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

Energy Outlook and Government Policy for Alternative Fuel CBG as Alternative Fuel for NGV CBG Business Chain CBG Project in Remote Area Conclusion 2

Energy Outlook and Government Policy for Alternative Fuel 3

Oil & Gas Balance Operational Results Financial Performance Economic & Market Outlook Supply Production Sales Domestic Import (80%) Imported Refined Petroleum Products 76 KBD 948 KBD Crude/ Refined Condensate Products Total Refining Capacity in Thailand: 872 KBD 1,087 KBD 1000 KBD* Crude/ 859 KBD (**) Condensate Indigenous (20%) 211 KBD Refined PTT’s Associated Refineries : 910 Products KBD 238 KBD Export ( TOP, PTTGC, SPRC, IRPC, BCP ) 208 KBD Other Refineries : 177 KBD (ESSO) Crude Export 27 KBD 235 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 4

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ktoe 25,000 ktoe or 25% replacement of total energy demand in 2021 Source: Department of Alternative Energy Development and Efficiency

Committed to the development of low-carbon society Government Funding Private-Led Alternative Energy Development Plan On R & D Investment (AEDP: 2012 – 2021) Activities Target 25% of RE in Total Energy Consumption By 2021 Electricity Sector (KTOE) Transportation Sector (KTOE) Thermal Sector (KTOE) Bio- Bio Bio Garb Bio Bio Wind Solar Hydro Ethanol CBG BHD Solar Garbage Mass Gas age diesel Mass Gas 202 336 85 2508 2060 180 100 8500 1000 200 2447 2265 3807 944 5,370 KTOE 9,800 KTOE 9,463 KTOE Source: Department of Alternative Energy Development and Efficiency

Biogas (6,867 Ktoe) Electricity Thermal Transportation Generation Target: 3,807 ktoe Target: 2,060 Ktoe Target: 1,000 Ktoe

CBG as Alternative Fuel for NGV 10

9,056 NGV 600,000 9,000 7,998 World 8,434 Review 8,000 6,767 500,000 CNG Volume (ton/day) 7,000 443,595 400,000 6,000 5,872 438,821 5,000 4,217 374,857 300,000 4,000 2,910 300,581 200,000 3,000 225,668 2,000 162,023 100,000 1,016 1,000 No. of NGVs (Vehicles) 127,735 55,868 0 0 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 Feb,2014 Number of NGV stations 55,86 8 167 303 391 428 469 483 490 491 11 11

PTT NGV Business : NGV Stations in Thailand* Three Types of NGV Station Mother Station (M)  Mother: 20 stations 1. Mother Station (M)  Conventional: 119 stations 2. Daughter Station (D)  Daughter: 355 stations NGV Trailer Compressor Natural Gas Transmission Pipeline 3. Conventional Station (C) M-D Distance Transportation (km) Cost** (Baht/kg) Dispenser 250 3.88 300 4.65 Compressor 350 5.43 400 6.20 450 6.98 500 7.75 Compressor NGV Trailer Dispenser Dispenser * 15 may 2014 Conventional Station (C) Daughter Station (D) ** At diesel price = 29 Baht/Liter

1. Reflect NGV price at the actual cost 2. Direct sale from 3. Reduce loss burden by natural gas pipelines managing NGV Cost

PAST PRESENT • Jumbo Tube: 5.4 Tons Multi Tank Trailer New CNG • Neo Gas: 4 Tons (20, 40 Feet) Trailer • Long Tube: 4.3 Tons Capacity 2 – 3 Tons Northern Line to • Carrying more gas per Nakhon Sawan: 250 km round of transportation • 2 small LNG Solution to plants in Thailand Expanding • 1 st LCNG station high CNG LNG NG transportation in Chiangmai pipeline cost North Eastern Line to Nakhon Ratchasima: 170 km CBG • Develop CBG Project from livestock in Northern of Thailand to reduce cost of transportation

PTT : TAGNOC T echnologically A dvanced and G reen N ational O il C ompany Support Government Policy on Alternative Energy Value added to Biogas Application Reduce Transportation Cost of NGV to Remote Area Remote 30 – 40 km 300 – 400 km CBG NGV NGV Mother Produced Daughter near by Station Station

CBG Business Chain 16

Waste Water 0.2 m 3 Swine Waste Water Cattle 0.2 m 3 Biogas 1 Nm3 Palm Oil Waste Water 0.06 m 3 Starch Waste Water 0.17 m 3 1 Nm 3 of Raw Biogas @ 55% CH 4 0.5 kg of CBG @ 88% CH 4 Source: Department of Alternative Energy Development and Efficiency

1 Nm 3 >>> 0.5 kg CBG Potential  Biogas 2,935 mil Nm 3 ≈ CBG 1.463 mil tons Existing  Biogas 577 mil Nm 3 ≈ CBG 0.288 mil tons Source: Journal of Sustainable Energy & Environment Special Issue (2011) p.63-65

0.72 MHA 1.5 MHA • At least 35 Biogas Plants were identified as a high potential source for CBG • With a production of more than 12,000 Nm 3 of raw biogas/day • Mainly in Palm Oil and Tapioca Starch Industry Source: Energy Research Institute Chulalongkorn University

CNG Station Agricultural Reactor Processing Plant Waste Size based on volume Upgrader & CBG Raw Material Digester to supply Compressor Transport electricity 1MW • Biogas cost compare with profit from • Upgrading Technology with • Can be pipeline : Assump selling electricity • Exclude municipal tax, Margin compressor 5MB, invest WS 0.8MB/1km and • Biogas 12,000 m3/d  Electricity 1 MW tion • New daughter 2.29 baht/kg 75 MB : 3.89b/kg, O&M truck : 1.17b/kg • Generator Investment 30 MB 3MB/y: 3.37b/kg +0.0167xkm • O&M 0.35 baht/kWh CBG • Project Life 15 Years CU Cost 6.43 0.04-1.17 2.29+Vat7% 6.85-7.10 Element +0.0167 x Km CU RTI Supplier/CU 16.70-18.18 +0.018 x Km Processing Plant with comp. Truck transport 1.17 7.10 2.29 + vat Diff 1.38 6.85 2.29 + vat 0.04 6.43 Processing Plant w/o comp. P/L transport 20

• New reactor type to replace • Quick win! With some conventional packed column optimization on • Reduce the size 1/3 operating condition ,based on existing technology, to match with Thailand’s NG specification Membrane • Easy to operate with no Chemical Contactor Scrubber chemical required • Basic fundamental of Absorption • Higher selectivity • Preparation for future regulation which Water Scrubber might be more stringent on both product specification and emission

- 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 Cost Section (Million Baht) TOTAL DIRECT COST 15.61 Overhead & Profit (10%) 1.56 TOTAL DIRECT + INDIRECT 17.18 COST 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  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 26

 Business Model Raw Material High Pressure CBG Ground Biogas Anaerobic Storage Compressor Upgrading Digester (200 - 250 bar ) Unit UAC Global ( Public) Co., Ltd. CBG / CNG NGV Service Truck Trailer Station PTT 27

CBG Plant 50 km 38 0 km 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  oil 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 :  Palm Oil Mill Plant 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 Power Green Co., Ltd. Palm Oil Mill Plant Palm Oil Plantation Palm Oil Product waste water Anaerobic Digester

Palm Power Green Co., Ltd. Palm Oil Mill Plant Palm Oil Plantation Palm Oil Product waste water TRC Engineering & Construction Co., Ltd. Raw Biogas Biogas upgrading CBG compressor Anaerobic Digester