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
The Potential of Biogas and Biomass from Agriculture and
Agro-Industry for Power and Heat Generation in Vietnam
Contents
1
• Status quo for Biogas and Biomass sector in Vietnam
2 • Case studies of Biogas and Biomass
3 • Summary and conclusion
BIOMASS/BIOGAS FOR ENERGY
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)
1. Status quo for Biogas and Biomass sector in Vietnam
Existing: one rice husk fired power plant in the first phase installed one boiler and
selling steam in industrial zone at price of 25-
30USD/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.
Number of systems installed: Biomass
1. Status quo for Biogas and Biomass sector in Vietnam
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
Number of systems installed: Biogas
1. Status quo for Biogas and Biomass sector in Vietnam
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 Cassava wastes 87,000 Heat
Phu Tho Cassava wastes 22,000 F/S
Ninh Binh Animal (pig) 13,000 F/S
Hoa Binh Cassava wastes 12,000 F/S
Nghe An Animal (cow) 120,000 Pre.F/S
An Giang Fish waste Groups Pre.F/S
Major feedstocks
1. Status quo for Biogas and Biomass sector in Vietnam
Methane amount from domestic animals’ wastes (2010)
Animal Biogas output
(million m3/year)
Average biogas output
(million m3/year)*
Percentage
(%)
Buffalo 335-720 527.5 10.93
Cow and bull 562-1200 881 18.26
Pig 1500-2250 1875 38.87
Poultry 1400-1680 1540 31.94
Sub - total 3797 - 5850 4823.5 100
Waste water
treatment from food
and other processing
NA NA
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.
Major feedstocks
1. Status quo for Biogas and Biomass sector in Vietnam
Biomass resources Amount for energy
usage (mill. Tons)
Natural forest 14,07
Planting forest 9,07
Bare land 2,47
Industrial perennial 2,00
Fruit tree 0,41
Scattered tree 7,79
Wood cheeps 5,58
Sawdust and shavings 1,12
Building (timber from work
and house repairs)
0,80
Total 43,31
Wood energy and wood wastes
Biomass resources Amount for energy
usage (mill. tons)
Rice straw 40,00
Sugar wastes (tops and leaves) 7,80
corn residues 9,20
Cassava stems 2,49
Rice husk 8,00
Bagasse 7,80
Groundnut shells 0,15
Coffee husk 0,17
Cashew nut shells 0,09
Others (estimated) 4,00
Total 74,90
Agricultural residues
characteristics of main biomass fuels
Rice husk Bagasse Rice straw Wood/wood wastes
Density (kg/m3) 120 260 400 500
Heating value (kcal/kg) 3000 1850 2800 3500
Average moisture content (%) 14 50 29 25
Ash content (%) 16-18 2-5 10-15 1-3
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).
1. Status quo for Biogas and Biomass sector in Vietnam
Technology applied
Technology applied
Major feedstocks
1. Status quo for Biogas and Biomass sector in Vietnam
Covered Lagoon (Pig farm): Heat UASB (Pig farm): 2 MW
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
Biomass briquettes and pellets
Briquetting machine: Local made; capacity: 100kg/hr
Pellet machine: imported from Japan and china;
capacity from 300-500kg/hr
1. Status quo for Biogas and Biomass sector in Vietnam
Technology applied
Pellet press machine
Rice husk briquette and briquetting machine
Rice husk pellets Bagasse pellets
Mixed rice husk&bagasse pellets
Biomass cost
Technology cost (2010 USD/kW)
Cost-benefits
Major feedstocks
1. Status quo for Biogas and Biomass sector in Vietnam
Main Biomass Moisture contents (%)
Heat value (LHV); MJ/kg
Price USD/ton
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
Rice husk Bagasse Wood residue Other biomass
CFB 1800-2100 1800-2100
Fixed grade boiler 1200-1500 1500-2000
Cost-benefits
Major feedstocks
1. Status quo for Biogas and Biomass sector in Vietnam
Biomass benefit
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)
Barriers
Major feedstocks
1. Status quo for Biogas and Biomass sector in Vietnam
SUBSIDIZED ENERGY
• Energy price from conventional sources still subsidized (e.g. coal, electricity)
• Only considered internal cost (not yet considered external cost viable)
LACK OF BIOMASS DATA AND PLANNING
• Lack of reliably data • Lack of detailed assessment • Lack of detailed planning in the
mid and long term
BIG CONCERN OF BIOMASS INVESTORS
• How to get biomass fuel reliably all the year, all the project’s life time
• Seasonable production • Scattered biomass owners • Collection, transports system
TARIFF NOT SETTING UP
• Selling price based on financing cost of buyer
• Environment and social benefits are not assessed
• FIT under preparing only
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
Investment Costs
LCOE O&M Costs Feedstock Costs
Ash disposal
Lifetime 20 years
Capacity factor 82%
Discount rate 10%
Efficiency (Heat rate)
Construction time: 2
years
The LCOE framework for Biomass Power Generation
2. Case studies of Biogas and Biomass
Study, propose tariff for grid-connected electricity from biomass
projects in Vietnam
Mjor feedstocks
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 considered: price based; quantity based; and tending based.
LCOE
Financial data
- Source of
Funds - Tax Payment
Consumption, Operation-link payments
Financial data
- Source of Funds - Tax Payment - Carbon Credits
Energy data
- Fuel price - Fuel data - By-production
price
Capital-linked payment
- Source of Funds - Tax Payment - Carbon Credits
Economical Conditions
- Loan Financing - Equity Capital
Revenues
- Electricity - Heat - Other Products
INPUT DATA
2. Case studies of Biogas and Biomass
-4.000.000 -2.000.000 0 2.000.000 4.000.000 6.000.000 8.000.000
Capital costs
Fuel costs
Other variable costs
Total O&M
Internal electricity
Export electricity
Internal steam
Other sales
Profit/Loss
-4.000.000 -2.000.000 0 2.000.000 4.000.000 6.000.000
Capital costs
Fuel costs
Other variable costs
Total O&M
Internal electricity
Export electricity
Internal steam
Other sales
Profit/Loss
-4.000.000 -2.000.000 0 2.000.000 4.000.000 6.000.000
Capital costsFuel costs
Other variable costsTotal O&M
Internal electricity
Export electricityInternal steam
Other sales
Profit/Loss
-4.000.000-2.000.000 0 2.000.000 4.000.000 6.000.000 8.000.000
Capital costsFuel costs
Other variable costsTotal O&M
Internal electricity
Export electricityInternal steam
Other sales
Profit/Loss
Bagasse cogen Rice husk power
Rice straw power Wood waste power
Study, propose the support mechanism for grid-connected electricity
generated from biomass projects in Vietnam: Priminitary results
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.
3. Summary and conclusion
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: [email protected] or [email protected]