proposal

Steam Outsourcing

via Bio-Mass Fueled Systems

detailing the extent of the outsourcing. Outsourcing requires a contractual agreement between the parties. and buys back the product of the non-core activity at an agreed price. In B r i e f We take over boiler operation. run the entire plant and sell steam to the client.What is O u t s o u r c i n g ? Outsourcing means a client relinquishes the management and control of non-core activities to a supplier. . install a metering system.

steam raising is a non-core activity. major repairs. steam can be measured accurately. •Employs a Certificated Engineer in a full time capacity. As an output. Role of T h e r m a l E n e r g y S u p p l i e r •Experience in operation and management of a steam raising plant. . eg. particularly when using palm fiber briquettes/biomass based fuels.Why O u t s o u r c e S t e a m ? Apart from power generation. A number of component activities are already outsourced. •Maintains a close relationship with the fuel supplier. water treatment. •Operates the steam raising plant within a comprehensive framework of procedures. both in terms of quality and quantity.

•It received an up-front capital payment for its powerhouse assets. •The ESCO will aggressively pursue utility and project savings opportunities throughout the term of this agreement. •No capital from the company was required to produce savings. •Operations and maintenance risk have been transferred to the ESCO. •The overall utility cost has been reduced at this facility. the steam costs can be lower then what the user was incurring before the ESCO arrived. •The company is billed for all utility services on a variable basis correlated to product produced. In fact.B e n e f i t s to Clients The client user pays the provider for the services by paying for the steam supplied from the ESCO’s boiler. with the structure of some arrangements. .

Proposed C o r p o r a t e S t r u c t u r e It is envisioned that a Special Purpose company (SPV) is set-up by both Peninsular Energy S/B and Orix for the purpose of the following:- •Business Development direct to clients •Contracts preparation •Technical design and Commercial solutions •Specializing in Steam Outsourcing business • Project management and Contract management for implementations •Maintenance of Plants •Financing of Plant set-up and maintenance •Provision of Bio-Fuels in forms of Bio-Briquettes and Pellets •Continuous sourcing of Biomass based fuels to reduce cost of generation .

Proposed C o r p o r a t e S t r u c t u r e Industrial Clients SPV for STEAM OUTSOURCING CONTRACTS -Oleo-Chemicals -Ceramics -Electronics -Rubber Glove -Hotels -Oil & Gas Utilities -CUFs ORIX PESB .

new plants or expansions 2. Supply of bio-mass fuel .Types of C o n t r a c t s / P r o j e c t s 1. New Installation of Boilers i. Acquisition of Existing Steam generation facility 4. Retrofit of Existing Boilers to use bio-mass as fuel 3.e.

The boiler produces saturated steam at a pressure of 10 Kg/cm2 with saturation temperature of 183. Out of two boilers one was 10 TPH (smoke tube boiler) & another was of 8 TPH (water tube boiler).Feasibility of Proposal: F o r e i g n C a s e S t u d y at Fresenius Kabi India Private Limited. . The project activity does not have any significant negative environmental impact. The project clearly demonstrates the feasibility of the conversion to biomass.S.3 Deg C. Initially 8 TPH boiler was acting as standby to the 10 TPH RFO fired boiler. India Boiler Fuel Conversion from RFO to Biomass Based Briquettes Units: 2 Residual Furnace Oil (RFO) fired Boilers. Ranjangaon (M.). Fuel conversion (from RFO to biomass based briquettes) was carried out in the 8 TPH water tube boiler for steam generation.

Case Study| data: Foreign Case Study .

new/expansion/crossover of fuel/acquisition 5. the following are our proposal:1. Location and ease of transport . Study of Bio-Mass /Palm Fiber Briquettes supply market 1. Priority list of type of clients 6. Ease of storage and use 2. Cost of current generation 4. Supply distance 4. Calorific value study 2. Supply stability 5. Analysis of Industries utilizing steam to prioritize on the following 1.Feasibility of Proposal In order for this proposal to be a success in Malaysia. Price per metric ton 3. Fuel type used 3.e. Type of installation i. Steam amount utilized 2.

CDM benefits .Other benefits to be considered includes:.Revenue Stream analysis .Insurance .Project management/Contract management cost . Direct engagement with Existing Client in order to:.Supply cost .Return on Investment (ROI) .Investment cost .Feasibility of Proposal 3.Savings for client .Financial Consideration inclusive of:.Fuel Cost .Management and maintenance cost .Understand requirements of usage .Preparation of Steam Supply Agreement .Advertising and publicity benefits for client and us .

5. MOU between Orix and PESB specifically for the titled purpose Division of work Identifying suitable clients for engagement Market development works Technical analysis and cost of generation Revenue stream and financial consideration Listing of Project management requirements Cash Flow preparation for test case KPI and targets for 2011 .Next Stage Our role as per above is envisioned. 4. 7. The next stage of this proposal requires the following to be in order: 1. 9. 3. 8. 2. 6.

p e n i n s u l a r e n e r g y. c o m .peninsular|energy w w w .