biomass opportunities in korea ministry of jobs, tourism and … ahn.pdf · 2020-05-22 · biomass...

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Biomass Opportunities in Korea Ministry of Jobs, Tourism and Innovation Sookyung Ahn Senior Manager 1

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Page 1: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

Biomass Opportunities in Korea

Ministry of Jobs, Tourism and Innovation

Sookyung Ahn

Senior Manager 1

Page 2: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

RPS Development Process

•Dec. 2003, the 2nd Renewable Energy Plan- RPS proposed

•Sep. 2008, RPS clarified - Green Energy Strategy

•Dec. 2008, RPS adopted- The 3rd Renewable Energy Plan

•Mar. 2010, Korean National Assembly passed the RPS bill

•Jan. 2012 RPS takes effect

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Page 3: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

RPS Madatory Suppliers

Above 5,000MW (Group I)– 95% Kepco SubsidiariesKorea Hydro & Newclear Power Co., LTD (KHNP)Korea South East Power Co. Ltd. (KOSEP)Korea Midland Power Co., Ltd. (KOMIPO)Korea Western Power Co., Ltd. (KWP)Korea Southern Power Co. Ltd. (KOSPO)Korea East West Power Co. Ltd. (KEWP)

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Page 4: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

RPS Mandatory Suppliers

Below 5,000 MW (Group II)– 5% IPPs

Korea District Heating Corp (KDHC)Korea Water Corporation (K-Water)K-PowerGS EPSGS PowerPosco PowerMPC (Ulchon)

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Page 5: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

Mandatory Annual RPS Ratio

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Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2022

% 2.0 2.5 3.0 3.5 4.0 5.0 6.0 7.0 8.0 9.0 10.0

RPS Mandatory Volume= mandatory supplier fossil fuel power generation volume

X yearly RPS mandatory ratio

Page 6: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

REC Weight RPS Power Generation Volume=New renewable energy

source power generation volume X REC

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0.25 IGCC, Gas

0.5 Waste, landfill gas

1.0 Hydro Power, land wind power, bio energy, RDF power generation, waste gasification power generation, tidal power (Tide embankment)

1.5 Biomass (wood), Ocean wind power (distance less than 5Km)

2.0 Ocean wind power (distance more than 5Km), tidal power (no tide embankment), fuel cell

Page 7: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

RPS Calculation

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•RPS Mandatory Volume = Mandatory supplier fossil fuel power generation volume X yearly RPS mandatory ratio

•RPS Power Generation Volume = New renewable energy source power generation volume X REC

•RPS Penalty = (RPS Mandatory Volume – RPS Power Generation) X 40 (Korean Won) (=3.4 cents)/kWh X 150%

Page 8: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

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Biomass New Renewable Energy Power Generation

New renewable energy source applied for RPS

Classification RPS applied source RPS not applicable

Power plant usage available

Wood pellets, wood chips, RDF, RPF, TDF

Bituminous coal, anthracite coal

Power plant usage not available

PKS, EFB, rice husks Natural waste

Page 9: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

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Biomass New Renewable Energy Power Generation

Dual fuel available source upon the type of boiler

Classification Pulverized boiler Circulating fluidized bed combustion

Dual fuel available Wood pellet, DFB, Rice husks pellet

Wood pellet, EFB, rice husks pellet, PKS, wood chip

Dual fuel not available PKS, wood chip

Page 10: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

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Biomass New Renewable Energy Power Generation

Projection on wood pellet usage (pulverized boiler: 3% dual fueling assumption) :

Coal consumption volume 90M ton x dual fueling ration 3% x (bituminous coal 6,000/pellet 4,500) = 3.6M / year

Woodpellet 1ton = 2,000 kWh in power generation

Co-firing: 2,000 kWh/ton x 1.0 = 2,000 kWh/ton in RPS

Full firing: 2,000kWh/ton x 1.5 = 3,000 kWh/ton in RPS

(co-firint biomass:1.0/ full firing biomass:1.5)

Page 11: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

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Portfolio & Focused Fields for RPS

Field of energy

Offshore wind

Tidal Energy

Fuel Cell

Onshore wind

Solar Hydraulic

Biomass

IGCC Biogas

LFG Wastes

% 38.8 20 12.1 8.1 7.5 6.8 2.1 3.1 0.8 0.4 0.4

Page 12: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

Kepco Overview

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•Kepco (Asset: 99.6 trillion won, Sales: 39.4 trillion won

Company name

KHNP KOSEP KOMIPO WP KESPO WESPO

Core Biz Nuclear & Hydro

Thermal Thermal Thermal Thermal Thermal

Market Share

32% 13% 12% 11% 13% 12%

Asset 30 t won 5.5 t won 5.1 t won 4.5 t won 5.0 t won 4.5 t won

Sales 5.8 t won 4.2 t won 4.8t won 4.7 t won 5.2 t won 4.6 t won

Page 13: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

Focuse Fields by Genco

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Field Genco A Genco B Genco C Genco D Genco E Genco F

Tidal energy

√ √ √ √

Fuel cell √ √ √ √ √ √

Onshore wind

√ √ √ √ √ √

Solar √ √ √ √ √ √

Biomass √ √ √ √ √

IGCC √

Wastes √ √

Page 14: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

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Preparation of Biomass by GencoGenco A

Plan to co-firing in fluidizing bed boiler (200MW x2) as of 2012: 10% wood chip or /and pellet, 150,000 ton/year

Construction of full biomass powr plant (30MW x 2) is in progress: wood chip, 180,000ton/year

Genco B

Construction of fluidizing bed boiler (500MW x2) for co-firing with pellet will be completed:

5% pellet, 400,000ton/year

Genco C

Commission of fluidizing bed boiler (340MW x1) for co-firing with pellet is in progress:

5-10% pellet, 300,000ton/year

Page 15: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

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Preparation of Biomass by GencoGenco A, B, C, D, E

Review of co-firing with pellet in pulverized coal boiler

Capacity: each of 500MWx8 units, 5 companies

Usage of coal by Genco in 2010: 80 million ton/year

Expected rate of co-firing with biomass: 3-5%

Combined Heat & Power Plant (CHP)

Usage of wood chip by CHP boiler: 600,000ton/year

CHPs are used in paper mills, dye houses & chemical plant with heat

If price terms are satisfactory, CHPs are to use biomass

Page 16: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

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Types of Biomass by GencoWood Chip

Source country: Korea metropolis, forest & development

Price: 20-100USD/ton

Heat Value: 2,500-3,500 kcal/kg

Storage: inside+outside

Barrier: limited quantity in the country

Wood Pellet

Source country: Canada, Indonesia, Malaysia, Russia, Australia, South Africa, Brasil

Price: 150-200USD/ton

Heat Value: 4,000-4,500 kcal/kg

Storage: inside (silo, dome, shed)

Barrier: storage, moisture , shipping

Page 17: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

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Types of Biomass by GencoPKS

Source country: Indonesia, Malaysia

Price: 100-150USD/ton

Heat Value: 4,000-4,500 kcal/kg

Storage: inside+outside

Barrier: limited quantity in the world

EFB Pellet (Empty Fruit Bunch)

Source country: Indonesia, Malaysia

Price: 130-180USD/ton

Heat Value: 4,000-4,500 kcal/kg

Storage: inside

Barrier: waste, storage, moisture , shipping

Page 18: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

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Types of Biomass by GencoCorn Pellet

Source country: Indonesia, Malaysia

Price: 100-150USD/ton

Heat Value: 4,000-4,500 kcal/kg

Storage: inside

Barrier: waste, storage, moisture, shipping

Rice Husk Pellet)

Source country: Vietnam

Price: 100-150USD/ton

Heat Value: 4,000-4,500 kcal/kg

Storage: inside

Barrier: waste, storage, moisture , shipping

Page 19: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

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Types of Biomass by GencoBio Coal

Source country: Canada, Indonesia, Malaysia

Price: 150-200USD/ton

Heat Value: 5,000-6,000 kcal/kg

Storage: inside + outside

Barrier: shipping, limited production

Rice Husk Pellet

Source country: Vietnam

Price: 100-150USD/ton

Heat Value: 4,000-4,500 kcal/kg

Storage: inside

Barrier: waste, storage, moisture , shipping

Page 20: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

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Genco’s consideration on BiomassRelative competitiveness of biomass• Cost on production & transportation

• Long-term supply capability

• Legal consideration:

biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant because they are categorized as wastes

July 2012, Min. Env. Will review the current categorization

• Technological concerns: tube corrosion, slagging, effect of boiler combustion should be reviewed

• Handling issues: facility of unloading, storage, conveyor systems

Page 21: Biomass Opportunities in Korea Ministry of Jobs, Tourism and … Ahn.pdf · 2020-05-22 · biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant

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Thank you

Sookyung Ahn

(604) 375-8774

[email protected]