Using Sugar Cane Bagasse in Power Generation

Mitr Phol Sugar Group, ThailandMitr Phol Sugar Group, Thailand

Dan Chang Bio-Energy Co.,Ltd.Dan Chang Bio-Energy Co.,Ltd.Phu Khieo Bio-Energy Co.,Ltd.Phu Khieo Bio-Energy Co.,Ltd.

Sugar Cane

Juice 73%

Bagasse 27%

Sugar Mill

Power and Steam

Sugar

Power Cogeneration in Sugar Mills

National Grid

Excess Power

Bagasse Storage New Power House

Fuel

Outline

• Company overview• Thailand Sugar Cogeneration Development• Dan Chang Bio-Energy Project• Challenges• Recognition

Mitr Phol Group

Company overview

Core Businesses of Mitr Phol• 5 Sugar Mills• 2 Particle Board Plants• 2 Biomass Power Plants

(Dan Chang & Phu Khieo Bio-Energy) • 3 Ethanol Plants

sugar

sugar + ethanol

sugar + ethanol + biomass power

sugar + ethanol + biomass power + particle board

particle board

Bio-Energy CompaniesDan Chang Phu Khieo

Investment 60 Million USD 60 Million USD

First Sync to the Grid July 2004 September 2004

Power Generating Capacity 64 MW 76 MW

Steam Generating Capacity 710 Ton/hr 600 Ton/hr

PPA with EGAT (Firm) 27 MW+10 MW 29 MW+10 MW

Carbon Credits 93,000 (tCO2/yr) 102,000 (tCO2/yr)

Cane Crushing Capacity 32,000 T/D 27,000 T/D

Sugar Mill Sugar Mill 3,000,000 3,000,000

TC/y TC/y

Particle Particle BoardBoard

54,000 TB/y54,000 TB/y

Ethanol Ethanol PlantPlant

200,000 L/d200,000 L/d

Bio-Energy (Power Bio-Energy (Power Plant)Plant)

345,000,000 KWh/y345,000,000 KWh/y 2,400,000 Tons 2,400,000 Tons

Steam/ySteam/y

PHU KHIEO COMPLEX OVERVIEWPHU KHIEO COMPLEX OVERVIEW

Bio-Energy CompaniesDan Chang Phu Khieo

Investment 60 Million USD 60 Million USD

First Sync to Grid July 2004 September 2004

Total Generating Capacity 53 MW+11.4 MW 65 MW+11.4 MW

Total Steam Capacity 710 T/hr 600 T/hr

PPA with EGAT (21 years) 27 MW+10 MW 29 MW+10 MW

Estimated Carbon Credit 93,000 tCO2/y 102,000 tCO2/y

Power Plant Area 14.7 Ha 10.2 Ha

Sugar Mill Capacity 32,000 t cane/day 27,000 t cane/day

Company overview

• Mostly low-pressure boilers (< 25 bar)

• Some are very old (> 30 years)

• Mostly within the sugar mill.

• Boilers have been designed deliberately with low efficiency.

• Purchase of used equipment are common.

Thailand sugar cogeneration development

Cogeneration by Sugar Mills in Thailand

Before Year 2000

Development in the past few years

• Use of medium-pressure boilers and high efficiency turbine

• Excess electricity export to the national grid.

• Professional approach in project development.

• Use of special purpose company

Thailand sugar cogeneration development

What drove the change?

Oil Price

OLD PARADIGMBagasse is free and have

little commercial value

NEW PARADIGMBagasse has high commercial value

Renewable Energy Policy

SPP Regulation

CDM Potential

New Management

Climate Change

Thailand sugar cogeneration development

Dan Chang Bio-Energy Project

Owner/developer : Dan Chang Bio-Energy Co., Ltd.Major shareholders : Mitr Phol Sugar Co., Ltd. & MP Particle Board;Location : Dan Chang, Suphanburi, ThailandTotal capacity : 53 MWFuel : Bagasse, cane leaves, wood bark, and rice huskMajor off-takers : EGAT 27 MW (SPP, 21-year firm contract)

Mitr Phol Sugar Co., Ltd. (steam + power)Major equipment : Boilers - 2x120 t/h, 68 bar, 510 oC (Alstom)

Turbine - 41 MW extraction-condensing (Alstom) Existing boilers + turbines (from sugar mill)

O&M : InternalIncentives : BOI privileges, EPPO subsidy 4.2 cent/kWhFinancing : Project finance

Project Feasibility Study

Nov 01 - Oct 02Bidding & Engineering

Jan 03 - July 04Construction

July 15, 2004Commercial Operation

Nov 20, 2004Inauguration

Dec 01 - Jan 03Public Hearing and EIA

Project Timeline

Dan Chang Bio-Energy Project

October 2001

~# 1

New Boiler

# 2 New T/G (41 MW)

Sale to Grid 27 MW

AfterAfter AfterAfter

#1

Steam16 bar

Sugar millSteam 1 bar

Steam Turbine

~

T/G # 5 (12 MW)

Steam 30 bar

Boiler

# 2

# 3

# 7

Before Before

T/G # 1,2,3,4

(3, 2.5, 2.5, 5 MW)# 4# 5

# 6

~

Steam 68 bar

Sale to Grid 6 MW

12 kWh/ton cane

55 kWh/ton cane

How did we do it?

Mechanical force to shredder and milling

115 kV

22 kV

Dan Chang Bio-Energy Project

2 Boilers 240 t/h ( 68 Bar , 510 C )

Turbine Generator 41 MW Substation 115 kV

3 Boilers 310 t/h ( 16 Bar , 370 C )1 Boiler 160 t/h ( 30 Bar , 370 C )

Turbine Generator 12 MW

New Power PlantNew Power Plant

Existing Existing PlantPlant

Major Technical Attractions

• First high-pressure boiler turbo-generator system in ASEAN sugar industry

• Boiler efficiency over 90 % (LHV basis)• Cogeneration thermal efficiency over 60 %• High flexibility in operation• High electricity export to the grid: 27 MW• Multi-fuel firing capability• Water-cooled vibrating grate furnace• Modern monitoring & control system (DCS)• Use of steam transformers

Dan Chang Bio-Energy Project

Favorable Environmental Impacts

• Stack emission

Particulate 20 - 50 ppm

NOx 120 - 160 ppm

SOx 0 - 8 ppm

• Solid waste: ashes from boiler are mixed with filter cake from

the sugar mill and goes back to sugar cane plantation as soil

improvement substance.

• CO2 mitigation potential : 100,000 ton CO2/year

Dan Chang Bio-Energy Project

Supplemental Fuels

Rice Husk

Bark, Cane leave, Woodchip

Dan Chang Bio-Energy Project

Socio-Economic Benefits

• Increased business activities in the province

• More jobs have been created

• Created value added to many agricultural waste

• Capacity building of the existing workforce

• New technology transfer to the sugar industry

• Reduction of the nation’s import of fossil fuel for power

generation

Dan Chang Bio-Energy Project

Challenges

• Technical Challenges Seasoning Priority Technology

• Operation Challenges Fuel Handling Supplemental fuels

• Financial Challenges• Management Challenges

Seasoning Operation

Technical Challenges

Crushing Remelting

Steam Consumption, ton/hr 490 160

Power Consumption, MW 15.1 6

Bagasse Production, ton/day 8700 0

Operation Period, months 4 (Dec-Mar) 8 (Apr-Nov)

What capacity should the biomass power plant be ?

Priority : Internal vs. External

Technical Challenges

Components Sugar Mills EGAT

Process type Batch + Continuous type Continuous

Main parameter Steam pressure and flow Electrical Power

Load characteristics High load variation Stable load

Flexibility High Low

Maintenance period Short Long

Defaults Event Negotiable Penalty

Who should have the priority?

Technology Consideration

• Type of Boiler Heat recovery system Emission control system: wet scrubber, ESP, bag filter Supplemental fuel : rice husk, cane leave, woodchip,

coal

• Type of Turbine Back pressure + condensing VS extraction condensing Single shaft or dual casing turbine

• Protection Equipment• Control System

Technical Challenges

Fuel Handling System

• Storage area• FIFO system• Transportation• Dust control• Moisture control• Bottleneck

Operation Challenges

Supplementary Fuels

• Rice husk High silica content High demand :competition with other rice husk power plants

• Cane leaves High chloride content Difficult to handle : shredding, fire

• Wood chips High lignin content Limit supply :competition with pulp mills

• Coal SOX issue Dust issue

Operation Challenges

Supplemental Fuels

Rice Husk

Bark, Cane leave, Woodchip

Dan Chang Bio-Energy Project

Financial Challenges• Security arrangements:

Mortgage of all land, building and equipment to the bank Assignment of PPA (DC vs. EGAT) 21 yrs firm contract Assignment of Utilities Supply Agreement (Dan Chang vs. Mitr Phol) Corporate guarantee of the loan All risk insurance for equipment & all assets in the name of the creditors

• Exchange Rate Risk : All foreign contracts had been converted to local currency loan.

• Project Implementation Risk : Fix price lump sump, fix time turnkey• Income

Energy payment, indexed to natural gas price Capacity charge, indexed to Dollar exchange rate Carbon credit from CDM project

Management Challenges

Current New Scheme

Main Concern Internal production External customer

Efficiency Less priority Major concern

Engineering In-house Out-source

Investment Low High

People• Recruitment• Compensations

Sugar industry Power plant

Communication Informal Formal

Need a new management concept !

RENEWABLE ENERGY AWARD WINNER

BIOMASS

COGENERATION PROJECT THAILAND,

JUNE 2005

RENEWABLE ENERGY AWARD WINNER

BIOMASS

COGENERATION PROJECT ASEAN,

JULY 2005

Recognition

Questions & Comments