from agricultural waste biomass using ORC technology · PDF filefrom agricultural waste biomass using ORC technology ... Fuel : Biomass from Napier Grass ... Case study Cost of the

OrganicRankineCycleTechnology

Generate Green Power

from agricultural waste biomass

using ORC technology

Antonio MENDES NAZARE

│

1) Current situation in Philippines for biomass field

Global Overview

Regulation and incentives

2) ORC Technology as a viable and green solution

ORC Vs Steam turbine

Technical explanations

Biomass option

3) Case study

Presentation, Economic and technical assessment

Summary

Organic Rankine Cycle Technology 2

Executive Summary

│

Energy crisis:

• 30 millions more people than Thailand, but less than half of electricity production

• The Philippines' economy has been growing more than 5% annually. Demand for

power is expected to reach 30 million kilowatts in 2030, but current capacity is

only 17 million kilowatts (dated 2015).

• Even if today Philippines are mainly powered by coal, renewable energy is well

implanted in the country through geothermal and hydro.

Global overview


A) Current situation in Philippines : Global overview

│


Huge biomass quantity available from by products that can be used as fuel for

biomass power plant:

• Coconuts : coconut shells

• Rice : Rice husks and straws

• Sugarcane: Bagasse

• Napier Grass


Global overview

│


Because of the abundance of these raw materials in the country, biomass fuel sources are

a much cheaper source of energy than imported fossil fuels.


Global overview

Grains/fruitsProduction output

(10,000 tons)

World rank for

production output

Coconuts 1,567 2nd place

Rice 1,627 8th place

Sugar cane 2,293 12th place

│

B) Current situation in Philippines : regulations and incentives

regulations and incentives


Renewable source Period of timeFeed-in tariff rate in

PhP/kWhDegression rate

Installation targets in

MW

Wind 20 years 8.530.5%

after 2 years from affectivity of FIT200

Biomass 20 years 6.630.5%


Solar 20 years 9.680.5%


Run-of-river

hydropower20 years 5.90

0.5% after 2 years from affectivity of FIT

250

│

Regulations and Incentives


B) Current situation in Philippines : regulations and incentives

Filipino government provide many incentives and facilitates regulation for companies involved

in biomass business:

• Incentives:

- Incentives for Farmers of Biomass resources

- Incentives for RE commercialization

• Tax exemptions:

- Income tax holiday

- 10 % Corporate Tax Rate

- 10 years duty-free importation of RE machinery, Equipment and Materials

- Zero % Value Added Tax Rate

This shows that regional and national governments are keen to develop RE. More

than politicians words, concrete laws and incentives have been issued these last years.

│

ORC vs Steam Turbine


A) ORC VS Steam Turbine : Technical advantages

The ORC module is easier to operate and quiet

ORC has a high efficiency at partial load. If the input decrease of 60% or increase of 20%, the

ORC still has the same efficiency while steam turbine efficiency drops dramatically even with

5% of load variation.

ORC has a high life time – 25 years, and a higher availibility up to 98%

No erosion of the blades because no water. ORC keeps same efficiency across the years

The water used in the steam turbine need to be demineralized. This water treatment system is

costly.

No staff is needed to operate the ORC module. The solution is autonomous.

│Organic Rankine Cycle Technology 9

ORC Technical Explanations

2) ORC Technology as a viable and green solution : Technical Explanations


A) ORC VS Steam Turbine : Economic advantages

ORC vs Steam Turbine

Cost and revenue for a 3MW biomass power plant

ORC technology Vs conventional Steam turbine technology

*Steam turbine is slightly more efficient but its efficiency goes down with time and any slight variation of heat input will have

huge impact on its efficiency (down to 50%) or even stops the turbine. Calculations above do not take into account those points

ORC Steam Turbine

Investment cost for turnkey project 7 800 000,00 6 600 000,00 USD

Price OPEX 150 000,00 450 000,00 USD

Biomass price 'assumption 15 USD per ton' 900 000,00 900 000,00 USD

FiT Phillipines in PHP per kWh 6,63 6,63 PHP

FiT Philippines in USD per kWh 13,69 13,69 US cents

Income for 3MW 'asumption PP running 8000 hrs' 3 285 600,00 3 285 600,00 USD

Revenue after OPEX and Biomass supply cost 2 235 600,00 1 935 600,00 USD

Pay back time 3,49 3,41* years

Revenue over 5 years 3 378 000,00 3 078 000,00 USD

revenue over 10 years 14 556 000,00 12 756 000,00 USD

IRR over 10 years 23,9 22,1* %


Turbine

Pump

CondenserEvaporator

Working fluid

vaporized

Working fluid

condensed

ORC

Heat from :

• Fumes

• Exhaust gases

• Processes

Heat To:

• Heating applications

• Processes

• Coolers

Electricity production


B) ORC Technology as a viable and

green solution : Technical Explanations


Typical Biomass installation


B) ORC Technology as a viable and

green solution : Technical Explanations

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Boiler

Biomass Dryer

Hot water (80°C)

Cooled water (60°C)

Thermal oil outlet

205°C

Thermal oil inlet

310°C

Thermal oil outlet

140°C

Thermal oil inlet

205°C

Biomass combustion

furnace

Humid

Biomass

dry

Biomass

Ambien

t air

~950°C

~20°C

~220°C

~150°C

Low temperature loop -

10% of heat recovered

from this loop

High temperature loop –

90% of heat recovered

from this loop

Dry coolers (backup system)

The split

technology permit

us to install dryer

and keep the same

net solution

efficiency

Dried biomass provide

better combustion and

higher boiler efficiency

Dryer use hot water

provide by the ORC. This

hot water transmit its

heat to the biomass to

dry it.

Dried biomass solution for efficient electricity generation

ORC Module

● Biomass Option


C) ORC Technology as a viable and

green solution : Biomass Option

Split


3) Case study : presentation

Presentation of an actual project in Philippines:

Location : Mindanao

Project size : 3MWe

Fuel : Biomass from Napier Grass

Biomass quality : 45% moisture

@ LHV (net calorific value) : 2400 Kcal

Electricity price : 6,63 PHP

Biomass cost : 1,0 PHP per kg

Progress : Final stage before construction

● Case study

│ 15Organic Rankine Cycle Technology 15

3) Case study : Technical solution

● Case study

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3) Case study : Economically attractive

Organic Rankine Cycle Technology

● Case study

Cost of the solution

Addtionnal price for civil work, connection to the grid,

transport, taxes & Insurances: around 35% of project cost

Turnkey project cost : 7,8 M USD

ORC power plant CAPEX Total price USD

Equipment supply CAPEX

- Hot Source Equipment $ 1 746 980,00

- ORC Module Equipment $ 2 825 000,00

- Cold Source Equipment $ 791 000,00

CAPEX Installation Supervision Services(1)

- Hot Source Equipment Installation Services $ 310 750,00

- ORC Module Equipment Installation Supervision Services $ 39 550,00

- Cold Source Equipment Installation Services $ 135 600,00

Total CAPEX and installation(2)(3) 5 848 880 €

Annual OPEX Exploitation/Maintenance(3)(4)

- Hot Source Equipment Exploitation/Maintenance Services $ 67 800,00

- ORC Module Equipment Exploitation/Maintenance Services $ 45 200,00

- Cold Source Equipment Exploitation/Maintenance Services $ 39 550,00

Total Annual OPEX exploitation/maintenance(3)(4) 152 550 €

│ 17Organic Rankine Cycle Technology

● Case study


Total Lenght of the project 21 years

construction 1 years

operations 20 years

amortization period lenght 20 years

Depreciation Linear

Corporate Tax rate 30,00%

Inflation 0,02%

CAPEX equipement 7 890 K USD

TURNOVER

Sell Rate $ 136,90 USD per MWh

Inflated Sell Rate ? YES

Number of working hours 8 000 hrs/year

Power supplied 3 000 kWh

OPEX

Annual Opex 152 K USD

SPV costs 25 K USD

Insurance 50 K USD

Biomass supply cost Refer table left side

Total 1 127 K USD

Assumptions

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Napier grass is a really attractive case. As we can see in this

table, we have an IRR above 20%.

However, all other biomass widely available in Philippines

provide a profitable business as well.

18

Napier Grass Rice husk Wood pellet Sugarcane

LHV biomass 2 400,00 1 800,00 5 200,00 2 300,00 Kcal.kg

Price biomass per ton 1,00 0,90 3,20 1,10 PHP

Quantity biomass per year for 3MWe biomass PP 58 000,00 77 333,33 26 769,23 60 521,74 Tons

Biomass price per year for 3MWe biomass PP 58 000 000,00 69 600 000,00 85 661 538,46 66 573 913,04 PHP

Price in USD 1 197 357,56 1 436 829,07 1 768 405,01 1 374 358,24 USD

Annual Turnover 3 285 600,00 3 285 600,00 3 285 600,00 3 285 600,00 USD

Annual Revenue 2 088 242,44 1 848 770,93 1 517 194,99 1 911 241,76 USD

Pay back time 3,74 4,22 5,14 4,08 years

IRR over 10 yers 21,00 18,90 18,10 19,50 %



● Case study

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To summarize

• Fr

• Profitable investment and great IRR

• Equipment is only dry coolers, thermal oil boiler and ORC module : no

need any consumption (water) in the whole process. Perfectly adapted to

dry areas.

• Small size scale is perfect to reduce cost of biomass transport. High

transport costs due to poor infrastructure quality in remote areas.

• Community project : Population can participate for biomass collection in

order to support the supply electricity to remote areas.

19

3) Case study


● Case study

Napier Grass Rice husk Wood pellet Sugarcane

LHV biomass 2400 1800 5200 2300 Kcal.kg

Biomass needed for 1MWh 2,42 3,22 1,12 2,52 Tons

│

Thank you for your attention

Antonio MENDES NAZAREVice-President of Sales & Marketing

+ 33 6 83 18 93 16

[email protected]

20

3) Case study


● Case study

mailto:[email protected]

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