Mitr Phol Sugar Group, Thailand

Using Sugar Cane Bagasse in

Power Generation

Dan Chang Bio-Energy Co.,Ltd.

Phu Khieo Bio-Energy Co.,Ltd.
Power Cogeneration in Sugar Mills
Sugar Cane Sugar Mill Sugar
Juice
73%

Bagasse 27% Power and Steam

Excess
Fuel
Power

Bagasse Storage New Power House National Grid

Outline

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

Company overview
 PHU KHIEO COMPLEX OVERVIEW
Bio-Energy Companies
Ethanol Plant Bio-Energy (Power Plant)
Particle Board Sugar Mill
200,000 L/d 345,000,000 KWh/y
54,000 TB/y Dan Chang
2,400,000 Tons Steam/y
Phu Khieo
3,000,000 TC/y
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

Bio-Energy Companies
Dan 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
Cogeneration by Sugar Mills in Thailand

Before Year 2000

• 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

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?
SPP Renewable
Regulation Energy Policy
Oil Price

OLD PARADIGM NEW PARADIGM

Bagasse is free and have Bagasse has high
little commercial value commercial value

New CDM Climate

Management Potential 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, Thailand
Total capacity : 53 MW
Fuel : Bagasse, cane leaves, wood bark, and rice husk
Major 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 : Internal
Incentives : BOI privileges, EPPO subsidy 4.2 cent/kWh
Financing : Project finance
Project Timeline

Project Feasibility Study October 2001

Bidding & Engineering Nov 01 - Oct 02

Public Hearing and EIA Dec 01 - Jan 03

Construction Jan 03 - July 04

Commercial Operation July 15, 2004

Inauguration Nov 20, 2004

Dan Chang Bio-Energy Project

 How did we do it?
Before After
Boiler Steam16 bar Mechanical force to
shredder and milling
#1 Steam Turbine
#2 Sale to Grid
#3 ~ 6 MW
T/G # 1,2,3,4
22 kV
#4 (3, 2.5, 2.5, 5 MW)
#5 12 kWh/ton cane
#6 Steam 1 bar
Steam 30 bar
Sugar mill
New ~ Sale to Grid
#7
Boiler T/G # 5 (12 MW) 27 MW
Steam 68 bar 55 kWh/ton cane
#1 ~
#2 New T/G (41 MW) 115 kV

Dan Chang Bio-Energy Project

2 Boilers 240 t/h ( 68 Bar , 510 C )
Turbine Generator 12 MW

3 Boilers 310 t/h ( 16 Bar , 370 C )

1 Boiler 160 t/h ( 30 Bar , 370 C )

Existing Plant

New Power Plant

Turbine Generator 41 MW Substation 115 kV

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

Bark, Cane leave, Woodchip

Rice Husk

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

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 ?

Technical Challenges
Priority : Internal vs. External

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?

Technical Challenges
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

Bark, Cane leave, Woodchip

Rice Husk

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 Sugar industry Power plant
• Compensations
Communication Informal Formal

Need a new management concept !

Recognition
RENEWABLE ENERGY AWARD WINNER
BIOMASS
COGENERATION PROJECT THAILAND,
JUNE 2005

RENEWABLE ENERGY AWARD WINNER

BIOMASS
COGENERATION PROJECT ASEAN,
JULY 2005
Questions & Comments