1. Arul Joe Mathias B.E., M.Engg., MBA Dr. Balasankari B.E., M.Engg., Ph.D Trends in Biomass Power Generation in Asia and Opportunities for Global Equipment Suppliers Renewable Energy World Asia 2- 4 November 2010, Marina Bay Sands, Singapore Trends in Biomass Power Generation in Asia and Opportunities for Global Equipment Suppliers Renewable Energy World Asia 2- 4 November 2010, Marina Bay Sands, Singapore

2. In the last 10 years: – considerable change in biomass power generation – Rise in multi-fuel plant designs (high cost and demand for fuel) – Improvised combustion technologies – Several new approaches in power plant implementation www.rcogenasia.com INTRODUCTION

3. Trends in Biomass Power Generation www.rcogenasia.com

4. Bagasse, palm shell, palm fibre, rice husk and wood waste - commonly used fuels in Asia Recent Biomass Price in Asia has gone up to 60 USD/ton Use of unconventional fuels such as empty fruit bunch, corn cob, cassava rhizome, coffee husk, etc. are also increasing – Forces the use of efficient multi-fuel boilers www.rcogenasia.com BIOMASS FUEL AVAILABILITY, PRICE AND ITS IMPACT

5. Even with multi-fuel boiler designs, fuel mix scenario changes from year to year Advanced combustion systems are used to tackle varying fuel mix scenarios Innovative and creative approaches are used to reduce the initial investment cost and operational cost www.rcogenasia.com BIOMASS FUEL AVAILABILITY, PRICE AND ITS IMPACT

6. Travelling grate systems and reciprocating step grate systems are in high demand. Fluidised bed combustion systems are popular in few countries CFBC: used rarely for small scale biomass plants Vibrating grate systems are tried with few plants, but failed to gain popularity Cyclonic combustion systems: only few installations BIOMASS COMBUSTION SYSTEMS IN ASIA www.rcogenasia.com

7. One decade ago: – most common steam cycle was in the range of 40 bar and 440°C. At present: – use of high pressure steam cycle to reduce fuel consumption – Steam pressure cycles of up to 110 bar and 510°C are used STEAM CYCLES IN ASIA www.rcogenasia.com

8. Sugar sector: 15 MW to 40 MW Palm oil sector: 5 MW to 15 MW Rice sector: 5 MW to 10 MW Wood industries: 5 MW to 10 MW Multi-fuel fired projects: 5 MW to 20 MW NORMAL BIOMASS POWER PLANT CAPACITY www.rcogenasia.com

9. Considerable reduction in the investment cost Common pressure cycle: 65 bar, 465 °C In multi-fuel boiler: up to 105 bar Ash sale price: as high as 400 USD/ton The key issue: Rice husk price TREND IN RICE HUSK POWER GENERATION www.rcogenasia.com

10. TREND IN SUGAR COGENERATION After 1994: 67 bar, 490 o C systems After 2001: 87 bar, 515 o C systems After 2007: 110 bar, 540 o C systems Extraction-cum-condensing turbine www.rcogenasia.com

11. Matured technology Along with wood chips - bark, saw dust and other wood wastes are often used Demolition wood, tree trimmings are also used Sustainable supply…………………….. ? TREND IN WOOD WASTE POWER GENERATION/COGENERATION www.rcogenasia.com

12. For a 10 MW power plant : water requirement is around 1,600 m 3 /day In many countries, – difficult to implement power plant projects using conventional water cooled plant design – results in approval delays and creates risk of rejection of approval Use of air cooled condenser, instead of water cooled condenser and cooling tower system POWER PLANT IN WATER SCARCE AREA www.rcogenasia.com

13. When compared with water cooled condensers: – reduction of around 80% water requirement – overall plant efficiency is lower – overall power plant investment cost is higher – only recommended in places with water issues AIR COOLED CONDENSERS www.rcogenasia.com

14. Separate procurement and EPC Project implementation cost lower in separate procurement In Asia the general trend is to go in for EPC approach – to avoid dealing with the issues of warranty and other implementation delays Knowledgeable developers capable of managing the project implementation effectively prefer to go for separate procurement PROJECT IMPLEMENTATION APPROACH www.rcogenasia.com

15. Compared to corporate financing, project financing is bit difficult to obtain Growing trend towards project financing – Banks will ensure that all security arrangements are in place by conducting proper due diligence, before granting the loan – Ensures projects are generally of low risk FINANCING SITUATION www.rcogenasia.com

16. Opportunities for Global Equipment Suppliers www.rcogenasia.com

17. Sugar mills in Asia: – Existing cogeneration system ranges from 21 bar and 340°C to 42 bar and 400°C – Only some of them have implemented 67 bar and 490°C systems – Wide potential for very high pressure systems in the range of 87 bar and 510 °C to 110 bar to 540 °C www.rcogenasia.com MARKET FOR BOILERS IN SUGAR MILLS

18. In the past 10 years, EFB is being used in boilers, which is a difficult fuel Though several equipment suppliers have implemented such projects in Thailand, Malaysia and Indonesia, no one has succeeded 100% in this aspect Equipment suppliers who can bring in reliable and proven combustion system can capture the wide markets in Malaysia, Thailand and Indonesia www.rcogenasia.com MARKET FOR BOILERS IN PALM OIL MILLS

19. 100% proven combustion technology for EFB Fuel preparation system for the use of EFB www.rcogenasia.com MARKET FOR PALM WASTE POWER PLANT EQUIPMENTS

20. For boilers producing rice husk ash (RHA) of good quality – RHA is mainly used in the steel industry as an insulator during the manufacture of high quality steel forgings. – The price of RHA is as high as 400 USD/ton at the steel plant gate level. – RHA is used in cement industries as a substitute for Portland cement. www.rcogenasia.com MARKET FOR BOILERS IN RICE MILLS

21. Research work is also going on regarding silica chip manufacture as the silica content of the ash is very high. The density, unburnt carbon content and moisture content of rice husk ash should be as low as possible Boiler suppliers who can guarantee high quality rice husk ash are in demand in Asia www.rcogenasia.com MARKET FOR BOILERS IN RICE MILLS

22. Market for efficient high pressure extraction condensing turbines with multiple extractions is high in sugar and palm oil industries Rice mills have also increasingly started using the extraction condensing turbines with single steam extraction, mainly for paddy drying application. High pressure condensing turbines are also highly in demand in the market. www.rcogenasia.com MARKET FOR STEAM TURBINES

23. Electrostatic precipitators (ESPs), bag house filters and efficient multi cyclones are in demand in Asia. ESP performance over a long period of time is an issue – due to various reasons including usage of different biomass fuels ESP suppliers who can give longer performance guarantee period with the usage of different biomass fuels are in demand in the market. www.rcogenasia.com MARKET FOR POLLUTION CONTROL EQUIPMENT

24. For more details: www.rcogenasia.com Contact: aruljoe.mathias@rcogenasia.com balasankari@rcogenasia.com