Copra Bio-Fuel For A Sustainable Decentralised Rural Electrification
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Copra Bio-Fuel For A Sustainable Decentralised Rural Electrification

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Copra Bio-Fuel For A Sustainable Decentralised Rural Electrification

Copra Bio-Fuel For A Sustainable Decentralised Rural Electrification

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Copra Bio-Fuel For A Sustainable Decentralised Rural Electrification Copra Bio-Fuel For A Sustainable Decentralised Rural Electrification Document Transcript

  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia. COPRA BIO-FUEL FOR A SUSTAINABLE DECENTRALISED RURAL ELECTRIFICATION Financial and Environmental impacts Regional Demonstration Programme; the Fiji project P. Courty, SPC, SPC, BP D5, 98848 Noumea cedex, New Caledonia tel: 687 26 01 36, fax: 687 26 38 18, e-mail: PatriceC@spc.int G. Vaïtilingom and A. Liennard, CIRAD CIRAD TA40/15 34398 Montpellier cedex 5, France, tel: 33 4 67 61 5762, fax: 33 4 67 61 4415, e-mail: vaitilingom@cirad.frAbstract Energy is of crucial importance for the socio-economic development of the Pacific Island Countries (PIC). Renewed interest for vegetable oils as fuel began in the 70s when projects and research on renewableenergy and biomass were supported by donor agencies. Few applications were done in Developing Countries even though most of them are suffering of the highprice or the difficulty to access to energy. This is the case in remote islands of South Pacific where coconuts havedifficulties to compete on the world market when fuel oil prices are increased by transportation costs. Then using crude copra oil (CNO) as bio-fuel for rural electrification could re-dynamise the local economy inaccordance with a better resources management and sustainable development, respecting the environment. It is noteworthy that 68% of the cost of the “Coconut-Oil (CNO) Electricity” is returned to the villageeconomy, when only 5% with “diesel-oil (ADO) Electricity”, representing up to USD 20,000 per year.1. Justification and Background• Energy is of crucial importance for the socio-economic development of the island countries and territoriescovered by SPC-the Secretariat of the Pacific Community [SPC, see box 01]; yet, as the 21st century approaches, atleast 70 per cent of the region’s population have no access to electricity (I). Renewable energy technologies havethe potential to reduce this figure considerably. Access to energy is indispensable for most types of businesses,including many small-scale, village-based activities. The Pacific Island Countries and Territories (PICTs) dependlargely on imported petroleum for their commercial energy. They use most of this imported petroleum fortransportation (approximately 50 per cent) and power generation (40 per cent). Although the PICTs are not largeenergy consumers in global terms, their energy costs are high relative to their small economies. As a proportion oftotal import costs, petroleum ranges from approximately five per cent to 30 per cent in the region. In 1995, the valueof petroleum product imports was from ten per cent to 125 per cent of total exports. More and more atolls andislands are turning to fuel-powered generators as their primary or auxiliary systems. These generators increase theislands dependency on the principal population centre and suffer from erratic supplies of fuel, whose cost is higher inremote locations due to the great distances involved. Difficulties which have occurred in supplying energy toisolated, dispersed populations located far away from any urban centre have made it necessary to find solutionsusing those energy sources which are available in Pacific Island countries (gasifiers, wind turbines, photovoltaïc andthermal solar energy, bio-digesters, vegetable oils, water power, etc.) for basic social infrastructure in rural areassuch as facilities for education, health and telecommunications (II).Copra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.1/14
  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia.• Countries and territories are therefore diversifying and setting up decentralised power units at or nearresource locations, such as those producing energy from copra oil which offer very attractive developmentpossibilities.Copra oil fuel, which should not be appraised only in terms of its cost in relation to oil, is in fact a way of bringingenergy to areas handicapped by their remote island location. It also offers a real opportunity for local developmentthrough strengthening existing activities and developing new ones (processing, development and storage ofagricultural and fishery products, wood processing and rural handicrafts), employment and income, apprenticeshipand training possibilities, a satisfactory response to local needs and the preservation of the ecosystem throughcoconut management. It also offers the countries new possibilities which may help restrict urban drift anddependence on imported products (II). In this context the coconut can and should become a "tree of life".• The coconut tree is a vital component of island ecosystems, a staple food and often the only local source ofcash income for many rural communities in the Pacific region. Its products and by-products, including copra, haveplayed and will continue to play a fundamental role in economies. Its potential is still however largely under-utilised,although many islands and atolls do produce copra. The difficult situation, in which coconut growers world-wide findthemselves today, is aggravated by the fact that islands in the Pacific are widely scattered, can lead to the declineand disappearance of income from copra and to increased expenditure on petroleum products, which hampers theregions economic development (III).• The expression "tree of life" takes its full meaning with regard to the coconut tree on Pacific Islands andatolls even – more dramatically today than over the past few decades. The studies show (II) the inescapabledecline of the copra-oil international market prices. The insularity and scattered nature of the island groups, handlingand transport charges are all difficulties which lead authorities to diversify and establish decentralised units situatednear production sites. Box 01 : The Secretariat of the Pacific Community (SPC) The South Pacific Commission changed its name to the ‘Pacific Community’ on 6 February 1998. ‘Pacific Community’ applies to the whole organisation, i.e. the member government and administrations, the Conference, the CRGA and the Secretariat. SPC is a technical advice, assistance, training and research agency serving 22 Pacific Islands countries and territories. They are: American Samoa, Cook Islands, Federated States of Micronesia, Fiji, French Polynesia, Guam, Kiribati, Marshall Islands, Nauru, Niue, Norfolk, Commonwealth of the Northern Mariana Islands, Palau, Papua New Guinea, Pitcairn Islands, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu, Vanuatu, and Wallis and Futuna. SPC currently has more than 200 staff members and over 24,000,000 CFP Units (1.2 Unit = approx. 1 US Dollar) in total contributions for 1999. It is a bilingual, English and French, organisation. The heart of SPC is its Work Programme covering; Lands resources (agriculture & forestry), Marine resources (Oceanic & coastal fisheries, maritime programme); Social resources (Community Health, Rural Energy Development, Socio-Economics, Community Education) and Programme support unit. spc@spc.int; ; http://www.spc.intCopra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.2/14
  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia.2. Utilisation of Crude Copra Oil as Bio-fuel• The concept of copra oil as fuel is not new but none of the trials carried out were successful. The aim ofCIRAD (IV) was to design slight modifications of standard diesel engines leading to an additional cost less than10%, requiring no extra maintenance and with manufacturer’s warranty. For flexibility reason the same engine mustbe capable of functioning entirely on diesel. Efficiency and power output with copra oil as fuel are equals to those ofdiesel (Fig. 1 and Fig. 2). Rates of exhaust gas pollutants are similar with less sulphuric acid and particles in thecase of copra oil (c.f. §7, Environmental Impacts) which remains in the CO2 cycle. The impact of copra oil bio-fuelon the fragile ecosystem of the island is very light compared with the one of imported diesel fuel.Table 1. Under test conditions: Fuel oil Copra oil Voluminal mass (density) 0.838 kg/l 0.902 kg/l Net calorific value (NCV) 41,900 kJ/kg 37,100 kJ/kg NCV in kJ/l 35,112 33,464 Air in-take temperature 34°C 34°C Engine speed 1500 r.p.m. 1500 r.p.m. Specific Fuel Consumption (SFC) 0.363 li/kWh 0.380 li/kWh Cos.phy = 0.8 0.8 Global yield (%)= ηg = (1/SFC)* NCV 28.4% 28.4% - Test, 100% load, shows that: - 1 litre of fuel oil generated 2.77 kWh and that: - 1 litre of copra oil generated 2.63 kWh for an over-consumption by volume of biofuel equal to about 5%. 35 35 efficiency % efficiency % 25 25 15 15 5 5 0 10 20 30 40 50 60 70 80 90 0 10 20 30 40 50 60 70 80 90 load of generator KVA load of ge ne rator KVA Diesel fuel Coconut Oil Diesel fuel Coconut Oil Fig. 1: Engine efficiency when fuelled Fig. 2: Consumption compared of diesel fuel with diesel or coconut oil. and coconut oil in an 80 KVA generating set. Box 02 : The CIRAD, Centre de coopération internationale en recherche agronomique pour le développement, is a French research organisation that specialises in tropical and subtropical agriculture ; it co-operates with more than 90 countries in Africa, Asia, the Pacific region and Latin America. The Laboratory of Energy Transformation and Utilisation, the CIRAD Energy Unit, develop, on laboratory and in the field, research works on characterisation and uses of new fuels and optimisation of equipment using solid or liquid fuels, taking into account environmental factors. Using and adding value to agricultural and forest by-products it contributes to limit energy requirements for the industrial sector and participates in developing rural areas in facilitating access to energy sources. vaitilingom@cirad.frCopra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.3/14
  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia.3. The New Caledonia Experience• The work conducted since 1991 by CIRAD and the Loyalty Islands Province (New Caledonia) on the Islandof Ouvea was the only reference project in the region relating to electrical energy production from copra oil. Itdemonstrated the technical viability of the process and the possibility of its use by an organised group of producers.The first CNO generator was a 90 kVA supplied to the island’s co-operative for a coconut oil plant in 1995. Thesecond one, a 180 kVA CNO power generator has been installed In February 1999 at the Ouvea island’s seawaterdesalination plant. It has an operating autonomy of one week, sufficient to cover all emergencies. The twogenerators consume 120 t. of oil each year (V).The main purpose of the project is to make use of the local resource and keep local income within the community. Itwill also help create employment. Around 400 families are involved in copra production on this 3500 inhabitant’sisland. In 2000 decisions have been taken to implement a soap factory in Ouvea and to equip the island with 3coconut oil fuelled pumps for drinkable water distribution (VI) and one Toyota pick-up.4. Decentralised Rural Electrification – The Fiji Demonstration Project• CIRAD is delivering two similar systems to Fiji, in the frame of the Rural Energy Development programmeof SPC. One is supplying electricity to three villages on Vanuabalavu while the second, on Taveuni, will supply avillage and a small oil plant producing coconut oil, half of which will be used to produce electricity for localinhabitants.• The Secretariat of the Pacific Community, which has a membership covering most Pacific countries is wellpositioned to be involved with development efforts related to coconut oil biofuel as it is already active in this area. Box 03 : The Rural Energy Development Unit is one of the SPC Programme. It plays the role of a facilitator for the development of Pacific island rural communities. Its feature is one of a typical cross-sectorial programme aimed at developing energy as a tool for development. The predominantly rural character of most Pacific island countries and territories makes small and medium-scale industries very important as they tend to cater to the needs of the rural population and provide employment to local people. Because it is difficult to supply energy to isolated, scattered populations located far from any urban centre, it is essential to find solutions that use energy sources which are available in Pacific island countries (solar, wind and hydro power, copra oil as a biofuel, charcoal, firewood and bio-gas.) Programme thrusts • Sustainable development in rural areas: decentralised rural electrification (DRE) and the use of renewable energies; • Creation of local activities and added value: processing, storage and development of local land and sea resources. • Transfer of appropriate technology: facilitating the exchange of experience between countries and those working in the field. PatriceC@spc.int4.1 Regional significance• Many SPC member countries and territories have expressed interest in copra bio-fuel technology and haverequested the Secretariat of the Pacific Community’s support for the study and implementation of such projects.• The twelfth Regional Conference of the Permanent Heads of Agriculture and Livestock Production Services(Rarotonga, February 1996) gave high priority to recommendations that the SPC: - co-ordinate the study needed for the formulation of the methodology applicable to the various situations in theregion and immediately consider the social and economic relevance of coconut development projects using crudecopra oil as a bio-fuel for diesel engines; - implement a “demonstration project” aimed at promoting and publicising the advantages of this technology;Copra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.4/14
  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia.4.2 Objectives• The overall objectives are to improve the living conditions of rural island populations and to stimulatecoconut activities which promote local value adding.• Specific objective is to demonstrate in a pilot project the use of coconut products in the generation of power(energy) in rural communities in Pacific Island countries and territories to enable them to participate in value-addingeconomic activities through job creation in the non-formal sector as well as improving and sustaining theirlivelihoods.(II)4.3 Expected outputs• The establishment of a copra oil-powered generator and a small-scale oil extraction unit, at village level, isexpected to produce: ♦ Rural electrification, higher energy independence and lower real energy costs. ♦ Greater local added value, better returns on crops and greater diversification. ♦ Renewal of interest in coconut products and rehabilitation of coconut groves. ♦ Less GHG and protect the environment. ♦ Better balance of trade, locally and nationally. ♦ Direct and induced domestic informal-sector job creation, ♦ Benchmark sites for similar projects in the region. ♦ Minimise the tendency of urban drift (II).4.4 Activities done• After socio-cultural and economical feasibility, one 80 kVA generating set has been installed in the island ofVanuabalavu to electrify three villages; 198 households and an oil-mill, with a 150/200kg/h copra milled capacity.This electricity generating plant is able to use crude coconut oil as fuel. It is the first in the world to be connected to agrid for domestic use.• A second site on the island of Taveuni will be equipped, bu the end of the year 2000, with a 50 kVA gen-setand a small oil plant to electrify the village of Welagi ; 60 households and a workshop.• This project was designed in real close collaboration with a specially created “Fiji Working Group”. TheFWG includes; Fiji Department of Energy(FDoE), Public works Department (PWD), Ministry of Agriculture(MAFF),Ministry of Employment Opportunities Youthand Sport, and the Coconut Board. The CNO power plants are underthe management of the FDoE. FDoE is solely responsible for national energy policies, energy conservation andrenewable energy implementation, and shares responsibility for rural electrification with the Fiji Electricity Authority(FEA) and the PWD. FDoE is also responsible for issues related to petroleum and electricity supplies, particularlytariff structures and proposals for major capital investment. FDoE provides advisory services to FEA, and advisesGovernment of Fiji on petroleum supply.• All rural electrification projects in Fiji, including the coconut ones, are processing under the Rural ElectricityPolicy established by FDoE (VII). This aspect is important to assure maintainability and sustainability of projects.Copra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.5/14
  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia. 5. Selected equipmentDescription of equipment –installed in Vanuabalavu-• # Engine: DEUTZ modified for coconut oil use Type: F6L 413 FW. Power Output: 74 kW @ 1500 rpm. - four-stroke cycle, 6 cylinders - - air-cooled - standard air intake (not turbo). - Injection : in line pump - - Displacement : 9,572 liters• # Alternator: LEROY-SOMER Type LSA 44.2 US3 C6/4 #90 kVA continuous 130 Amp.• # Micro Coconut-Oil Mill. , Taby Press, Type 70 Input capacity : 40 to 60 kg/H of copra, Oil yield delivery : 20 to 30 litters per hour. Power required : 1.5 kW (3 phases electric LEROY SOMER motor)• # Electrical grid, 220V, 50Hz, 3 phases; supplying 200 households, including schools, churches, hospital, post. Installed by and under responsibility of Fiji Department of Energy and Public Works Department.Criteria for choice of technologies• The choice of technologies, for bio-fuels, to be applied must present the same guarantees as a conventional diesel engine. The running and upkeep conditions must be congruent with a classical motor. Spare parts must be available on the market. The chosen product must allow "reproducibility" of the project in the region.• The DEUTZ motors, which are already widely used in the region and enjoy a world-wide reputation, are theonly ones that offer this guarantee.Similar equipment was implemented in Ouvéa, an atoll of the Loyalty Islands Province in New Caledonia. A detailedassessment of the first 2500 running hours was made. This study, unique in its kind, confirms the quality of thismotor and ensures the perfect functioning of copra oil as a fuel. Constant surveillance was undertaken with theresults recorded on a computer. Extensive analyses of the oils used enabled the confirmation of the good state ofthe motor - (XIII). The performance appraisal (energy output, fuel consumption…) showed that the global energyefficiency is the same for copra oil and fuel (ADO). See global yield in § 2.Specificity• The engine is a well-known conventional indirect injection motor and no parts were specially designed for it. Inother words, all engine parts belong to the range of standard spare parts, and so have an identical replacement cost.• Because coconut oil (CNO) can be solid during the cold season in Vanuabalavu, the plant has beenequipped with an All Time Starting System® to fulfil the requirement of a public distribution unit. This ATSS®includes; two fuel supply systems (a diesel fuel system to start the engine, a coconut oil fuel system to run theengine), a controlled device to heat up the CNO until liquid and automatically switch from diesel fuel to CNO.Operators are always starting on diesel fuel. Engine is always stopping on diesel fuel (VI).• The injectors were chosen from a current series, but with specific adjustments different from those of thestandard models. The precision of these adjustments is obviously of fundamental importance.• The injection pump also has specific characteristics. Due to high-quality research work, these have beenresolved using standard commercial parts, which has led to low modification costs. The filters are also standardissues but the equipment has been chosen to respond to the specific requirements of copra oil. "Wherever a diesel motor can be operated and maintained, a copra oil engine like the ones on Ouvea and Vanuabalavu presents no more problems. However, it will not present any fewer problems; it is not a miracle machine."Copra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.6/14
  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia.6. Socio-economic and financial IMPACTS; sustainability of the project• The installation of a " CNO Power System " goes beyond simple rural electricity production. It is an authentic commercial enterprise on the village scale, which forms part of the economic reality of the community. In Vanuabalavu the equivalent of 3.5 full time jobs are created. (See below “other benefits”)• The success of such an initiative is based on the technical quality of the equipment and on the management and entrepreneurial capacity of the beneficiaries. During the first three years, supervision and advises will be provided by F-DoE within the framework of the Fiji Rural Electrification Policy. Development, sustainability, true costs, income generation; these words summarise the ambitious challenge and the real interest of this project.• It is important, not only to support the efforts of development of the Pacific islands but also to ensure the sustainability by respecting the truth of the prices. This implies at once the generation of a maximum of incomes within the communities and the assurance to cover the production costs of the electricity without subsidy. Users have to pay the real price of the electricity.• There is a compromise between the lowest sustainable sale price for the kWh and the highest price for the copra bought from the local producers; necessary to give maximum benefit to the entire community.• It is noteworthy that 68% of the cost of the “Coconut-Oil Electricity” is returned to the village economy, while only 5% is returned with “diesel-oil Electricity”(VIII).Current prices of Copra and Diesel oil …and Electricity cost.World and local price• The trend in real (inflation adjusted) world copra prices (1) between 1950 and 1995 shows a decrease to an asymptotic price of US$ 350~400 per Ton.• In July-August 2000 the average market price was USD 380 per ton on the US West coast (and USD 330 in Sept.), one of the most important market of the Pacific region. According to the mode of calculation of the copra price in Fiji and in these conditions we obtain a mill gate price of USD 155 in Suva and USD 115 in Vanuabalavu (2)-without subsidy-. This represents a very low and unattractive price for the local small producers we would like to stimulate. Six months earlier the official price was USD 183 (FjD 380) in Vanuabalavu. Value that we wish to guaranty in view to preserve the interest of the producers.• Diesel oil was sold at USD 0.43 (FJD 1.15) per litre in Vanuabalavu –July 2000-; leading to an electricity production cost of USD 0.37 (76 Fiji Cents ) per kWh.• With CNO, the production cost per kilowatt-hour is around US$ 0.25. Actually, the expert information in the region (Australia, New Zealand and New Caledonia) as well as the documents provided by the Pacific Power Association and FDoE, show that real costs of ADO kilowatt-hour to the public, in the similar sites of Taveuni and Vanuabalavu, range between 35 and 90 US cents (IX)&(II).1 FRY, J. - 1995. Price Trends in Oilseeds, Vegetable Oils and Meals in the Cost-Competitiveness of Asian Producers. The Asian Edible OilConference, , Singapore. Landell Mills Commodities Studies. March 1995.2 Respectively 320 Fj $ in Suva and 240 Fj $ in Vanuabalavu.Copra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.7/14
  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia.FINANCIAL ANALYSISTable 2. ADO Fuel CNO Fuel Equipment Gen-set CIF Suva 29 000 29 000 costs, Additional equip. & adjust. 7 500 USD Micro Oil-mill 12 000 Electric Grid 60 000 60 000 Total 89 000 108 500Table 3. Expenses ADO Fuel CNO Fuel KWh cost, USD (3) 0.37 0.25 Fuel 76 % 65 % Fuel Processing (--) ( 7 %) Breakdown of Fuel purchase (76%) (53 %) Electricity Village labour 5% 8% Production Maintenance & Losses 8% 11 % Costs Provision for depreciation 11 % 16 % & financial costs Returns to Village Total village labour per kWh 5% 15 % Copra cost for fuel per kWh --- 53 % % Returned to the village 5% 68 %Table 4. Electricity USD/kWh 0.188 0.217 0.241 Selling Price FJD/kWh O.40 O.45 0.50 Income ExtraOil & Cake 6 900 6 900 6 900 Electricity Sales 19 100 22 000 24 500 Annual Total income 26 000 28 900 31 400 financial results, Salaries 5 500 5 500 5 500 Expenditure Copra cost 9 000 9 000 9 000 according to Maintenance 2 550 2 550 2 550 kWh selling Grid depreciation 2 600 2 600 2 600 price. Amortisat. & fin. costs 6 350 6 350 6 350 Total expenditure 26 000 26 000 26 000 USD Profit Income - Expenditure 0 2 900 5 400 Financial Return Profit + Expenditure 14 500 17 400 19 900 to Village within Village3 Corresponding respectively to 76 and 53 Fiji cents.Copra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.8/14
  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia.• Expenditures and incomes can be balanced with a sale price for the kWh of USD 0.19 (FjD 0.4). Even at this minimum level the “recycled” amount in the village economy is USD 14 500 (~ FJD 30 120). See Table N° XXX. BUT we have supposed that all the produced copra cake is sold, see sensitivity analysis.• The total cost of the “CNO-Power” equipment is 21% higher than the diesel one. In calculations of comparative electricity costs, ADO versus CNO, this difference is taken into account. See Table 3. This extra-cost is due to the acquisition of the micro oil mill as well as to the modifications made to the engine (see description of the equipment § 5).• Hypotheses Diesel oil 1.15 FJD/li and Copra purchase price: 380 FjD/ ton – ( 60% more than the “market price”) Retail price for the copra cake = 150 FJD/ Ton (10 % less than the market price) 40 hours salary @ 60 FJD (1.5 per hour). 16 hours of electricity per day Oil mill production; 27.5 kg of oil per hour, 47 weeks per year, 5.5 Days per week, 10 hours per day.Exchange rates; June 2000 XFP FFR USD Euro FJD One Cfp Unit = 100,00 5,50 0,74 0,84 1,54 reciprocal - 0,18 1,35 1,19 0,65 US$ one= 135,01 7,42 1,00 1,13 2,08Other benefits;• It is noteworthy that 68% of the cost of the “Coconut-Oil Electricity” is returned to the village economy, when only 5% with “diesel-oil Electricity” (X). Fig. 3: B r e a k d o w n o f e le c t r ic ity c o s t & $ $ $ r e tu r n e d to th e c o m m u n ity Not only 80% the project permits 60% more self-reliance, but also 40% higher incomes. 20% 0% Fu e l Lab our O th e r $ $ $ re tu rn C N O Fu e l 65% 15% 20% 68% D ie s e l Fu e l 76% 5% 19% 5%• In Vanuabalavu the equivalent of 3 to 4 full time jobs are created under the frame of the local electricity committee; covering the following activities: - oil production, cake and oil sale, electricity production operation and maintenance, and fee collection.• In addition, there is the weekly purchase of 3 tons copra from local producers, that is to say 150 tons per annum. It is in fact a total amount of USD 15 to 20 000 (FjD 30 to 40 000) which will be re-injected into the village economy. This represents close to 8% of the total economy of the village.• Now, with the reliable production of electricity, the re-vitalisation of the former oil mill is possible an can generate around 8 to 10 extra employment.Copra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.9/14
  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia. SENSITIVITY ANALYSISTable 5. Copra purchase Cake sale Oil production Electricity prod Electricity prod. Cut off price price cost cost Cost price ADO - Fj$/kg -Fj$/kg - Fj$/kg --Fj$/ kWh --$US/ kWh Fj$/li 0.26 0.124 0.524 0.424 0.204 0.32 0.144 0.621 0.471 0.227 0.38 0.163 0.718 0.518 0.249 0.69 0.44 0.182 0.815 0.565 0.272 0.78 0.50 0.201 0.913 0.612 0.295 0.88 0.56 0 .220 1.010 0.659 0.317 0.97• In fact this study shows that as long as the litre of ADO in Vanuabalavu is 75% more expensive that the kg of copra, then the CNO is economically more attractive than the ADO. BUT we have supposed that all the produced copra cake is sold [4]. The production cost of the CNO is depending on the sale price of the cake. Additional pork and poultry farms can be advantageously associated with the mini oil mill and the electricity production, generating more income by the fact. Fig. 4 - Influence of the KWh-CNO kWh ADO copra/ADO purchase price on the 0,8 cost production price of the kWh. y = 0,7827x + 0,2204 y = 0,4846x + 0,1845 0,75 0,7 e.g.; If the copra price is under kWh cost- FJD 0,65 400FjD/ton (a), it is more 0,6 competitive than ADO above 0.7FjD/li. (c) 0,55 0,5 b Whereas when copra purchase 0,45 prices increases — leaving all a c other parameters unchanged- 0,4 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1 1,1 1,2 from 240 to 540 FjD per ton- the kWh increase from Fjcent 40 to Copra price - ADO price-FJD 65.• At the time of the feasibility study, the classes market price of the copra in Fiji (more than FJD 500 per ton) was exceptionally high and those of the petroleum (around USD 12 per barrel) were among the lowest (92 Fjcent/li in Vanuabalavu) . Even in this extreme context, the bio-fuel presented a light advantage in comparison to the diesel.4 With an extraction rate of 55%, each kg of CNO by-produce 0.8kg of copra cake.Copra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.10/14
  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia.7. Environmental IMPACTS Direct benefits on the environment• The study of the agronomic aspect undertaken for both projects took environmental considerations intoaccount (XI). Both the Welagi and Vanuabalavu projects result in a net benefit to the environment.• At Welagi: the local development of coconut oil as a saleable product will lead the village to have realreasons to maintain the coconut plantation. Up until now, and for many years, it had not been cared for, except by afew cultural associations.• At Vanuabalavu: the presence of the project will notably improve environmental conditions. The current oilmill consumes between 1000 and 1500 kilograms of wood per day to heat the copra before pressing. Electricityproduction will enable the functioning of an electric drier, thus saving on wood usage. The current woodconsumption puts the fragile ecosystem in danger.Environmental Conservation• It is now generally acknowledged that the use of bio-fuels will help alleviate climate change (thegreenhouse effect). Even if it is modest, this contribution should not be ignored.• "The least polluting form of energy is the one you dont use". Thus producing energy from copra oil on theproduction site eliminates the need to use energy (in this case, diesel fuel) to transport energy.Regulated gases (HC, CO, CO2, Nox, O2)• Bio-fuels are biodegradable and contain no sulphur or lead. Exhaust emission measurements were takenaccording to U.S. and European standards (IV). For regulated gases (HC, CO, CO2, NOx, O2) and for solid particles(smoke), the results leave no doubt; the copra oil fared slightly better than fuel oil. In other tests (XI) carried out thecoconut oil again was found to come out significantly ahead of diesel fuel.• Rates of exhaust gas pollutants are similar with no sulphuric acid (SO2)and less particles in the case ofcopra oil (see table 1) which remains in the CO2 cycle. The impact of copra oil bio-fuel on the fragile ecosystem ofthe island is very light compared with the one of imported diesel fossil fuel.Carbon dioxide, CO2 and CO2 equivalent• Most atmospheric pollutants responsible for the green-house effect are linked to use of non-renewableenergies. The CO2 released by engines using bio-fuels is the same carbon dioxide as that fixed by the plants fromwhich this fuel is derived, in contrast with petroleum products which release fossil carbon. Copra as a bio-fuel is arenewable energy source which fixes as much CO2 during `manufacture as it releases during combustion.• Much work has been done on the emissions. Levels of greenhouse gasses other than CO2 measured havebeen found to be generally similar between coconut oil and diesel (Table 6). This means that in terms of totalgreenhouse gas emissions coconut oil comes out considerably ahead (XII)Copra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.11/14
  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia.The studies of Jon Roberts -ref.(XI)- permit to show that in the case of Vanuabalavu, the annual use of 70 000 litresof CNO, instead of ADO, permits to save 370 tonnes of CO2 per year in the GHG balance. (see table 7). Max.Eur 1998 Diesel Fuel Coconut oil 75<P<37 kW CO g/kWh 3.1 3.9 6.5 HC g/kWh 0.6 0.6 1.3 NOx g/kWh 10.0 8.3 9.2 Table 6: comparison of exhaust gas pollutants rate in a V6 Deutz F6L413 FW in respect with the norm ISO 8178, cycle D2. SO2 NOx CO2 CO2 equivalent CO 1.15 Ton 0.17 Ton 184 Ton 186 Ton 0.05 Ton Table 7: Difference of GHG impact in the emitted gases between ADO and CNO; Vanuabalavu, 70 000liters CNO/year (ref.XI).Methane• Providing a stable market for coconut products will, to some extent, bring about the rehabilitation of manycoconut plantations that currently lie neglected. The result of this neglect is that un-harvested coconut sand by-products rot on the ground, releasing methane (CH4) in addition to CO2. In its contribution to the greenhouse effect,one ton of CH4 is equivalent to 63 tons of CO2 (5) (XIII).• When used as a fuel the emission factor, in terms of carbon equivalent, is 0.8 tons of C per ton equivalentpetrol (TOE) for diesel fuel and for copra-oil/bio-fuel. In contrast to this the release of methane means that an‘abandoned’ coconut, which can be considered as a partially buried waste product, can attain an emission factor of10 tons of C per TOE of waste material. This clearly shows that the environmental benefits of maintaining thesealready existing plantations for the production of bio-fuels are very significant.Non-regulated emissions• The GRET (Group for Technological Research and Exchange) (XIV), has noted that "the oil industry (sic) isworried about the production of acrolein". Analyses of non-regulated emissions have been carried out at the requestof CIRAD (XV); these covered aldehydes-ketones (included acrolein) and polycyclic aromatic hydrocarbons (PAH).Results slightly favour fuel oils at levels, which do not seem to be a source of concern for the medical community.• In addition, the fragile ecosystem of many islands and atolls requires the presence of the coconut tree (soilstabilisation, shade, associated crops, cattle farming, etc.). Ageing coconut plantations will soon no longer be able toplay this role. Only if there is an economic incentive will smallholders and larger growers agree to rehabilitate theseplantations.(5) A/ c.f. ref. XIV “According to IPCC, 1 ton of CH4 is equivalent to 63 ton of CO2 over a 20 years period; so 10 waste tons,equivalent to 1 toe, if buried, emit 600 kg of CH4, equivalent to 38 tons of equivalent CO2, that is 10 tons of carbon.” B/ c.f. ref. XI “According to IPCC reference, …., the green house gas factor for CH4 is 24.50 and forN2O is 320.00.” -Theperiod is not given. C/ c.f. ref http :ls.sg.edu.tr/cal/english/global/methane.html. According to IPCC 1996, 1 ton of CH4 is equivalent to 21 ton ofCO2 over a 100 years period.Copra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.12/14
  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia.8. Conclusion• The results on copra oil bio-fuel, issued from research on bio-fuels, are a solution for remote islands orlocations. The same approach and technology can be applied to palm oil or others vegetable oils. Using a localresource to generate electricity can give higher energy independence, better returns on crops, greater local addedvalue and can generate direct and induced activities.More self reliance and higher incomes• As a locally-produced and independent energy source, copra oil provides higher energy security. Newactivities can be developed and existing ones more confortably sustained.• Copra oil also optimises returns from the coconut plantation, an essential component of agriculture, andincome generation, in the fragile ecosystems of the Pacific Islands.• Power permits local industries, sources of incomes and finally the sustainability of the project.• While industrial systems and vehicles may be powered by vegetable oil generators, it should be noted thatthe system installed in the Fiji Islands is unique: this rural domestic electrification scheme using copra-oil fuel is the first of its kind in the world.9. References(I) Source: SPC Rural Energy Development Programme, calculated from Pacific Power Association data(II) P. Courty, decentralised rural electrification for Pacific island countries – The Copra Bio-fuel Fiji demonstration project, Secretariat of the Pacific Community, 1998 revised April 2000.(III) World Bank, Pacific Regional Energy Assessment, 1992.(IV) G. Vaitilingom, A. Liennard, Expérimentation d’un groupe électrogène fonctionnant à l’huile de coprah. CIRAD, Montpellier Septembre 1995.(V) T. Chinula, “Powering generators with diesel and copra oil” in Islands Business, may 1999, p. 43.(VI) G. Vaïtilingom CIRAD, A. Liennard CIRAD, P. Courty SPC, Crude copra oil, a biofuel for dieselgenerators; more self-reliance and higher incomes; In “1st World conference and exhibition on bio-mass forenergy & industry, Sevilla, Spain. 5-9 June 2000”.(VII) Fiji Department of Energy; Rural Electrification Policy, Fiji, 1993.(VIII) Patrice Courty, Rowan Mc Murray, Decentralised Rural Electrification – Financial Analysis Standards ; aguide for decision makers and development strategy planners. To be published October 2000.(IX) AusAID The Economy of Fiji International Development Issue N° 40 –1995-(X) Patrice Courty, Rowan Mc Murray, Decentralised Rural Electrification – Financial Analysis Standards ; a guidefor decision makers and development strategy planners. To be published October 2000.(XI) Tevita KETE,1998, Director of the Taveuni Coconut Centre, Ministry of Agriculture and Forestry, Fiji. Bio-fuel feasibility study coconut plantation.Copra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.13/14
  • 9th PPA Conference and Trade Exhibition, 2000 Theme: “Empowering the Lives and Economy of the Pacific Islands”. 21st – 24th August, 2000. Hilton Convention Centre, Brisbane, Australia.(XII) Roberts, Jon, Feb.1996. “Environmental effects of using Cold-Pressed Coconut Oil as an Alternative toDiesel and Kerosene in the South Pacific”. Physics and Technology Energy Team, University of the South Pacific,Suva, Fiji.(XIII)Benjamin Dessus, CNRS-PIRSEM, Bernard Devin, AFME, François Pharabod, MRT-CPE, in Worldpotential of renewable energies and environmental impacts analysis ; From « La houille blanche N°1-1992 ».(XIV) GRET, Groupe de Recherche et dEchange Technologique, Bellais F., Bouard A., Diwo Sabine., Galliot C., Guillet A.,Melet Agnes.- Les fillières biocarburants: alcool, ester et huiles végétales. Recencement dexpériences en Europe et dans lespays en voie de développement. Paris Déc. 1993.(XV)Dr. Gilles Vaïtilingom, CIRAD-SAR; Expérimentation d’un groupe électrogène, moteur DEUTZ Type 830503 // 74kW at 1500tr/mn:., Sept.1995.Néa.Aug.2000.Copra bio-fuel for a sustainable decentralised rural electrification; financial and environmental impacts.- Aug.2000. -SPC-Rural Energy Development Programme – PatriceC@spc.int - P.14/14