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TRANSCRIPT
Page 106.10.2014
Energy Production – Added Values from Sugar Production Process
AHK Business Trip to VietnamBioenergy Forum
Ho Chi Minh City, 6 October 2014
Lam Son Group
Page 206.10.2014
1. Overview of Lam Son Sugar JSC
2. Main Production and Business Activities
3. Electricity Production and Business Activities
4. Alcohol Production and Business Activities
5. Biogas Production Activities
6. CDM Activities
7. Obstacles, Challenges and Lessons learnt
8. Future Development Strategy
Contents of Presentation
Page 306.10.2014
Lam Son Sugar Company, formerly known as Lam Son Sugar Plant.
On 12 January 1980: The Prime Minister signed the Decision No.24/TTg approving the design of Lam Son Sugar Plant.
Capacity of 1,500 tons of sugarcane/day; equipment and technology supplied by FCB, France.
1. Overview of Lam Son Sugar JSC
Page 406.10.2014
1980 – 1988: The Plant construction started in1980 and lasted for more than 5
years. Production activities launched in 1986.
1989 – 1999: This was a 15-year period of innovations and upgrading from a Sugar
Plant to a Sugar Company. Lam Son Sugar Association introduced with the model of
Worker-Farmer-Intellectual Alliance, which formulated a vast sugarcane-growing
area covering 97 communes and 4 agricultural farms in 9 districts in the northwest
of Thanh Hoa Province.
With fast-growing production and business activities, the Company became a
leading model of Worker-Farmer Alliance. In 1999, the Company and General
Director Lê Văn Tam (now known as President of Executive Board) were awarded
the “Labor Hero of the Renovation Period” title by the State.
1. Overview of Lam Son Sugar JSC
Page 506.10.2014
2000 – 2007: On 06 December 1999, the Prime Minister approved the transformation of Lam Son Sugar Company into Lam Son Sugar JSC from the 1 Jan 2000, with the initial chartered capital of VND 186 billion. Rapid growth rate at an average of 18-20%/year.
9 Jan 2008: listed in HCMC Stock Exchange with the code of LSS.
1. Overview of Lam Son Sugar JSC
Page 606.10.2014
Chartered capital: VND 300 billion; total assets of over VND 1,200 billion and equity capital of nearly VND 800 billion.
Stabilized raw material-growing area of 15,000 – 20,000 ha; owns1,200 ha of land.
Main production factories: 2 sugar factories with the capacity of 10,500 tons of sugarcane/day; 1 alcohol factory of 25 million liters/year.
Total employees: more than 1,000 persons; 14.90% of engineers from different backgrounds; 100 workers with professional training, of which 50% highly-skilled workers.
Annual revenue: over VND 2,200 billion
1. Overview of Lam Son Sugar JSC
Page 706.10.2014
1. Overview of Lam Son Sugar JSC
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2. Main Production and Business Activities
Production Sales of Lasuco Products
(2013 – 2014)
No. Product Unit OutputRevenue
(billion dongs)
Revenue Percentage
(%)
1 Refined sugar Ton 120,000 1,750 74,4
2 Refined ethanol liter 22,000,000 363 15,4
3 Electricity kw 52,000,000 49 2
4Hi-tech agriculturalproducts
Ton 1,200 42 1,78
5 Fertilizer products Ton 30.000 135 5,7
6 CDM 4 0,17
7 Other products 12 0,51
Total 2,355
Page 906.10.2014
(making up nearly 75 % of the Company’s total revenue).
Quality targets:
• Lam Son refined sugar has high-purity and meet quality standard criteria of Europe and United States. In addition, it also meet strict quality control standards as set by such special customers as: Coca-Cola, Pepsico, Vinamilk …
2. Main Production and Business Activities
Stabilized material-growing area 16,000 ha
Sugarcane as raw material 1,000,000 – 1,200,000 ton/year
Refined sugar output 110,000 – 125,000 ton/year
Revenue from sugar production 1,700 – 2,000 billion/year
Sugar Production and Business Activities
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HI-TECH AGRICULTURE
Planned area >1,000 ha
Current area 113 ha
2. Main Production and Business Activities
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HI-
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2. Main Production and Business Activities
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2. Main Production and Business Activities
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Power generation stages:
- Power generation for bagasse-based production.
- Power generation for bagasse-based sugar refinery.
- Biomass-based power generation outside production season
3. Electricity Production and Business Activities
Total capacity 18,500 MWh
Actual capacity 15,600 MWh
Total generation hours ≈ 10.000h/year
Actual yield 105,120 MWh/year
Consumption yield 39,056 MWh/year
Grid-connected yield 86,657 MWh/year
Fuel sources bagasse, biomass, biogas
Page 1406.10.2014
Lasuco CPH Boiler
3. Electricity Production and Business Activities
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Electrostatic Dust-Handling Equipment
3. Electricity Production and Business Activities
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Extraction Condensing Turbine
Capacity: 12.5 MW
3. Electricity Production and Business Activities
Page 1706.10.2014
Table 1: Calculations of Power Generation
during Sugar-Production Season
3. Electricity Production and Business Activities
No. Items Installed
Ca. (kW)
Generatio
n Ca. (kW)
Hours of
Generation (h)
Power Output
(kWh)
I Sugar Factory No.1, 105 days
1 Generator, 12.5MW 12,500 10,000 3,120 31,200,000
2 2 generators: 2 x 3MW 6,000 5,600 3,120 17,472,000
Total power generated 48,672,000
3 Internal power consumption 15,000 9,000 3,120 28,080,000
4 Surplus power released to the grid 20,592,000
II Sugar Factory No.2, 18-day sugar
refinery using excess bagasse
from extraction season
1 Generator, 12.5MW 12,500 912
2 2 generators: 2 x 3MW 6,000 4,000 912 3,648,000
Total power generated 3,648,000
3 Internal power consumption 15,000 1,746 912 1,592,352
4 Surplus power released to the grid 2,055,648
IV Total surplus power released to
the grid
22,647,648
Page 1806.10.2014
Table 2: Calculations of Power Generation
outside Sugar-Production Season
3. Electricity Production and Business Activities
No. Items Installed
Ca. (kW)
Generatio
n Ca. (kW)
Hours of
Generation (h)
Power Output
(kWh)
II 200 days of power generation
without sugar refinery
1 Generator, 12.5MW 12,500 11,000 4,800 52,800,000
2 2 generators: 2 x 3MW 6,000 5,760 0
Total power generated 52,800,000
3 Internal power consumption 15,000 1,955 4,800 9,384,000
4 Surplus power released to the grid
IV Total power released to the grid
outside the season
43,416,000
Page 1906.10.2014
Tab
le3:
Pu
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ase p
rice o
f b
iom
ass f
uels
3. Electricity Production and Business Activities
- From forest plant residues
No. Type Quantity
(ton/year)
Unit Price
(VND/ton)
Transportation
Cost (VND/ton)
Total 499,020 753,618 175,167
1 Mixed wood, including barks,
diameter of 15cm or less
162,516 738,547 170,863
2 Tree trunks of different types,
including bark and dry leaves
70,296 485,898 181,883
3 Bamboos of various types 256.577 845,676 178,723
4 Sawdust and shavings 9,631 509,506 104,022
- Agricultural crop residues No. Type Quantity
(ton/year)
Unit Price
(VND/ton)
Transportation
Cost (VND/ton)
Total 174,428 427,023 154,947
1 Dry stems of maize, peanut
and soya beans
34,497 379,902 176,070
2 Sugarcane residues: leaves
and buds
29,042 355,194 131,607
3 Dry rice straws 68,346 435,888 195,458
4 Rice hush 42,543 500,024 88,672
Page 2006.10.2014
(The factory has been operational since Oct 2004)
Capacity 25 million liters/year
Technology & Equipment from the US, Sweden, Japan, …
Source of raw material Molasses: 90 ton/year
Main product Refined ethanol: 22 lts/year
Auxiliary products Liquid/solid CO2; Biogas; micro-bio fertilizers
Quality EU, US, … standards
Markets Domestic market & export to EU, US, …
Provided for Liquor, hi-quality cosmetics, beverage production, ...
4. Alcohol Production and Business Activities
Page 2106.10.2014
5. Biogas Production Activities
Technology Reva Enviromen, Switzerland
Capacity 1,000 m3/day-night
Source of raw material Liquid wastes from alcohol production
Product 36,000 – 40,800 m3 methane/day-night
Provided for Boiler– Steam supply for alcohol production
Page 2206.10.2014
Project goal: National grid-connection of 66 MWh/year.
Project description: Installation of boiler, steam turbine, electricity generator, transformer station of 12.5 MWh capacity together with equipment/lines for national grid-connection.
Sources of raw materials: Bagasse, wood chips, sawdust and agricultural residues (straw, sugarcane leaves….).
Applicable technology: Bagasse-fired fluidized bed boiler, adjustable extraction condensing turbine and 3-phase electricity generator will be installed.
Energy supply: RE power production for national grid-connection.
Start data of operations: December 2012.
6. Information on Lasuco’s CDM Project
Page 2306.10.2014
Expected GHG emissions to be reduced: (tons of CO2 equivalent) 32,882 (t CO2 eq) annually
CERs contract and price: The Company has sold CERs to Nordic Environment Finance Corproration ( NEFCO) with the price of Euro 8.80 per t CO2 eq.
Annual revenue: 300,000 Euro.
Project status: EB official granted CERs to the Project.
Positive impacts on local and global environment:
• Reduced GHG emissions, thus contributing to addressing global climate change issues.
• Project activities: RE generation for national grid-connection without GHG emissions.
6. Information on Lasuco’s CDM Project
Page 2406.10.2014
Socio-economic aspects:
Partially meet local power demand.
Contribute to reduced imbalance/transmission losses.
Minimize power losses thanks to the Company’s application of highly-efficient boiler, turbines and generators and high voltage power lines.
Promote the development of RE technologies to reduce GHG emissions in Vietnam.
Partially increase the Company’s revenue.
Create jobs for over 100 Company’s employees and over 1000 employees from outside.
Contribute to improved local infrastructure.
6. Information on Lasuco’s CDM Project
Page 2506.10.2014
Unguaranteed sugar cane production, thus insufficient bagasse amount as designed.
Unstable source of biomass due to seasonal characteristics.
High transportation costs.
Competition on raw material-growing area with that for industrial and other agricultural crops.
Low electricity price (VND620/kWh). No State incentives available for capital and electricity price. With the current mechanism, the Company has to offset its losses.
7. Obstacles, Challenges and Lessons learnt
Page 2606.10.2014
Prudent research/consideration required prior to project implementation. Inputs needed from scientists and experts in this field.
Procedures required to obtain support/consensus of local agencies, national government and international organizations on project implementation
Well-prepared capital and manpower for project development and avoidance of subsequent possible risks
7. Obstacles, Challenges and Lessons learnt
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Opportunity for development
According to the Prime Minister’s Decision No.24/2014/QD-TTgdated 24 March 2014 stipulating the mechanisms to support thedevelopment of biomass power projects in Vietnam. The saleprice of electricity generated from such biomass power plants asto EVN is VND1,220/kWh, VAT exclusive
8. Development Strategy
ELECTRICITY SALE TO EVN VND1,220/KWh
Page 2806.10.2014
Therefore, Lasuco’s Strategic Development Orientations towards 2015-2020 to 2025 have clearly identified:
Emphasized research/study on raw material alternatives.
Making full use of bagasse and molasses for production of new high-value products.
Fulfillment of export requirements and expanded sources of new energies.
Taking advantage of sugarcane as a great source of biomass to produce new socially-beneficial products.
Maximized output of power generated annually up to 75 million kWh.
Increased revenue for better lives of the Company’s employees and local residents
8. Development Strategy
Page 2906.10.2014
www.renewables-made-in-germany.com
Thank you very much for your attention!
Contact: Mr. Lê Bá Thắng
Deputy Head, Environmental Quality Control Unit
LASUCO
0934.828.777