Biomass and Decentralised Energy: Challenges and Benefits

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1 Renewable Energy Asia 2013 Bangkok (June 5, 2013) Biomass and Decentralised Energy: Challenges and Benefits Ludovic Lacrosse Director WADE THAI

2 About WADE - The World Alliance for Decentralised Energy (WADE) is a non-profit research, promotion and advocacy organisation. Established in Mission: accelerate the worldwide deployment of high-efficiency cogeneration, on-site power and decentralized energy systems. - WADE is supported by: - National DE/Cogen organisations; - Private companies.

3 About WADE THAI Thai Non Profit Organisation, established in Mission: - Promote the development, implementation and dissemination of DE in Thailand and in the region; - Support power sector reform to eliminate barriers to DE and creates real market opportunity for DE; - Provide its Members and supporters with value added market intelligence, information and business opportunities. 3

4 About Decentralized Energy (DE)? Decentralized Energy (DE) is the high efficiency production of electricity (and heating/cooling whenever possible) near the point of use, irrespective of size or technology and type of fuel. Fuels: Gas, Wind, Solar, Biomass, Hydro and/or coal.

5 Why Decentralized Energy (DE)? DE brings power closer to the people, specially those located in remote areas. It reduces GHG emissions thanks to a lower fuel consumption. Here are the main benefits of DE, as compared to CG: - DE is more efficient; - DE is cheaper; - DE is cleaner; - DE is more reliable; - DE is more secure.

6 DE Renewable Technologies Fuel Cells Biomass On-site wind Municipal Waste Rooftop PV

7 GRID Import or Export Electricity supply Cogeneration System ~ Air Fuel Water Returned to CHP Plant Steam Supply to factory process Cool Exhaust Gas Waste heat recovery unit (WHRU) Gas-turbine-based Cogeneration Plant size usually based on heat requirement Additional fuel burnt at the entry to the WHRU. if required Electricity excess exported for extra revenue or shortfall imported Exhaust heat can also be used for; Cooling (air-con) Direct drying District heating Gas Turbine Generating Set Overall Plant Efficiency : up to 77%

8 Why Cogeneration? Energy Cost Savings Security of Supply Environmental protection Flexibility of operations Energy costs can be a high proportion of the product cost in many industries. Cogeneration/tri-generation can reduce the energy costs by up to 40%. Cogeneration/tri-generation can increase the reliability of power supply. Production processes need to avoid unscheduled shutdown. The high overall thermal efficiency of cogeneration or tri-generation minimizes the production of carbon dioxide. Other exhaust emissions can be controlled by the use of low emission combustion technology. Optimize your operation, dependent on fuel and electricity prices, factory power and heat load.

9 DE Renewable Technologies Fuel Cells Biomass On-site wind Municipal Waste Rooftop PV

10 DE Biomass - Sugarcane bagasse, - Rice husks, - Palm Oil wastes (Empty Fruit Bunches, Fibers and Shells), - Wood wastes, - Corn cobs, - Coconut husks and shells, - Cassava Rhizome, -.

11 Fuel Cells DE Biomass

12 2 Rice husk based power generation years ago, just a few plants implemented (few MWe max) Captive power plants Value of rice husks very low Revenue from ash sales Rice mills 1 tonne of paddy Process energy required: Paddy milling and drying: kwh/tonne paddy Waste: 220 kg husks ~ 150 kwh kg white rice Current trend More and more rice husk based power plant thanks to SPP programme Higher capacity (9-10 MW) Power exported to grid Rice husks traded as a commodity

13 2.5 MW Rice Husk-fired Power Plant Competent service at its best Location: Nakorn Rachasima, Thailand Capacity: 2.5 MWe Steam boiler : 17 tph, 35 bar, 420 o C Condensing Turbine

14 2.5 MW Rice Husk-Fired Power Plant

15 10 MW Rice Husk-fired Power Plant Competent service at its best Location: Pathumtani, Thailand Upgrading from 2.8 MW to 9.8 MW Boiler 1: 35 tph, 19 bar, 360 oc Boiler 2: 20 tph, 19 bar, 360 oc Condensing turbine

16 2.0 MW Rice Husk-fired Power Plant Competent service at its best Location: Ang Snoul, Cambodia Capacity: 2.0 MWe Boiler: 17 tph, 40 bar, 380 C Condensing turbine

17 1.5 MW Rice Husk-fired Cogeneration Plant Location: Perak, Malaysia Capacity: 1.5 MW Boiler: 12 tph, 25 bar, 300 C Extraction condensing turbine

18 8 Cogeneration in Palm Oil Mills Palm oil mills Up to recently, old cogeneration plants (20 to 50 years) using old inefficient technology: low pressure boilers and back-pressure turbines Captive plants, i.e. no sales of electricity to the grid Seasonal operation using only fibres and shells Current trend New high pressure boilers and efficient turbines implemented (+/- 10 MW) Excess power exported to grid Use of empty fruit bunches, fibres and shells Plant operation throughout the year 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

19 1.2 MW Cogen Plant in Palm Oil Mill Location: Johor, Malaysia Capacity: 1.2 MWe Boiler: 35 tph, 23 bar, saturated Back Pressure Turbine (4.1 bar)

20 1.2 MW Cogen Plant in Palm Oil Mill

21 14 MW Competent Cogeneration service its best Plant in Palm Oil Mill Location: Sabah, Malaysia Capacity: 14 MW cogen plant Boiler: 80 tph, 58 bar, 402 C Extraction Condensing Turbine

22 2 14 MW Cogen Plant In Palm Oil Mill

23 3 Sugar mills Bagasse-based cogeneration Up to 10 years ago, low efficiency cogen plants with low pressure boilers and inefficient turbines Limited sales of electricity to the grid Seasonal operation using bagasse only Current trend Replacement of old cogeneration system by higher pressure boilers and extraction condensing turbines Excess power (65-75%) exported to grid Use of multi-fuel boilers and plant operation throughout the year 1 tonne of sugarcane Process energy required: kwh/tonne of sugarcane 0.4 tonne of steam Waste: 290 kg Bagasse ~ 100 kwh kg sugar

24 41 MW Bagasse-fired Cogen Plant Location: Dan Chang, Thailand Capacity: 41 MW Boiler: 2x120 tph, 68 bar, 510 C Extraction Condensing Turbine

25 41 MW Bagasse-fired Cogen Plant

26 2 Major Development in Sugar Sector Aspects Previous Current Equipment Pressure Level bar 380 C bar 520 C Boiler Efficiency < 80% > 90% Plant Thermal Efficiency < 60% > 70% Flexibility in load change low High Multi Fuel Firing no Yes Control System Manual or Semi Auto Full Computerized Operators Skill Fair Trained & Skilled Project Management Unorganized Professional

27 Development of Bagasse Power Plants in Thailand First SPP regulation was announced 1994 First Biomass Power Plant supply to grid 8 MW non-firm by a sugar mill 2001 Start feasibility study of high pressure cogeneration 2004 First high pressure (70 bar 510 C co-generation in biomass power plant First PPA achieving firm contract with 29 MW First 105 bar 520 C cogeneration in biomass power plant 2

28 2 Management Challenges Current New Scheme Main Concern Internal production External customer Efficiency Low priority Major concern Engineering In-house Out-sourced Investment Low High People Recruitment Compensations Sugar industry Power sector Communication Informal Formal Need a new management concept!

29 9 Challenges Institutional and legal - Appropriate framework, PPA, FiT, Technical - Identify appropriate technology, suppliers and qualified manpower Financial - Financial structuring, capital/loan mobilisation Managerial

30 0 Benefits Economics - Revenue from power sales Socio-economical - Support to rural development, job creation, Technological - Technology transfer, development of new skills Environmental - Locally (cleaner technologies) and globally (GHG emission reduction)

31 1 Conclusions There is still offer an enormous potential for biomass cogeneration, especially the sugar, palm oil and rice sectors. Modern, clean and efficient cogeneration technologies exist and are being implemented. There is a still a need for adjustment of the regulatory frameworks and for fair electricity buy-back rates from power utilities.

32 THANK YOU!