Thailand Biomass Pellets Update By Wattanapong Thongsoi - PowerPoint PPT Presentation

Thailand Biomass Pellets Update By Wattanapong Thongsoi info@bcex.org

Topics • Biomass (what, why, type, form) • Demand & Supply • Standard and specification • Cost • Price • Use locally & export • Opportunity • Challenges

What biomass pellets are

Source of biomass pellets 1. Woody biomass - Forest and plantation wood - Wood processing industry by-products and residues - Used wood - Blends and mixtures

Source of biomass pellets 2. Herbaceous biomass - Agriculture and Horticulture herb - Herb processing industry by-products and residues - Blends and mixtures

Source of biomass pellets 3. Fruit biomass - Orchard and horticulture fruit - Fruit processing industry by-products and residues - Blends and mixtures 4. Blends and mixtures

Why biomass pellets • They are upgraded solid fuel made from biomass • They are grindable • They are dry (<10% MC) • They are easily transported and stored • They have an energy NCV 16-18 GJ/MT • At low co-firing ratios (less than ~6% white wood pellets) no modifications are required • In some applications, advanced wood pellets can be used at 100% with almost no modifications

White/Brown/Black wood pellets White wood pellets Brown wood pellets Black wood pellets The “cost per unit of energy” or $/GJ is the key decision

Demand & Supply • World demand & supply • Asia demand & supply • Thailand demand & supply

World demand Source: Pöyry Wood Pellet Multiclient

World supply Source: EPC survey, Hawkins Wright, FAO

Demand in Asia

Demand in Thailand • Power generation (AEDP 2015) Incremental capacity 3,100 MW equals to wood chips (45%MC) about 40 million GMT/year • Heat generation (AEDP 2015) Incremental capacity 17,000 ktoe equals to wood chips (45%MC) about 70 million GMT/year

Demand & Supply in Asia

Asian wood pellets to Korea & Japan

Cost Cost structure Out-wh Packing Loading Cooling 0% 0% 0% 1% Pelletizing 21% Mixing Raw material 1% 49% Hammering 5% Drying 13% Chipping 3% Debarking Transportation In-wh 0% 7% 0%

Indicative export price of wood pellets (ENplus standard) Quality Packing FOB (USD/MT) CNF (USD/MT) EN-A2 In big bags in 40’container 142 177 EN-B In big bags in 40’container 134 160 EN-A2 In bulk in 20’ container 137 175 EN-B In bulk in 20’ container 130 167 EN-A2 In bulk in vessel 115 132 EN-B In bulk in vessel 105 122 Remark: - Packing in big bag in container includes IPPC wooden pallet base - Exchange rate 1USD = THB35.2763 - Raw material is from energy forest plantation (woody biomass feedstock)

Price trend Source: Argus Biomass Report, forecast and analysis by FutureMetrics

Use locally & Export • Biomass form • FiT of biomass power generation in Thailand • LPG and fuel oil price • FOB cost + Freight cost + Inland transport cost in destination countries (Japan/Korea) • Price of wood pellets from regional producer in Vietnam, Malaysia and Indonesia • Local policy and imported country’s policy

Opportunities for Thai biomass producer • Attractive domestic demand • Variety of biomass type and form in Thailand • Long-term woody biomass supply development • Non-woody biomass utilization • Infrastructure support

Challenges for Thai biomass producer • Thai Biomass Association establishment • Laws and regulations review • Long-term feedstock development • Local technology development • Capacity factor • Plant factor • Bulk supply or combined capacity for export

Q & A Contact : Wattanapong Thongsoi Mobile : 09 5926 3663 Email : info@bcex.org Website : www.bcex.org