1. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market Conditions, Barriers and Outlook for Biomass Energy in ASEAN ASEM Green Independent Power Producers (IPPs) Network – First Regional Workshop 24-25 October 2002, Sofitel Silom, Bangkok, Thailand Ludovic Lacrosse: Project Coordinator Romel M. Carlos: Financial Advisor Mr. Thomas Hernoe: Environmental Advisor EC-ASEAN COGEN Programme Asian Institute of Technology, Energy Bldg., PO Box 4 Klong Luang, Pathumthani 12120 Thailand Tel: +662 524 5399; Fax: +662 524 5396 Website: http://www.cogen3.net; E-mail: cogen3@cogen3.net

2. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Market conditions and outlook for biomass in ASEAN Barriers and possible solutions Outline

3. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration An economic cooperation programme: European Commission (EC) & Association of South East Asian Nations (ASEAN) Funded by the EC (25 M ) Implementation: January 2002 – December 2004 Coordinated by Asian Institute of Technology (AIT) & SYCON-Carl Bro 3rd Phase (COGEN 3) Objectives: Increase the use of cogeneration in ASEAN Promote the use of proven, clean and efficient European cogeneration technology Create business opportunities for cogeneration within the ASEAN industrial sectors using biomass, coal and gas as fuels EC-ASEAN COGEN Programme

4. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration ASEAN - Electricity Sector Reform

5. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Biomass fuels Available in ASEAN Rice husk, Sugar bagasse, Palm oil, Pulp and paper Rice husk, Wood residues Rice husk, Wood residues Rice husk, Sugar bagasse, Pulp and paper, Wood residues Rice husk, Palm oil, Wood residues n.a. Rice husk, Sugar bagasse, Palm oil, Pulp and paper, Wood residues Rice husk, Wood residues n.a.

6. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Energy situation Old cogeneration plants (20 to 50 years) with low pressure boilers and less efficient turbines Not possible to sell electricity in the past Seasonal operation using only bagasse Emerging trend Need to replace old cogeneration system Good potential for high pressure boilers and efficient turbines Excess power exported to grid Use of multi-fuel boilers and plant operation throughout the year Already few sugar mills started implementing efficient cogeneration Sugar mills

7. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Sugar industries: Fuel availability and cogeneration potential Sugar industries: Fuel availability and cogeneration potential CountrySugar cane production (1,000 tonnes) Bagasse production (1,000 tonnes) Max. Power Generation Potential (GWh/year) Indonesia31,0008,9902,997 Philippines21,0006,0902,030 Thailand54,00015,6605,220 Vietnam12,0003,4801,160 Total118,00034,22011,407 Bagasse = Sugar cane * 0.29; 1 kWh = 3 kg of bagasse (including steam for process)

8. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Energy situation Only few plants implemented so far Revenue from ash sales Rice husk plants are also fired with wood waste and bagasse Dumping or open burning is common Emerging trend Good potential for high pressure boilers and efficient turbines Excess power exported to grid Separate isolated plants generating only power is also popular Rice mills

9. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Rice industries: Fuel availability and cogeneration potential Rice industries: Fuel availability and cogeneration potential CountryPaddy production (1,000 tonnes) Rice husk production (1,000 tonnes) Max. Power Generation Potential (GWh/year) Indonesia51,00011,2207,480 Malaysia2,000440293 Philippines11,0002,4201,613 Thailand22,0004,8403,227 Vietnam28,0006,1604,107 Total114,00025,08016,720 Rice husk = Paddy * 0.22; 1 kWh = 1.5 kg of rice husk (including steam for process)

10. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Rice husk plant in Thailand 2.5 MW Steam turbine Boiler: Capacity 17 tph, 35 bar, 420 o C In operation since 1997 COGEN phase 2 Full Scale Demonstration Project Steam used for drying of rice paddy Ash sold to steel industries (export) Rice husk plant in Thailand 2.5 MW Steam turbine Boiler: Capacity 17 tph, 35 bar, 420 o C In operation since 1997 COGEN phase 2 Full Scale Demonstration Project Steam used for drying of rice paddy Ash sold to steel industries (export)

11. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Energy situation Old cogeneration plants (20 to 50 years) with low pressure boilers and less efficient turbines Not possible to sell electricity in the past Seasonal operation using only fibre and shell Emerging trend Need to replace old cogeneration system Good potential for high pressure boilers and efficient turbines Excess power exported to grid Use of empty fruit bunches, fibre and shell Plant operation throughout the year Already few palm oil mills started implementing efficient cogeneration systems Palm oil mills

12. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Palm oil industries: Fuel availability and cogeneration potential Palm oil industries: Fuel availability and cogeneration potential CountryFFB production (1,000 tonnes) Residue production (1,000 tonnes) Max.Power Generation Potential ( GWh/year) Indonesia25,00010,5004,200 Malaysia42,00017,6407,056 Philippines30012650 Thailand2,300966386 Total69,60029,23211,693 Residue = Fresh Fruit Bunch * 0.42; 1 kWh = 2.5 kg of residues (including steam for process)

13. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Energy situation Inefficient boilers for heat requirements Very few power/cogeneration plants implemented Bark and other wood processing wastes are more common Saw mills and ply mills generate large amount of waste (up to 50%) Emerging trend Good potential for high pressure boilers and efficient extraction condensing turbines Used together with rice husk, sugar bagasse and coal Excess power exported to grid Plant operation throughout the year Wood industries

14. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Wood complex in Malaysia 1.5 MW steam turbine Condensing 900 kW Back pressure 600 kW Boiler: Capacity 16 tph, 22 bar, 280 o C In operation since 1995 COGEN phase 2 Full Scale Demonstration Project Steam is used for timber drying - Wood complex in Malaysia 1.5 MW steam turbine Condensing 900 kW Back pressure 600 kW Boiler: Capacity 16 tph, 22 bar, 280 o C In operation since 1995 COGEN phase 2 Full Scale Demonstration Project Steam is used for timber drying -

15. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration SectorBiomassCoalNat.gasTotal Pulp and paper32 IPP and utility54 Textile112 Rice mill4 Pineapple1 Sugar8 Cement1 Rubber1 Gas and oil companies Palm oil6 Wood industri2 Hotels, cheramics, chemical2 Recycling1 Biogas1 Total no. of projects3371050 Total MW563 MW84 MW487 MW1,134 MW Min Max 0.6 MW 150 MW 9 MW 45 MW 0.08 MW 350 MW What is going on in ASEAN

16. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration Technical Human Information Organisation Barriers

17. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration

18. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration

19. EC-ASEAN COGEN Programme Phase III Clean Efficient Biomass, Coal, Gas Cogeneration For more information, please visit COGEN 3 Web Site at:- http://www.cogen3.net Thank You!