Las Vegas, USA 9. 11. December 2003 Advantages of Combined Wind-Biogas Energy Utilization for Distributed Power Generation Presented by Co-authors Miro R. Susta Kurt Stangl Peter Luby IMTE AG Switzerland Power Consulting Engineers IMTE AG 1
REFERENCES IMTE AG PAPERS Opportunities for Biomass Power Plants in Southeast Asia Region Presented at Powergen Asia 2002 in Singapore Biomass Energy Utilization & Environment Protection - Commercial Reality and Outlook Presented at Powergen Asia 2003 in Vietnam IMTE AG 2
WORLDWIDE SITUATION MORE THAN 2 BILLION PEOPLE AROUND THE WORLD LIVE WITHOUT CONNECTION TO THE POWER NETWORK IMTE AG 3
WORLDWIDE TREND STAND ALONE (DISTRIBUTED) POWER SYSTEMS WILL EXPERIENCE THE HIGHEST GROWTH RATES GROWING HIGH QUALITY ELECTRICITY DEMAND GRID-COUPLED SYSTEMS WILL CLEARLY DECREASE AFTER 2010 IMTE AG 4
WORLDWIDE TREND STAND ALONE (DISTRIBUTED) POWER SYSTEMS WILL EXPERIENCE THE HIGHEST GROWTH RATES GROWING HIGH QUALITY ELECTRICITY DEMAND GRID-COUPLED SYSTEMS WILL CLEARLY DECREASE AFTER 2010 IMTE AG 5
WORLDWIDE TREND STAND ALONE (DISTRIBUTED) POWER SYSTEMS WILL EXPERIENCE THE HIGHEST GROWTH RATES GROWING HIGH QUALITY ELECTRICITY DEMAND GRID-COUPLED SYSTEMS WILL CLEARLY DECREASE AFTER 2010 IMTE AG 6
WORLDWIDE PROSPECTS EU TO RAISE THE SHARE OF RENEWABLE ENERGIES FROM 13% TO 15% BY 2010 INDIA IS TO ACHIEVE 10% SHARE FROM RENEWABLES BY 2012 IMTE AG 7
WORLDWIDE PROSPECTS EU TO RAISE THE SHARE OF RENEWABLE ENERGIES FROM 13% TO 15% BY 2010 INDIA IS TO ACHIEVE 10% SHARE FROM RENEWABLES BY 2012 IMTE AG 8
Content Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 9
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THE KYOTO PROTOCOL, ALTHOUGH NOT RATIFIED TO THE EXTENT INTENDED, HAS BECOME A MAJOR ISSUE FOR GOVERNMENTS WORLWIDE IMTE AG 11
FOSSIL FUELS CO 2 IMTE AG 12
GLOBAL WARMING! IMTE AG 13
FOSSIL FUELS ARE DEPLORABLE IMTE AG 14
POWER GENERATION SYSTEMS USING RENEWBLE RESOURCES DO NOT PRODUCE GREENHOUSE GASES IMTE AG 15
A COMBINATION OF BIOMAS ENERGY WITH WIND POWER FORMS SERIOUS ALTERNATIVE TO FOSIL FUELS IMTE AG 16
Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 17
Distributed Power Generation refers to- ELECTRICAL POWER THAT IS GENERATED AT OR NEAR THE LOCATION WHERE THE ENERGY IS NEEDED INDEPENDENT ELECTRICTY SUPPLY ACORDING TO LOCAL AREA DEMAND IMTE AG 18
Distributed Power Generation refers to- ELECTRICAL POWER THAT IS GENERATED AT OR NEAR THE LOCATION WHERE THE ENERGY IS NEEDED INDEPENDENT ELECTRICTY SUPPLY ACORDING TO LOCAL AREA DEMAND IMTE AG 19
Distributed Power Generators up to 60 MW Main Limitations: Power Demand at selected Location IMTE AG 20
REMOTE SMALL VILLAGES AND RURAL AREAS DO NOT HAVE POWER NETWORK ACCESS IMTE AG 21
AROUND 30% (54 MILLIONS) OF BRASIL s POPULATION LIVES IN RURAL AREAS AROUND 50% OF THEM HAVE NOT ACCESS TO ELECTRICITY IMTE AG 22
MORE THAN 90% (18 Mio) OF TANZANIAN POPULATION HAVE NOT ACCESS TO ELECTRICITY IMTE AG 23
DISTRIBUTED POWER GENERATION SYSTEMS ARE GRID-CONNECTED OR STAND ALONE TECHNOLOGY SYSTEMS THAT CAN BE INTEGRATED INTO SMALL TOWNSHIPS, COMMERCIAL OR INSTITUTIONAL BUILDINGS, INDUSTRIAL FACILITIES AND OTHER GROUP OF POWER CONSUMERS IMTE AG 24
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Distributed Generation for- Base Load - Peak Load - Back-up - Remote - High Quality Power Production. IMTE AG 26
Benefits SMALLER, MODULAR POWER GENERATING UNITS CLEANER & EFFICIENT INDIVIDUAL POWER CHOICE SATISFACTION MORE POWER OPTIONS INCREASED AVAILABILITY & RELIABILITY LOWER POWER GENERATION PRICE MORE COMPETITION IMTE AG 27
Distributed Energy Solutions Applications Uninterruptible Power Supplies Power Supplies for Wireless Communications and Emergency Management Systems Network Load Management Generation Load Management Energy Production Efficiency IMTE AG 28
Syngas Raw Biomass Storage Place Biomass Delivery Dryer Gasifier Untreated Biogas Air Steam Hot Gas Clean-up Air Gas Turbine G G Heat Recovery Steam Generator Flue Gas Steam Turbine Process Steam IMTE AG 29 G M IMTE AG
Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 30
Hybrid energy systems combine two or more different power generation applications. IMTE AG 31
Hybrid energy systems combine two or more different power generation applications. When integrated, these systems overcome limitations inhered in either one. IMTE AG 32
< 1000 kw WIND GENERATOR AC CONSUMER BIO WASTE COLLECTION TANK DIGESTER GAS TANK ENGINE GENSET SOLID WASTE IMTE AG 33
Biomass Fuel ± 30 MW IMTE AG 34
Wind & Biomass < 60 MW IMTE AG 35
Biogas - Wind 10 kw 1 MW Main Limitation: Balance betwen Windpower & Biopower IMTE AG 36
Biomas/Syngas - Wind 20 60 MW Main Limitations: Biomass Suply Balance between Windpower & Biopower IMTE AG 37
HYBRID POWER PLANTS POWER OUTPUT MW 25 20 15 10 5 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Wind Power Biomass Power Total Hybrid Power IMTE AG 38
HYBRID POWER PLANTS 12x1.6 MW WIND +15 MW BIOMASS POWER OUTPUT ELECTRICAL ENERGY PRODUCTION MW 25 20 15 10 kw h 20000 15000 10000 5 5000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Wind Power Biomass Power Total Hybrid Power Wind Biomass Total IMTE AG 39
Wind Speed vs. Power Generation MW 1.6 1.4 1.2 0.8 1 0.6 0.4 0.2 0 CUT-IN WIND SPEED 18km/h (11 mi/h) Rated Wind Speed 60-80km/h (40-50 mi/h) *0 *5 *10 *15 *20 *25 Wind speed (m/s) CUT-OUT WIND SPEED 90km/h (56 mi/h) IMTE AG 40
Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 41
5 30 MW Main Limitation: Biomass Supply IMTE AG 42
15 MW SYNGAS PLANT Biomass Consumption tons/month 12'000 10'000 8'000 6'000 4'000 2'000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rated Production Maximum Production IMTE AG 43
Solid fuel gasification is enjoying a steeply growing market share. IMTE AG 44
Solid fuel gasification is enjoying a steeply growing market share. Due to high investment costs the biomass gasification market is not following this trend yet. IMTE AG 45
Strong growth of biomass gasification can be expected in 5-10 years time when the costs are further decreased, and commercial risks reduced IMTE AG 46
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Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 49
<500 kw Main Limitation: Digester Size IMTE AG 50
Typical Parameters Biogas-production ~ 0.3-0.45 m 3 / kg TS Retention time 15-30 days Average lower heating value ~22 MJ/m 3 IMTE AG 51
Typical Biogas Composition CO2 30% Others H2S,N,H2,O 5% CH4 65% IMTE AG 52
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Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 54
PLANT OUTPUT DEPENDS ON AVAILABLE LAND AREA AND SELECTED UNIT SIZE Unit Size 1 kw and 4.5 MW IMTE AG 55
WORLDWIDE WIND POWER GENERATION CAPACITY 35 30 25 20 GW 15 10 5 0 *1990 *1991 *1992 *1993 *1994 *1995 *1996 *1997 *1998 *1999 *2000 *2001 *2002 Year IMTE AG 56
MAJOR WIND GENERATORS - 2002 14 12 10 8 6 4 2 0 GW Sweden Japan Greece China UK Netherlands Italy India Denmark Spain USA Germany Rest of World IMTE AG 57
kwh PAID TO WIND GENERATORS - 2002 14 12 10 8 6 4 2 0 US /kwh Irland Canada Sweden Japan Greece UK Netherlands Italy Denmark Spain USA IMTE AG 58
WIND POWER CAPACITY GROWTH FORECAST 700 600 500 400 300 200 0 100 FORECAST GW *1990 *1992 *1994 *1996 *1998 *2000 *2002 *2004 *2006 *2008 *2010 *2012 *2014 *2016 IMTE AG 59
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Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 61
Distributed Energy PROVIDES REMOTE COMMUNITIES WITH COST EFFECTIVE ENERGY GENERATION AND SUPPLY OPTIONS IMTE AG 62
Distributed Energy PROVIDES REMOTE COMMUNITIES WITH COST EFFECTIVE ENERGY GENERATION AND SUPPLY OPTIONS DRIVES INVESTMENT IN LOCAL INDUSTRY AND BUSINESSES IMTE AG 63
Distributed Energy PROVIDES REMOTE COMMUNITIES WITH COST EFFECTIVE ENERGY GENERATION AND SUPPLY OPTIONS DRIVES INVESTMENT IN LOCAL INDUSTRY AND BUSINESSES MOVES REMOTE REGIONS TOWARD MORE SUSTAINABLE ENERGY MANAGEMENT IMTE AG 64
Distributed Energy PROVIDES REMOTE COMMUNITIES WITH COST EFFECTIVE ENERGY GENERATION AND SUPPLY OPTIONS DRIVES INVESTMENT IN LOCAL INDUSTRY AND BUSINESSES MOVES REMOTE REGIONS TOWARD MORE SUSTAINABLE ENERGY MANAGEMENT PROVIDES OPPORTUNITIES FOR GREATER LOCAL CONTROL OF ELECTRICITY DELIVERY AND CONSUMPTION IMTE AG 65
Distributed Power Generation CAN PROVIDE INDEPENDENT FUL AND/OR BACKUP POWER AT CONSUMER s SITE or CAN BE HIGHLY INTEGRATED WITH ELECTRICITY NETWORK IMTE AG 66
kw h 25000 20000 15000 10000 5000 0 Jan Feb M ar Apr May Wind Max. Production Excess Production Jun Jul Aug Sep Oct Nov Biomass Rated Production Dec IMTE AG 67
Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions. IMTE AG 68
Specific Capital Costs vs. Fuel Costs for Miscellaneous Power Generation Systems 8000 7000 6000 5000 4000 3000 2000 1000 0 Capital Costs 3.5 3 2.5 2 1.5 1 0.5 0 GT CCGT Coal Conventional IGCC PFBC Nuclear Hydro Wind Biomass Combustion FB Combustion FB Gasification A.Digestion Solar Geothermal US$/kW USCents/kWh Fuel Costs IMTE AG 69
Price Estimation 20-35 MW Syngas Windpower Plant 1500 2000 USD / kw IMTE AG 70
Pos Item Unit Price 1 Turnkey Price (EPC) mio US$ 44.00 2 Site Preparation mio US$ 0.60 3 O & M Mobilization mio US$ 0.50 4 Contingency mio US$ 1.50 5 Land Costs mio US$ 1.00 8 Reimbursed Development mio US$ 1.80 9 Insurance mio US$ 0.60 10 Consultants' and Advisors' Fees mio US$ 1.00 13 Financing Fees mio US$ 0.50 14 Interest during Construction mio US$ 1.50 15 TOTAL mio US$ 53.00 IMTE AG 71
Changes in interest rates and fees; Variation in exchange rates; Changes in applicable laws; Changes in imposition of any taxes; Project delay beyond the control of the Investor; Changes in financing draw-down schedule; Variations in scope of supply; Events or circumstances not within reasonable control of the Investor. IMTE AG 72
Pos Item Unit Worst Case Best Case 1 Gross Power Output MW 20 35 2 Degradation factor % 2 2 3 Power Plant Availability % 88 92 4 Capacity Factor % 55 90 5 Expected PPA Tariff US$/kWh 0.165 0.168 6 Fixed O & M Escalation %/Year 1.00 0.75 7 Variable O&M Escalation %/Year 1.50 1.00 8 PPA Tariff & Capacity Escalation %/Year 0.00 0.25 8 Biomass Price Escalation %/Year 0.25 0.12 9 Auxiliary Consumption % 1.8 1.8 10 Hybrid Plant Efficiency % 45 80 11 Operational Months No. 12 12 12 Biogas/syngas LHV MJ/m 3 20 22 13 Biogas/syngas production m 3 /kg SW 0.35 0.45 14 Assumed Solid waste Price US$/ton 3 2 IMTE AG 73
IRR & Casfflow (0.225 USD/kWh) Net Present Value / IRR PROJECT CASH FLOW 250.0 20.0 200.0 15.0 150.0 10.0 100.0 5.0 50.0 0.0 1 4 7 10 13 16 19 22 25 0.0-5.0 1 3 5 7 9 11 13 15 17 19 21 Year Discount Rate (%) IMTE AG 74
Introduction Distributed Power Generation Hybrid Power Plants - Introduction Syngas Power Plants Biogas Power Plants Wind Power Plants Main Features od Distributed Hybrid Power Plants Commercial Aspects - Economic Viability Summary - Conclusions IMTE AG 75
DISTRIBUTED HYBRID POWER SYSTEMS ARE EXCELLENT CHOISE FOR- COUNTRIES WITH LIMITED POWER NETWORK AND RURAL HOMES, FARMS, RANCHES, SMALL FCTORIES, OR INDUSTRIES LIKELY TO PRODUCE AND USE RENEWABLE POWER IMTE AG 76
Worldwide renewable energy portfolio standards; Energy tax credits tax incentives for development of renewable energy projects; Utilities should be encouraged to enter into longterm power purchase agreements with renewable energy power producers; Dissemination of distributed hybrid power systems advantages to the public; IMTE AG 77
DISTRIBUTED POWER GENERATING SYSTEMS ENTAIL A SIGNIFICANT FIRST- COST EXPENDITURE.. BUT BUSINESS THAT SUFFERS A POWER INTERRUPTION OR WHOSE POWER QUALITY DETERIORATES TO THE POINT THAT COMPUTER-RELATED OPERATIONS ARE COMPROMISED WILL LIKELY VIEW THAT COST AS JUSTIFIED. IMTE AG 78
THANK YOU IMTE Power Consulting Engineers Ltd. imte@bluewin.ch WWW.IMTEGOLF.CH IMTE AG 79