experiences of biomass power and pellets in asiaenergy-indonesia.com/03dge/biomas hatsuden.pdf ·...

Copyright ⓒ 2012 Eco-Frontier Co. All rights reserved. 0

World Bioenergy 2012, Jonkoping, Sweden, 29th May 2012

Dae-Woong Lim, Managing Director, Eco-Frontier

Experiences of biomass power and pellets in Asia


Eco-Frontier from Asia

Experiences in Asia

Malaysia

China

Korea

West meets East

Contents


Eco-Frontier from Asia

Carbon credits business • Volumes: Over 20Mt of carbon credits • Project types: Energy efficiency, coal mine methane, biomass power, hydro power, landfill gas, HFC

Sustainable finance business • Advisory for sustainable funds at US$1.5 billion • Clients: Korea Development Bank AM, Samsung AM, Shinhan BNP Paribas, Hana UBS, Woori Bank, Industrial Bank of Korea, etc.

Biomass power business • Malaysia: 23MW + 150t/hr steam • China: 30MW, 60MW(fuel switching) • Korea: 40MW(fuel switching) • Others: Europe and USA

Global Brain & Business Group Korea, Malaysia, Indonesia, China, USA, UK

Sustainability consulting business • Industry: Construction, petrochemical, pulp & paper, electronics, finance, etc. • Utility: Electricity, district heating, transportation, housing, landfill, etc. • Governments: Korea, Indonesia, World Bank, ASEM, etc.


200 MW

1. Malaysia: Biomass Policy

Feed-in-Tariff (FiT)

Renewable energy will increase from <1% in 2009 to 5.5% of Malaysia’s total electricity generated by 2015

65 MW

290 MW

100 MW

330 MW Biomass

41.5

23 X

2009 2015

<1% 5.5%

Biogas

Mini-hydro

Solar PV

Solid waste

Moving towards renewable energy replaces the need for

fossil-fuel power plants

Planned increase in renewable energy capacity

% of total

electricity

generated

• Introduction of Fee-in-Tariff (FiT)

of 1% to be incorporated into the

electricity tariffs of consumers

• Establishment of a Renewable

Energy Fund from the FiT to be

administered by a special agency

under KeTTHA

• This provides an annual CO2

avoidance of 3.2 million tonnes


1. Malaysia: Biomass Policy (FiT Rates)

Renewable Energy Base Rate Period Annual Degression

Biogas 0.28~0.32 RM/kWh 16 years 0.5%

Biomass 0.27~0.31 RM/kWh 16 years 0.5%

Mini-hydro 0.23~0.24 RM/kWh 21 years 0.0%

Solar PV 0.85~1.23 RM/kWh 21 years 8.0%

Biomass incentives

FiT rates


1. Malaysia: Potential Renewables

Biomass Solar Biogas Mini-Hydro Solid Waste

Potentials

Examples

>6,500 MW

(40% buildings)

1MW

- MBIPV Project

(SURIA 1,000 Demo)

- Yearly average

irradiance 1,400-1,900

kWh/m2

1,340 MW

by 2030

Total 39MW and more

under construction

- Biogen project

- Palm oil waste

410 MW

By 2028

Total 4.45MW and

more under

construction

- Palm Oil Mill effluent

(POME)

- Cassava waste

- Livestock etc.

490 MW

By 2020

Total 30.3MW and

more under

construction

- Run of the river with

minimum impounding

360 MW

By 2022

Total 5.5MW and more

under construction

- Waste collected in

Malaysia appr. 21,000

tonnes/day


1. Malaysia: Biomass Feedstock

Business focus of Eco-Frontier

Wood Pellet from Short Rotation Coppice Plantation

Wood Pellet from Logging industry chain

EFB/OPF Pellet and PKS from Oil Palm Plantation


1. Malaysia: Biomass CHP of Eco-Frontier (1/2)

Acquisition

ECF’s Share (Sole Developer):

25% (paid-in capital: 5.5M USD)

ECF’s CER: 50% of entire CERs

Project Overview

Type: Biomass Combined Heat Power Plant

Site: POIC, Sabah, Malaysia

Investment: 100M USD

Size: Power 23MW + Steam 150t/hr (Max.)

CER: 120,000tons/year x 21-year period

Exclusive rights to supply steam and power

in the cluster

Electricity

Steam

CER

EFB


1. Malaysia: Biomass CHP of Eco-Frontier (2/2)

Total Investment: $100M

The largest biomass

renewable energy

project

• SPC establishment

• Land purchase contract

• Permits & approvals

• Supply & purchasing

contracts

• Feasibility analysis

& basic structuring

Construction Start

in 2010

Operation

Management

9M USD joint investment 4.5M USD dividends/yr for 20 years

Engineering

Procurement

Construction

60M USD size plant construction

Equity / Debt

Financing

63M USD loan injection MLA and loan institution KIAMCO participating preferred stocks * MLA: Mandated lead arranger

Shared

Service

Various services from legal to tech Total advisory service fee: 2M USD


2. China: Biomass Policy

“Sales guarantee

of renewable power ”

“Fixed price: RMB0.75/kwh”

from biomass power

“Sales guarantee of electricity

during commissioning period”

Advantages of biomass power

Renewable energy development act, 2010,

Electricity control methods in utility renewable energy,2007

Development and reform commission, 2010

Development and reform commission, 2009

Over production Under production Commissioning

100% sales guarantee with fixed price

Renewable energy development act (2010)

• Sales guarantee of produced electricity by state owned company

• Renewable energy price-stability benefits in utility green power programs

State owned company

with high creditworthiness ;


2. China: Biomass Markets

Construction 13GWe

Biomass power by 2015

• Current: 4GWe (2012)

• 9GWe = 30MWe Power station x 300

units

• Fully support by government and states

122mllion tonnes of fuel needs

• Biomass use for power: 70.6%

• Unused land area: 25.8%

• 200m ha of SRC forestation by 2020

Encouraging by government

by2015

Biomass power expansion

(12th five-year plan)

High electricity sales price

Cent/kWh

US$

Low fuel cost

0,00 50,00 100,00 150,00

동남아

중국

미국

영국

Supply price ($/ton)

- 0,50 1,00 1,50

동남아

중국

미국

영국

Calorific value (Cent/MJ)

US$/t

0,10 0,10

0,12

0,08

0,10

0,00

0,02

0,04

0,06

0,08

0,10

0,12

0,14

※ Included FIT / Subsidy

※ Quarter in SE Asia

The UK

USA

China

SE Asia

The UK

USA

China

SE Asia Malaysia Philippines China USA The UK


2. China: Biomass Power of Eco-Frontier (1/2)

Project Outline

Type: Biomass Power Generation

(Fuel: Cotton trunk, fast growing tree, mulberry trunk)

Site: Shandong, China

Total Investment: 50M USD

Size: Power 30MW

CER: 150,000 tons/yr x 10 years

ECF’s Share (Co-Developer): 13.5% (paid-in capital: 2.5M USD)

Supported by

Minister of Environment in Korea


2. China: Biomass Power of Eco-Frontier (2/2)

Development and Construction Partners

Operation Partners

Pre-Feasibility Study

Shandong Energy and Building Design Institute

Shandong Pingyuan Han Yuan Green Energy Co., Ltd.

(Project SPC)

Shareholders (33.4%)

GS EPS (31.5%)

Eco-Frontier (13.5%)

Pre-Feasibility Study Review

Jipyong&Jisung, Pöyry

Pre-Construction Consulting

Mott MacDonald

Construction PM

Mott MacDonald

EPC contractor

SEPCO 1

Shenzhen Han Yuan (55%)

Project Finance (66.6%)

Plant Operation

Project SPC

Fuel Supply

Fuel Supply SPC (JV of Project SPC &

Local Agri. Federation)

Power Purchase

Shandong Power Corp.

CER Purchase

Eco-Frontier Carbon Partners in UK

Advisor, Arranger, Agent, and Lender

Korea Development Bank

Feasibility Study

Korea Ratings, Lee&Ko, AON

ECA

Korea Trade Insurance Corp.

CDM Coordinator

Eco-Frontier

CDM Consultant

COWI


2. China: Biomass Fuel Switching of Eco-Frontier

Coal boiler

(60MW X 3set)

Coal

(210,000t/yr)

Coal

(210,000t/yr)

Coal plant

Coal

Biomass power (converted)

Electricity

(55MW)

Electricity

(120MW)

Aluminum

Plant

State

Grid

50MW

(0.75RMB/kWh)

110MW

(0.51RMB/kWh)

5MW (In-house)

10MW (In-house)

Renewable

energy sales

Project Overview

Type: Coal plant acquisition & replacing coal with biomass Site: Qianjiang, China

Total Investment: USD 160 million (expected) Capacity: 60MW

Amount of biomass fuel needed: app. 1 million ton/yr (supported by city)

Biomass

Feedstock


RPS (Renewable Portfolio Standard) implements from 2012

A standard obligates major electric power company(capacity : more than 500MW)

to supply some rate of the energy they provide as renewable energy.

Obligatory electronic supply of renewable energy

= Total electricity supply of electronic business X Obligatory rate

2% 2.5%

3% 3.5%

4%

5%

6%

7%

8%

9%

10%

'12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Obligatory rate

NRE generation (BAU)

3. Korea: Biomass Policy


3. Korea: Pellet Demand of Korea in 2022

400 million MWh

10%

40 million MWh

50%

20 million MWh

Annual

electricity

production

RPS

Electricity

production by

renewable energy Electricity

production by

biomass

Pellet needs in 2022

12.5M ton/yr 12.5M ton/yr


3. Korea: Pellet Business Target of Eco-Frontier

Biomass pellet projects under development

Indonesia

Vietnam

Thailand

Targets: Securing 2 million tonnes of pellet by 2015

Country Business partners Production target

1 Indonesia OOOO

(state owned company) 50,000 ton/yr

2 Malaysia SOOOO OOOOOOOO


3 Indonesia OOOO OOOOO

(private company) 500,000 ton/yr

4 Indonesia OOOO


5 Vietnam AOOOOO & OOOOOOO


6 Malaysia OOOOOO


7 Indonesia OOOOOO


8 Thailand OOOOOO


Malaysia


West meets East.

East Experiences of biomass projects

EPC capability of biomass projects

Utility companies who want to go abroad

Investment and financing capability

Available biomass resources, etc.

West Policy for biomass projects

Markets for biomass projects

Experiences of biomass projects

Technologies of biomass projects


The end of document

Dedicated to making a difference today for a better tomorrow,

we contribute to the world’s sustainable development,

help healthy growth of businesses, and improve people’s quality of life.

Copyright ⓒ 2012 Eco-Frontier. All Rights Reserved.

Contact: Dae-Woong Lim, Managing Director, Eco-Frontier

6F DMC Hi-Tech Industry Center, 1580 Sangam-dong, Mapo-Gu, Seoul, Korea, http://www.ecofrontier.com

E: [email protected], T: +82-(0)2-3153-7722(office), +82-(0)10-3211-0430(mobile)

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