malam Paya to Manila (Malam Paya can later be connected to Malaysia fields in Sabah) Source:

14 LPG and LNG in ASEAN LPG: Liquified Petroleum Gas LNG: Liquified Natural Gas Many production units in region Mainly used for transportation and residential purposes For cogeneration: Quick set-up Low investment in infrastructure Higher running costs

15 LPG and LNG in ASEAN Source:

16 Coal in ASEAN Mainly import from Indonesia, Australia and China Domestic coal in Vietnam, Thailand and Philippines Logistic demands: Handling and road transport much cheaper than in Europe Environmental trends: Demands similar to Europe financing and country regulations Government and local resistance to some coal project

17 Cogeneration Potential Conclusion Some countries have bigger potential than others for specific fuels and sectors: Vietnam for coal projects Indonesia, Malaysia, Philippines, Thailand and Vietnam for biomass projects Brunei, Indonesia, Malaysia, Singapore, and Thailand for natural gas projects Large potential in ASEAN Technical and commercial viable cogeneration potential hard to determine No decision is based solely on statistics, but on individual evaluation COGEN 3 can help finding interesting markets and actual projects Clarifying questions?

18 Outline Cogeneration potential in ASEAN Cogeneration technology in ASEAN Business opportunities and what is going on in ASEAN What to focus on for European suppliers

19 Cogeneration application Biomass based industries Coal and natural gas based

20 Sugar mills: Energy situation Old cogeneration plants (20 to 50 years) Low pressure boilers 20 to 30 bar and less efficient back pressure turbine Not possible to sell electricity in the past Seasonal operation using only bagasse 1 tonne of sugarcane Process energy required: kwh/tonne of sugarcane 0.4 tonne of steam kg sugar Waste: 290 kg Bagasse ~ 100 kwh

21 Sugar mills: Emerging trend Need to replace old cogeneration system Good potential for high pressure (over 60 bar, C) boilers and efficient extraction condensing turbines Excess power exported into grid Use of multi-fuel boilers Plant operation throughout the year Already few sugar mills started implementing high pressure boilers and efficient turbo generator systems

22 Sugar industries: Fuel availability and cogeneration potential Country Sugar cane production (1,000 tonnes) Bagasse production (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)

23 Rice mills: Energy situation Only few plants implemented so far Revenue from ash sales (50 to 100 USD/ton) Rice husk is also fired with wood waste and bagasse Dumping or open burning is also common Process energy required: Paddy milling and drying: kwh/tonne paddy 1 tonne of paddy kg white rice Waste: 220 kg husks ~ 150 kwh

24 Rice mills: Emerging trend Good potential for high pressure (over 30 bar, C) boilers and efficient extraction condensing turbines Good potential to generate excess power to export to grid Separate isolated plants generating only power is also popular

25 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, 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)

26 Rice husk plant in Thailand 2.5 MW Steam turbine Boiler: Reciprocating inclined grate type. Capacity 17 tph, 35 bar, 420 o C In operation since 1997 (COGEN phase 2 Full Scale Demonstration Project) Steam used for drying of rice paddy By-product: Ash sold to steel industries (export)

27 Palm oil mills: Energy situation Old cogeneration plants (20 to 50 years) Low pressure boilers 20 to 30 bar and less efficient back pressure turbine Not possible to sell electricity in the past Seasonal operation using only fibre and shell 1 tonne of fresh fruit bunches Process energy required: kwh/t 0.73 tonne of steam 200 kg palm oil Waste: kg POME ~ 20 m 3 biogas 190 kg fibers + shells 230 kg empty fruit bunches

28 Palm oil mills: Emerging trend Need to replace old cogeneration system Good potential for high pressure (over 30 bar, C) boilers and efficient extraction condensing turbines Excess power exported into grid Use of empty fruit bunches, fibre and shell Plant operation throughout the year Already few palm oil mills started implementing high pressure boilers and efficient turbo generator systems

29 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 Thailand 2, Total 69,600 29,232 11,693 Residue = Fresh Fruit Bunch * 0.42; 1 kwh = 2.5 kg of residues (including steam for process)

30 Wood industries: 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%)

31 Wood industries: Emerging trend Good potential for high pressure (over 40 bar, C) boilers and efficient extraction condensing turbines Used together with rice husk, sugar bagasse and coal Excess power exported into grid Plant operation throughout the year

32 Wood complex in Malaysia 1.5 MW steam turbine condensing 900 kw back pressure 600 kw Boiler: Capacity 16 tph, 22 bar, 280 o C In operation since 1995 (COGEN phase 2 Full Scale Demonstration Project) Steam is used for timber drying

33 Fossil fuel cogeneration: Types of projects Individual industries (process heat) very similar to European projects Individual buildings (cooling, hot water) District cooling for buildings Industrial estates (process heat, water)

34 Cooling in buildings Kuala Lumpur Inter- national Airport (Malaysia) 40 MW cogeneration: 2 x 20 MW gas turbines with heat recovery steam generators 2 x 25 tons/hr standby Auxiliary Gas Boilers Natural gas Absorption Chillers: Total cooling capacity 35,000 RT Supplies distributed cooling: Airport buildings (chilled water at 6 o Celsius)

35 Petronas Tower (452 m) Cooling in buildings Petronas Tower Kuala Lumpur (Malaysia) 6 x Centrifugal chillers 5,000 RT each 3 x Steam turbine driven 3 x Electric-driven units Natural gas Supplies distributed cooling to: Petronas offices (Petroleum company) Connected buildings

36 Industrial estates Industrial estate: Usually located in zones (taxexemption) close to natural gas supply, habours and water supply Wide range of public utilities and services available Energy needs in industrial estates fits well with cogeneration Larger cogeneration plants possible Multi-user of steam / heat and electricity

37 Map Ta Phut Industrial Estate, Thailand Area 9.6 sq. km Located 200 km southeast of Bangkok in Rayong Provice Location close to sea Natural gas pipeline 80 MVA substation 115 or 22 kv transmission line from Map Ta Phut Hybrid Cogeneration using coal and natural gas

38 Hybrid cogeneration plant in Map Ta Phut (Thailand) (1) 514 MW electricity 6 x 35 MW gas turbines 2 x 152 MW steam turbines 2 x Circulating Fluidised Bed Boilers 4 x Heat Recovery Units Primary fuels: Natural gas Indonesian bituminous coal Back up fuel: Diesel oil In operation since 2000 Supplies: Electricity, steam (200 tph) and demineralised water (150 m3/h) to industrial estate and the plant Electricity to grid

39 Hybrid cogeneration plant in Map Ta Phut (2) One of the largest IPP investments in Southeast Asia Base-load power to state utility Electricity Generating Authority of Thailand (EGAT) under a 25-year Power Purchase Agreement (PPA) PPA provides EGAT with secure power at a reasonable price Provides the sponsors with a secure return on investment

40 Outline Cogeneration potential in ASEAN Cogeneration technology in ASEAN Business opportunities and what is going on in ASEAN What to focus on for European suppliers

41 Driving forces for ASEAN facilities to implement cogeneration Developer or owner exploring new business opportunities Utility grid power Reliability, quality, cost Geographical factors Market deregulation Environmental requirements Incentives (IPP, SPP,CDM etc.) Solve waste problems Environment-friendly image

42 What is going on in ASEAN Sector Biomass Coal Nat.gas Total Pulp and paper 3 2 IPP and utility 5 4 Textile 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 Total MW 563 MW 84MW 487 MW 1,134 MW Min Max 0.6 MW 150 MW 9 MW 45 MW 0.08 MW 350 MW

43 What is going on in ASEAN Projects in advanced stage have been negotiating or signed contracts with suppliers Less developed projects have no commitment to specific suppliers Pipeline projects

44 How to find business opportunities Locate interesting market segments fitting own products Focus on specific sectors and/or fuels Partner with local suppliers Relationship is paramount

45 Useful sources of information COGEN 3: Programme Management Unit Country Coordinators European Focal Point Industrial and sector organisations Vendors of information Board of Investments Incentive programmes Independent Power Producer and Small Power Producer (Thailand) Small Scale Renewable Energy Programme (Malaysia)

46 Service-based International Competitiveness Key Factors Key Capabilities How do you rate your company? 1. Company s international, global or local reputation 2. Availability (local market presence, a pre-requisite) 3. Pre-sales services (quotation, reception, telephone, documents) 4. Related products & services (offering a complete package) 5. Payment terms & conditions (financial, loan, leasing facilities) 6. Lead time & delivery timetable (project completion risks) 7. End-user manual & instruction book 8. Product design (compact, user-friendliness) 9. Maintenance (contract, guarantees: effective local presence) 10.After-sales services (spare parts, availability, response time)

47 Outline Cogeneration potential in ASEAN Cogeneration technology in ASEAN Business opportunities and what is going on in ASEAN What to focus on for European suppliers

48 Equipment Fuel handling systems Boilers (incl. HRSG) Steam turbines Gas-turbines Gas engines Generators Core Equipment Competitors Japan, USA, Australia, Korea and China

49 Supporting systems Equipment Control and monitoring systems Ash and residue handling Water treatment Emission control Other service systems Remarks Regional and local suppliers Trend - Share of local supply

50 Competitive Advantages of European Technology Long experience Front edge technology Advanced emission control Image Life cycle cost Efficiency Availability Operation and Maintenance cost

51 Life Cycle Costs Life Cycle Costs (LCC) are all costs from project inception to disposal of equipment Net Present Value: Investments Fuels Other Variable Costs Fixed Costs Outage Costs Reinvestments

52 EU technology competitiveness challenges Fuels International competition After sales Legislations and standards Personnel requirements Culture and language

53 What is going on in ASEAN Sector Biomass Coal Nat.gas Total Pulp and paper 3 2 IPP and utility 5 4 Textile 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 Total MW 563 MW 84 MW 487 MW 1,134 MW Min Max 0.6 MW 150 MW 9 MW 45 MW 0.08 MW 350 MW

54 Actual Few big Several medium Some small Future Few big Some medium Many small? Number r of Plants Biomass units Number of Biomass fired Plant projects versus size of Plant Plant Size (MW)

55 What to Focus on Financing Types of plants Complete solutions Local partnership After sales Reputation

56 Summary Cogeneration potential in ASEAN Cogeneration technology in ASEAN Business opportunities in ASEAN What to focus on for European suppliers