CBG Business Chain CBG Project in Remote Area Conclusion 2 Energy - - PowerPoint PPT Presentation

Conclusion CBG Project in Remote Area Energy Outlook and Government Policy for Alternative Fuel

2

CBG as Alternative Fuel for NGV CBG Business Chain

3

Energy Outlook and Government Policy for Alternative Fuel

Indigenous (20%) Imported Refined Petroleum Products 76 KBD 859 KBD (**)

Source: PTIT

Remark : (*)Refined product from refineries= 1000 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 103 KBD (**) Not included Inventory KBD = Thousand Barrels per day

Import (80%)

Crude/ Condensate 872 KBD Refined Products 1000 KBD*

Domestic

Crude/ Condensate 211 KBD

Supply Production Sales

Export 235 KBD

948 KBD 238 KBD

Total Refining Capacity in Thailand: 1,087 KBD

PTT’s Associated Refineries : 910 KBD (TOP, PTTGC, SPRC, IRPC, BCP)

Other Refineries : 177 KBD (ESSO)

Refined Products 208 KBD 4

Oil & Gas Balance Operational Results Financial Performance Economic & Market Outlook

Crude Export 27 KBD

6

25,000 ktoe or 25% replacement of total energy demand in 2021

Source: Department of Alternative Energy Development and Efficiency ktoe

Alternative Energy Development Plan (AEDP: 2012 – 2021) Target 25% of RE in Total Energy Consumption By 2021

Electricity Sector (KTOE)

Wind Solar Hydro Bio Mass Bio Gas Garb age

202 336 85 2508 2060 180

5,370 KTOE Thermal Sector (KTOE)

Solar Bio Mass Bio Gas Garbage

100 8500 1000 200

9,800 KTOE Transportation Sector (KTOE)

Ethanol Bio- diesel CBG BHD 2447 2265 3807 944

9,463 KTOE

Government Funding On R & D Activities Private-Led Investment

Committed to the development

• f low-carbon society

Source: Department of Alternative Energy Development and Efficiency

Transportation Electricity Generation Thermal Target: 2,060 Ktoe Target: 1,000 Ktoe Target: 3,807 ktoe

Biogas

(6,867 Ktoe)

10

CBG as Alternative Fuel for NGV

NGV World Review

100,000 200,000 300,000 400,000 500,000 600,000

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

ม.ค. 50 เม.ย. 50 ก.ค. 50 ต.ค. 50 ม.ค. 51 เม.ย. 51 ก.ค. 51 ต.ค. 51 ม.ค.52 เม.ย.52 ก.ค. 52 ต.ค. 52 ม.ค. 53 เม.ย. 53 ก.ค. 53 ต.ค. 53 ม.ค. 54 เม.ย. 54 ก.ค.-54 ต.ค.-54 ม.ค.-55 เม.ย.-55 ก.ค.-55 ต.ค.-55 ม.ค.-56 เม.ย.-56 ก.ค.-56 ต.ค.-56 ม.ค.-57

2007 2008 2009 2010 2011 2012 2013

1,016 2,910 4,217 5,872 6,767 7,998 8,434

55,86 8

127,735 162,023 225,668 300,581 374,857 438,821

• No. of NGVs (Vehicles)

CNG Volume (ton/day)

11 55,868 9,056

Number of NGV stations 167 303 391 428 469 483 490 491

443,595 Feb,2014 11

PTT NGV Business :

Natural Gas Transmission Pipeline

Compressor Compressor NGV Trailer Dispenser Dispenser Dispenser NGV Trailer Compressor

Three Types of NGV Station 1. Mother Station (M) 2. Daughter Station (D) 3. Conventional Station (C)

NGV Stations in Thailand*

• Mother: 20 stations
• Conventional: 119 stations
• Daughter: 355 stations

M-D Distance (km) Transportation Cost** (Baht/kg) 250 3.88 300 4.65 350 5.43 400 6.20 450 6.98 500 7.75 * 15 may 2014 ** At diesel price = 29 Baht/Liter

Mother Station (M) Daughter Station (D) Conventional Station (C)

• 3. Reduce loss burden by

managing NGV Cost

• 2. Direct sale from

natural gas pipelines

• 1. Reflect NGV price at

the actual cost

• 2 small LNG

plants in Thailand

• 1st LCNG station

in Chiangmai

• Carrying more gas per

round of transportation

PAST

Multi Tank Trailer (20, 40 Feet) Capacity 2 – 3 Tons

PRESENT

• Jumbo Tube: 5.4 Tons
• Neo Gas: 4 Tons
• Long Tube: 4.3 Tons

Northern Line to Nakhon Sawan: 250 km North Eastern Line to Nakhon Ratchasima: 170 km

Solution to high CNG transportation cost

New CNG Trailer

LNG CBG

Expanding NG pipeline

• Develop CBG Project

from livestock in Northern

• f Thailand to reduce cost
• f transportation

Support Government Policy

• n Alternative Energy

Value added to Biogas Application Reduce Transportation Cost of NGV to Remote Area

Remote NGV Daughter Station

NGV Mother Station

CBG Produced near by

300 – 400 km 30 – 40 km

PTT : TAGNOC

Technologically Advanced and Green National Oil Company

16

CBG Business Chain

Swine Cattle Palm Oil Starch Waste Water 0.2 m3 Waste Water 0.06 m3 Waste Water 0.17 m3 Waste Water 0.2 m3

1 Nm3 of Raw Biogas @ 55% CH4 0.5 kg of CBG @ 88% CH4

Biogas 1 Nm3

Source: Department of Alternative Energy Development and Efficiency

1 Nm3 >>> 0.5 kg CBG Potential

• Biogas 2,935 mil Nm3

≈ CBG 1.463 mil tons Existing

• Biogas 577 mil Nm3

≈ CBG 0.288 mil tons

Source: Journal of Sustainable Energy & Environment Special Issue (2011) p.63-65

• At least 35 Biogas Plants were identified as a high potential source for CBG
• With a production of more than 12,000 Nm3 of raw biogas/day
• Mainly in Palm Oil and Tapioca Starch Industry

Source: Energy Research Institute Chulalongkorn University

1.5 MHA 0.72 MHA

Upgrader & Compressor Processing Plant CBG Cost Element

6.43 6.85-7.10

0.04-1.17 2.29+Vat7%

Reactor

• Upgrading Technology with

compressor 5MB, invest WS 75 MB : 3.89b/kg, O&M 3MB/y: 3.37b/kg

• Exclude municipal tax, Margin
• New daughter 2.29 baht/kg
• Biogas cost compare with profit from

selling electricity

• Biogas 12,000 m3/d  Electricity 1 MW
• Generator Investment 30 MB
• O&M 0.35 baht/kWh
• Project Life 15 Years

CNG Station Agricultural Waste Assump tion Digester Raw Material

Size based

• n volume

to supply electricity 1MW

RTI CU

CBG Transport +0.0167 x Km

Supplier/CU

16.70-18.18

+0.018 x Km

• Can be pipeline :

0.8MB/1km and truck : 1.17b/kg +0.0167xkm

20

Processing Plant with comp. Processing Plant w/o comp. P/L transport Truck transport

7.10 6.85 0.04 1.17 2.29 + vat 2.29 + vat

1.38

Diff

CU

6.43

Water Scrubber Chemical Scrubber Membrane Contactor

• Quick win! With some
• ptimization on
• perating condition

,based on existing technology, to match with Thailand’s NG specification

• Easy to operate with no

chemical required

• Basic fundamental of

Absorption

• Higher selectivity
• Preparation for future regulation which

might be more stringent on both product specification and emission

• New reactor type to replace

conventional packed column

• Reduce the size 1/3

• Design of Biogas Upgrading Unit based on “Water Scrubber

Technology” has been developed

• FEED Study has been done to estimate the cost (plant capacity, 3

Tons of CBG/day)

• Issuing equipment specification & vendor list
• Develop operating manual

Section Cost (Million Baht) TOTAL DIRECT COST 15.61 Overhead & Profit (10%) 1.56 TOTAL DIRECT + INDIRECT COST 17.18 VAT (7%) 1.20 GRAND TOTAL 18.38 NPV

• 41.47 Million Baht

PMT

• 5.45 Million Baht

Processing Cost 6.06 Baht/kg CBG

CBG Project in Remote Area

Objectives:

1. Introducing Compressed Bio-methane Gas (CBG) as Alternative Fuel to Remote Area 2. Reducing NGV Operating Cost

26

• Collaborates with UAC Global (Public)

Co., Ltd.

• Raw Materials
• 34,000 Swine Farm  Wet Swine

Manure 65 TPD

• Crushed Fresh Napier Grass 6-15

TPD

• Amount of Raw Biogas Produced 11,000

Nm3/d

• Amount of CBG Produced 6.5 TPD
• Project Duration 15 Years
• Start Commercial Phase: August 2013

27

• Business Model

High Pressure Compressor (200-250 bar) Biogas Upgrading Unit Anaerobic Digester Raw Material CBG / CNG Truck Trailer NGV Service Station

PTT UAC Global (Public) Co., Ltd.

CBG Ground Storage

380 km 50 km

CBG Plant Lankrabue NGV Mother Station

• Current Project Status
• Accumulated 29,480 kg of CBG Transported to NGV Service Station

until Now

• The Quality of CBG Produced has been Complied with Natural Gas

Vehicle (NGV) Specification for NGV, issued by Department of Energy Business, Ministry of Energy

• Main Problem/Obstacle
• Waste management
• Raw material supply shortage
• Equipment breakdown (Anaerobic Digester Tanks)

30

Project Overview :

• TRC proposed to sell CBG that will be produced from palm
• il mill plant waste water to PTT at minimum amount of

6.25 TPD, 300 days per year.

• Palm oil mill plant owned by Palm Power Green Co., Ltd.

located in Prachuap Khiri Khan Province.

• CBG plant will be constructed, operated and maintenance

by TRC and located the area of palm oil mill plant.

• Treated biogas will be compressed to PTT’s truck trailer and

transported to NGV station located in the area nearby the CBG plant.

• Project purpose :
• Increasing NGV supply and Introducing CBG as

Alternative Fuel to Remote Area

• Reducing NGV Operating Cost, Especially Transportation

Cost

• At Present, CBG Sales Agreement have been being

developed by PTT together with TRC.

Palm Oil Mill Plant

Palm Power Green Co., Ltd.

Anaerobic Digester Palm Oil Plantation Palm Oil Mill Plant Palm Oil Product

waste water

Palm Power Green Co., Ltd.

Anaerobic Digester Biogas upgrading CBG compressor

TRC Engineering & Construction Co., Ltd.

Palm Oil Plantation Palm Oil Mill Plant Palm Oil Product

waste water

Raw Biogas

Palm Power Green Co., Ltd.

Anaerobic Digester Biogas upgrading CBG compressor

TRC Engineering & Construction Co., Ltd. PTT

CNG Trailer NGV Station Palm Oil Plantation Palm Oil Mill Plant Palm Oil Product

waste water

Raw Biogas

CBG

35

Ratchaburi Mother Station

2nd NGV Station 1st NGV Station

Palm Oil Mill Plant Palm Power Green Co. Ltd. (CBG Plant)

2nd NGV Station 1st NGV Station

NGV Station Plam Power Green Co. Ltd.

Ratchaburi NGV Mother Station CBG Plant NGV Service Station

in Prachaup Khiri Khan Province Cost Elements :

• CBG Price
• Transportation Cost

Cost Elements :

• Natural Gas Cost
• Mother Station Investment & Operating Cost
• Transportation Cost

Local Benefit

• Encourage local cooperative and increase self-sufficiency for local consumption
• Have option for alternative fuel
• Encourage local awareness of renewable energy
• Reflect realistic cost enable project feasibility (competitive market)
• Private sector has opportunity to invest in CBG business chain
• Opportunity for potential local to reduce their cost of fuel

Country Benefit

• Support growing demand for renewable energy for
• National security of supply

Gov’t Support

• Issue financial privileges for private sector (e.g. tax incentive, subsidy, and etc)
• Agricultural land mgt. / crop for energy & food mgt.
• Provide educational and technical support
• R&D in CBG to accomplish most efficient methodology

38

Conclusion

39

CBG is potential product but it can’t compete with other conventional transportation fuels (Diesel and NGV) . To promote CBG, government shall support in both policy and funding. R&D of biogas upgrading technology should be promoted to reduce the upgrading cost. CBG plant should be located next to the NGV/CBG service station or public highway to reduce the transportation cost. Seasoning of the agricultural product will threatening CBG business.

41

CBG Quality Compared with CNG and European Bio-methane Specs.

No Parameter CBG Compliance CNG Spec. Sweden Spec. Netherland Spec. Sample1 Sample2 Sample3 average 1 Wobbe Index (MJ/m3) 39.89 39.30 40.15 39.78



37-42 2 Hydrocarbon dew point @4,500 kpa (C)

• 

< 15.5 3 Water dew point @20,000 kpa (C)

• 10.7
• 10.7
• 10.7
• 10.7



< 9.2

4

Methane Number 108.4 108.4 108.4 108.4



≥ 65 5 CO2 (%vol) 7.84 10.30 7.48 8.54



≤ 18 6 H2S (mg/m3) < 0.4 < 0.4 < 0.4 < 0.4



≤ 23 < 5 7 Total sulfur (mg/m3) <1 ppmv <1 ppmv <1 ppmv <1 ppmv



≤ 50 < 23 < 45 8 H2 (%vol) < 0.01 < 0.01 < 0.01 < 0.01



≤ 0.1

• < 12

9 O2 (%vol) 0.45 0.31 0.45 0.40



≤ 1 < 1 < 0.5 10 NH3 (mg/m3) < 0.14 < 0.14 < 0.14 < 0.14



< 20 < 3 11 Total Cl (mg/m3) < 3 < 3 < 3 < 3



< 50 12 Total F (mg/m3) < 3 < 3 < 3 < 3



< 25 13 Mercaptan Sulfur(mg/m3) < 1.5 < 1.5 < 1.5 < 1.5



• < 10

14 Total Si (ppmv) <1 mg/m3 <1 mg/m3 <1 mg/m3 < 1 mg/m3



• < 5

15 Hg (µg/m3) 0.0078 0.0139 0.0102 0.0106



16 VOCs (ppmv) <1 <1 <1 <1



< 500 17 Dust (mg/m3) < 2 < 2 < 2 < 2



Supply Application

Source : Energy Statistics, Energy Planning and Office, Ministry of Energy, Thailand

Production/ Transportation

5,082 MMSCFD

43

Gulf of Thailand (76%)

On-shore fields (4%)

• 1. Domestic

80%

LNG (2%)

• 2. Import

Myanmar (18%)

20%

• 3. Industry

(14%)

• 2. Petrochemical

& LPG

(20%)

• 1. Electricity

(59%)

• 4. Transportation /NGV

(7%)

Natural Gas Pipeline System

(As of Sept, 2013)

Ratchaburi NGV Mother Station CBG Plant NGV Service Station

in Prachaup Khiri Khan Province Cost Elements :

• CBG Price
• Transportation Cost

“ Cost Saving 2-3 Baht/kg or 3.6 – 5.4 Million Baht/Year ”

Cost Elements :

• Natural Gas Cost
• Mother Station Investment & Operating Cost
• Transportation Cost

45

“Opportunity cost of biogas is the selling electricity produced from biogas”

NPV of electricity selling Net Profit = NPV of Raw Biogas Selling

Raw Biogas 1Nm3

Generator

(η 38%)

Electricity 2.027 kW

Raw Biogas 1Nm3

NPV Biogas Price Need to be competitive

Pre Economic Assessment

Assumption

• Project Life: 15 years
• Discount Rate: 10 %
• Plant Availability: 300 days/year
• Electricity Cost: 3.5 Baht/kWh
• Water Cost: 10 Baht/Nm3

Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Investment 18.38 Operating Expense 2.43 2.43 2.43 2.43 2.43 2.43 2.43 2.43 2.43 2.43 2.43 2.43 2.43 2.43 2.43 Maintenance 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 TOTAL

• 18.38 -3.03 -3.03 -3.03 -3.03 -3.03 -3.03 -3.03 -3.03 -3.03 -3.03 -3.03 -3.03 -3.03 -3.03 -3.03

NPV

• 41.47 Million Baht

PMT

• 5.45 Million Baht

Processing Cost 6.06 Baht/kg CBG

CBG is potential product but its cost is still high and difficult to compete with other conventional transportation fuels (Diesel and NGV) that the price have been regulated. To promote CBG as an Alternative Fuel in transportation sector, government shall support in both policy making and funding such as lower tax or tax exemption, financial support in investment and adder etc. Local research and development of biogas upgrading technology should be promoted to reduce the upgrading cost. Source of raw materials and CBG plant should be located next to the NGV/CBG service station or public highway to reduce the transportation cost. Main obstacle in biogas from agricultural waste development to CBG is agricultural products such as palm, tapioca, sugar cane

• etc. have the harvesting season.