part 1: overview of cogeneration and its status in asia - Fire

172 Part3: Summary of country studies – Bangladesh and Viet Nam
With an average power-to-heat ratio of 0.14 for the factory, the steam turbine cogeneration
configuration seems the most suitable. The analysis for the Paper Company “D” was done
with three configurations, including steam turbine, reciprocating engine and gas turbine, in
order to make a comparison. The cogeneration systems that give favourable IRR values are
listed in Table 4.7.
Table 4.7 Summary of pre-feasibility study of the pulp and paper mill “E”
Cogeneration Alternatives ALT.1 ALT.2 ALT.3 ALT.4 ALT.5
Configuration S.T. R.E. G.T.
Fuel type Coal H.F.O. N.G.
Fuel price (VND) 280/kg 1,800/kg 1,430/m 3
Electricity purchase price (VND/kWh) 0.87
Buy-back rate (as % of purchase price) 70
Electricity price escalation rate
(%/year)
5
Number of actual working hours per year 4,000
Heat generating capacity (ton/hr) 101.37 129.85 101.37 10.125 25.42
Power Generating Capacity (kW) 9,989 12,795 9,989 12,795 12,795
Electricity consumption (MWh/year) 87,520
Thermal energy requirement (TJ/year) 1,931
Excess (+)/Deficit (-) heat (TJ/year) 0 295 0 -1,738 -1,447
Excess (+)/Deficit (-) power (MWh/year) -19,197 0 -19,197 0
IRR (%) 37.1 34.9 24.6 40.5 42
Total installation cost (million VND) 148,729 189,778 148,729 193,166 113,442
Net Present Value (million VND) 220,326 246,662 89,537 113,443 204,056
Pay back Period (year) 5 5 8 4 4
As shown in the above summary table, IRR of all five considering alternatives are all very
high.
However, the alternative 4 with the reciprocating engine using heavy fuel oil can be
considered as the best option considering the IRR and the availability of fuel supply.
Alternatives 1 and 3 need the same investment but IRR of the alternative 1 is higher than that
of the alternative 3. Alternative 5 is the most profitable option with the highest IRR and the
lowest investment cost but natural gas is presently not available at the site.
4.3.6 Rubber factory “H”
Located in a District of Hanoi, the Company belongs to the Complex Light Industrial “Rubber-
Detergent-Tobacco” Zone. The plant has been in operation since 1960’s and the annual
production of the company is more than 1 million sets of car tires, 50 million sets of bike tires
and 100 millions of bicycle air tubes. The product quality of the factory meets the standards
of many countries in the South East Asian region.
The company has plans to expand its production and increase its export earnings. Moreover,
the existing boilers operating with coal as fuel have been in operation for 30 years. The
company has high demand for both electricity and thermal energy, and would like to reduce
its annual energy bill that is over 9.3 billion VND.