Appropriate Fuel Substitution Technologies as

Energy Conservation Method for Industries

Dr. Hanny J. Berchmans

Clean Energy Project Development Manager

USAID-Indonesia Clean Energy Development (ICED)

11 June 2012, Jakarta

National Energy Efficiency Conference

(NEEC)

MOTIVATION

INDONESIAN BIOMASS RESOURCES AND CHARACTERITICS

OPPORTUNITY TO UTILIZE BIOMASS AS CO-FUEL AND OR FOSSIL FUEL SUBSTITUTE IN

INDUSTRY

CASE STUDY: OIL PALM INDUSTRY

1

3

4

INDONESIA HAS LARGE BIOMASS POTENTIAL RESOURCES BUT THE UTILIZATION ONLY LESS THAN

2%

COMERCIALLY PROVEN TECHNOLOGY TO UTILIZE BIOMASS AS FOSSIL FUEL SUBSTITUTE OR CO-FUEL

ARE AVAILABLE

FOSSIL FUEL IS NOT RENEWABLE AND ITS PRICE INCREASING

BIOMASS DOES NOT PROVIDE NEGATIVE EFFECT TO THE ENVIRONMENT

WASTE BIOMASS UTILIZATION IN INDUSTRY MAY REDUCE ENERGY COST

PALM PLANTATION

RICE HUSK

CASSAVA

CORNCOB

CPO: 20.1 Mill Ton/year Fiber: 10.3 Mill Ton/year Shell: 4.7 Mill Ton/year EFB: 18.0 Mill Ton/year Trunk: 24.6 Mill Ton/year Fronds: 123 Mill Ton/year POME: 42.8 Mill Ton/year 10 Mill Ton/year

23.5 Mill Ton/year

12.5 Mill Ton/year Source: USAID-ICED

0

10

20

30

40

50

Agricultural Biomass Woody Biomass

Indonesia

Thailand

Malaysia

Pilipina

Vietnam

Source: USAID-ICED

Mil

l T

on

0

100

200

300

400

500

Biomas (AgriWaste)

Biogas (AgriWaste)

Biomas (NonAgri Waste)

Biogas (NonAgri Waste)

Indonesia

Thailand

Malaysia

Singapura

Pilipina

Vietnam

* Based on the power plants connected to national power grid system Source: USAID-ICED

MW

e

Source: USAID-ICED

FEEDSTCOK TYPE PHASE FORM

UTILIZATION

Crude Palm Oil, Coconut Oil, Jatropha Oil & Micro

Algae Oils

Biodiesel Liquid Diesel fuel substitute

Sugarcane, cassava, sagu, sorgum & ligno

celulosa

Bioethanol Liquid

Gasoline fuel substitute

Straight vegetable oil, Pyrolisys based Biomass

Oil and Pure Plant Oil

Biooil

- Biokerosin

- Minyak bakar

Liquid - Kerosene substitute

- Industrial Diesel Oil substitute

All Solid Biomass - Biobriket,

bahan bakar

kayu

Solid Kerosene and diesel fuel substitute

Industrial and Agro-industrial Wastewater and

livestock waste

- Biogas Gas Kerosene and diesel fuel substitute

Source: USAID-ICED

COMPONENT BIOMASS OTHERS RE

Availability Depend on human effort Depend on nature

Utilization method Can be stored without additional

facility/equipment

Mostly need to be used directly or

stored with additional facility/equipment

Sustainability Depend on the management Depend on nature

Final energy form Solid, liquid, gas, electric Generally electric

Feedstock supply Generally need payment/contract Free

Development opportunity Very potential Very potential

Technology Simple to complex Simple to complex

Availability in Indonesia All area Limited to certain area

KONVERSI BIOMAS KE ENERGI

TERMOKIMIA

PEMBAKARAN LANGSUNG

GASIFIKASI

PIROLISIS

KIMIA/BIOKIMIA

ANAEROBIK DIGESTER

FERMENTASI

ALKOHOLISIS

LISTRIK

BAHAN BAKAR

PANAS

TURBIN UAP

TURBIN GAS

MOTOR BAKAR

MESIN DIESEL

SEL BAHAN BAKAR

DESTILATOR

REFINERY

BIOMASS CAN BE USED AS FOSSIL FUEL SUBSTITUTE (FUEL SWITCHING) OR AS PARTIAL FOSSIL FUEL

SUBSTITUTE (CO-FIRING/CO-FUEL) IN BOILERS,

FURNACES AND PROCESS HEATERS

BIOGAS CAN BE USED AS FOSSIL FUEL SUBSTITUTE (FUEL SWITCHING) OR AS PARTIAL FOSSIL FUEL

SUBSTITUTE (CO-FIRING/CO-FUEL) IN DIRECT

COMBUSTION ABSORPTION CHILLERS

BIO-OIL/BIODIESEL CAN BE USED AS FOSSIL FUEL SUBSTITUTE (FUEL SWITCHING) OR AS PARTIAL

FOSSIL FUEL SUBSTITUTE (BLEND FUEL) IN

COMBUSTION ENGINES

INDUSTRY SUBSECTOR

ENERGY

INETENSITY

ENERGY SAVING OPPORTUNITY

(%)

APPLICABLE FUEL SWITCHING OPTIONS

BIOGAS BIOMASS RESIDUAL OIL

OTHERS

PRIMARY METAL 650 kWh/Ton

350 kWh/Ton1 11-32 No No No By product

fuels

PULP AND PAPER 380 TOE/Mill USD

115 TOE/Mill USD1

10-20 Yes Yes Yes Black

liquor fuels

CHEMICAL &

PETROCHEMICAL

12-17 Yes Yes Yes By product

fuels

FOOD & BEVERAGE 13-15 Yes Yes Yes

TEXTILE INDUSTRY 9.59 GJ/Ton

3.1 GJ/Ton2

20-35 Yes Yes Yes

NON-MANUFACTURING 13-20 Yes Yes Yes

Source: USAID-ICED

1 JAPAN 2 INDIA

KEY BENEFITS OF FUEL SWITCHING

REDUCE VOLATILITY, DEMANDS, AND INDUSTRYS VULNERABILITY TO HIGH FOSSIL FUEL PRICES

DOES NOT SIGNIFICANTLY ALTER OPERATIONS AND MAINTENANCE COST FOR LIQUIDS AND GASEOUS FUELS

KEY BARRIERS TO FUEL SWITCHING

NEW FUEL SUPPLY, TRANSPORTATION, HANDLING AND STORAGE REQUIREMENTS

EQUIPMENT DERATINGS FOR COAL, BIOMASS, OIL AND COAL-OIL MIXTURE

FUEL AVAILABILITY

HIGH CAPITAL COST FOR CONVERSION TO SOLID FUELS OR ELECTRICITY

BOILER TYPE BIOMASS SIZE (mm)

MIXING METHOD DISADVANTAGES ADVANTAGES

PULVERIZED COAL

BOILER

6 1. Blending before pulverizers

2. Separate processing,

handling, storage system,

and injection system

1. Amount of biomass

limited max. 3% of

the boiler heat input

2. Expensive

1. Least expensive

2. Amount of

biomass up to

15% of the boiler

heat input

STOKER 75 1. Premixed 2. Dedicated fuel hopper

Smaller biomass size can

cause blockage in duel

feeding systems

1. No modification,

and very low

investment cost

2. Low investment

cost

CYCLONE 13

FLUIDIZED BED 75 1. Premixed 2. Dedicated fuel hopper

Smaller biomass size can

cause blockage in duel

feeding systems

1. No modification,

and very low

investment cost

2. Low investment

cost

Source : Biomass Cofiring in Coal-Fired Boilers, Federal Energy Management Program, USE DOE

Short residence times (pulverized coal firing) is necessary in small particle size for efficient combustion

SLAGGING, FOULING, AND CORROSION FUEL-HANDLING AND PROCESSING PROBLEMS UNDERESTIMATING FUEL ACQUISITION EFFORTS BOILER EFFICIENCY LOSSES NEGATIVE IMPACT ON ASH MARKETS

Fuel size drives the combustion process primarily residence time.

2300 oF

3000 oF

Longer furnace residence times enable larger sized biomass (stokers, fluidized bed, and cyclones)

Source: Babcock & Wilcox Power Generation Group

1. Weather proof barge

unloading and conveyance

Keep biomass dry New buildings

Plant Modification required:

2. New biomass storage buildings

3. Modify conveyors:

Keep biomass dry Address steep angles Dust supression Fire protection

4. Modify coal bunkers for biomass pellets

3. Modify existing mills

4. Boiler changes

Accommodate higher flue gas velocities & temperatures

5. Change ash handling and disposal system

6. New burners system: Reduce NOx system

BOILER TYPE PLANT SIZE

(MW)

HEAT INPUT FROM

BIOMASS (%)

UNIT COST

($/kW)1

TOTAL COST FOR

COFIRING RETROFIT

($)

NET ANNUAL

COST SAVINGS

($/yr)2

PAYBACK PERIOD (years)

PRODUCTION COST

WITHOUT COFIRING (/kWh)3

PRODUCTION COST WITH COFIRING (/kWh)4

STOKER (Low

Cost)

15 20 50 150,000 199,760 0.8 5.25 5.03

STOKER (High

Cost)

15 20 350 1,050,000 199,760 5.3 5.25 5.03

Pulverized Coal 100 3 100 300,000 140,184 2.1 3.26 3.24

Pulverized Coal 100 15 230 3,450,000 700,922 4.9 3.26 3.15

Fluidized bed 15 15 50 112,500 149,468 0.8 5.41 5.24

1Unit costs are on a per kW of biomass power basis(not per kW of total power)

2Net annual cost savings= fuel cost savings increased O&M costs.

3Based on data obtained from EPRI's Technical Assessment Guide, 1993, EIA's Costs of Producing Electricity, 1992, UDI's Electric

Power Database, EPRI/DOE's Renewable Energy Technology Characterizations, 1997, coal cost of $2.10/MBtu, biomass cost of

$1.25/MBtu, and capacity factor of 70%

BOILER TYPE PLANT SIZE

(MW)

HEAT INPUT FROM

BIOMASS (%)

REDUCED COAL USED

(Tons/yr)

BIOMASS USED

(Tons/yr)1

ANNUAL CO2 EMISSION

REDUCTION (Tons/yr)

ANNUAL SO2

EMISSION REDUCTION

(Tons/yr)

ANNUAL NOx

EMISSION REDUCTION

(Tons/yr)

STOKER (Low

Cost)

15 20 10,125 16,453 27,843 466 N/A

STOKER (High

Cost)

15 20 10,125

16,453 27,843 466 N/A

Pulverized Coal 100 3 7,578 12,314 20,839 349 N/A

Pulverized Coal 100 15 7,429 12,072 20,430 342 N/A

Fluidized bed 15 15 37,146 60,362 102,151 1,709 N/A

1Depending on the source of biomass

Source : Biomass Cofiring in Coal-Fired Boilers, Federal Energy Management Program, USE DOE

BENEFITS OF COFIRING

REDUCED FUEL COST -> ENERGY SAVING

REDUCED SOx AND NOx EMISSIONS

LANDFILL COST REDUCTION

REDUCED GREENHOUSE-GAS EMISSIONS

RENEWABLE ENERGY WHEN NEEDED

MARKET-READY RENEWABLE ENERGY OPTION

FUEL DIVERSIFICATION

LOCALLY BASED FUEL SUPPLY

COST EFFECTIVENESS FACTORS

COAL AND BIOMASS SUPPLY PRICE

LANDFILL TIPPING FEES

BOILER SIZE AND USAGE PATTERNS

BOILER MODIFICATIONS AND EQUIPMENT ADDITIONS RREQUIRED

Actual capacity : 56.59 Ton FFB/h

Biomass Consumption : 0.21 Ton EFB/Ton FFB;

0.06 Ton Shell/Ton FFB;

0.13 Ton Fiber/Ton FFB

Ratio POME to FFB : 0.55

Actual daily raw POME : 460 m3 POME/day

POME COD value : 65000 mg/l

Lagoon arrangements : Multi feed with 6 ponds, volume 15000 m3/pond

Number of Boilers : 3 units

Boiler Capacity : (1) 20 m3 steam/hr

(2) 20 m3 steam/hr

(3) 25 m3 steam/hr

Number of steam turbine : 3 units

Steam Turbine Capacity : (1) 1250 kVA

(2) 1250 kVA

(3) 1500 kVA

Power Production : 1000 kW (average)

Power Consumption : 1000 kW (average)

POME mass fraction is the highest

POME can be utilized as source of biogas fuel for boilers

PALM OIL MILL

PLANTATION

ANAEROBIC DIGESTER

FFB

POME

BIOGAS CAPTURE

AEROBIC POND

LA

ND

AP

PL

ICA

TIO

N

GAS CLEANING SYSTEM

WATER SULFUR HYDRO

CARBON

OTHERS

BOILERS

GAS ENGINE

CLEAN

BIOGAS

RAW

BIOGAS

GAS REFORMERS SYSTEM

OLEO CHEMICAL PLANT

CLEAN

HYDROGEN

FLARE

Source: Waste Solutions and EPA

Biogas:

CO2: 25 45 % CH4: 50 75 % Water Vapor: 2 7 % H2S < 2 % Hydraulic Retention Time (HRT): 30 60 days Total solid: 0.5 2 %

( CADL )

Biogas generation from liquid waste with total solid of 0.5 to 3 %. Liquid wastes are contained in geo textile lining to capture

methane released during anaerobic biological conversion. Typical Hydraulic Retention time is 30 to 60 days

Methane capture (m3 CH4/day): Assumes mesophilic conditions at ~40C.

POMEs temperature leaving the POM ranges between 70-80C, requiring a preliminary tank or a cooling tower to bring the temperature down.

We recommend the use of a Covered Anaerobic Digester Lagoon (CADL) at POMs for several reasons:

Capital investment costs and O&M costs are significantly lower than other systems.

There is already local experience in Indonesia with CADL systems for POME; there are about 30 CAL projects currently in Indonesia.

There is sufficient space near the POMs to construct CADLs.

Shells replacement: Assumes that biogas would be burnt directly in the boilers instead of shells.

ITEM UNIT VALUE

Methane density kg CH4 / m3 CH4 0.716

Thermal conversion efficiency % 35

Energy content of methane BTU / m3 CH4 32,956

Methane capture m3 CH4/day 7,768

Electricity generation kWh/day 25,972

Utilization hr/day 24

Generator Capacity with Biogas kW 1,082

Installed steam turbine capacity kW 3,200

Electric power consumption kW 1,000

Shells produced MT/year 15,109

Shells that could be sold if biogas used as boiler

fuel to replace some of the shells

MT/year

15,109

ITEM UNIT VALUE

CH4 kg CH4/year 2,030,021

CH4 MT CH4/year 2,030

CO2 MT CO2e/year 42,630

Indirect emission reduction MT CO2e/yr 7,022

Total CO2 MT CO2e/yr 49,652

Estimated project emissions- 20% MT CO2e/yr 8,526

Estimated Emission Reductions MT CO2e/yr 41,126

ITEM UNIT VALUE

Cost earthwork US$ 150,000

Cost digester US$ 300,000

Cost biogas equipment (flare, piping and valves,, etc) US$ 300,000

Other costs - 20% (engineering, electrical controls, contingency) US$ 150,000

New burner US$ 150,000

Total investment cost US$ 1,050,000

EXPENSE

O&M digester (15% of digester cost) 135,000

1. Monitoring cost USD/month 100

Total investment cost USD/month 136,200

ITEM UNIT VALUE

Revenues

CERs from methane destruction US$ 41,126

CERs price US$ 5

Shell sold MT/year 15,109

Price of shells $/MT 35

Total annual revenues US$ 734,445

IRR % 57

NPV (15 yrs, 2%) US$ 6,506,864

NPV (15 yrs, 4%) US$ 5,386,071

NPV (15 yrs, 6%) US$ 4,4909,849

NPV (15 yrs, 8%) US$ 3,769,131

Dr. Hanny J Berchmans

hannyjberchmans@gmail.com

hanny.berchmans@iced.or.id