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: cuongnd.re@gmail.com or cuongnd_ie@fpt.vn