What is cogeneration and why cogeneration

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What is cogeneration and why cogeneration Malaysian Cogeneration Week 2004 6 7 July 2004, Sheraton Subang Hotel & Towers, Subang Jaya 8 July 2004, Puteri Pan Pacific Hotel, Johor Bahru Leif Mortensen COGEN 3 Chief Consultant 1of 26

COGENERATION PROJECT DEVELOPMENT 2of 26

COGENERATION OR COMBINED HEAT AND POWER (CHP) Simultaneous generation of two different forms of useful energy using one single primary energy source Most usual: electrical (or mechanical) thermal: heating or cooling 3of 26

WHY COGENERATION COGENERATION vs CONVENTIONAL POWER & HEAT GENERATION Cogeneration definition: Simultaneous generation of two different forms of useful energy using one single primary energy source Most usual: electrical thermal: heating or cooling 4of 26

BENEFITS OF COGENERATION (1) For the End-users/Cogenerators: Reduced energy bills Additional profit from selling surplus electricity Additional profit from selling GHG Certified Emission Reduction (CER) Additional profit from selling by-products (e.g. ash from rice husk burning) Increasing security of energy supply 5of 26

BENEFITS OF COGENERATION (2) For the Power Utility & National Economy: Saving primary energy consumption Reducing transmission and distribution losses Less burden on national government for power generation investment Less environmental pollution Creating new market for local energy equipment suppliers/manufacturers Creating more jobs 6of 26

SECTORS SUITABLE FOR COGENERATION (1) Industry 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 50 70 HA Rubber products < 200 S / HW / HA Chemicals, medicine and toiletries < 200 S / HW Food Beverage 150 165 5 7 S / HW Animal feeds < 200 S / HA Vegetable oils, animal oils, fats 80 180 S / HA Tapioca flour and pellets < 210 S / HA Bread, cookies, noodles < 180 S Milk 140 1.8 S Fruit 130 180 3, 6, 10 S Frozen food, food canning 100 225 S S = steam HA = hot air HW = hot water 7of 26

SECTORS SUITABLE FOR COGENERATION (2) Industry Sector Steam and heat requirements Temp. ( C) Press. (bar) Form Agro and wood Palm oil Pulp and paper < 200 3 4 7 S S Rice mill 110 1.5 2 S Wood 110 150 2 5 S / HA Sugar 70 130 2 3 S Other Petrochemical (lube based oil) 140 240 2.8, 13.8 S Textile < 270 S S = steam HA = hot air HW = hot water 8of 26

FUELS FOR COGENERATION Oil not supported in COGEN 3 Cogeneration can be done from a variety of fuels Installations may be designed to accept more than one fuel 9of 26

BIOMASS FUELS FOR COGENERATION Straw Rice paddy FFB Wood chips Sugar 10 of 26

COGEN 3 Programme and Activities 11 of 26

(COGEN 3) An economic cooperation programme between European Commission (EC) & Association of South East Asian Nations (ASEAN) Funded by the EC (15 Mill. EURO) 3 year programme January 2002 December 2004 Coordinated by Asian Institute of Technology (AIT) & Carl Bro International AB 12 of 26

COGEN 3 Objectives Promote awareness and use of cogeneration in ASEAN Promote proven, clean and efficient European cogeneration technologies Create business opportunities for cogeneration plants using biomass, coal and gas as fuels 13 of 26

COGEN 3 Organisation & stakeholders Stakeholders in Europe Project developers Equipment suppliers Banks & financiers Stakeholders in ASEAN Project developers Equipment suppliers Banks & financiers Policy makers COGEN 3 European Office Malmö, Sweden COGEN 3 Programme Management Unit Bangkok, Thailand COGEN 3 ASEAN Country Co-ordinators in 7 Countries 14 of 26

COGEN 3 Country Co-ordinators ordinators Research Center for Energy and Environment, Hanoi Energy Development and Utilization Foundation, Manila Energy Conservation Center of Thailand, Bangkok Ta Prohm Consultants, Phnom Penh SIRIM Berhad, Shah Alam Energy Ventures Pte. Ltd., Singapore Research and Development Center for Energy and Electricity Technology, Jakarta 15 of 26

Outline: COGEN 3 activities Facilitation of cogeneration project development Capacity building, awareness & information Cogeneration policy guidance Full Scale Demonstration Projects (FSDPs) 16 of 26

Facilitation of cogeneration project development: Services to project developers & end-users Technical / Environmental Analysis Advice on technology selection & investment decisions Financial packaging and advises Announcement of identified ASEAN cogeneration projects to European cogeneration suppliers Tools for development & evaluation of cogeneration projects Cogeneration Project Development Guide Technical Financial Analysis (TFA) model (ver. 2) 17 of 26

Facilitation of cogeneration project development: Technical, Business & Market Information Directories on European & ASEAN equipment suppliers & service providers Report on Cogeneration Technologies: Part 1: Definitions and Systems Part 2: Technologies and Products Applicability of European Technologies in ASEAN Market Cogeneration equipment status in the ASEAN market Sector overview: Suitable applications and equipment National Cogeneration Policy Reviews (7 country reports) Overview of existing policies Guidance for policies promoting cogeneration 18 of 26

Capacity building, awareness & information: 2003 COGEN 3 events Cogeneration Weeks in 7 countries (1,200 participants) Training courses in cogeneration project development (5 events, 143 participants) Seminars on financing of cogeneration projects in Thailand, Malaysia & Indonesia (85 participants) Clean Development Mechanism seminar in Malaysia (80 participants) Major exhibitions & conferences Power Gen Asia (Ho Chi Minh City) Sustainable Energy Asia (Singapore) Site visits to 8 cogeneration plants (183 Participants) Policy forum & study tour in Thailand & Policy maker study tour to Europe (25 high ranking ASEAN policy makers) 19 of 26

Capacity building, awareness & information: 2004 Cogeneration Weeks Thailand Vietnam Singapore Indonesia Cambodia Philippines Malaysia 23 25 March 6 9 April 23 April 18 19 May 8 11 June 21 24 June 6 8 July Bangkok Hanoi & Ho Chi Minh City (Cogeneration Day) Jakarta & Balikpapan Phnom Penh & Battambang Manila & Isabela Province Kuala Lumpur & Johor Baru Opening ceremony: Policy and financing Forum & Mini-exhibition with European cogeneration suppliers Cogeneration project development seminar Site visit & individual consultations 20 of 26

Capacity building, awareness & information: Other 2004 COGEN 3 events Major exhibitions & conferences: World Conference & Technology Exhibition on Biomass (Rome, May) - done Power Gen Europe (Barcelona, May) - done Asian Energy Business Forum (Manila, June) - done Power Gen Asia (Bangkok, October) Clean Development Mechanism seminars in Thailand & Indonesia Visit to Full Scale Demonstration Projects 21 of 26

Cogeneration policy guidance Objective: Improve regulatory conditions to enhance further cogeneration development Activities: National energy policy reviews & guidance for 7 countries ASEAN Policy maker study tours to Europe Seminars & meetings Cogeneration Weeks 22 of 26

Full Scale Demonstration Projects (FSDPs) Objective: Demonstrate the technical reliability and economic viability of proven European cogeneration technology to ASEAN end-users 24 FSDP Candidates selected Capacity: 0.3 41 MW (Total: 174 MW) Total Amount of EC support: 8.6 mill. EURO Total Investment: 209 mill. EURO 17 projects are expected to be implemented by end of 2004 23 of 26

4 projects in Thailand 1 project in Philippines 1 project in Cambodia 7 projects in Malaysia 2 projects in Singapore 2 projects in Indonesia

Palm oil waste : 4 Rice husk : 4 Bagasse : 2 Wood waste : 3 Biogas : 3 Bio-oil : 1

For more information, please visit COGEN 3 Website at: http://www.cogen3.net Thank You! 26 of 26