Experiences of biomass power and pellets in Asia
Experiences of biomass power and pellets in Asia
Experiences of biomass power and pellets in Asia
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>Experiences</strong> <strong>of</strong><br />
<strong>biomass</strong> <strong>power</strong> <strong>and</strong> <strong>pellets</strong> <strong>in</strong> <strong>Asia</strong><br />
World Bioenergy 2012, Jonkop<strong>in</strong>g, Sweden, 29th May 2012<br />
Dae-Woong Lim, Manag<strong>in</strong>g Director, Eco-Frontier<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 0
Contents<br />
• Eco-Frontier from <strong>Asia</strong><br />
• <strong>Experiences</strong> <strong>in</strong> <strong>Asia</strong><br />
• Malaysia<br />
• Ch<strong>in</strong>a<br />
• Korea<br />
• West meets East<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 1
Eco-Frontier from <strong>Asia</strong><br />
Carbon credits bus<strong>in</strong>ess<br />
• Volumes: Over 20Mt <strong>of</strong> carbon credits<br />
• Project types: Energy efficiency, coal m<strong>in</strong>e methane, <strong>biomass</strong> <strong>power</strong>,<br />
hydro <strong>power</strong>, l<strong>and</strong>fill gas, HFC<br />
Global Bra<strong>in</strong> & Bus<strong>in</strong>ess Group<br />
Korea, Malaysia, Indonesia, Ch<strong>in</strong>a, USA, UK<br />
Biomass <strong>power</strong> bus<strong>in</strong>ess<br />
• Malaysia: 23MW + 150t/hr steam<br />
• Ch<strong>in</strong>a: 30MW, 60MW(fuel switch<strong>in</strong>g)<br />
• Korea: 40MW(fuel switch<strong>in</strong>g)<br />
• Others: Europe <strong>and</strong> USA<br />
Susta<strong>in</strong>able f<strong>in</strong>ance bus<strong>in</strong>ess<br />
• Advisory for susta<strong>in</strong>able funds at US$1.5 billion<br />
• Clients: Korea Development Bank AM, Samsung AM, Sh<strong>in</strong>han<br />
BNP Paribas, Hana UBS, Woori Bank, Industrial Bank <strong>of</strong> Korea, etc.<br />
Susta<strong>in</strong>ability consult<strong>in</strong>g bus<strong>in</strong>ess<br />
• Industry: Construction, petrochemical, pulp & paper, electronics, f<strong>in</strong>ance, etc.<br />
• Utility: Electricity, district heat<strong>in</strong>g, transportation, hous<strong>in</strong>g, l<strong>and</strong>fill, etc.<br />
• Governments: Korea, Indonesia, World Bank, ASEM, etc.<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 2
1. Malaysia: Biomass Policy<br />
Feed-<strong>in</strong>-Tariff (FiT)<br />
Renewable energy will <strong>in</strong>crease from
1. Malaysia: Biomass Policy (FiT Rates)<br />
FiT rates<br />
Renewable Energy Base Rate Period Annual Degression<br />
Biogas 0.28~0.32 RM/kWh 16 years 0.5%<br />
Biomass 0.27~0.31 RM/kWh 16 years 0.5%<br />
M<strong>in</strong>i-hydro 0.23~0.24 RM/kWh 21 years 0.0%<br />
Solar PV 0.85~1.23 RM/kWh 21 years 8.0%<br />
Biomass <strong>in</strong>centives<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 4
1. Malaysia: Potential Renewables<br />
Solar Biomass Biogas M<strong>in</strong>i-Hydro Solid Waste<br />
Potentials<br />
>6,500 MW<br />
(40% build<strong>in</strong>gs)<br />
1,340 MW<br />
by 2030<br />
410 MW<br />
By 2028<br />
490 MW<br />
By 2020<br />
360 MW<br />
By 2022<br />
Examples<br />
1MW<br />
- MBIPV Project<br />
(SURIA 1,000 Demo)<br />
- Yearly average<br />
irradiance 1,400-1,900<br />
kWh/m 2<br />
Total 39MW <strong>and</strong> more<br />
under construction<br />
- Biogen project<br />
- Palm oil waste<br />
Total 4.45MW <strong>and</strong><br />
more under<br />
construction<br />
- Palm Oil Mill effluent<br />
(POME)<br />
- Cassava waste<br />
- Livestock etc.<br />
Total 30.3MW <strong>and</strong><br />
more under<br />
construction<br />
- Run <strong>of</strong> the river with<br />
m<strong>in</strong>imum impound<strong>in</strong>g<br />
Total 5.5MW <strong>and</strong> more<br />
under construction<br />
- Waste collected <strong>in</strong><br />
Malaysia appr. 21,000<br />
tonnes/day<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 5
1. Malaysia: Biomass Feedstock<br />
Bus<strong>in</strong>ess focus <strong>of</strong> Eco-Frontier<br />
EFB/OPF Pellet <strong>and</strong> PKS<br />
from Oil Palm Plantation<br />
Wood Pellet<br />
from Logg<strong>in</strong>g <strong>in</strong>dustry cha<strong>in</strong><br />
Wood Pellet<br />
from Short Rotation Coppice Plantation<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 6
1. Malaysia: Biomass CHP <strong>of</strong> Eco-Frontier (1/2)<br />
Project Overview<br />
• Type: Biomass Comb<strong>in</strong>ed Heat Power Plant<br />
• Site: POIC, Sabah, Malaysia<br />
• Investment: 100M USD<br />
• Size: Power 23MW + Steam 150t/hr (Max.)<br />
• CER: 120,000tons/year x 21-year period<br />
• Exclusive rights to supply steam <strong>and</strong> <strong>power</strong><br />
<strong>in</strong> the cluster<br />
Acquisition<br />
EFB<br />
Electricity<br />
Steam<br />
CER<br />
• ECF’s Share (Sole Developer):<br />
25% (paid-<strong>in</strong> capital: 5.5M USD)<br />
• ECF’s CER: 50% <strong>of</strong> entire CERs<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 7
1. Malaysia: Biomass CHP <strong>of</strong> Eco-Frontier (2/2)<br />
Construction Start<br />
<strong>in</strong> 2010<br />
Eng<strong>in</strong>eer<strong>in</strong>g<br />
Procurement<br />
Construction<br />
60M USD size plant<br />
construction<br />
Operation<br />
Management<br />
9M USD jo<strong>in</strong>t <strong>in</strong>vestment<br />
4.5M USD dividends/yr for 20 years<br />
Total Investment: $100M<br />
The largest <strong>biomass</strong><br />
renewable energy<br />
project<br />
• SPC establishment<br />
• L<strong>and</strong> purchase contract<br />
• Permits & approvals<br />
• Supply & purchas<strong>in</strong>g<br />
contracts<br />
• Feasibility analysis<br />
& basic structur<strong>in</strong>g<br />
Equity / Debt<br />
F<strong>in</strong>anc<strong>in</strong>g<br />
Shared<br />
Service<br />
63M USD loan <strong>in</strong>jection<br />
MLA <strong>and</strong> loan <strong>in</strong>stitution<br />
KIAMCO participat<strong>in</strong>g preferred<br />
stocks<br />
* MLA: M<strong>and</strong>ated lead arranger<br />
Various services from legal to tech<br />
Total advisory service fee: 2M USD<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 8
2. Ch<strong>in</strong>a: Biomass Policy<br />
Renewable energy development act (2010)<br />
• Sales guarantee <strong>of</strong> produced electricity by state owned company<br />
• Renewable energy price-stability benefits <strong>in</strong> utility green <strong>power</strong> programs<br />
Advantages <strong>of</strong> <strong>biomass</strong> <strong>power</strong><br />
“Sales guarantee<br />
<strong>of</strong> renewable <strong>power</strong> ”<br />
Renewable energy development act, 2010,<br />
Electricity control methods <strong>in</strong> utility renewable energy,2007<br />
“Fixed price: RMB0.75/kwh”<br />
from <strong>biomass</strong> <strong>power</strong><br />
Development <strong>and</strong> reform commission, 2010<br />
Commission<strong>in</strong>g<br />
Over production<br />
State owned company<br />
; with high creditworth<strong>in</strong>ess<br />
100% sales guarantee with fixed price<br />
Under production<br />
“Sales guarantee <strong>of</strong> electricity<br />
dur<strong>in</strong>g commission<strong>in</strong>g period”<br />
Development <strong>and</strong> reform commission, 2009<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 9
2. Ch<strong>in</strong>a: Biomass Markets<br />
by2015<br />
Encourag<strong>in</strong>g by government<br />
US$/t<br />
Low fuel cost<br />
Cent/kWh<br />
High electricity sales price<br />
Biomass <strong>power</strong> expansion<br />
Construction 13GWe<br />
Biomass <strong>power</strong> by 2015<br />
• Current: 4GWe (2012)<br />
• 9GWe = 30MWe Power station x 300<br />
units<br />
• Fully support by government <strong>and</strong> states<br />
122mllion tonnes <strong>of</strong> fuel needs<br />
• Biomass use for <strong>power</strong>: 70.6%<br />
• Unused l<strong>and</strong> area: 25.8%<br />
• 200m ha <strong>of</strong> SRC forestation by 2020<br />
(12 th five-year plan)<br />
The 영국 UK<br />
미국 USA<br />
Ch<strong>in</strong>a 중국<br />
SE 동남아 <strong>Asia</strong><br />
Supply price ($/ton)<br />
0,00 50,00 100,00 150,00<br />
- 0,50 1,00 1,50<br />
US$<br />
0,14<br />
0,10 0,10<br />
Calorific value (Cent/MJ)<br />
0,06<br />
The 영국 UK<br />
0,04<br />
미국 USA<br />
0,02<br />
Ch<strong>in</strong>a 중국<br />
0,00<br />
SE 동남아 <strong>Asia</strong> Malaysia Philipp<strong>in</strong>es Ch<strong>in</strong>a USA The UK<br />
0,12<br />
0,10<br />
0,08<br />
0,12<br />
※ Included FIT / Subsidy<br />
※ Quarter <strong>in</strong> SE <strong>Asia</strong><br />
0,08<br />
0,10<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 10
2. Ch<strong>in</strong>a: Biomass Power <strong>of</strong> Eco-Frontier (1/2)<br />
Project Outl<strong>in</strong>e<br />
• Type: Biomass Power Generation<br />
(Fuel: Cotton trunk, fast grow<strong>in</strong>g tree, mulberry trunk)<br />
• Site: Sh<strong>and</strong>ong, Ch<strong>in</strong>a<br />
• Total Investment: 50M USD<br />
• Size: Power 30MW<br />
• CER: 150,000 tons/yr x 10 years<br />
• ECF’s Share (Co-Developer): 13.5% (paid-<strong>in</strong> capital: 2.5M USD)<br />
Supported by<br />
M<strong>in</strong>ister <strong>of</strong> Environment <strong>in</strong> Korea<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 11
2. Ch<strong>in</strong>a: Biomass Power <strong>of</strong> Eco-Frontier (2/2)<br />
Development <strong>and</strong><br />
Construction Partners<br />
Pre-Feasibility Study<br />
Sh<strong>and</strong>ong Energy <strong>and</strong><br />
Build<strong>in</strong>g Design Institute<br />
Pre-Feasibility Study Review<br />
Jipyong&Jisung, Pöyry<br />
Pre-Construction Consult<strong>in</strong>g<br />
Mott MacDonald<br />
Shareholders (33.4%)<br />
Shenzhen Han Yuan (55%)<br />
GS EPS (31.5%)<br />
Eco-Frontier (13.5%)<br />
Sh<strong>and</strong>ong P<strong>in</strong>gyuan Han Yuan<br />
Green Energy Co., Ltd.<br />
(Project SPC)<br />
Operation Partners<br />
Plant Operation<br />
Project SPC<br />
Fuel Supply<br />
Fuel Supply SPC<br />
(JV <strong>of</strong> Project SPC &<br />
Local Agri. Federation)<br />
Power Purchase<br />
Sh<strong>and</strong>ong Power Corp.<br />
Construction PM<br />
Mott MacDonald<br />
EPC contractor<br />
SEPCO 1<br />
CDM Coord<strong>in</strong>ator<br />
Eco-Frontier<br />
CDM Consultant<br />
COWI<br />
Project F<strong>in</strong>ance (66.6%)<br />
Advisor, Arranger, Agent, <strong>and</strong> Lender<br />
Korea Development Bank<br />
ECA<br />
Korea Trade Insurance Corp.<br />
Feasibility Study<br />
Korea Rat<strong>in</strong>gs, Lee&Ko, AON<br />
CER Purchase<br />
Eco-Frontier<br />
Carbon Partners <strong>in</strong> UK<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 12
2. Ch<strong>in</strong>a: Biomass Fuel Switch<strong>in</strong>g <strong>of</strong> Eco-Frontier<br />
Project Overview<br />
• Type: Coal plant acquisition & replac<strong>in</strong>g coal with <strong>biomass</strong> • Site: Qianjiang, Ch<strong>in</strong>a<br />
• Total Investment: USD 160 million (expected)<br />
• Capacity: 60MW<br />
• Amount <strong>of</strong> <strong>biomass</strong> fuel needed: app. 1 million ton/yr (supported by city)<br />
Coal boiler<br />
(60MW X 3set)<br />
Coal plant<br />
Coal<br />
(210,000t/yr)<br />
Coal<br />
(210,000t/yr)<br />
Electricity<br />
(120MW)<br />
10MW (In-house)<br />
110MW<br />
(0.51RMB/kWh)<br />
Alum<strong>in</strong>um<br />
Plant<br />
Biomass <strong>power</strong> (converted)<br />
Coal<br />
Biomass<br />
Feedstock<br />
Electricity<br />
(55MW)<br />
50MW<br />
(0.75RMB/kWh)<br />
State<br />
Grid<br />
5MW (In-house)<br />
Renewable<br />
energy sales<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 13
3. Korea: Biomass Policy<br />
RPS (Renewable Portfolio St<strong>and</strong>ard) implements from 2012<br />
A st<strong>and</strong>ard obligates major electric <strong>power</strong> company(capacity : more than 500MW)<br />
to supply some rate <strong>of</strong> the energy they provide as renewable energy.<br />
Obligatory electronic supply <strong>of</strong> renewable energy<br />
= Total electricity supply <strong>of</strong> electronic bus<strong>in</strong>ess X Obligatory rate<br />
9%<br />
10%<br />
Obligatory rate<br />
8%<br />
6%<br />
7%<br />
2%<br />
2.5%<br />
3%<br />
3.5%<br />
4%<br />
5%<br />
NRE generation (BAU)<br />
'12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 14
3. Korea: Pellet Dem<strong>and</strong> <strong>of</strong> Korea <strong>in</strong> 2022<br />
Annual<br />
electricity<br />
production<br />
400 million MWh<br />
Electricity<br />
production by<br />
renewable energy<br />
40 million MWh<br />
Electricity<br />
production by<br />
<strong>biomass</strong><br />
20 million MWh<br />
Pellet needs <strong>in</strong> 2022<br />
12.5M ton/yr<br />
50%<br />
RPS<br />
10%<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 15
3. Korea: Pellet Bus<strong>in</strong>ess Target <strong>of</strong> Eco-Frontier<br />
Targets: Secur<strong>in</strong>g 2 million tonnes <strong>of</strong> pellet by 2015<br />
Biomass pellet projects under development<br />
Country Bus<strong>in</strong>ess partners Production target<br />
1 Indonesia<br />
OOOO<br />
(state owned company)<br />
50,000 ton/yr<br />
2 Malaysia<br />
SOOOO OOOOOOOO<br />
(state owned company)<br />
80,000 ton/yr<br />
3 Indonesia<br />
OOOO OOOOO<br />
(private company)<br />
500,000 ton/yr<br />
Vietnam<br />
4 Indonesia<br />
OOOO<br />
(state owned company)<br />
400,000 ton/yr<br />
Thail<strong>and</strong><br />
5 Vietnam<br />
AOOOOO & OOOOOOO<br />
(private company)<br />
50,000 ton/yr<br />
Malaysia<br />
6 Malaysia<br />
OOOOOO<br />
(private company)<br />
200,000 ton/yr<br />
7 Indonesia<br />
OOOOOO<br />
(private company)<br />
300,000 ton/yr<br />
Indonesia<br />
8 Thail<strong>and</strong><br />
OOOOOO<br />
(private company)<br />
150,000 ton/yr<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 16
West meets East.<br />
West<br />
• Policy for <strong>biomass</strong> projects<br />
• Markets for <strong>biomass</strong> projects<br />
• <strong>Experiences</strong> <strong>of</strong> <strong>biomass</strong> projects<br />
• Technologies <strong>of</strong> <strong>biomass</strong> projects<br />
East<br />
• <strong>Experiences</strong> <strong>of</strong> <strong>biomass</strong> projects<br />
• EPC capability <strong>of</strong> <strong>biomass</strong> projects<br />
• Utility companies who want to go abroad<br />
• Investment <strong>and</strong> f<strong>in</strong>anc<strong>in</strong>g capability<br />
• Available <strong>biomass</strong> resources, etc.<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 17
The end <strong>of</strong> document<br />
Contact: Dae-Woong Lim, Manag<strong>in</strong>g Director, Eco-Frontier<br />
6F DMC Hi-Tech Industry Center, 1580 Sangam-dong, Mapo-Gu, Seoul, Korea, http://www.ec<strong>of</strong>rontier.com<br />
E: dwlim@ec<strong>of</strong>rontier.com, T: +82-(0)2-3153-7722(<strong>of</strong>fice), +82-(0)10-3211-0430(mobile)<br />
Dedicated to mak<strong>in</strong>g a difference today for a better tomorrow,<br />
we contribute to the world’s susta<strong>in</strong>able development,<br />
help healthy growth <strong>of</strong> bus<strong>in</strong>esses, <strong>and</strong> improve people’s quality <strong>of</strong> life.<br />
Copyright c 2012 Eco-Frontier. All Rights Reserved.<br />
Copyright c 2012 Eco-Frontier Co. All rights reserved. 18
Change language