1. Bali Biomass Gasification
Power Plant 10MW

2. Who are we? The Project has been jointly developed by:
PT. Indo Asia Energy Development
CV. Bali Komunika Internasional
Supported by:
Udayana University
The Project Entity will be:
(based on a new share holding structure with the director of CV. Bali Komunika Internasional holding 50% of the shares of PT. Indo Asia Energy Development prior to investment stage proposed)

3. Who are we? PT. Indo Asia Energy Development
Indo Asia Energy Development, Ltd (IAED) is an international development team of business and financial experts who have come together to build a world class commercial renewable energy company in Indonesia in the coming decade.
IAED believes there is a real and necessary opportunity to develop a large scale renewable energy industry in Indonesia. With petrochemical energy supply continuing to increase in financial and political cost, a real alternative to Indonesia’s energy and transport fuels needs are an urgent priority.

4. Who are we? CV. Bali Komunika Internasional
(Bali International Consulting Group)
Is an international consulting group advising on sustainable development, corporate social responsibility, sustainability reporting, solutions for renewable energy and are now focusing specifically on the clean development mechanism under the Kyoto protocol.
At BICG, we advise our clients on project development with their social and environmental footprint in mind.
We work with selected international partners in Europe, Australia and Asia and recognize the GRI sustainability reporting guidelines as Indonesia’s first organizational stakeholder since 2006.

5. Advantages of GREEN Energy
Reducing the costs of purchasing energy (electricity and fuel)  
Additional profit from selling surplus electricity to the grid
Additional profit from selling
Certified Emission Reduction (CER)  
Additional profit from selling by-products
(e.g. ash from rice husk gasification)
Increasing security of energy supply

6. What kind of GREEN Energy?
Bali Green Energy Options:
Geothermal - currently not preferred due to previous failure
Solar - not economically
Wind - not sufficient
Biogas - not enough supply, logistic problem
Hydro - small scale opportunities, not scalable yet
Nuclear - no priority for Bali
Biofuel - no sufficient supply in Bali, not yet viable
Biomass - feed stock available, proven, suitable

7. What kind of GREEN Energy?
Why Gasification and not Co-Generation?
Diversified supply input, less dependency on price fluctuations
>20% more competitive in investment cost
Available technology, no waiting periods
Turn key operations only 10 months from order
Lower maintenance less operational staff
Feed stock treatment cost 50%
Plant power consumption 50%
Smaller land size
Water recycling, no need for water wastage
Lower emissions
Overall proven as more efficient

8. The Project Project : Biomass Gasification “Syngas” Power Plant
Capacity : 10 MW
Feed Stock : Biomass Elephant Grass and agricultural by products from Rice, Maize, Cassava, Coconut, Palm, Gloves (husk, starch, saw dust, chips, fiber)
Location : Klungkung/Karangasam, Bali
Market : Electricity - State Owned Electricity Company (PT PLN Persero)

9. Feedstock Supply Pennisetum perennials, Giant Napier (South Perennial)
Gramineae grass: Pennisetum perennials, Pennisetum Ratoon, China imported from Colombia, because of its resemblance to bamboo stem it is referred to as the "Queen of bamboo grass." Plant height of 2.5 m, a total of sections, diameter 2 to 4 cm, about 160 centimeters long leaves, leaf width from 3 to 6 cm, dried leaves and stems containing 18.6% crude protein, crude fat 3.33%, 33.64% crude fiber, N-free extract 33.85%, per mu is equivalent to 8 to 10 acres of corn protein content. Leaves soft, crisp, good palatability. At the same time can produce more than 10,000 aging stem root, bamboo can be used for aircraft use, as well as in China's southern Henan, Hebei and other places are growing well. In particular, the products developed root system, root length up to 3 meters may be the formation of fibrous roots in the relatively short period of time the network can be firmly locked to prevent water and soil erosion on steep slopes and embankments of wasteland ideal plant. Upstream region in Sichuan over the past few years the implementation of "planting grass Pennisetum industrial integration" works to the masses in many poverty-stricken counties to engage in cattle breeding, poverty, achieving remarkable economic, ecological and social benefits. Expected output 300 t/ha, calculated at 233 t/ha

10. Biomass Syngas Power Plant
*information provided by technology provider

11. Biomass Syngas Power Plant
The biomass gasification system produces a valuable gas named producer gas - “Syngas” (Synthetic gas). The biomass (agricultural), used for this purpose is materials such as: rice stems, rice husks, cotton stalks, corn stalks, millet stalks, wood dust, cane trash, wheat straws, hemp palm husks and other forms of biomass. This system can produce electric power in the range of 400kW – 15.0MW by using a few parallel modular units.
Since Biomass itself is almost sulfur free, the gasification process will not produce any sulfur oxide emissions (SOx). However, fuels such as diesel and HFO contain a considerable amount of sulfur. HFO could have as much as 4% sulfur and therefore requires special additional treatment to neutralize these emissions.
Similarly the gasification of biomass produces very low concentrations (if any) of nitrous oxide emissions (NOx) when manufacturing the “Syngas” and thereafter leads also to low emissions in the combustion engines.
*information provided by technology provider

12. Biomass Syngas Power Plant
Production of 1 KW power, requires only kg of rice husks, wood dust or crop stalks as fuel. The water used in the cooling system of this process can be recycled after undergoing a simple treatment and thereby having no harmful effects to the ecological system and the environment. Self power consumption of this systems is low with percentages ranging between 5 - 8% of the generated total power.
This project is an ideal solution for regions where there are large quantities of biomass waste resources, mills, farms, nearby forests etc.
In consideration of the above mentioned particulars, the feasibility of such Power station will give a high ROI (Return of Investments) in a short period of time. The reasoning to this high ROI is due to the cost of the fuel being negligible – near ZERO (0), only labor, drying and grinding (if woods) has to be considered. In most other power stations, fuel cost corresponds to approximately 60-75% of power selling price, in our case, there is a saving of approximately 70% compared with other forms of power stations.
*information provided by technology provider

13. Biomass Syngas Power Plant
The technology of producing power by gasification of biomass is easy to operate, simple and economical in maintenances and service, has no high pressure steam/boilers, no turbines, easy to start, run standard combustion generator- NO STACK / CHIMNEY at ALL !!!
The power station requires a small land area to operate. It is environmental-friendly, simple to install, and it can gasify most kinds of agricultural biomass. These will in turn produce very low cost valuable electric power energy source.
In order to remove the soot, ash and tar particles in the biomass producer gas - “Syngas” and prevent the formation of secondary pollution to the environment, the biomass gasifying equipment effectively uses mechanical & electronic systems, which reduce the soot, dust and tar particle content in the produced gas to a certain extent, the equipment for collecting soot, ash and tar is highly efficient, it was designed and developed mainly for large-scale fossil-fuel power plants, chemical plants and waste incineration plants.
*information provided by technology provider

14. Biomass Syngas Power Plant
As the “Syngas” flow is relatively small in ordinary biomass gasifying generating projects, and there are some differences between biomass gas and the gas treated in fossil-fuel plants, temperature are low, less oxygen, therefore the adopting technology can solve most of biomass gasification demands.
Requirement of the feedstock granule size is ≤2cm, moisture content ≤20%, the whole project could be supplied with special drying system if needed, that can be done by using special dryer system which is heated by using the residual heat for drying.
*information provided by technology provider

15. Biomass Syngas Power Plant
Biomass pyrolysis gasification has different production ratio of soot and tar at different operating temperatures. If carbonization temperature is ℃, the production ratio of tar is 13% - 37%, and it is 5% - 15% when using fixed bed gasification furnace, when operating temperature is 800℃, the production ratio in a fluidized bed gasifying furnace is about 2.5%. Tar content in raw Producer gas - “Syngas” without treatment is about g/Nm3. The Syngas must be condensed to remove soot & tar before it is sent to internal combustion engine. As it is well known, the caloric value of tar is very high and it is about 30MJ/kg (7,140Kcal/Kg). The heat value of tar increases up to 10% of total heat value of gas.
“Syngas” standards shouldn’t have particulates more than 50mg/m3 which is the highest acceptable figure for internal combustion engines, some engine manufacturers also requires that dust/ash/soot content should be ≤ 25mg/Nm3, H2S≤10mg/Nm3.
In our gasification system, according to long practical field tests, output content of soot, tar ash and dust is < 23mg/Nm3 only.
*information provided by technology provider

16. Biomass Syngas Power Plant
Technological flow-chart of biomass gasification power system
Biomass feedstock:
*information provided by technology provider

17. Feedstock input (KG) per 1 kwh
Biomass Syngas Power Plant
Raw material*
Feedstock input (KG) per 1 kwh 1
Saw dust
㎏/kwh 2
Eucalyptus chips
㎏/kwh 3
Woodchip (gen.)
㎏/kwh 4
Coconut fiber dust
㎏/kwh 5
straw
㎏/kwh 6
Palm bunch
㎏/kwh 7
Rice husk 8
Crop stalk
㎏/kwh 9
Sugar Bagasse
Syngas analysis：
CO:12-18%, CO2: 10-16%, CH4: 4-8%, H2: 3-7%, CnHm: 1-1.4% ,
O2: %, N2: %.
Heating caloric value - 5,200KJ/Nm3 (LHV 1,240Kcal/Nm3, HHV 1,350Kcal/Nm3).
Content of dry ash after gasification (near 30% of raw material):
Density at free state:   Kg/m3
Density compressed state:  295 Kg/m3
Carbon (when using rice husk) ash: %.
Silica content: %
*information provided by technology provider

18. Biomass Syngas Power Plant
No.
Item
400KW
800 KW
1MW
1.5MW
2.0MW MW * 1
Building are (m2)
350
400
480
550 2
Main building height (m) 6 3
Cooling pool - L x W, Depth 3m
12×5
15×5
18×5
22×5
25× x5 4
Total units weight (T) 22 28 32 40 5
"Syngas" production rate (Nm3/h)
1,400
2,800
3,500
5,300
7, ,500
Raw material (biomass) consumption (kg/h)
800
1,600
2,000
3,000
4, ,000 7
Acceptable material moisture content (%) 16 8
Gasifying efficiency (%) 65 9
Self consumption (kW) 48 60 10
Gasifier dimensions (m)
Φ1.4,H=7.5
Φ2.0,H=10.0
Φ2.2,H＝12.0
Φ3.0,H=12.0
Φ3.7,H=14.0 11
Ash discharging type
Dry
Dry Dry
*information provided by technology provider

19. Financial Feasibility
Description
Value
Unit
$/Unit
Total
System Cost
10.00 MW
840,000.00
8,400,000.00
Civil Works
20.00 %
1,680,000.00
Import Tax
7.50
630,000.00
Integration, Supervision, Coordination
6.00
504,000.00
Transportation to Asia/European port
60,000.00
Land transportation to customer place
30,000.00
Land Cost
33,000.00
sq.m
40.00
1,320,000.00
Construction
110,000.00
Start Up Construction capital
210,000.00
Machinery, Chipper, Sub. Station
507,500.00
Harvesting Machinery
600,000.00
Authorities permission
8,000.00
Un-expected
5.00
702,975.00
Equity
0.00
Total Technology Cost
14,762,475.00

20. Financial Feasibility
Operation Cost/day (oc)
Biomass (kg/kW X Annual hours X $/ton)
420.00
Ton
0.00
2,525,328.00
Employees
302.79
110,520.00
Management fee/month
2.00
20,000.00
666.67
240,000.00
Other Material
41.10
15,000.00
Un-expected
4.00 %
40.42
14,754.13
Total 1st Year Operation Cost
1,050.98
2,905,602.13
Total Capital Cost
17,668,077.13

21. POWER PLANT 10 MW
No.
Description
Qty
Unit
Price/unit US$
End of Year 2 3 4 5 A.
Income 1
Selling Electricity
3,650,000.00
kWh/year
0.055
3,854,400.00
Fertilizer
30,660.00
ton/year
50.00
1,686,300.00
CDM fuel switch
40,000.00
10.00
400,000.00
CDM methane only from husk
0.00
Total
5,940,700.00 B
Operation Cost
Biomass
140,000
2,525,328.00
Employees
Packet
110,520.00
Management fee
240,000.00
Other Material
15,000.00
Maintanence
14,754.13
hold back development 6
Interest 9%
1,113,088.86 7
Loan repayment 8
Tax
10.00%
554,070.00
7.50%
126,472.50
Total Expenditure
4,572,760.99
Net Profit
1,367,939.01

22. POWER PLANT 10 MW
No.
Description
Qty
Unit
Price/unit US$
End of Year 2 3 4 5 A.
Income 1
Selling Electricity
3,650,000.00
kWh/year
0.075
5,256,000.00
Fertilizer
30,660.00
ton/year
50.00
1,686,300.00
CDM fuel switch
40,000.00
10.00
400,000.00
CDM methane only from husk
0.00
Total
7,342,300.00 B
Operation Cost
Biomass
140,000
2,525,328.00
Employees
Packet
110,520.00
Management fee
240,000.00
Other Material
15,000.00
Maintanence
14,754.13
hold back development 6
Interest 9%
1,113,088.86 7
Loan repayment 8
Tax
10.00%
694,230.00
7.50%
126,472.50
Total Expenditure
4,712,920.99
Net Profit
2,629,379.01

23. Financial Feasibility
Mixed Loan & Equity Based Investment
Developer Equity 30% (IP, BC, Development valuation)
Investor Equity 70% USD 5,300,423
Loan USD ,367,654
Interest rate 9%
5 Year IRR %*2,3
Equity Return for Investor %*2,3
*1(including operational setup 12 months, loan repayment grace period 60 months)
*2 Including CDM Carbon Credits on fuel switch from fossil to RE
*3 Based on electricity sales to PT. PLN (State Owned Electricity USD 0.055/kWh
5 Year IRR %
Equity Return for Investor %
*3 Based on electricity sales to PT. PLN (State Owned Electricity USD 0.075/kWh

24. What is the CDM?
The Clean Development Mechanism (CDM) enables countries that are signatories of the Kyoto Protocol to meet part of their GHG reduction commitment through projects located in another host country. Participation is on a voluntary basis and more and more Kyoto signatories have put in place the necessary administrative structures.
In the specific case of CDM, countries belonging to the
Annex I of the Kyoto protocol can fund and help implement projects in non-Annex I countries. Non-Annex I countries are typically developing countries.
Successful CDM projects generate Certified Emission Reduction credits (CERs), each CER representing a quantity of avoided GHG emissions in the non-Annex I host country, which are then transferred to the Annex I country.

25. Similar Projects approved
Registered
Title
Host Parties
Other Parties
Methodology *
Reductions **
Ref
11 Dec 05
3.5 MW Rice Husk based Cogeneration Project at Nahar Spinning Mills Ltd.
India
Germany
AMS-I.C. ver. 6
22267
0117
16 Dec 05
3.5 MW Rice Husk based Cogeneration Project at Oswal Woolen Mills Ltd.
0118
03 Feb 06
Rice Husk based Cogeneration project at Shree Bhawani Paper Mills Limited (SBPML), Rae Bareli, Uttar Pradesh, India
United Kingdom of Great Britain and Northern Ireland
AMS-I.D. ver. 6
14744
0195
Around 15 projects registered so far

26. How to apply for CDM?

27. Conclusions
Based on similar projects the CERs can amount to ~500,000 for a ten year fixed period
Based on the Frauenhofer Institute CERs can reach Euro 20/CER by 2009; general market expectations Euro 25/CER
Over a 5 year term if feedstock supply can be guaranteed at USD 18 and below even without CERs more profitable compared to the use of diesel generators (constantly rising oil prices and high maintenance/replacement costs) in case of Vita Life Resort

28. Next Steps
Feasibility and environmental impact study to apply a 10 MW gasification biomass plant based on rice husk (mainly)
Validation of applicable technology
Assessment if the power supply is self-operated or in partnership
Identification of partners/investors
Options:
Independent Power Plant selling to PT /kWh
JV with Resort selling directly to 0.12/kWh (no land investment cost)*4
Develop the PDD under the CDM for certified emission reductions
*4 Vita Life Resort project not yet financially closed

29. Additional Data -Investment cost for imported technology USD 840/kWh
-Annual operational costs ~1.5% of plant investment excluding feed stock
-Operational labor 12 long term employees additional labor for logistics (transportation)
-Annual biomass consumption ~140,000 t (90% load factor, 8200 h/y)
-Medium Scale Power Generation using Renewable Energy:
Developer : Business Entity/Capacity : 1 < Cap ≤ 10 MW
Electricity Price by Utility :60% x Utility’s Production Cost, if connected to the low voltage grid, 80% x Utility’s Production Cost, if connected to the medium voltage grid; Purchase Contract : 10 years and could be extended – for overproduction
-byproduct biomass ash assumption to be sold at ~US$ 50/t

30. PT. Indo Asia Energy Developments CV. Bali Komunika Internasional
Thank you for your
kind attention
PT. Indo Asia Energy Developments
CV. Bali Komunika Internasional