GIZ2013-The Potential of Biogas and Biomass from Agriculture and Agro-Industry for Power and Heat Generation in Vietnam (EN)

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GIZ2013-The Potential of Biogas and Biomass from Agriculture and Agro-Industry for Power and Heat Generation in Vietnam (EN)

  1. 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. 2. Contents 1 2 3 • Status quo for Biogas and Biomass sector in Vietnam • Case studies of Biogas and Biomass • Summary and conclusion BIOMASS/BIOGAS FOR ENERGY
  3. 3. 1. Status quo for Biogas and Biomass sector in Vietnam Number of systems installed: Biomass  Forty (40) bagasse cogeneration systems installed in 40 sugar mills. Total installed capacity: 150MWe Range of capacity: from 1 to 25MWe  Five cogen systems selling extra electricity to national grid at average price of 4UScents/kWh.  15-20 existing cogen systems have plan to expand power capacity (installing new boiler, turbine and generator for power generation)
  4. 4. 1. Status quo for Biogas and Biomass sector in Vietnam 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 2530USD/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. 5. 1. Status quo for Biogas and Biomass sector in Vietnam Number of systems installed: Biogas  Household scale: 200,000 systems  Digester volume: 5-20 m3  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 power generation with capacity size from 1.2 to 3.5MW Systems (industrial scale) Location Feedstock Biogas Capacity (m3) 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 Phu Tho Ninh Binh Hoa Binh Nghe An An Giang Cassava wastes Cassava wastes Animal (pig) Cassava wastes Animal (cow) Fish waste 87,000 22,000 13,000 12,000 120,000 Groups Heat F/S F/S F/S Pre.F/S Pre.F/S
  6. 6. 1. Status quo for Biogas and Biomass sector in Vietnam Major feedstocks  Biogas energy potential is approximately 10 billion m3/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 (million m3/year) Buffalo 335-720 Cow and bull 562-1200 Pig 1500-2250 Poultry 1400-1680 Sub - total 3797 - 5850 Waste water NA treatment from food and other processing Animal Average biogas output (million m3/year)* 527.5 881 1875 1540 4823.5 NA Percentage (%) 10.93 18.26 38.87 31.94 100
  7. 7. 1. Status quo for Biogas and Biomass sector in Vietnam Major feedstocks Wood energy and wood wastes Biomass resources Natural forest Planting forest Bare land Industrial perennial Fruit tree Scattered tree Wood cheeps Sawdust and shavings Building (timber from work and house repairs) Total Amount for energy usage (mill. Tons) 14,07 9,07 2,47 2,00 0,41 7,79 5,58 1,12 0,80 characteristics of main biomass fuels Density (kg/m3) Heating value (kcal/kg) Average moisture content (%) Ash content (%) 43,31 Agricultural residues Biomass resources Rice straw Sugar wastes (tops and leaves) corn residues Cassava stems Rice husk Bagasse Groundnut shells Coffee husk Cashew nut shells Others (estimated) Total Amount for energy usage (mill. tons) 40,00 7,80 9,20 2,49 8,00 7,80 0,15 0,17 0,09 4,00 74,90 Rice husk Bagasse Rice straw Wood/wood wastes 120 260 400 500 3000 1850 2800 3500 14 50 29 25 16-18 2-5 10-15 1-3
  8. 8. 1. Status quo for Biogas and Biomass sector in Vietnam Technology applied  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  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. 9. 1. Status quo for Biogas and Biomass sector in Vietnam Technology applied Covered Lagoon (Pig farm): Heat UASB (Pig farm): 2 MW Major feedstocks
  10. 10. 1. Status quo for Biogas and Biomass sector in Vietnam 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: Fluidized bed boiler  Turbine: Condensing steam Boiler burning pellets
  11. 11. 1. Status quo for Biogas and Biomass sector in Vietnam Technology applied  Biomass briquettes and pellets  Briquetting machine: Local made; capacity: 100kg/hr  Pellet machine: imported from Japan and china; capacity from 300-500kg/hr Rice husk briquette and briquetting machine Pellet press machine Mixed rice husk&bagasse pellets Rice husk pellets Bagasse pellets
  12. 12. 1. Status quo for Biogas and Biomass sector in Vietnam Cost-benefits  Biomass cost Main Biomass Heat value Major feedstocks Price (LHV); MJ/kg USD/ton Moisture contents (%) Cost structure Wood residues 25-35% 14.5-15,0 10-30 Cost can from zero Rice husk 12-15% 12.5 -13.0MJ 10-20 Paid to rice mills, transportation Bagasse 48-52% 7.7-8.0 0-5 Cost can from zero (waste from processing) Rice straw 20-25% 11.5-12.0 20-30 Paid to farmers, rolling, transportation  Technology cost (2010 USD/kW) Rice husk CFB Fixed grade boiler Bagasse 1800-2100 Wood residue Other biomass 1800-2100 1200-1500 1500-2000
  13. 13. 1. Status quo for Biogas and Biomass sector in Vietnam Cost-benefits  Biomass benefit 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. 14. 1. Status quo for Biogas and Biomass sector in Vietnam Barriers SUBSIDIZED ENERGY TARIFF NOT SETTING UP • Energy price from conventional sources still subsidized (e.g. coal, electricity) • Only considered internal cost (not yet considered external cost viable) • 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 BIG CONCERN OF BIOMASS INVESTORS • Lack of reliably data • Lack of detailed assessment • Lack of detailed planning in the mid and long term • How to get biomass fuel reliably all the year, all the project’s life time • Seasonable production • Scattered biomass owners • Collection, transports system Major feedstocks
  15. 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.  Tariff types: One component “FIT”; Two components (FITfixed and FITvar); and Avoided cost Auxiliary Costs Equipment Costs CAPEX Construction time: 2 years Investment Costs Efficiency (Heat rate) O&M Costs Ash disposal Lifetime 20 years LCOE Feedstock Costs Capacity factor 82% Discount rate 10% The LCOE framework for Biomass Power Generation
  16. 16. 2. Case studies of Biogas and Biomass Study, propose tariff for grid-connected electricity from biomass projects in Vietnam  Objective: setting up Capital-linked Financial data INPUT DATA payment incentive tariff for - Source of Funds - Source of Funds biomass power - Tax - Tax Payment projects; and SPPA. Mjor Payment - Carbon Credits - Carbon Credits feedstocks  Types of raw LCOE Economical biomass selected: Energy data Conditions Bagasse; rice straw, - Fuel price - Fuel data - Loan Financing rice husk; and wood - By-production - Equity Capital residues. price  Three main mechanisms Consumption, Financial data Revenues considered: price Operation-link based; quantity payments - Electricity - Source of based; and tending - Heat Funds - Other Products based. - Tax Payment
  17. 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 Other sales Internal steam Export electricity Internal steam Export electricity Internal electricity Internal electricity Total O&M Other variable costs Bagasse cogen Total O&M Other variable costs Fuel costs Fuel costs Capital costs Capital costs -4.000.000 -2.000.000 0 -4.000.000 2.000.000 4.000.000 6.000.000 8.000.000 -2.000.000 Profit/Loss Internal electricity Total O&M Other variable costs 2.000.000 4.000.000 6.000.00 Other sales Internal steam Export electricity Internal electricity Total O&M Other variable costs 0 Profit/Loss Other sales Internal steam Export electricity Rice straw power -2.000.000 Wood waste power Fuel costs Capital costs Fuel costs Capital costs -4.000.000 Rice husk power 0 2.000.000 4.000.000 -4.000.000-2.000.000 6.000.000 0 2.000.000 4.000.000 6.000.000 8.000.000
  18. 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. 19. Thank you for your attention! Contact: Mr. Nguyen Duc Cuong Director of Center for Renewable Energy and CDM Institute of Energy Tel: 84-4-38527085; Mobi: 84 (0) 912009700 Fax: 84-4-38523311 Email: cuongnd.re@gmail.com or cuongnd_ie@fpt.vn

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