Organic Rankine Cycle Technology Generate Green Power from agricultural waste biomass using ORC technology Antonio MENDES NAZARE
Organic Rankine Cycle Technology 2 Summary Executive Summary 1) Current situation in Philippines for biomass field Global Overview Regulation and incentives 2) ORC Technology as a viable and green solution ORC Vs Steam turbine Technical explanations Biomass option 3) Case study Presentation, Economic and technical assessment
Organic Rankine Cycle Technology 3 Global overview A) Current situation in Philippines : Global overview Energy crisis: 30 millions more people than Thailand, but less than half of electricity production The Philippines' economy has been growing more than 5% annually. Demand for power is expected to reach 30 million kilowatts in 2030, but current capacity is only 17 million kilowatts (dated 2015). Even if today Philippines are mainly powered by coal, renewable energy is well implanted in the country through geothermal and hydro.
Organic Rankine Cycle Technology 4 Global overview A) Current situation in Philippines : Global overview Huge biomass quantity available from by products that can be used as fuel for biomass power plant: Coconuts : coconut shells Rice : Rice husks and straws Sugarcane: Bagasse Napier Grass
Organic Rankine Cycle Technology 5 Global overview A) Current situation in Philippines : Global overview Because of the abundance of these raw materials in the country, biomass fuel sources are a much cheaper source of energy than imported fossil fuels. Grains/fruits Production output (10,000 tons) World rank for production output Coconuts 1,567 2nd place Rice 1,627 8th place Sugar cane 2,293 12th place
Organic Rankine Cycle Technology 6 B) Current situation in Philippines : regulations and incentives regulations and incentives Renewable source Period of time Feed-in tariff rate in PhP/kWh Wind 20 years 8.53 Biomass 20 years 6.63 Solar 20 years 9.68 Run-of-river hydropower 20 years 5.90 Degression rate 0.5% after 2 years from affectivity of FIT 0.5% after 2 years from affectivity of FIT 0.5% after 2 years from affectivity of FIT 0.5% after 2 years from affectivity of FIT Installation targets in MW 200 250 50 250
Organic Rankine Cycle Technology 7 B) Current situation in Philippines : regulations and incentives Regulations and Incentives Filipino government provide many incentives and facilitates regulation for companies involved in biomass business: Incentives: - Incentives for Farmers of Biomass resources - Incentives for RE commercialization Tax exemptions: - Income tax holiday - 10 % Corporate Tax Rate - 10 years duty-free importation of RE machinery, Equipment and Materials - Zero % Value Added Tax Rate This shows that regional and national governments are keen to develop RE. More than politicians words, concrete laws and incentives have been issued these last years.
Organic Rankine Cycle Technology 8 ORC vs Steam Turbine A) ORC VS Steam Turbine : Technical advantages ORC has a high life time 25 years, and a higher availibility up to 98% No erosion of the blades because no water. ORC keeps same efficiency across the years The water used in the steam turbine need to be demineralized. This water treatment system is costly. No staff is needed to operate the ORC module. The solution is autonomous. The ORC module is easier to operate and quiet ORC has a high efficiency at partial load. If the input decrease of 60% or increase of 20%, the ORC still has the same efficiency while steam turbine efficiency drops dramatically even with 5% of load variation.
Organic Rankine Cycle Technology 9 ORC Technical Explanations 2) ORC Technology as a viable and green solution : Technical Explanations
Organic Rankine Cycle Technology 10 ORC vs Steam Turbine A) ORC VS Steam Turbine : Economic advantages Cost and revenue for a 3MW biomass power plant ORC technology Vs conventional Steam turbine technology ORC Steam Turbine Investment cost for turnkey project 7 800 000,00 6 600 000,00 USD Price OPEX 150 000,00 450 000,00 USD Biomass price 'assumption 15 USD per ton' 900 000,00 900 000,00 USD FiT Phillipines in PHP per kwh 6,63 6,63 PHP FiT Philippines in USD per kwh 13,69 13,69 US cents Income for 3MW 'asumption PP running 8000 hrs' 3 285 600,00 3 285 600,00 USD Revenue after OPEX and Biomass supply cost 2 235 600,00 1 935 600,00 USD Pay back time 3,49 3,41* years Revenue over 5 years 3 378 000,00 3 078 000,00 USD revenue over 10 years 14 556 000,00 12 756 000,00 USD IRR over 10 years 23,9 22,1* % *Steam turbine is slightly more efficient but its efficiency goes down with time and any slight variation of heat input will have huge impact on its efficiency (down to 50%) or even stops the turbine. Calculations above do not take into account those points
B) ORC Technology as a viable and green solution : Technical Explanations Organic Rankine Cycle Technology 11 ORC Technical Explanations Electricity production Turbine Evaporator Working fluid vaporized Condenser Heat from : Fumes Exhaust gases Processes ORC Heat To: Heating applications Processes Coolers Working fluid condensed Pump
B) ORC Technology as a viable and green solution : Technical Explanations Typical Biomass installation Organic Rankine Cycle Technology 12 ORC Technical Explanations
The split technology permit us to install dryer and keep the same net solution efficiency ~150 C C) ORC Technology as a viable and green solution : Biomass Option Thermal oil inlet 205 C Low temperature loop - 10% of heat recovered from this loop ORC Module Organic Rankine Cycle Technology 13 Hot water (80 C) Biomass Option Biomass Dryer Humid Biomass Boiler ~950 C ~220 C Thermal oil outlet 140 C Thermal oil inlet 310 C High temperature loop 90% of heat recovered from this loop Thermal oil outlet 205 C Split Cooled water (60 C) dry Biomass Dryer use hot water provide by the ORC. This hot water transmit its heat to the biomass to dry it. Ambien t air ~20 C Biomass combustion furnace Dried biomass provide better combustion and higher boiler efficiency Dry coolers (backup system) Dried biomass solution for efficient electricity generation
3) Case study : presentation Organic Rankine Cycle Technology 14 Case study Presentation of an actual project in Philippines: Location : Mindanao Project size : 3MWe Fuel : Biomass from Napier Grass Biomass quality : 45% moisture @ LHV (net calorific value) : 2400 Kcal Electricity price : 6,63 PHP Biomass cost : 1,0 PHP per kg Progress : Final stage before construction
3) Case study : Technical solution Organic Rankine Cycle Technology 15 Case study
3) Case study : Economically attractive Organic Rankine Cycle Technology 16 Case study Cost of the solution ORC power plant CAPEX Equipment supply CAPEX - Hot Source Equipment $ 1 746 980,00 - ORC Module Equipment $ 2 825 000,00 - Cold Source Equipment $ 791 000,00 CAPEX Installation Supervision Services (1) - Hot Source Equipment Installation Services $ 310 750,00 - ORC Module Equipment Installation Supervision Services $ 39 550,00 - Cold Source Equipment Installation Services $ 135 600,00 Total CAPEX and installation (2)(3) 5 848 880 Annual OPEX Exploitation/Maintenance (3)(4) - Hot Source Equipment Exploitation/Maintenance Services $ 67 800,00 - ORC Module Equipment Exploitation/Maintenance Services $ 45 200,00 - Cold Source Equipment Exploitation/Maintenance Services $ 39 550,00 Total Annual OPEX exploitation/maintenance (3)(4) 152 550 Total price USD Addtionnal price for civil work, connection to the grid, transport, taxes & Insurances: around 35% of project cost Turnkey project cost : 7,8 M USD
3) Case study : Economically attractive 17 Organic Rankine Cycle Technology Case study Assumptions Total Lenght of the project 21 years construction 1 years operations 20 years amortization period lenght 20 years Depreciation Linear Corporate Tax rate 30,00% Inflation 0,02% CAPEX equipement 7 890 K USD TURNOVER Sell Rate $ 136,90 USD per MWh Inflated Sell Rate? YES Number of working hours 8 000 hrs/year Power supplied 3 000 kwh OPEX Annual Opex SPV costs Insurance Biomass supply cost Total 152 K USD 25 K USD 50 K USD Refer table left side 1 127 K USD
3) Case study : Economically attractive Organic Rankine Cycle Technology 18 Case study Napier Grass Rice husk Wood pellet Sugarcane LHV biomass 2 400,00 1 800,00 5 200,00 2 300,00 Kcal.kg Price biomass per ton 1,00 0,90 3,20 1,10 PHP Quantity biomass per year for 3MWe biomass PP 58 000,00 77 333,33 26 769,23 60 521,74 Tons Biomass price per year for 3MWe biomass PP 58 000 000,00 69 600 000,00 85 661 538,46 66 573 913,04 PHP Price in USD 1 197 357,56 1 436 829,07 1 768 405,01 1 374 358,24 USD Annual Turnover 3 285 600,00 3 285 600,00 3 285 600,00 3 285 600,00 USD Annual Revenue 2 088 242,44 1 848 770,93 1 517 194,99 1 911 241,76 USD Pay back time 3,74 4,22 5,14 4,08 years IRR over 10 yers 21,00 18,90 18,10 19,50 % Napier grass is a really attractive case. As we can see in this table, we have an IRR above 20%. However, all other biomass widely available in Philippines provide a profitable business as well.
3) Case study Organic Rankine Cycle Technology 19 Case study To summarize Fr Napier Grass Rice husk Wood pellet Sugarcane LHV biomass 2400 1800 5200 2300 Kcal.kg Biomass needed for 1MWh 2,42 3,22 1,12 2,52 Tons Profitable investment and great IRR Equipment is only dry coolers, thermal oil boiler and ORC module : no need any consumption (water) in the whole process. Perfectly adapted to dry areas. Small size scale is perfect to reduce cost of biomass transport. High transport costs due to poor infrastructure quality in remote areas. Community project : Population can participate for biomass collection in order to support the supply electricity to remote areas.
3) Case study Organic Rankine Cycle Technology Case study 20 Thank you for your attention Antonio MENDES NAZARE Vice-President of Sales & Marketing + 33 6 83 18 93 16 Antonio.MendesNazare@Aqylon.com