INFORMATION WORKSHOP ENERGY FROM BIOMASS AND BIOGAS IN VIETNAM

Transcription

1 The Potential of Biogas and Biomass from Agriculture and Agro-Industry for Power and Heat Generation in Vietnam INFORMATION WORKSHOP ENERGY FROM BIOMASS AND BIOGAS IN VIETNAM Berlin, 27 June 2013 Mr. Nguyen Duc Cuong Center for Renewable Energy and CDM Institute of Energy-Ministry of Industry and Trade, Vietnam

2 Contents 1 Status quo for Biogas and Biomass sector in Vietnam 2 Case studies of Biogas and Biomass 3 Summary and conclusion BIOMASS/BIOGAS FOR ENERGY

3 Number of systems installed: Biomass Forty (40) bagasse cogeneration systems installed in 40 sugar mills. Total installed capacity: 150MW e Range of capacity: from 1 to 25MW e Five cogen systems selling extra electricity to national grid at average price of 4UScents/kWh existing cogen systems have plan to expand power capacity (installing new boiler, turbine and generator for power generation)

4 Number of systems installed: Biomass Existing: one rice husk fired power plant in the first phase installed one boiler and selling steam in industrial zone at price of 25-30USD/ton (7 bar saturated steam). Ten (10) rice husk fired power projects under documents. > 30 wood processing plants installed wood chip fired fixed grade boilers for drying products products.

5 Number of systems installed: Biogas Household scale: 200,000 systems Digester volume: 5-20 m 3 Producing bio-gas for cooking, lighting, and electricity generation Industrial scale: For power generation: one existing plant with 2MW (4unit x0.5mw) For heat usage: 8 existing boilers: 5-12 ton steam/hour) 9 projects under documents for Location Systems (industrial scale) Feedstock Biogas Capacity (m 3 ) Current Binh Duong Animal (pig) 17,000 Power Binh Phuoc Cassava wastes 27,000 Heat Quang Ngai Cassava wastes 22,000 Heat Thanh Hoa Sugar waste 16,000 Heat Dong Nai Cassava wastes 87,000 Heat Phu Tho Cassava wastes 22,000 F/S Ninh Binh Animal (pig) 13,000 F/S Hoa Binh Cassava wastes 12,000 F/S Nghe An Animal (cow) 120,000 Pre.F/S An Giang Fish waste Groups Pre.F/S power generation with capacity size from 1.2 to 3.5MW

6 Major feedstocks Biogas energy potential is approximately 10 billion m 3 /year, which can be collected from landfills, animal excrements (households & pig farms scale); and agricultural residues; waste water treatment from food and other processing industrial levels. Methane amount from domestic animals wastes (2010) Biogas output Average biogas output Percentage Animal (million m 3 /year) (million m 3 /year)* (%) Buffalo Cow and bull Pig Poultry Sub - total Waste water treatment from food and other processing NA NA

7 Wood energy and wood wastes Biomass resources Amount for energy usage (mill. Tons) Natural forest 14,07 Planting forest 9,07 Bare land 2,47 Industrial perennial 2,00 Fruit tree 0,41 Scattered tree 7,79 Wood cheeps 5,58 Sawdust and shavings 1,12 Building (timber from work 0,80 and house repairs) Total 43,31 characteristics of main biomass fuels Major feedstocks Agricultural residues Biomass resources Amount for energy usage (mill. tons) Rice straw 40,00 Sugar wastes (tops and leaves) 7,80 corn residues 9,20 Cassava stems 2,49 Rice husk 8,00 Bagasse 7,80 Groundnut shells 0,15 Coffee husk 0,17 Cashew nut shells 0,09 Others (estimated) 4,00 Total 74,90 Rice husk Bagasse Rice straw Wood/wood wastes Density (kg/m 3 ) Heating value (kcal/kg) Average moisture content (%) Ash content (%)

8 Biogas: small size household scale Anaerobic fermentation Material: Fixed with fired brick; Steal Floating; Composite and Plastic bags Medium size pig farm scale Connected by blocks Technology applied Big size industrial scale: Two types Simply: lagoon and plug flow Higher: Contact Reactor (ACR); Anaerobic Filter Reactor (AF); Down flow Stationary Fixed Film Reactor (DSFF); Up flow Anaerobic Sludge Blanket (UASB); and Fluidized Bed Reactor (FB).

9 Covered Lagoon (Pig farm): Heat Technology applied Major feedstocks UASB (Pig farm): 2 MW

10 Technology applied Small scale Industry: Wood processing industry Boiler: direct combustion fixed grade Medium and large industrial: Sugar industry: Cogeneration (heat and power) Boiler: Turbine: Backpressure steam; extraction steam Rice industry Boiler burning pellets Boiler: Fluidized bed boiler Turbine: Condensing steam

11 Biomass briquettes and pellets Technology applied Briquetting machine: Local made; capacity: 100kg/hr Pellet machine: imported from Japan and china; capacity from kg/hr Rice husk briquette and briquetting machine Pellet press machine Mixed rice husk&bagasse pellets Rice husk pellets Bagasse pellets

12 Biomass cost Main Biomass Cost-benefits Heat value Major feedstocks Moisture contents (%) Technology cost (2010 USD/kW) (LHV); MJ/kg Price USD/ton Cost structure Wood residues 25-35% , Cost can from zero Rice husk 12-15% MJ Paid to rice mills, transportation Bagasse 48-52% Cost can from zero (waste from processing) Rice straw 20-25% Paid to farmers, rolling, transportation Rice husk Bagasse Wood residue Other biomass CFB Fixed grade boiler

13 Biomass benefit Cost-benefits Major feedstocks Net electricity production (6500 hour/year) replace electricity from fossil fuels Income from selling electricity (waiting for new tariff mechanism) Net steam production Income from selling steam Income from selling other products: CERs Ash (rice husk ask)

14 SUBSIDIZED ENERGY Energy price from conventional sources still subsidized (e.g. coal, electricity) Only considered internal cost (not yet considered external cost viable) Barriers Major feedstocks TARIFF NOT SETTING UP Selling price based on financing cost of buyer Environment and social benefits are not assessed FIT under preparing only LACK OF BIOMASS DATA AND PLANNING Lack of reliably data Lack of detailed assessment Lack of detailed planning in the mid and long term BIG CONCERN OF BIOMASS INVESTORS How to get biomass fuel reliably all the year, all the project s life time Seasonable production Scattered biomass owners Collection, transports system

15 2. Case studies of Biogas and Biomass Study, propose the support mechanism for grid-connected electricity generated from biomass projects in Vietnam Objective: setting up incentive tariff for biomass power projects; and SPPA. Types of raw biomass selected: Bagasse; rice straw, rice husk; and wood residues. Three main mechanisms: price based; quantity based; and tending based. Auxiliary Costs O&M Costs CAPEX Investment Costs LCOE Construction time: 2 years Equipment Costs Efficiency (Heat rate) Feedstock Costs Tariff types: One component FIT ; Two components (FIT fixed and FIT var ); and Avoided cost Ash disposal Lifetime 20 years Capacity factor 82% Discount rate 10% The LCOE framework for Biomass Power Generation

16 2. Case studies of Biogas and Biomass Study, propose tariff for grid-connected electricity from biomass projects in Vietnam Objective: setting up incentive tariff for biomass power projects; and SPPA. Types of raw biomass selected: Bagasse; rice straw, rice husk; and wood residues. Three main mechanisms considered: price based; quantity based; and tending based. Financial data - Source of Funds - Tax Payment Mjor - Carbon feedstocks Credits Energy data - Fuel price - Fuel data - By-production price Consumption, Financial data Operation-link payments - Source of Funds - Tax Payment INPUT DATA LCOE Revenues - Electricity - Heat - Other Products Capital-linked payment - Source of Funds - Tax Payment - Carbon Credits Economical Conditions - Loan Financing - Equity Capital

17 2. Case studies of Biogas and Biomass Study, propose the support mechanism for grid-connected electricity generated from biomass projects in Vietnam: Priminitary results Profit/Loss Profit/Loss Other sales Internal steam Export electricity Other sales Internal steam Export electricity Internal electricity Total O&M Other variable costs Bagasse cogen Internal electricity Total O&M Other variable costs Rice husk power Fuel costs Fuel costs Capital costs Capital costs Profit/Loss Other sales Internal steam Export electricity Profit/Loss Other sales Internal steam Export electricity Internal electricity Total O&M Other variable costs Rice straw power Internal electricity Total O&M Other variable costs Wood waste power Fuel costs Fuel costs Capital costs Capital costs

18 3. Summary and conclusion Vietnam have large biomass and biogas potential but the exploitation of their potential is still limitation. VN s Government set up target for exploitation and development available biomass and other RE resources. Gov. s incentive mechanism for biomass, biogas have been preparing and drafting. Price based mechanism is considering. They are good opportunities for: Strengthen the viability of biomass, biogas projects which largely depend on the reliability of the cash flow Enhance the competitiveness of biomass/biogas operators with conventional energy operators Create opportunities for development of the most efficient technologies as well as technology transfer.

19 Thank you for your attention! Contact: Mr. Nguyen Duc Cuong Director of Center for Renewable Energy and CDM Institute of Energy Tel: ; Mobi: 84 (0) Fax: or