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Low-carbon solutions by large scale co-firing

of biomass fuel in coal power plant

～ Development of production/supply flow of new biomass fuel ～

September 10th, 2018

Shinichi Naruuchi

Senior Executive Officer

Idemitsu Kosan Co.,Ltd

Clean Coal Day in Japan 2018

1. Outlook of Idemitsu Coal Business, harmonized with

environment

2. Contribution to the increase of Renewable Energy,

utilizing highly efficient coal power plant

3. Improvement of co-firing ratio with torrefied wood

pellet (Black pellet)

4. Idemitsu Black pellet production/supply activity

5. Summary

Presentation Outline2


environment






5. Summary


Own Use

Refineries

Logistics

Idemitsu Bulk Terminal in Chiba

Production

Own Coal Mine

Sale

Proposal-based saleto customers

Coal & Environment Research Laboratory

Unique private research institute specialized for coal in Japan

Technical Support, R&D

Procurement

(AUS, IDN, RUS, CHN)

Coal Value Chain

Idemitsu’s Coal Business outlook (1)4

Production&

Procurement

Logistics

Coal Mine Operation in AUS（3 Mines）

・・・ Production：12 Mt* (2018)

* Equity portion

Shareholder for 2 coal mines in IDN

Procurement：AUS, IDN, RUS, CHN

Sale

Idemitsu Bulk Terminal (Chiba)

Shunan Bulk Terminal (Yamaguchi)

Own UseAt Refineries

Pulverized coal-fired boiler

(Aichi, Tokuyama)

CFBC boiler (Chiba)

Sales volume : 20 Mt （2017）

Japan : 12 Mt （2017）

Overseas : 8 Mt （2017）

Idemitsu’s Coal Business outlook (2)5

Pursuit of environmentally harmonized business in total coal supply chain

Coal Mine

High-quality coal with

low sulfur and low ash

Coal preparation plant at Boggabri mine in Australia

These activities lead to reduction of CO2 emissions

Prevention of

dust emission

Sprinkling of water

Watering by sprinkler

Prevention of

spontaneous combustion

Sprinkling of water and

displacement of piles

Coal stockyard

Coal business harmonized with environment6

Boiler

Proposal of coals with

good environmental feature and economics

“Coal evaluation system”

Proposal of steady

operation conditions with high efficiency

“Combustion simulation”

Coal washing

Technical Consulting

for CombustionBiomass Co-firing(Black pellet Supply)

ULTY-V plus

(Reduce fuel consumption by

combustion control)

In addition to stable energy supply to Asian countries including Japan,

we provide various business menu harmonized with environment.

Supply High grade coal

Business menu harmonized with environment7


environment






5. Summary


REOil NuclearGasCoal

All energies have merit/demerit and no energy is versatile

Because of the lack of resources, it is important for Japanto have a balanced use of energies (”Energy Mix”).

Coal keeps to play an important role for power source composition

As the way to utilize existing coal power plant...

Efficiency improvement for coal power plant

Increase RE without additional

investment

Biomass co-firing

Biomass co-firing in large coal power plant9

WindSolar Hydro GeothermalBiomass

▲ Easy to fuel stock

▼ Not enough availability of biomass in Japan

▲ No restriction by natural conditions

Power plant by renewable energy

Features of Biomass for power plant

Especially for co-firing in coal power plant ...

▲ No need for additional investment for power plant

▲ Further Efficient use for coal power plant

▲ No concern about grid connection issue

▲ Enabling load adjustment for other RE (Solar, Wind)

Realistic solution for maximum introductionof renewable energy

10

Biogas

86%

55%

26%

39%

48%

14%

65%

25%

12%

35%

61%

26%

27%

38%

17%

35%

57%

68%

81%

47%

27%

18%

5%

13%

9%

2%

10%

1%

2%

4%

27%

3%

24%

22%

13%

21%

14%

1%

7%

9%

8%

14%

24%

6%

5%

14%

13%

23%

0% 20% 40% 60% 80% 100%

K Electric

J Electric

I Electric

H Electric

G Electric

F Electric

E Electric

D Electric

C Electric

B Electric

A Electric

Energy Mix

Coal

LNG

Oil

Nuclear

Renewable

Non-fossilfuel

Non-fossil fuel target：44%

To achieve the target, Large power companies need to reduce the fossil fuel use.

Biomass co-firing in coal power plants is realistic solution.

Current Power Source Composition in Japan11

Highly efficient combustion

Increase ofco-firing ratio

&

CFCB < PCB

Black pellet co-firing at pulverized boiler is the best match!

High grade black pellet

Power generation efficiency:

How to increase biomass with economic efficiency?

12

13

To achieve Energy Mix, Coal will decrease and RE will increase. Biomass co-firing in coal power plant is realistic and efficient solution.

【Importance 1】

Due to high efficiency combustion, biomass fuel consumption is less in large coal power plant than small biomass power plant.

【Importance 2】

Biomass co-firing in coal power plant can make load adjustment which is needed because solar and wind power run with a lot of output fluctuation.

【Importance 3】

31.6％

44.0％

14.3％

1.1％

26％

27％

22-24％

20-22％

9.0％3％

Power Source Composition

RE

Oil

LNG

Coal

2015 2030

Nuclear

“Energy Mix”

Importance of biomass co-firing


environment






5. Summary


Type ShapeCV

(kcal/kg)Characteristics Co-firing

Wood Chip 1600-2800

・High moisture・Outdoor storage・Low transport efficiency

△

White Pellet 3600-4000・Indoor storage・High transport efficiency

△

Black Pellet 4500-5200

・Outdoor storage・High transport efficiency

・Good grindablity

◎

PKS(Palm Kernel Shell)

4000-4500

・Poor grindability・Outdoor storage・High transport efficiency

×

Comparison among woody biomass15

（１）Enhance energy density Efficient for logistics

（２）Good grindabilityHigher co-firing ratio

（White:1～3% ⇒ 50%?）

（３）Waterproof No investment for storage

（４）Diversification of feedstockUnused materials, Agricultural

residue etc. can be utilized

Handling like coal is promising.

Already produced and traded worldwide

(500kt imported pellet into Japan in 2017)

Not yet distributed in commerce in Japan

Technical improvement for commercial production is required.

Features of black pellet- comparison with white pellet

16

TorrefiedPellet

Torrefaction200～300℃

Inert atmosphere

Torre. Gas

WoodyBiomass

Pelletization

Furnace

Hot Flue Gas

Furnace

① Efficient production process with self supply of heat source for torrefaction and drying.

② Key factor to produce high quality black pellet is reaction temperature and retention time.

Rotary Drum

Drying

【Point of Technology】①Plant Efficiency②Torrefaction Condition

Production Technology17

864806

605

432

695

467

0

200

400

600

800

1000

Coal USC Coal+BP30 Coal+BP50 Oil LNG

CO

2E

mis

sio

n,

g/k

Wh

Coal:50

+ Bio:50

Black pellet can be fed without any improvement of existingfacilities.

When black pellet is blended 50% with coal, CO2 emissionper 1kWh become less than LNG power plant.

Coal:70

+ Bio:30

Coal

(JPN Ave)

Coal

(USC)

CO2 Reduction by Biomass Co-firing18


environment






5. Summary


Business model

To establish value-chain for woody biomass business

Procurement of feedstock

Production of torrefied pellet Logistics Sales and technical support

Idemitsu Business plan for biomass20

Feedstockin Southeast Asia.

Torrefied pellet Technical supportby our laboratory

Storageat coal stockyard

Shipping

Co-firing with coaland biomass in

customers’ boilers

Producer： Joint Venture Company to be organized with local partners.

Location： Surat Thani

Raw materials： Waste of rubber tree

Production： Sample pellet production from demo plant has started.

Investment decision for the commercial plant will be

made after evaluation of sample pellet by customers.

Bangkok

Surat Thani

Establish the scheme to procure raw

materials stably by local partners.

Contribute to the economic growth of

local society by providing the stable

income.

Black Pellet

Black Pellet Production in Thailand21

Meeting was held to discuss about the long and stable supply for raw materials from rubber wood.

Rubber authority has high expectation for our activity, since it leads to the additional income for farmers and prosperity for local society.

From HP of RAOT

Collaboration with Rubber Authority of Thailand22

Black Pellet Production in Thailand23

Joint study will start soon with a power company, aiming high co-firing ratio in coal power plant.

10%

30%

50%

BiomassCo-firing

Try and Error will be repeated for the improvement of black pellet quality to increase co-firing ratio.

High grade black pellet

Torrefaction Equipment at IdemitsuCoal & Environment Research Laboratory

FULL TECH Co.,ltd.

Joint Study with customers toward the increase of co-firing ratio

24

Power company

To Japan

Construct the pellet plant in the location where the raw materials can be supplied on stable and long-term basis.

We expect that torrefaction technology will enable the diversification of raw materials.

Pellet Coal

Business expansion in the future25

Idemitsu starts the supply of biomass fuel with imported biomass, but we will seek the possibility of the supply of the domestic biomass and of the contribution to the improvement of energy self sufficiency ratio and local revitalization in Japan.

Japan has enormous forestry resources.

However, it is not fully utilized due to the lack of forestry road and so on.

Possibility on domestic biomass resources26


environment






5. Summary


As a part of “Coal business harmonized with environment” , Idemitsu is preparing the supply business of biomass fuels (Torrefied pellet) mainly for the co-firing in large coal power

plant.

We recognize that biomass co-firing in large coal power plant is efficient means to reduce CO2 emission and realistic solution to achieve “Energy Mix” in Japan.

In the future, we would reduce the effects on environment

by producing and supplying of domestic biomass.

Key factor of biomass business is stable and long-term procurement of raw materials. First, we cooperate with local partners in South East Asia and establish total system from securing raw materials, production, transportation and sales to customers in Japan.

Summary28

Thank you very much for your kind attention.

Coal Business Department

Idemitsu Kosan Co.,Ltd.

29

Idemitsu Coal & Environment Research Laboratory

Coal & Environment

Research Laboratory

Bulk Terminal

Chiba complex

Yokohama

Tokyo Bay

Kisarazu

Chiba

Tokyo

As a unique private research institute specialized for coal in Japan, we are working

on the technical consulting to help solving our customers’ technical issues and

environmental problem and developing various kinds of technical products for

promoting highly efficient coal utilization and environmental protection.

Highly efficient Coal Combustion

Technology

・Combustion Simulation

・Coal Evaluation System

Dust handling, Feedstock Management

Environment Technology Products

Biomass Co-firing technology

Head office

【Reference】

low-carbon solutions by large scale co-firing of biomass ... ccdidemitsuwip.pdf · handling like...

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