biomass success factors and opportunities in asia

熱情

Biomax Success Factors

and Opportunities in Asia

Flow Inc. Young Yang

Email: [email protected]

Biomass Renewable Energy Key Success Factors

2

Government Support

Biomass Consistency

Financial Sustainability

Customers’ Solution

Capital grant

Soft loan

Investment Tax reduction

Quota obligation

Public Tender

Feed-in tariffs

Fiscal incentives

Forestry residues

Construction wood residues

Lumber mills

Black liquor in pulp/paper mill

Nutshells

Cube grasses

Corn / Wheat / Rice

Coconut / coffee bean

Farm

Food / wood processing

Paper / pulp mill

Coffee / Ceramics

Irrigation

School

Health care

District heat and cool

Biomass feedstock price

Electricity Price

Maintenance

Labor cost

Community

Investment

Operating

Wood

Agriculture

Enterprise

Initial Cap.

O&M Cost

1.Scongco, J., 2002. Do Rural Infrastructure Investments Benefit the Poor? World bank working paper 2796,

2. European Communities 2008, The support of electricity from renewable energy sources

3. Biotechnolgy Industry Organization 2006, Achieving sustainable production of agricultural biomass for biorefinery feedstock

4. Based on CPC Biomax cost calculation sheet

Equipment cost

•Irrigation significantly contributes to farm productivity and wages.1

•Feed-in tariffs achieves greater renewable energy penetration.2

•Transportation represents 30 ~ 50% of feedstock cost.3

•Heat and electricity price are sensitive to the investment return4

•Recommended Countries: China, Thailand, and India

3

Government SupportGovernment

Biomass

Financial

Solution

Capital

Grant

Soft

Loan

Investment

Tax

Quota

Obligation

Fiscal

Incentives

Feed-in

Tariffs

Japan

Korea*

Taiwan

China

Capital

Grant

Soft

Loan

Investment

Tax

Quota

Obligation

Fiscal

Incentives

Feed-in

Tariffs

Vietnam

Malaysia

Thailand

Myanmar

India

Capital

Grant

Soft

Loan

Investment

Tax

Quota

Obligation

Fiscal

Incentives

Feed-in

Tariffs

Philippines

Indonesia

China, Malaysia, Thailand, India

Japan, Korea*, Taiwan, Philippines, Indonesia

Vietnam, Myanmar

Government Support Scheme

Fully support

Moderate support

No policy support

Validation in second stage

*Korea regulation prevents from burning solid biomass in urban area and most of supports for natural gas CHP

Fully support

Moderate support

No policy support

PRELIMINARY

4

Biomass Consistency

China, Indonesia, Thailand, India

Philippines, Vietnam, Malaysia

Japan, Korea, Taiwan, Myanmar

Biomass Resources

Sufficient biomass**

Moderate biomass

Limited biomass


•Source: FAO 2006, PROMOTION OF BIOGAS AND BIOMASS IN ASIA AND THE PACIFIC , Asian and Pacific Centre for Agricultural Engineering and Machinery

** Check Criteria: Production forest area is over 10M ha; Annual agriculture production is over 10,000 tons

Government

Biomass

Financial

Solution

ForestSugarcane

PaddyOil

PalmCoconut

Cassava

MaizePeanut

Japan

Korea

Taiwan

China

ForestSugarcane

PaddyOil

PalmCoconut

Cassava

MaizePeanut

Philippines

Indonesia

ForestSugarcane

PaddyOil

PalmCoconut

Cassava

MaizePeanut

Vietnam

Malaysia

Thailand

Myanmar

India

Sufficient biomass

Moderate biomass

Limited biomass

PRELIMINARY

5

Customers’ Solution

Potential Countries for Community Services

1. Source: 2007/2008 Human Development Reports, UNDP, http://hdrstats.undp.org/en/countries/

2. Can Renewable Energy Make a Real Contribution? Global Network On Energy For Sustainable Development, 2006

Government

Biomass

Financial

Solution

Population without

electricity1

(millions)

Electrification

rate (%)

India 487.2 56

Indonesia 101.2 54

Myanmar 45.1 11

Philippines 16.2 81

Vietnam 13.2 84

Cambodia 10.9 20

China 8.5 99

Thailand 0.6 99

Malaysia 0.6 98

Japan 0 100

Korea 0 100

Taiwan 0 100

All population with electricity

Less 10M w/o electricity

Over 10M w/o electricity


India, Indonesia, Myanmar, Philippines,

Vietnam, Cambodia, China

•77% income increased, India•$5+ value adds to agriculture output originally worth

$1, Australia•1% increase in irrigation along with 0.41% increase of

output per worker & 1.13% decrease of poverty

incidence, PRC 2

•$60-$70 diesel cost reduced per 100 pump installed,

Pakistan 2

The Impacts of the irrigation system

PRELIMINARY

http://hdrstats.undp.org/en/countries/

6

Financial Sustainability

1. Source: Government website, power company, and gas company2. 2008 Data

Government

Biomass

Financial

Solution

~ 10 Years breakeven

~ 20 years breakeven

> 20 years breakeven


Country Avg. Electricity Tariff

(USD/kwh)

Avg. LPG Price

(USD/million Btu)

Philippines 0.29 22.99

Korea 0.20 28.602

Japan 0.15 22.33

India 0.11 17.742

China 0.09 20.37

Taiwan 0.08 23.99

Malaysia 0.07 11.702

Thailand 0.07 13.572

Vietnam 0.07 2.61

Indonesia 0.06 7.05

Electricity and LPG Price in Asia countries1

Philippines, Korea, Japan, Taiwan, China, India

Thailand, Malaysia

Vietnam, Indonesia

Financial Sustainability~ 10 years breakeven

~ 20 years breakeven

> 20 years

PRELIMINARY

Appendix

7

Biomass resources in Asia-Forest

Resource: FAO, Food and Agriculture Organization 2005

Biomass resources in Asia-Agricultural Product

Resource: NEDO, New Energy and Industrial Technology Development Organization, 2007

Population without electricity and Energy Supply Portfolio

10

2007/2008 Population without electricity and Total Primary Energy Supply Portfolio

Population

without

electricity

(millions)

Electrification

rate (%)

Total primary energy

supply (TPES) (Mt of

oil equivalent), 2005

Coal(%) Oil(%) Gas(%)

Hydro, solar,

wind,

geothermal

(%)

Biomass

and

waste

(%)

Nuclear

(%)

India 487.2 56 537.3 38.7 23.9 5.4 1.7 29.4 0.8

Indonesia 101.2 54 179.5 14.2 36.6 17.1 3.7 28.5 0.0

Myanmar 45.1 11 14.7 0.6 13.7 14.4 1.8 69.6 0.0

Philippines 16.2 81 44.7 13.6 35.4 5.9 20.7 24.4 0.0

Vietnam 13.2 84 51.3 15.8 24.3 9.6 3.6 46.7 0.0

Cambodia 10.9 20 4.8 0.0 26.6 0.0 0.1 73.2 0.0

China 8.5 99 1717.2 63.3 18.5 2.3 2.0 13.0 0.8

Thailand 0.6 99 100.0 11.2 45.5 25.9 0.5 16.5 0.0

Malaysia 0.6 98 61.3 9.6 43.3 41.8 0.8 4.5 0.0

Japan 0 100 530.5 21.1 47.4 13.3 2.0 1.2 15.0

Korea 0 100 213.8 23.1 45.0 12.8 0.2 1.0 17.9

Taiwan* 0 100 138.4 32.0 51.0 8.0 2.0 0 7.0

source: Human Development Reports, UNDP

Taiwan source: 2006 中華民國能源結構 http://web2.moeaboe.gov.tw/ecw/About/energy%20situation/main/ch_05.html

Customer Solutions

Households

Enterprises

Community

Services

Solutions

•Lighting

•Cooking

•Refrigeration

•Communication

•Rice drying

•Rural Electricity Enterprises (REE)

•Food processing & heat-related

industry

•Battery charging Stations (BSC)

•Irrigation

•Transportation

•Health care

•Education

Impacts

•$10 per ton of cost saving in logistic and drying by the regional dryer system, Taiwan 6

•Biomax 1 month nonstop vs. current REE 11 hrs services, Cambodia 7;

Replace deforestation by plantation of Leucaena, a fast

growing & nitrogen-fixed tree, Cambodia4

•50-60% fuelwood saved by gasification instead of traditional stove,

10-20% increase in agriculture product price, Nepal & India 2;

50% annealing operation cost reduced in metallurgy sector, India 3

•$0.22-0.52 / kWh of recharging batteries, average charged twice a week.

Around $0.08 / kWh by BioMax 75, Cambodia8

•Reduce indoor air pollution; Kill over 1M people per year by kerosene 5

•5-7 times of efficiency improved by gasification stove2

•Better preservation of food2

•Electricity for radio, TV, telephones, etc. 2

•77% income increased, India;

$5+ value adds to agriculture output originally worth $1, Australia;

1% increase in irrigation along with 0.41% increase of output per worker &

1.13% decrease of poverty incidence, PRC1;

$60-$70 diesel cost reduced per 100 pump installed, Pakistan 2

•50 Gallons syndiesel from 1 ton boimass, reducing diesel imported

•Refrigerator for vaccine preservation 2

(CPC Biomax power supply sustain1 month consistently)

•Light for night classes 2

1. Infrastructure and Poverty Reduction. What is the Connection? Asia Development Back, Jan 2003

2. Can Renewable Energy Make a Real Contribution? Global Network On Energy For Sustainable Development, 2006

3. Barriers and Unlocking Potentials. Global Network On Energy For Sustainable Development, 2007

4. Potential for rural electrification based on biomass gasification in Cambodia, Biomass and Bioenergy (2007) 656-664

5. Small-Scale Bioenergy Initiatives: Brief description and preliminary lessons on livelihood impacts from case studies in Asia, Latin America

and Africa, FAO, Jan 2009

6. 稻米調製機械擴增與改善計畫執行成果 ,Council of Agriculture, Executive Yuan, Taiwan , 2009

7. A Survey of Small-Scale Private Service Providers in Electricity and Water Supply: Cambodia, Public-

Private Infrastructure Advisory Facility, Jan 2009

8. Renewable Energy Issues: NEDO’s Experience in Southeast ASIA, NEDO

Government

Biomass

Financial

Solution