WtE - Gasification for the Rice Milling Sector in Cambodia

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1 WtE - Gasification for the Rice Milling Sector in Cambodia SNV Development Organization Ira Larasaty WtE Programme Leader

2 WtE - Gasification for the Rice Milling Sector in Cambodia Introduction Chapter 1 Background Chapter 2 The Programme Chapter 3 What do we support? Chapter 4 Outputs Chapter 5 Hard facts Chapter 6 Message 2

3 Background: RHG development 27 WtE project 43 RHG Stopped 116 RHG installations 28 Switched to grid 2 Upgraded system Source of data: Survey RHG investment report, June 2014.

4 Actors and Policies in the power sector MME Strategies EAC Regulator EDC Operator IPP generation o No policies and plans for Renewable energy technologies o EDC purchases electricity produced in rural areas from IPPs at 12 cent/kwh

5 Background Rice Husk Gasifiers were first introduced in Cambodia in 2004 when the electricity in rural area was USD 0.75 to 1.00 per kwh. The Cambodian rice milling industry is not competitive with neighboring countries due to the high cost of processing and logistics of which energy price is a significant part. The rice milling has potentially 1.6 million metric tones of rice husk available that could be converted into energy (at present only about 10% of the rice husk is utilized as biomass) Power production cost is low (USD 0.10 per kwh)

6 Background Estimated 20,000 tonnes of rice husk converted into energy that reduces 4.5 million litters of diesel and over 40 thousand tonnes of CO2 equivalents per year. Every ton of milled fragrant rice alone would result in $US 137/ton of which $US 123 in workers income and $US 14 in taxes Environmentally-friendly technology, reduction of 1 litter of diesel save 3.1kg CO2 equivalents and the decay husk produces methane, a GHG 21 times higher

7 The Programme To create a rice milling operation that is both competitive and responsible environmentally Promote sustainable production of milled rice through replication of WtE technologies in the rice milling sector Promote sustainable consumption of milled rice by consolidating fragmented guidelines into a single operational industry standard with policy makers, SME s and financial sector actors together in a multi-stakeholder platform.

8 Boundary Location: 9 provinces around the TonleSap Project partners: SMERe, NPIC, FCRMA and MIH-ISC Associates: CEDAC (Centre d'etude et de Développement Agricole Cambodgien), NEXUS C4D, AF BTB, University of Edinburgh Duration: 48 Months (Jan 2012-Dec 2015) Donors: EU SWITCH Asia, Fondation Ensemble

9 What Do We Support? Technology Improvement and Establishment of Essential Business Services To encourage new users in the rice milling sector to switch to WtE technology and application. Establishing a manufacturing unit to locally manufacture part of the equipment in Cambodia. Manufacturers and rice millers will gain access to professional operation and maintenance services Development and Implementation of a National Standard for gasification technology Development of operational guidelines for equipment manufacturers to comply with the standard of the equipment Development of standard for gasifier application Operation licenses to manufacturers and gasifier operators Investment Promotion and Business Planning for WtE Business and investment analysis of existing WtE in rice mills Awareness campaign to rice millers to adopt WtE equipment Advisory services to rice miller for WtE business plan development Turning liability to profitability: rice char soil conditioner and husk pellets

10 Output Awareness material and campaigns Training and workshop: Modules: HSE, Using tool/ equipment, Understanding of RHG Operation and Maintenance 10

11 Output Manufacturing Unit: locally produced 3 small gasifiers for CEDAC (Centre d'etude et de Développement Agricole Cambodgien). FBG 120, output power 100 kw-e (include new modifications and features for dry ash removal, improved gas cleaning and filters) Refurbished 4 units and sold to mills and ice factory blackwater treatment system improvement 11

12 Output Rice Husk Char Soil Stabilizer on cucumber, mug beans, chinese cabbage and cassava 12

13 Output Rice Husk Pellets 13

14 Hard facts Increase of worker s income US$ 576k/annum Diesel savings $1.8 mil/annum Number of mills switching to RHG 60 Annual emission reduction 40k tonnes PoA under Validation for VER-GS 14

15 Hard facts Programme Partners: FCRMA, DIH/ISC, SMERe, NPIC Beneficiaries: over 80 participants (19 manuf.unit, rice mills, ice, garment factory and brick plants). Over 300 mills are made aware of the application Over 45 mills will be assisted in setting up an operation data system for their milling (ie. Financial management tool/book keeping). Financing loans for mills and SMEs for new installations (US$500k) Final Standard Baseline of RHG Safety and Operation Training and coaching of 2 staffs at provincial level to implement the license under the DIH/ISC 15

16 Low uptake of RGHs for Rice Mills? Technology Absence of solutions for management of RHGs byproducts Limited flexibility of a RHG system to fit the increasing energy needs Lack of standards in terms of input and output for local RHG systems Internal Factors Milling and processing rice are the core businesses of Rice Millers, not generating energy Poor planning of energy needs VS capacity of RHGs Lack of skills and knowledge in O&M External Factors Better access to electric grid Lack of policies to foster uptake of RETs

17 Message o Advocacy for switching to RE (embedded policies in Cambodia) o Prioritise decentralized production of electricity by using RHG technology for cluster of rice mills and Rural Electrification o Alternative clean fuels for SMEs using rice husk (brick plants, textile, ice factories and others) o Financing Mechanism, Incentives for new investment and Scaling up 17

18 អរគ ណច រ ន! WtE for the Rice Milling Sector in Cambodia SNV Development Organization #184 Street 217 Sangkat Tom Noup Teouk Khan Chamkarmon, Phnom Penh, Cambodia Skype: ilarasaty Web: HXg&index=1