generating electricity with biomass
DESCRIPTION
Generating Electricity With Biomass : By Albert Maknawi KENCANA AGRITRANSCRIPT
1
Generating Electricity with Biomass:
Experience from Bangka Belitung
Albert Maknawi
Chief Operations Officer
KENCANA Agri
24 October 2011
2
Group Overview
3
Plantation
Total Production
Volume:
• 87,239 MT (FY2009)
• 94,154 MT (FY2010)
• 57,667 MT (1H2011)
Palm Oil Mills
No. of Mills: 3
Total Production
Capacity: 165 MT/hour
Total Annual
Processing Capacity :
940,500 MT
Kernel Crushing
Plants
No. of Kernel Crushing
Plants : 2
Total Production
Capacity: 435 MT/day
Total Annual
Processing Capacity :
108,315 MT
Processing
Total Production
Volume:
• 20,258 MT (FY2009)
• 16,513 MT (FY2010)
• 6,396 MT (1H2011)
Products
Biomass Power Plant
Supporting Business
Bulking Terminal
Logistics
1st Plant (2005)
Location: Bangka
Capacity: 6.0 MW
2nd Plant (2009)
Location: Belitung
Capacity: 7.5 MW
Palm Kernel
Cake
Renewable Waste(Empty Fruit Bunches, Liquid Waste, Kernel
Shells, Fibre)
CPO
CPKO
Fresh Fruit Bunches (FFB)
Total Land bank
189,665 ha
Nucleus: 174,691 ha
Plasma: 14,974 ha
Total Planted Area
50,154 ha
Nucleus: 38,817 ha
Plasma: 11,337 ha
Overview of Our Group’s Operation
Total capacity: 19,500 MT
No of Vessels :4
Total Capacity: 8,300 MT
4
Where We Are … Estate Location
5
Why Biomass Power plant?
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The Promise
Source: International Energy Agency (IEA) Energy Statistics
7
Bangka-Belitung short of Electricity. Bangka Belitung was
then identified as area of electricity crisis by Ministry of
Energy and Mineral Resources
Free palm biomass and readily available
Palm Kernel Shell Empty Fruit Bunch
100% diesel power plant means state electricity’s cost to
generate 1 kWh > Rp. 2,000
Realization of zero waste
Viable “Downstream” project
The Promise
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Renewable Quest
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Listrindo Kencana, Tempilang – BANGKA
Installed Capacity: 6MW
Commisioned in 2008
Feedstock: Empty Fruit Bunch (EFB) and
Palm Kernel Shell (PKS)
Technology: Traveling grate biomass
fired boiler supplying 35 tph steam @ 38
bar 450C to 6MW condensing turbine
Registered as CDM project by UNFCCC on
8 December 2008
Envisioned as 2 x 6 MW power plant built
in 2 phases
First project in Indonesia to receive
biomass PPA and first to provide
electricity from biomass to national grid
Bangka grid: 80MW Diesel powered
Electricity rate: Rp. 766 / kWh
Biomass Powerplants
10
Belitung Energy, Mempaya – BELITUNG
Installed capacity: 7.5 MW
Feedstock: Empty Fruit Bunch (EFB)
and Palm Kernel Shell
Technology: Vibrating grate biomass
fired boiler supplying 45 tph steam
@ 38 bar 415C to 7.5MW fully
condensing turbine
Registered as CDM project by
UNFCCC on 16 December 2010
Envisioned as 2 x 7.5 MW power
plant built in 2 phases
The first project to provide
electricity from renewable sources
to the Belitung electricity grid
Belitung grid: 59MW Diesel powered
Electricity rate: Rp.787/ kWh
Biomass Powerplants
11
Lessons learnt
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Perusahaan Listrik Negara:
Lengthy Power Purchase Agreement; Powerplant had
to be built while PPA process is on-going
Fixed electricity price, variable feedstock cost
Grid reliability
Troubleshooting and coordination with PLN operators
Licenses:
Lack of understanding by local authority for PPA
process and other required licenses
Overlapping and contradicting regulations between
Ministry, Government and PLN
Local Community and Villagers:
Socialization how the cooperative with PLN work
External
13
Cyclical supply of Palm Kernel Shell and Empty Fruit
Bunch
Inconsistent fuel quality
Increasing competition from overseas Palm Kernel Shell
buyers
EFB and PKS composition strategy for different time of
the day
Fuel preparation means high parasitic consumption
Higher maintenance compared to coal powerplant
Continuous tweaking of equipment and setting means
automation remains limited
Feedstock, Feedstock, Feedstock
14
Financial institution lack of understanding in renewable
sector
Not many interested
Less appetite for small projects
Self Financing , refinancing later
Strict financial covenants
Demand for Long Term PPA
Financing
15
Challenges and Possibilities
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Better rates through a dedicated biomass pricing scheme
from PLN and Ministry of Energy and Mineral Resources
Securing biomass supply through provincial domestic
obligation
Domestic biomass pricing scheme so variable electricity
price can be a reality
More understanding of fuel characteristics for higher
efficiency power plant.
Integration of Palm Oil Mill steam requirement and
Powerplant electricity requirement through a single
Cogen Plant: Savings in fuel, lower operation cost and
higher production of electricity
Biogas plant from effluent pond to generate more
electricity
Possibilities
17
“Present technology is real, Biomass are abundant, prices
and policies are set. Lets work together for a brighter and
cleaner Indonesia!”
