BIOMASS ENERGY - projects.nri.orgprojects.nri.org/biomass/conference_papers/biomass_energy_in_asean.pdf · BIOMASS ENERGY IN ASEAN MEMBER COUNTRIES fiBIOMASS: MORE THAN A TRADITIONAL

BIOMASS ENERGYIN

ASEAN MEMBER COUNTRIES

�BIOMASS: MORE THAN ATRADITIONAL FORM OF ENERGY�

FAO Regional Wood Energy Development Programme in Asiain cooperation with the ASEAN-EC Energy Management Training Centre

and the EC-ASEAN COGEN Programme

Current trends indicate that biomass will continue to be an importantsource of energy in Asia for the foreseeable future. This also applies

to ASEAN member countries, notwithstanding their dynamiceconomic and social transitions. Government policies can support the

good use of biomass energy, including energy from wood.

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Biomass is an important source of energy in ASEAN member countries andits use is still increasing. In ASEAN, energy from biomass such as wood andagricultural residues represents about 40% of total energy consumption – morethan 2.5 million Terajoules per year. The bulk is from woodfuels, with an esti-mated value of US$ 7 billion per year. Main applications are in the domesticsector and small-scale industries, but also increasingly in modern systems forcombined heat and power generation.

Managed properly, biomass energy (or bio-energy) can be sustainable, envi-ronmentally benign and economically sound. Moreover, biomass energy cre-ates substantial local employment. The advantages are also being recognisedin industrialised countries, and several governments have successfullyadopted articulate policies for promoting biomass energy.

Tropical countries enjoy favourable conditions for growing biomass. However,constraints to optimal use as an energy source are still to be resolved. Mainissues are legal and institutional barriers, as well as lack of information andtechnology transfer. Furthermore, common misconceptions about biomass en-ergy have to be redressed. It should be emphasised that the larger part ofwoodfuels come from non-forest land; woodfuel use is not the root cause ofdeforestation; biomass energy is more than a traditional commodity; andbiomass energy will not phase out in the foreseeable future.

At present, AEEMTRC, COGEN and RWEDP cooperate in order to integrateinformation on biomass in energy data bases and assist in the development ofsustainable energy policies.

It is recommended that energy policy makers in ASEAN member countriesacknowledge the important role of biomass energy and its future potential.This will mean biomass energy can be integrated in overall energy policymaking and planning. In particular the potential of modern applications forpower generation should be given serious consideration as a way of ensuringoptimal utilisation of each country’s biomass resources.

SUMMARY

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BIOMASS ENERGY IN ASEAN ECONOMIES

The use of conventional energy like oil, coaland electricity has increased enormously inthe last 25 years in ASEAN economies. Dur-ing the 1980s, consumption more than dou-bled, with an average annual growth rate of7%. Less spectacular, and somewhat over-shadowed by this conventional energy boom,consumption of biomass energy has also in-creased substantially over the same period.Biomass energy includes fuelwood, charcoaland agriculture residues used as fuel.

For the five ASEAN countries wherebiomass is an important energy source (In-donesia, Malaysia, Philippines, Thailand andVietnam), consumption increased on aver-

age 2% per year between 1985 and 1994, duemainly to population growth. Consumptionis highest in Indonesia, accounting for morethan half of the total consumption becauseof the large population, while the rate of in-crease is highest in Malaysia and Vietnam.

Despite this growth, the share of biomassenergy in total energy consumption has beendecreasing for most countries, which often

leads to the misconception that it is beingsubstituted by modern energy and is phas-ing out. In reality, conventional energy ismostly used for new applications such asnew industries, transport and householdelectricity, whereas wood and other biomasscontinue to dominate in domestic activitiessuch as cooking and in many traditional in-dustries.

Only for Thailand, recent and regular na-tional statistics on wood and other biomassenergy consumption are available. Compar-ing these with population data, it appearsthat there is a strong correlation betweenpopulation and biomass energy consumption

between 1985 and 1995(0.99). By using popu-lation forecasts, we canpredict an increase ofnearly 15% in biomassenergy consumption by2010 over that in 1995.As accurate data onsupply sources, bothfrom forest and non-forest areas, are lack-ing it is difficult to as-sess if there will beenough supply avail-able to meet future de-mand.

For the other four ma-jor biomass-usingeconomies in ASEAN,

similar or even higher trends of increase inbiomass energy consumption are forecast,considering their higher population growthand greater dependence on biomass energy(except in Malaysia). Of course the above isonly a simple modelling exercise, but it high-lights the need for more accurate, regularand detailed data on consumption and pro-duction of biomass energy and its sources inorder to asses trends, to develop forecastsand to formulate appropriate policies.

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Advantages

Economy

Wood and other types of biomass are widelyused as fuels in the (private) domestic andindustrial sectors, basically because they arecheaper than other fuels. Local availabilityand reliability of supply add to the economicadvantages. Modern applications in both in-dustrialised countries and in South-EastAsia have demonstrated that biomass en-ergy can also be competitive for larger-scaleindustrial applications. For fuel-importingcountries, the use of local biomass can savesubstantial amounts of foreign exchange.The value of woodfuels currently being usedin ASEAN economies is equivalent to an es-timated US$ 7 billion annually.

Environment

The sustainable use of biomass energysources helps to manage the local environ-ment. When wood and other biomass areproperly valued by local populations as animportant resource base, they are morelikely to be protected. Sustainable use ofbiomass is also beneficial for the global cli-mate, because it is carbon-neutral, whereassubstitution by fossil fuels would add to thegreenhouse effect. This is the main reasonwhy many industrialised countries haveembarked upon policies for increasing theshare of biomass in national energy con-sumption.

Rural income

The use of wood and some other forms ofbiomass energy generates at least 20 timesmore local employment within the nationaleconomy than any other form of energy, perunit. A large amount of unskilled labour isengaged in growing, harvesting, processing,transporting and trading the fuels, whichgenerates off-farm income for ruralpopulations, either regularly or off-season.Policy makers in the European Union areincreasingly coming to recognise the em-ployment benefits for their own countries.

Social

In times of hardship, or when harvests areinadequate for subsistence, the opportunityto generate income in woodfuel business pro-vides a safety-net for the people affected.

Efficiency

The application of biomass energy in mod-ern technologies allows for increased energyefficiency by combined heat and power gen-eration (cogeneration). Applications ofcogeneration in decentralised systems basedon locally available fuel resources help to fur-ther reduce losses in the transmission anddistribution of power.

Energy mix

Incorporation of biomass fuels in nationalenergy supply policy improves the energymix by increasing the diversity of energysources. This helps to reduce vulnerabilityto market fluctuations and can improvestabilization of prices.

Constraints

Misconceptions

It is sometimes assumed that biomass en-ergy is a traditional commodity which willphase out in the near future. Some peopleeven believe that woodfuel collection posesa major threat to tropical rainforests. Mis-conceptions such as these hamper the de-velopment of sound energy policies.

Data and planning

Systematic data are still inadequate or una-vailable for biomass energy planning and fordeveloping specific energy policies for sup-ply and demand.

Technologies

Technologies for biomass combustion whichare at present widely used in ASEAN econo-mies still need to be improved towards bestpractice. Financial, institutional and legalissues have to be resolved to make the bestuse of available technologies.

ADVANTAGES & CONSTRAINTS

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Biomass fuels

Biomass fuels consist of both woody andnon-woody biomass. The first come fromtrees and shrubs, the latter from cropresidues and other vegetation. Both can beconverted into charcoal. In ASEAN econo-mies, important biomass fuels are wood andresidues from coconut, rubber and oilpalmtrees, as well as sawdust, bagasse and husksand straw from rice plants. They are usedin both traditional and modern applica-tions.

Utilisation of biomass fuels

Domestic

The domestic sector is the main user ofbiomass fuels, primarily for cooking andspace heating. The main user groups arefarmers and villagers, but daily wage earn-ers, industrial workers and food vendors incities all use biomass fuels to some extent.Villagers also use biomass fuels to processagricultural products either for preserva-tion or for conversion into tradable com-modities.

Industrial

Numerous industries in ASEAN membercountries rely on biomass fuels for processheat and drying of the final product. Manyare small-scale and based on traditionaltechnology. These industries usually pur-chase the fuel, but some also collect biomassfuels from free supply sources. The indus-tries include: agricultural and food process-ing (like sugar, rubber and coconut process-ing, rice parboiling, fish and meat dryingand smoking); metal processing and min-eral-based activities (e.g. brick making, limeburning, ceramics and pottery, smithing,foundry and jewellery); and forest productsand textile industries (e.g. bamboo and cane,distilleries, timber drying, match factories,silk and textiles). Besides these industrialactivities, services rely on biomass fuels(e.g. road tarring, soap making, tyre re-treading, paper making, fishing net and boat

UTILISATION AND SOURCESIN ASEAN COUNTRIES

making, food preparation and catering serv-ices).

The current situation is not expected tochange as long as the supply of biofuels issecure and their price remains competitivewith commercial fuels like coal, gas and elec-tricity. The consumption of biomass fuelsmay even increase with growth in popula-tion.

Bio-energy-using industrial and other com-mercial activities are mainly found in ruralareas, but also exist in townships and evenmetropolitan cities like Bangkok, Jakartaand Manila. Also, many households in largeurban centres use biomass fuels, in particu-lar charcoal. Densified biofuels (briquettesof charcoal fines and loose residues) are be-coming more popular in urban centres wheredifferent forms of woodfuels have alreadybeen accepted as traded commodities. Atpresent, many higher-income rural families,urban households and industrial enterprisesare purchasing biomass fuels, especiallywood and charcoal, to meet their energyneeds.

Modern applications

More recently, modern bio-energy has de-veloped through adoption of technologieslike cogeneration (generation of heat andpower in wood and agro-based industries)and dendrothermal power plants (genera-tion of electricity by burning woodybiomass). Cogeneration is gaining increas-ing acceptance. Efficient, mature and provenbiomass-based energy conversion technolo-gies are available both within and outside theASEAN region. Cogeneration of heat andpower from residues in forest-based and agro-industries is being increasingly promoted(particularly in Indonesia, Malaysia, the Phil-ippines and Thailand) by the private sector,mostly for own use. Utility companies inWestern countries already supply electricityand heat from biomass to national grids andlocal communities.

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Sources of biomass energy

Wood

The forest source is one of many sources ofwoodfuel production. It consists of govern-ment-owned and managed natural forestsand tree plantations. However, this is notthe only or even the main source. The situa-tion in Indonesia, Malaysia, the Philippinesand Thailand presents a typical scenario. Inthese countries, in recent years non-indus-trial plantations of different types (e.g. co-conut, rubber and oilpalm plantations, fruitorchards, and trees in homesteads andhomegardens) have gained recognition asimportant sources of woodfuel supply. Thesenon-forest sources, managed and operatedmostly by the private sector as informal busi-ness enterprises, are gaining prominence insupplying traded woodfuels to markets.

In the countries of South-East Asia, forestsources contribute between 10 and 50% oftotal national woodfuel supplies, with thebalance coming from non-forest sources. Theshare of non-forest woodfuels in total house-hold-level consumption in Indonesia is re-ported to be as high as 93%, and the sharein total woodfuel supply in the Philippinesand Thailand as 85% and 50% respectively.

Forest and non-forest sources producewoodfuels by the felling of trees which havegrown naturally, or trees which were raisedon single or multi-purpose plantations (i.e.as the main products of dedicated woodfuelplantations or as by-products of non-indus-trial plantations). Alternatively, woodfuelsare obtained as lops and tops from forest har-

vesting; as dead wood, fallen branches, twigsand dead stumps at site; as by-products ofwood-based industries (e.g. waste and scrapwood, sawdust); as surplus non-commercialwood derived from land clearing; or as re-covered wood from replacement or demoli-tion of old structures and constructions (e.g.wood from old poles, posts, buildings, scaf-folding). The latter are used mostly by theurban poor.

Other biomass

Agro residues like rice husk and straw, co-conut husk and shells, palmoil kernel shellsand fibre, and bagasse are the other mainsources of biomass fuels. They are importantfor both the domestic and the industrial sec-tors. In Thailand, the energy balance showsthat bagasse and rice husk accounted re-spectively for 7.9% and 1.6% of all energyused in the country in 1995. In Indonesia,residues accounted for 7–8% in 1992, in Ma-laysia 15–16% in 1990, and in the Philippinesabout 12% in 1989. These amounts are basi-cally consumed in the industrial sector(palmoil, coconut, sugar and rice milling).Data for the domestic sector are often notavailable, but evidence from limited surveysindicates that biomass in the form ofresidues plays an important role, in particu-lar in areas where wood as a source of en-ergy is in short supply.

People involved

In addition to the millions of users ofbiomass fuels in ASEAN countries, numer-ous actors play specific roles in the supplyand distribution of traded biomass fuels from

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their sources to final users (e.g. collectorsor gatherers, transporters, middlemen,wholesalers and retailers). Woodfuel collec-tion for self-use and for the market can bean important occupation in rural areas. Forthe better-off it may be part-time off-seasonwork, but for the poor it can very well be afull-time occupation for livelihood. And foryet others it may provide an opportunity forself-employment in woodfuel-related busi-ness to earn cash income and supplementhousehold income. Most fuelwood gathererslive in villages close to the forests. They maybe poor with very small land holdings, orlandless labourers.

Estimated employment of woodfuel on thebasis of person-days involved in productionof one terajoule (TJ) of energy, compared toother commercial fuel alternatives, showsjust 10 person-days per TJ for kerosene, com-pared to 200 to 350 person days for charcoal,depending upon productivity of site, effi-ciency of producers and the distance to themarket.

For instance, over 830,000 households wereemployed in woodfuel-related activities inthe Philippines in 1992 (536,000 in gather-ing, 158,000 in charcoal making and selling,and 40,000 rural and 100,000 urban traders).It was the main source of income for about10% of rural households, supplying about40% of their cash earnings.

tally sensitive sites. Also, woodfuel is a car-bon-neutral energy source (that is, the CO2

released by its burning is matched by theamount used up in its production), providedthe rate of harvest of the wood is equal tothe rate of re-growth, so it need not contrib-ute to the greenhouse effect. With presentimprovements in wood combustion technolo-gies, other emissions like carbon monoxide(CO), polycyclo-aromoatic-hydrocarbons(PACs), nitrous oxides (NOx) and particulatematter can also be significantly reduced.

Considering the important contribution fromnon-forest production sources, it has beenconcluded that in most areas sustainableproduction of wood for energy can be viable.The present supply-demand imbalances maynot be as serious as has been projected formost countries. It is also observed that, ex-cept in some highly populated forest deficitareas, the use of woodfuel by a majority ofrural households is not the root cause of de-forestation. In the present context of warn-ings against deforestation and growing con-cerns about biodiversity and environmentalconservation, the role of government-raisedplantations as newly emerging additionalsources of woodfuel becomes more promi-nent as far as traded woodfuel is concerned.

Environment

If the supply source is properly managed,woodfuel can contribute positively to boththe local and the global environment. Deg-radation of watershed and catchment areasoccurs only when woodfuel is extracted inan unsustainable manner from environmen-

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Biomass resources, particularly residues fromforests, wood processing, agricultural cropsand agro-processing, are under-utilised inASEAN countries. These resources are renew-able, environmentally friendly in energy pro-duction, and sustainable in terms of supply.

Some of these residues are already used asraw materials for other products (such asparticle board and fibreboard), as fodder andfertilizer, or as household and industrialfuels. However, large portions are still un-used and represent potential sources of en-ergy. Energy generation technologies spe-cifically designed to use biomass residuesare available and are becoming more andmore economical.

Countries have yet to make optimum use ofthe additional power generation potentialfrom their biomass residue resources, whichcould help them to partially overcome thelong-term problem of energy supply. How-ever, in order to make the most of biomassenergy, various aspects must be taken intoaccount:

Financial

• There are several factors limiting the po-tential for large-scale fast-growingfuelwood plantations on a commercialscale: international petroleum fuel prices,remaining subsidies on commercial fuels,large initial investment requirements forwoodfuel plantations, long gestation pe-riod between planting and harvesting,and conversion and transportation costs.This implies that the development ofwoodfuel should focus on the by-productsof agroforestry and on the use of wood andbiomass residues from relevant process-ing industries at their source.

• Biomass fuels are mostly used in thehousehold sector, primarily by the ruraland urban poor and middle-class peoplein small towns. These people usually endup paying more for their household energythan their counterparts in larger urbancentres. Cost-benefit analyses should in-corporate avoided costs.

• The low income level of the majority of ru-ral woodfuel users can not support highinvestments in modern biomass-based en-ergy generation. Governments shouldcome in with financial schemes.

Technological

• Biomass has a lower calorific value thanfossil fuels. Densification (briquetting) ofbiomass residues increases accessibilitybut involves a cost, which may be out ofreach of those present users who get theirbiomass fuels free. Detailed study of thelocal fuel market and careful selection oftechnology should precede major invest-ments in biomass energy development.

• Prevailing practices of technology transferdo not sufficiently take into account the lo-cal conditions under which imported tech-nology has to be operated and managed, thetraining required for its use, maintenancerequirements and capabilities, andbackstopping arrangements. Promotersneed to consider both hardware and soft-ware aspects of technology transfer.

• Research and development for biomassproduction and use on a commercial basishas not yet received adequate attentionin the region.

Institutional

• Governments’ policies relating to biomassenergy development and the role of theprivate sector are not yet clearly defined.

MAKING THE MOSTOF BIOMASS ENERGY

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• Only limited opportunity exists for ex-change of information and sharing of expe-riences with regard to the use of modernbiomass energy technologies amongst im-plementing organisations within ASEAN.It is important to facilitate transfer of know-how within the region. It may be desirableto develop and institutionalise a system forfacilitating information sharing and tech-nology transfer within the region.

bases with regard to prices, competinguses, cost of biomass energy in relation toalternatives, energy market, size, and sup-ply sources.

• Data bases should be accessible to agen-cies willing to finance, implement, moni-tor or use biomass energy. Exchange of in-formation between countries in the regioncan be promoted by networking andthrough collaboration with regional andinternational agencies.

• No dedicated system exists for informa-tion flow on research and development inbiomass energy. This needs to be estab-lished and regularly upgraded.

Legislation

• Most policies and legislation today are notconducive to biomass energy development,e.g. sectoral policies and legislation govern-ing private trees in non-forest lands, includ-ing planting, harvesting, utilisation, trans-port of tree and wood products, tree andland ownership and tenure systems.

• Some countries� policies use subsidies topromote the use of commercial fuels, in-stead of developing the sources and sup-ply of biomass energy, which could con-tribute positively to the balance of trade.

• Present misconceptions about use ofbiomass fuel being the root cause of de-forestation and environmental degrada-tion do not provide a conducive atmos-phere for bio-energy development. Appro-priate legislation which regulates onlyindiscriminate biomass use needs to bepromoted.

• Prevailing arrangements do not encourageprivate-sector participation in the develop-ment of biomass resources in forest and non-forest areas. Utilisation of biomass for com-mercial energy production and marketingrequires legislative provisions and incen-tives. Wherever feasible, countries shouldencourage, through legal and financial pro-visions, the plantation of fast-growing multi-purpose trees, if not as single-purpose plan-tations then as part of larger, multiple-useproduction systems.

• Government support with regard to theincreased use of residues is often inad-equate and at times conflicting. This mayresult in implementing agencies beingunable to carry out their mandated tasks.

Information

� Information on the amount of biomass thatmay be sustainably available for powergeneration does not exist in most coun-tries. Relevant information includesbiomass from both existing natural re-source bases and additional productionfrom new sources, including currentlyunder-utilised residues. Further reliableinformation must be generated for data

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AEEMTRC, COGEN and RWEDP are all involved in biomass energy in the ASEAN re-gion. The three organisations have complementary strengths and have agreed to co-oper-ate in various aspects of their work. A Memorandum of Understanding formalises theircooperation on information relating to wood and biomass energy. The cooperation of otherinstitutions with similar interests is invited.

Acknowledging the need for improved data, common policies and concerted action, theobjectives of the present Memorandum of Understanding are to:- Integrate wood and biomass energy information into energy data bases;- Identify data gaps which limit the integration of wood/biomass energy considerations

into long-term development programmes;- Identify data collection activities which countries need to undertake to fill these data

gaps;- Assist in the development of sustainable energy policies.

AEEMTRC, COGEN and RWEDP seek advice and guidance on the following questions:- How can ASEAN Member Countries further benefit from biomass energy projects and

programmes in the region?- What specific needs for further action exist?- How should reporting to ASEAN Ministers on Energy and Senior Officials on Energy be

arranged?

AEEMTRC-COGEN-RWEDPINSTITUTIONAL COOPERATION

FAO Regional Wood EnergyDevelopment Programme

in Asia

RWEDP is a long-term project im-plemented by the Food and Agricul-ture Organization of the UnitedNations. The project is funded by theGovernment of The Netherlands andbased in Bangkok. RWEDP has 16member-countries in Asia, including5 ASEAN Member Countries (Indo-nesia, Malaysia, Philippines, Thai-land and Vietnam), as well as 3 in-coming ASEAN Member Countries(Cambodia, Laos and Myanmar).RWEDP focuses on wood/biomassenergy and aims to (1) strengtheninstitutional capacities fordatabases, (2) assist in policies andplanning, and (3) develop capabili-ties for implementing programmes.Main areas of expertise are wood en-ergy resource development, wood en-ergy conservation, and wood energyplanning and policy development.

ASEAN-EC Energy ManagementTraining and Research Centre

AEEMTRC is based in Jakarta. Theobjectives are to further enhance thecooperation between the sevenASEAN countries, and to strengthenthe political, economic and commer-cial links between the ASEAN and theEuropean Union in the field of energy.AEEMTRC is guided by a ProjectSteering Committee composed of Sen-ior Officials on Energy (SOE’s) fromthe respective governments and an ECrepresentative. In 1996 the ASEANMinisters on Energy Meeting (AMEM)decided that AEEMTRC be trans-formed into an ASEAN energy centre,with effect from January 1999. Thecentre will be placed under the aus-pices of the AMEM and the SOE Lead-ers. The mission is to accelerate theintegration of energy strategies withinASEAN to ensure over the long-termthe necessary energy development inharmony with the economic growthand the environmental sustainability.

EC-ASEAN COGEN Programme

The COGEN Programme is an eco-nomic cooperation programme be-tween the European Commission(EC) and the Association of South-East Asian Nations (ASEAN) co-ordinated by the Asian Institute ofTechnology (AIT), Bangkok. Its aim isto accelerate the implementation ofproven technologies generating heatand/or power from wood and agro-in-dustrial residues through partner-ships between European and South-East Asian companies. In a short pe-riod of time, the COGEN Programmehas established references of Euro-pean and Euro-ASEAN equipment inselected wood and agro-industries inASEAN. It is now involved in the pro-motion of reference projects, thus forg-ing closer links between Europeansuppliers and ASEAN customers andpartners. The Programme is currentlyinvolved in the implementation of overUS$ 100 million worth of Euro-ASEAN biomass energy equipment.

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A CALL FOR ACTION

ASEAN Member Countries have experi-enced high economic growth in recent years.They are now under enormous pressure toensure reliable energy supplies in order tomaintain current, or even accelerated,growth rates. Most of the additional energydemand is being met by fossil fuels. AsASEAN countries are in the tropics theyhave favourable conditions for growingbiomass, which can strengthen their self-re-liance in terms of energy. Clear and consist-ent policies are needed to make the most ofthis. Modern power generation from biomasssources should be further developed.

Data collection

Data on supply and demand of biomass en-ergy should be collected systematically andperiodically. The data should be used byplanning units as a basis for energy policies.

Incentives

Fiscal and pricing policies should be re-viewed, so as to remove discrimination infavour of certain fuel sources. Biomass en-ergy should be allowed a “level playing field”in competition with other renewables andfossil fuels.

Barriers

Barriers to the production, free flow andsustainable use of wood and biomass fuelsshould be removed.

Technology transfer

Transfer of improved biomass combustiontechnology should be promoted both withinthe region and from outside. This can be im-plemented by stimulating leading institutesand organizations to acquire knowledge andcost-effective equipment and to establishdemonstration sites for improved use ofbiomass fuels.

Information centres

Establishing national energy informationcentres to assist private-sector initiativesshould be encouraged. These informationcentres should aim to serve as “one-stopagencies”, providing all information on sup-ply and demand projections, governmentregulations, technology suppliers, etc. Theyshould fully incorporate biomass energy.

It is recommended that:

1. Asean Ministers on Energy acknowledge the important role of biomass energy in Member Countries, as well as its future potential.

2. Biomass energy is fully integrated in national energy policies and planning.

3. Serious thought is given by policy makers to optimising modern power generation from biomass sources.

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Annexes

Annex 1 Biomass energy in ASEAN economies (graphs)

Annex 2 Residue potential in ASEAN countries

Annex 3 Example: a woodwaste power plant in Indonesia

Annex 4 Biomass energy in selected industrialized countries

Annex 5 Example: biomass energy in Denmark

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BIOMASS ENERGY INASEAN ECONOMIES

Indonesia

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994

Ter

ajo

ule

s

-

10

20

30

40

50

60

70

80

90

100

Per

cen

t

Conventional EnergyConsumption

Biomass EnergyConsumption

Share of Biomass inTotal Energy

Indonesia

Malaysia

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994

Ter

ajo

ule

s

-

10

20

30

40

50

60

70

80

90

100

Per

cen

t

Conventional EnergyConsumption

Biomass EnergyConsumption

Share of Biomass inTotal Energy

Malaysia

Annex 1-1

Note: 1 Petajoule (PJ) = 1000 Terajoule (TJ) = 23.88 ktoe

Page 14

Vietnam

-

50,000

100,000

150,000

200,000

250,000

300,000

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

Year

Ter

ajo

ule

s

0

10

20

30

40

50

60

70

80

90

100

per

cen

t

ConventionalEnergyConsumption

Biomass EnergyConsumption

Share of Biomassin Total Energy

Thailand

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

Year

Ter

ajo

ule

s

0

10

20

30

40

50

60

70

80

90

100

per

cen

t

Conventional EnergyConsumption

Biomass EnergyConsumption

Share of Biomass inTotal Energy

Thailand

Vietnam

Philippines

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

1985 1986 1987 1988 1989 1990 1991 1992

Ter

ajo

ule

s

-

10

20

30

40

50

60

70

80

90

100

Per

cen

t

ConventionalEnergyConsumption

Biomass EnergyConsumption

Share of Biomassin Total Energy

Philippines

Annex 1-2

Page 15

Forestry based w ood residues

Agro based w ood residues

Field based agroresidues

Agroprocessing residues

1994 prim. energy production

VIETHAPHIMALINS

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

TJ

RESIDUE POTENTIAL INASEAN COUNTRIES

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Indonesia Malaysia Philippines Thailand Vietnam

ENERGY POTENTIAL OF AGROPROCESSING RESIDUES AS PERCENTAGE

OF TOTAL PRIMARY ENERGY PRODUCTION

Annex 2

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Many wood-processing industries are usedto simply dumping their woodwastes, caus-ing significant environmental pollution. Atthe same time, these industries buy in fueloil. In Indonesia and Malaysia a trend is nowemerging to establish integrated wood-

EXAMPLE:

A WOODWASTE POWER PLANT IN INDONESIA

For this project, the EC-ASEAN COGENprogramme has carried out a pre-investmentstudy. Operating staff are to receive specialtraining and the plant will be monitored af-ter implementation.

Annex 3

Technology

The turnkey-supplied plant will consist ofthe following main components:• a fuel-handling and boiler-feeding system;• a water tube boiler with a capacity of 40

tonnes per hour, at 33 bar and 385 ºC;• a 5.55 MW extraction-condensing turbo-

generator set;.• a river water-cooled surface condenser;• a power transmission system.

Economics

Excluding civil and structural works, the to-tal investment cost for the equipment on aturnkey basis is US$ 5.6 million. Based onthe present diesel consumption and price,the annual savings in diesel purchase willbe more than US$ 1.7 million. The expectedpay-back period is around three years aftercommissioning.

processing complexes, wherewoodwastes from processing arebeing used to supply energy for thecomplex, making the units bothmore efficient and more economi-cal, and minimising pollution.

Plywood Manufacturing

One example is the Indonesian ply-wood manufacturing company PTSiak Raya Timber, located inPekanbaru, Sumatra, Indonesia.The company employs 6,000 peo-ple and produces a yearly averageof 160,000 m3 of plywood and sec-ondary processing plywood prod-ucts. In addition, an affiliatedwoodworking factory produces about 50,000m3 per annum of downstream products. Theraw materials used for these products comemainly from company-owned forests in cen-tral Sumatra. In the process, a lot of residuesare produced. As yet the company generateselectricity using diesel gensets, but it hasdecided to install an energy plant, using itsown wood residues as fuel, to meet its heatand power requirements.

Cost reduction and reduced environmentalimpact will be achieved by replacing the ex-isting diesel engines by the new energy plantfuelled by wood residues, generating 5.55MW of electricity for captive use. In thisway, expected increased expenditure on fos-sil fuels is also avoided. Contracts have beensigned with European equipment suppliers.This is slightly more expensive locally manu-factured equipment, but it is assumed thatreliability and efficiency are higher, thusminimising the operation and maintenancecosts.

Page 17

Several industrialised countries promotebiomass energy, for both environmental andsocio-economic reasons. These countries uselocally available wood and biomass fuels asalternatives to oil or coal, taking advantageof recently developed technologies, and thusavoid CO2 emissions and reduce their owndependency on oil. A few examples are givenbelow:

Sweden

In Sweden, biomass and peat contributeabout 12% of the total energy supply ofaround 1,600 PJ/a. The main source is liq-uors from pulp mills, but woodfuels (logs,bark and sawdust), municipal solid waste andpeat are all used for district heating, homeheating and in the forest products industryitself. Biomass-based district heating hasincreased more than fivefold in less than 20years, from 5 PJ in 1980 to 53 PJ today. Ofthis, 27 PJ comes from woodfuel, 15 PJ fromrefuse and 11 PJ from peat. In addition, some7 PJ of biofuels were used for electricity gen-eration last year. Seventy buses are cur-rently running on ethanol to demonstratethe potentials of liquid biofuels.

Finland

The situation in Finland is similar to that inSweden, with as much as 30% of total en-ergy supply coming from biofuels, hydroelec-tricity and peat. Again, of the total of around330 PJ/a being supplied by biofuels, pulpwaste liquors accounts for the largest pro-portion (45%), followed by peat (19%),woodwaste (18%) and firewood (18%), withmunicipal waste less than 1%. Over 140biomass-fuelled district heating systems ex-ist, varying in size from less than 1 to over50 MW. One of the largest cogenerationplants is peat-fired and produces around 80MW of electricity and 120 MW of districtheat.

Whether peat is renewable and counts asbiomass, or is close to the initial stages ofthe formation of coal and other fossil fuel, is

a matter of debate. Finland has over 10 mil-lion ha of commercial peat reserves whichshould last for at least 200 years at thepresent rate of use, though renewal of theexploited land takes several thousand years.However, it is generally included along withwastes and residues, partly because it canbe utilised with similar burners or grates.Tree planting is another ongoing strategyto extend the energy potential of Finland.

BIOMASS ENERGY IN SELECTEDINDUSTRIALIZED COUNTRIES

Annex 4-1

Austria

In Austria, renewable energy sources sup-ply 27% of the country�s primary total en-ergy consumption (PTEC) of 1,143 PJ/a, withbiomass providing 13%. Of the biomassused, almost 98% is fuelwood, bark, woodchips and other forest industry by-products.Most of these are used in over 530,000 smallwood-burning installations and 400,000 tiledstoves, as well as 63,000 larger furnaces and200 district heating plants. The other 2% ismade up from biogas plant, together withsmall-scale use (0.4% or 0.6 PJ) of rapeseedmethylester (RME), produced in six instal-lations as a substitute for diesel fuel. How-ever, Austria is currently considering pro-ducing up to 150 million litres of RME peryear from 150,000 ha of rapeseed planta-tions. This represents an annual yield inenergy terms of about 500 PJ. Other ongo-ing developments include the use of strawand fast-growing trees for energy.

Page 18

The European Union

In the European Union, the amount of landset aside for rapeseed for fuel has expandedfrom 200,000 ha in 1992 to nearly one millionha in 1995. This was stimulated by the revisedCommon Agricultural Policy, with more di-rect payments to farmers - in theory to com-pensate for lower prices. Vagaries in theweather in 1995 have resulted in a shortfallin cereals, higher prices, and an unexpectedbonus to many farmers as well as suggestionsthat the set-aside area should now be de-creased.

Bio-energy research in Europe focusses on theproduction of liquid fuels from lignocellulosicmaterials, thermochemical conversion as wellas gasification linked to power generation.

USA

The use of wood for energy in the USA is grow-ing steadily, at about 1.2% per year, expectedto reach around 3,000 PJ by the year 2,000.Around 70% of the woodfuels are used withinthe forest products industries themselves, therest for household heating and electricity gen-eration. Wood-based electricity generation isexpected to grow fast, consuming approxi-mately 500 PJ in 2000, 1,000 PJ by 2010 andpossibly reaching 3,000 PJ by 2030.

The production of electricity from wood hasbeen highly successful in moderate-scale fa-cilities in northern New England and the up-per Midwest, with some 700 MW electricitygenerating capacity provided by 30 or morecogeneration or free-standing plants builtover the last decade. Many of these plants arelocated at pulp and paper or other forest-prod-uct mills that produce both steam and elec-tricity. New technologies are being developedfor co-firing biomass in coal-fired boilers.

Dry densified woodfuels, such as pellets andbriquettes, can be burned efficiently in fur-nace/boiler units and wood stoves by commer-cial or residential users. For instance, woodor biomass is pelletised and is fed into coalboilers in a mix of 15% pellets and 85% coal.This low-cost supplemental fuel helps disposeof wood wastes, produces lower emissions ofsulphur dioxide and other undesirable gases,and reduces fossil-fuel consumption.

If short-rotation forestry is implemented overthe next decade as expected, dedicated energycrops may overtake agricultural and forestresidues as a source of fuel for electricity gen-eration before 2020. In some regions relativelylarge power stations in the 60–100 MWe rangeare possible, making the economics much bet-ter than those for smaller systems such asthose found in Europe.

The other major biomass use is in the produc-tion of bio-ethanol for addition to petrol, asan oxygenate and octane enhancer. The corn-processing industry now uses around 20 mil-lion tonnes of maize a year (some 10% of totalcorn use in the USA), with a recent annualgrowth rate of around 4%, mainly accountedfor by increased production of fuel alcohol. Theprimary driving force for expanding ethanolsales is now the reformulated gasoline pro-gramme, which began on 1 January 1995, asmandated by the Clean Air Act Amendmentsof 1990. In the Chicago and Milwaukee mar-kets, ethanol’s market share was as high as70%, while it captured almost 100% of the pre-mium winter oxygenated fuel markets in Colo-rado. For regions where transportation andother distribution costs limit competitiveness,gasoline is blended with ethanol-derived EthylTertiary Butyl Ether (ETBE) at the refinery,and shipped in common carrier pipelines. Atax exemption for biofuels is put in place tosupport this.

The potential market for corn-based ethanolis limited once industrial use starts to com-pete with food use. A present priority issuefor the US government’s renewable energyactivities is therefore research on producingnew liquid biofuels and blending additivesfrom other agricultural materials and wood.

An ambitious programme has been launchedto produce up to 20% of liquid fuel require-ments from short-rotation woody plantationsand other biomass. A major goal of the pro-gramme is to reduce the cost of producingethanol from energy crops from US$ 0.33 perlitre in 1990 to less than US$ 0.25 by 2005 andunder 20 cents by 2010. For ethanol fromcellulosic waste materials, the goals are 13cents per litre in 2005 and 9 cents in 2010. Itis this setting of specific objectives and tar-gets that distinguishes the US R&D strategyfrom that in the European Union.

Annex 4-2

Page 19

Pricing differentiation of fuel types, which promotes the development of bioenergy in Denmark

0 100 200 300 400 500 600 700

Gas oil

Natural gas

Fuel oil

Coal

Wood pellets

Whole-tree chips

Straw

US$/toe

Price before tax Energy tax CO2 tax

At present, 6% of Denmark’s total energyconsumption is covered by biomass energy,representing 75% of the country’s renew-able energy production. Denmark is an ag-ricultural country and generates largeamounts of straw (2.3 Mt/a or 46 PJ) andanimal wastes (3 Mt/a or 26 PJ), which areincreasingly being used as sources of en-ergy. Straw presses have been developedthat efficiently process the straw into balesof standard sizes, which are used in 8,000on-farm heating systems (0.39 Mt/a) and,increasingly, purchased by electric utilitiesfor power generation (0.26 Mt/a) and/or dis-trict heating (0.28 Mt). Electricity genera-tion from straw is set to expand further, asthe Danish power utilities have signed con-tracts for 1.4 Mt/a.

Though only 12% of the country is forested,70% of all wood residues from forestry, or5.1 PJ, is being used for energy purposes.The majority of these residues are chippedin situ using mobile equipment. All indus-trial woodwaste (0.15 Mt/y or 13.2 PJ) is al-ready pelletized and used as an energysource. The main use for both wood chipsand wood pellets is in district heating plantsthat previously used coal.

Municipal solid waste (MSW) is also in-creasingly being used for energy. House-holds separate organic from non-organic

waste. The organic waste is used in biogasdigester plants which generate heat andelectricity from the biogas. Combustiblewaste accounts for 10 PJ out of 80 PJ of heatdelivered by district heating systems. By2000, all combustible wastes will be used forenergy purposes, mainly in cogeneration fa-cilities. All waste incineration and districtheating units above 1 MW will be convertedto cogeneration units by the same deadline.

EXAMPLE:

BIOMASS ENERGY IN DENMARK

Annex 5

Energy policies

In reaction to the 1973 oil shock, Denmarkput emphasis on energy conservation andfuel substitution (from oil to natural gas andbiomass) to reduce the country’s dependenceon oil imports. Individual heating systemswere replaced by more efficient district heat-ing systems. An energy tax was introducedon oil and coal to keep consumer prices high.Tax earnings were invested in energy-sav-ing equipment and research into modernbiomass systems. Cogeneration district heat-ing plants were converted to use straw, woodchips and waste. Burning straw in the fieldwas prohibited in 1990. The issue of globalwarming led to the introduction of a CO2 taxin combination with incentives for decen-tralized electricity generation usingrenewables. Other incentives are funding ofup to 30% of the cost of biomass-fired boil-ers and biogas plants, and support for re-search into modern biomass energy cropsand systems.

CONTENTS

• Summary

• Biomass energy in ASEAN economies

• Advantages & constraints

• Utilization and sources in ASEAN countries

• Making the most of biomass energy

• AEEMTRC - COGEN - RWEDP

• A call for action

• Annex 1 Biomass energy in ASEAN economies (graphs)

• Annex 2 Residue potential in ASEAN countries

• Annex 3 Example: a woodwaste power plant in Indonesia

• Annex 4 Biomass energy in selected industrialized countries

• Annex 5 Example: biomass energy in Denmark

for more information, please contact:

Regional Wood Energy Development Programme in AsiaFAO/RAPA

Maliwan MansionPhra Atit RoadBangkok 10200

ThailandTel: +66 (2) 2802760Fax: +66 (2) 2800760

Email: [email protected]