Presentation Windhoek 7th November 2013 2 Many Thanks to Acknowledgment This study has been supported through a Private Public Partnership fund (PPP) via the Namibian Employers Federation (NEF) and Global Compact Network Namibia (GCNN) that is financed through the Deutsche Gesellschaft fr Internationale Zusammenarbeit and supported by the German Government. 3 Overview Introduction Current Power Supply Situation Current Biomass Situation Concept Development 1.) Decentralized Biomass Power Stations 2.) Decentralized Hybrid Power Stations (Biomass + Solar) 3.) Production of Biomass based Fuels Summary / Recommendations Transworld Cargo - Profile Market leader in logistics in Namibia, and beyond in the region
Successful market presence since 1986 for > 25 years
ISO 9001 certified since 1992
Medium sized company, 110 qualified employees
Extensive regional network and facilities
Transworld Cargo Scope of Services
International Air Freight
International Sea Freight
Road Freight
Project logistics with a focus on energy projects, incl. renewable energy
All in one concept Scope of Services Warehousing & Logistics
Customs Clearance
Courier Services
6 STEAG Energy Services Group Plant Services Energy Technologies Nuclear Technologies System Technologies Decommissioning and dismantling of nuclear plants, safety, radiation protection and realization of final disposal sites Design, site supervision and commissioning of power plants Operation & Maintenance, Control- and Acceptance Measurements, catalyst management and regeneration, Staff services and training Energy Management Systems Operation Management Systems Communication Technologies Site IT STEAG Energy Services Revenue 141.2 million (consolidated) Employees 1,542
data 2012
7 Overview of STEAG Energy Services Group
STEAG Energy Services do Brasil Ltda. Rio de J aneiro, Brazil Revenue: 10.6 million Employees: 37
STEAG Energy Services LLC Kings Mountain, USA Revenue: 15.7 million Employees: 64
STEAG Energy Services GmbH Essen, Herne, Gelsenkirchen, Zwingenberg Revenue: 87 million Employees: 329 OPUS Personaldienstleistungen GmbH Essen Revenue: 7.6 million Employees: 98 Subsidiary company Side or branch office Headquarters STEAG Ensida Energy Services Ltd. Ankara, Turkey not consolidated STEAG Energy Services (India) Pvt. Ltd. Noida, India Revenue: 26.4 million Employees: 1,014
Santiago de Chile STEAG Powitec GmbH Essen acquired September 1, 2012
STEAG Energy Services Schweiz GmbH Zurich, Switzerland not consolidated
STEAG Energy Services Solar Sevilla, Spain founded 2012 Constanta, Romania STEAG Energy Services iiG J ohannesburg, South Africa Sales (consolidated): 141.2 million Employees: 1,542 8 Overview Introduction Current Power Supply Situation Current Biomass Situation Concept Development 1.) Decentralized Biomass Power Stations 2.) Decentralized Hybrid Power Stations (Biomass + Solar) 3.) Production of Biomass based Fuels Summary / Recommendations 9 Current and Future Power Supply Situation - > 60 % power imports - annual growth rate of 4.25 % - power supply contracts not secured (from 2016) - danger of power demand gap Innovative Policy and Strategic Measures are required! NamPower (Namibia) Eskom (South Africa) Zesa (Zimbabwe) Zesco (Zambia) energy demand gap 10
Estimated Levelized Costs of Electricity Decentralized Biomass Power Stations: - competitively viable - base load capable - independent on fuel imports - renewable energy - independent on whether conditions Ruacana Van Eck Paratus Anixas Basic Objective: cost-efficient and competitively viable power generation All data without consideration of taxes/duties and grid use costs! 11 Overview Introduction Current Power Supply Situation Current Biomass Situation Concept Development 1.) Decentralized Biomass Power Stations 2.) Decentralized Hybrid Power Stations (Biomass + Solar) 3.) Production of Biomass based Fuels Summary / Recommendations 12 Current Biomass Situation Massive Bush Encroachment - 26-30 million ha is affected - 8-20 t/ha biomass amount Decrease of Agriculture Productivity - loss of grazing land for cattle - reduction of live-stock capacity - economic losses of 1.6 billion N$/a
13 Biomass as Perspective Fuel Source in Namibia Energetic Utilization of Biomass - availability of great unused biomass amounts - cheap national energy source - renewable energy source (CO 2 -neutral) - securing of natural conservation - increase of agricultural productivity - new job creation - development of new economic value chains - improvement of national energy supply base reduction of power imports potential to bridge a demand gap 3,0%
Potential: 23.4 Mil t/a 3.0%
3,0%
Potential: 23.4 Mil t/a 3.0%
Cement Industry Schwek Cement Bi omass Power Pl ant CBEND Bi omass Fuel Producti on Ecol og (OBI) Bushbl ok (CCF) Bi ocoal (Green Coal ) Charcoal Fi rewood
Total: 601,000 t/a Cement Industry Biomass Power Plant Biomass Fuel Production 85,000 t/a 272,000 t/a 4,000 t/a 10,000 t/a 10,000 t/a 200,000 t/a 20,000 t/a Cement Industry Schwek Cement Bi omass Power Pl ant CBEND Bi omass Fuel Producti on Ecol og (OBI) Bushbl ok (CCF) Bi ocoal (Green Coal ) Charcoal Fi rewood
Total: 601,000 t/a Cement Industry Biomass Power Plant Biomass Fuel Production 85,000 t/a 272,000 t/a 4,000 t/a 10,000 t/a 10,000 t/a 200,000 t/a 20,000 t/a Potential: 23.4 Mil. t/a 14 Overview Introduction Current Power Supply Situation Current Biomass Situation Concept Development 1.) Decentralized Biomass Power Stations 2.) Decentralized Hybrid Power Stations (Biomass + Solar) 3.) Production of Biomass based Fuels Summary / Recommendations 15 Decentralized Biomass Power Plants - low levelized costs of electricity - low biomass supply costs with good fuel properties / combustion behavior - no additional pre-treatment steps - locations in proximity to supply and demand areas - minimal transportation costs - minimal energy transmission losses - capacities in accommodation with - energy demand profiles of medium sized towns - regulatory authorization requirements Decentralized Biomass Power Plants with 5 MW Capacities on the Base of Biomass Chips 16 Site Selection Pilot Plant: Okahandja (Otjozondjupa Region) - part of heavily bush encroached area - small municipality with industrial cluster (e.g. food industries) - direct access to national transport infrastructure (good connectivity to local / international markets) - combination possibility of local strategies with regional/international strategies Gobabis Okahandja Otjiwarongo 100 km Swakopmund Walvis Bay Arandis Usakos Omaruru Grootfontein Tsumeb Outjo Windhoek Karibib Otavi Oshivela Omuthi ya Ondangwa Oshikango Bush Density: Low 8-12 t/ha Medium 12-16 t/ha High 16-20 t/ha Gobabis Okahandja Otjiwarongo 100 km 100 km Swakopmund Walvis Bay Arandis Usakos Omaruru Grootfontein Tsumeb Outjo Windhoek Karibib Otavi Oshivela Omuthi ya Ondangwa Oshikango Bush Density: Low 8-12 t/ha Medium 12-16 t/ha High 16-20 t/ha Bush Density: Low 8-12 t/ha Medium 12-16 t/ha High 16-20 t/ha Locations for Expansion Opportunities: Otjiwarongo, Grootfontein, Tsumeb, Otavi, Gobabis 17 Biomass to Energy Plant (STEAG plant BMK Lnen)
STEAG Group operates 11 decentralized Biomass Power Stations in Germany: Power Output: 1 - 20 MW el District Heating Output: 0 - 18 MW th 18 Resource Supply Situation Power Output [MW] Population [-] Theoretical Power Demand [MW] Biomass Demand (undried) [t/a] Bush Density [t/ha] 10 - 15 15 - 20 Average Bush Density [t/ha] Harvesting Amount [%] Availability [%] 50 - 100 50 - 100 Harvest Area [ha/a] 7,000 - 14,000 5,000 - 10,000 Average Harvest Area [ha/a] Total Harvest Area for 10-Year-Harvest-Cycle [ha] Harvest Radius [km] 15.4 - 21.4 12.8 - 18.1 50 50 10,500 7,500 105,000 75,000 12.5 17.5 45,000 45,000 Okahandja Otjiwarongo 5 5 Location 28,000 5.4 6.7 22,500 Assumptions - Operating Hours: 7,500 h/a - Electrical Efficiency: 25 % - Water Content (before Drying): 40 % - Calorific Value (before Drying): 12.5 MJ/kg - Water Content (after Drying): 10 % - Calorific Value (after Drying): 18 MJ/kg - Harvesting Cycle: 10 a - Harvest Rate per Hectare: 50 % Parameter Unit Range No. Scenario 1 No. Scenario 2 No. Scenario 3 No. Scenario 4 Harvesting Amount [t/a] - - 30.000 - 30.000 - 30.000 - 30.000 Biomass Price [N$/t] 0 - 50 - 0 - 0 - 50 - 50 Availability Factor [%] 50 - 100% - 100% - 50% - 100% - 50% Excavator [N$] 1.500.000 4 6.000.000 4 6.000.000 4 6.000.000 4 6.000.000 Mobile Chipper [N$] 2.000.000 4 8.000.000 4 8.000.000 4 8.000.000 4 8.000.000 Tractor (with Gripper Arm) [N$] 1.000.000 4 4.000.000 4 4.000.000 4 4.000.000 4 4.000.000 Trailer [N$] 500.000 4 2.000.000 6 3.000.000 4 2.000.000 6 3.000.000 Truck [N$] 1.000.000 4 4.000.000 6 6.000.000 4 4.000.000 6 6.000.000 Investment Costs [N$] - 24.000.000 27.000.000 24.000.000 27.000.000 Service Lifetime [a] 10 - 10 - 10 - 10 - 10 Maintenance Costs [N$] 2 % of Inv. / a - 480.000 - 540.000 - 480.000 - 540.000 Personnel Costs [N$/a] - 41 1.175.000 45 1.275.000 41 1.175.000 45 1.275.000 Fuel Costs [N$/a] - - 3.254.400 - 3.384.000 - 3.254.400 - 3.384.000 Biomass Supply Costs [N$/t] - - 275,0 - 298,0 - 325,0 - 348,0 Biomass Plant [N$] 240.000.000 1 240.000.000 1 240.000.000 1 240.000.000 1 240.000.000 Skip Loader [N$] 1.000.000 2 2.000.000 2 2.000.000 2 2.000.000 2 2.000.000 Maintenance Costs [N$/a] 3 % of Inv. / a - 7.260.000 - 7.260.000 - 7.260.000 - 7.260.000 Personnel Costs [N$/a] - 30 1.300.000 30 1.300.000 30 1.300.000 30 1.300.000 = LCOE [N$/kWh] - - 1,027 - 1,046 - 1,067 - 1,086 19 Economic Analysis Rough estimated Levelized Costs of Electricity between 1.0 and 1.1 N$/kWh Competitiveness of Biomass based Power Generation Recommendation: Realization of a 5 MW Pilot Plant in Okahandja 20 Overview Introduction Current Power Supply Situation Current Biomass Situation Concept Development 1.) Decentralized Biomass Power Stations 2.) Decentralized Hybrid Power Stations (Biomass + Solar) 3.) Production of Biomass based Fuels Summary / Recommendations 21 Decentralized Hybrid Power Plants Decentralized Hybrid Power Plants (combined Biomass Solar Plants) with 5 MW Capacities on the Base of Biomass Chips - low levelized costs of electricity - innovation - sustainability - diversification of supply - utilization of high irradiation conditions - good adjustment to energy demand profiles - biomass for base load power generation - solar for peak load power generation Recommendation: Feasibility Study in a Namibian Context 22 Decentralized Hybrid Power Plants Film? Hybrid Power Plant 23 Concentrated Solar Power Plant (STEAG plant Arenales/Spain) Solar Field Capacity: 50 MW (170 GWh/a) Total Area: 295 ha Parabolic Trough: 156 loops (510,000 m 2 ) Thermal Molten Salt Storage Capacity: 7 h full load operation during nighttime Commissioning October / November 2013 24 Overview Introduction Current Power Supply Situation Current Biomass Situation Concept Development 1.) Decentralized Biomass Power Stations 2.) Decentralized Hybrid Power Stations (Biomass + Solar) 3.) Production of Biomass based Fuels Summary / Recommendations 25 Production of Biomass Based Fuels Biomass Chips Biomass Pellets Biomass Briquettes/Logs Torrefied Biomass/ Biocoal Pellets Pelletizing Briquetting D r y i n g Torrefaction Fine Grinding Pelletizing F i n e G r i n d i n g F i n e G r i n d i n g Coarse Grinding Pelletizing Briquetting D r y i n g Torrefaction Fine Grinding Pelletizing F i n e G r i n d i n g F i n e G r i n d i n g Coarse Grinding Raw Biomass (Invader Bush) 26 Biomass Based Fuels - Chips - Typical Material Properties Calorific Value: 9-12 MJ/kg Moisture Content: 30-45 wt.-% Volatile Matter: 70-75 wt.-% Ash Content: 0-2 wt.-% Bulk Density: 150-250 kg/m 3 Energy Density: 2-3 GJ/m 3 Hydrophobic: No Grindability in Coal Mills: No Production Costs: Low Transportation Costs: High Fields of Application wide biomass power plants, industrial furnaces Potential Evaluation National Consumption great potential low production costs, good combustion behavior Potential Evaluation Export no potential missing competitiveness (low bulk/energy density, high transportation costs) particle size: 0 100 mm 27 Biomass Based Fuels - White Pellets - Typical Material Properties Calorific Value: 16-18 MJ/kg Moisture Content: 8-12 wt.-% Volatile Matter: 70-75 wt.-% Ash Content: 0-2 wt.-% Bulk Density: 550-750 kg/m 3 Energy Density: 7.5-11 GJ/m 3 Hydrophobic: No Grindability in Coal Mills: No Production Costs: High Transportation Costs: Medium Fields of Application great coal-fired power plants, industrial furnaces, households Potential Evaluation National Consumption great potential high bulk/energy density, medium transportation costs Potential Evaluation Export great potential high biomass demand (industrial pellets in Europe), high bulk/energy density, medium transportation costs 28 Biomass Based Fuels - White Pellets - [26] - IEA bioenergy - Global wood pellet industry market and trade study 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2015 2014 2013 2012 2011 Sweden Denmark UK Belgium NL W o o d
p e l l e t
d e m a n d
m e t r i c
t o n n e s
Source: IEA Bioenergy High Biomass Demand in Countries with Financial Support System for Co-firing in existing Coal-fired Power Plants (Increasing Demand in Future) High Biomass Import Rates due to limited Biomass Resources in Europe 29 Biomass Based Fuels - Black / Bio-Coal Pellets - Typical Material Properties Calorific Value: 20-25 MJ/kg Moisture Content: 1-5 wt.-% Volatile Matter: 55-65 wt.-% Ash Content: 0-2 wt.-% Bulk Density: 800-850 kg/m 3 Energy Density: 22-24 GJ/m 3 Hydrophobic: Yes Grindability in Coal Mills: Yes Production Costs: Very High Transportation Costs: Low Source: Andritz Fields of Application great coal-fired power plants, industrial furnaces Potential Evaluation National Consumption great potential if bio-coal market will established (e.g. Van Eck PP / NamPower) Potential Evaluation Export great potential if bio-coal market will be established (better material properties in comparison to white pellets) 30 Units Biomass Chips, undried Biomass Briquettes/Logs Biomass Pellets Torrefied Bio- mass Pellets Fossil Coal [MJ /kg] 9 13 16 18 16 18 20 25 24 29 [wt.-%] 30 45 8 12 8 12 1 5 7 18 [wt.-%] 70 75 70 75 70 75 55 65 21 36.5 [wt.-%] 0 2 0 2 0 2 0 2 6 30 [kg/m 3 ] 150 250 350 - 500 550 750 750 850 800 850 [GJ /m 3 ] 2 3 5.2 7.4 7.5 11 15 20 22 24 [-] Yes Yes Yes No No [-] No No No Yes Yes [-] Low Medium High Very High - [-] High Medium Low Low Very Low Production Costs Transportation Costs Grindability in Standard Coal mill Ash Bulk Density Energy Density Hydrophobic (Interaction with Water) Calorific Value Moisture Volatile Matter Characteristics Biomass Based Fuels - Property Comparison - 31 Biomass Based Fuels - Concept Development - Biomass Based Fuel Production in Combination with Decentralized Biomass or Hybrid Power Plants - utilization of synergy effects - logistic / harvesting structures - heat and power demand from decentralized power plant - personal stuff - increase of product quality (separation of fine and coarse particles, combustion in biomass power plant) - pilot plant capacity of 50,000-100,000 t/a at Okahandja (Otjozondjupa Region) - potential markets: - Windhoek (NamPower, Meatco, Namibia Breweries, ) - Erongo Region (Mining Sector, Gecko Vision Industrial Park, ) - Europe (Coal-fired Power Plants in UK, Belgium, the Netherlands, ) 32 Economic Analysis 32 Parameter Unit Chips White Pellets Bio-Coal Pellets Harvesting Amount [t/a] 145,000 145,000 210,000 Biomass Price [N$/t] 0 - 50 0 - 50 0 - 50 Availability Factor [%] 50 - 100 50 - 100 50 - 100 Service Lifetime [a] 10 10 10 Harvesting Costs [N$/t] 287 - 375 287 - 375 287 - 375 Investment Costs per Plant [N$] - 96,000,000 300,000,000 Pellet Production Costs [N$/t] - 572 - 660 905 - 1,030 Transport Costs (<250 km) [N$/t] 100 - 325 32 - 85 28 - 58 Supply Costs per Tonne [N$/t] 356 - 444 640 - 724 973 - 1,098 Supply Costs per Energy [N$/GJ] 19.7 - 24.6 35.5 - 40.5 44.2 - 49.9 Transport Costs (<600 km) [N$/t] 380 - 730 100 - 230 80 - 150 Supply Costs per Tonne [N$/t] 757 - 845 710 - 794 1,023 - 1,148 Supply Costs per Energy [N$/GJ] 42.0 - 46.9 39.4 - 44.1 46.5 - 52.2 Transport Costs (ARA) [N$/t] 1,300 630 580 Supply Costs per Tonne [N$/t] 2,057 - 2,145 1,340 - 1,424 1,583 - 1,708 Supply Costs per Energy [N$/GJ] 114 - 119 74.4 - 79.1 71.2 - 77.6 P r o c e s s H a r v e s t i n g E u r o p e E r o n g o
R e g i o n W i n d h o e k
Transportation Distance defines the Biomass based Product with the lowest Supply Costs per Energy! Lowest Supply Costs: Windhoek Chips Erongo Region White Pellets Europe Black Pellets 33 33 Economic Analysis Discussion: Chips vs. Bio-coal as Fuel Supply for Van Eck 0 20 40 60 80 100 120 C h i p s P e l l e t s T o r r e f i e d B i o m a s s C h i p s P e l l e t s T o r r e f i e d B i o m a s s C h i p s P e l l e t s T o r r e f i e d B i o m a s s Windhoek Erongo Region Europe B i o m a s s
S u p p l y
C o s t
[ N $ / G J ] 34 Overview Introduction Current Power Supply Situation Current Biomass Situation Concept Development 1.) Decentralized Biomass Power Stations 2.) Decentralized Hybrid Power Stations (Biomass + Solar) 3.) Production of Biomass based Fuels Summary / Recommendations 35 Summary / Recommendations Recommendation Concept Decentralized Biomass Power Plants: Realization of a 5 MW Pilot Plant in Okahandja
Recommendation Concept Decentralized (CSP / Biomass) Hybrid Power Plants: Feasibility Study in a Namibian Context
Discussion Concept Production Biomass based Fuels: Chips vs. Bio-coal as Fuel Supply for Van Eck 37 Current Power Supply Situation National Power Generation (2012) 500 MW capacity 1,500 GWh/a generation National Power Demand (2012) 550 MW demand 4,000 GWh/a demand gap between power generation and power demand Power Station Energy Source Power Capacity Commissioning Operation Mode Ruacana (Kunene River) Water 249 MW (till 2012) 332 MW 1972 (2012 upgraded) Base Load Van Eck (Windhoek) Coal 120 MW (4 x 30 MW) 1972 Peak Load Paratus (Walvis Bay) Heavy Fuel Oil 24 MW (4 x 6 MW) 1976 Peak Load Anixas (Walvis Bay) Heavy Fuel Oil 22,5 MW 2011 Peak Load 38 Plant Description and Typical Plant Site Fuel Storage - delivery via truck - open/canopied fuel storage (capacity: appr. 500 t for 4-5 days) - bunker system with push floors (capacity: appr. 100 t for 1 day) - intermediate bunker at combustor (capacity: appr. 8 t for 1-2 hours) Combustor - grate furnace with primary/secondary air staging system for combustion control Boiler System - economizer, evaporator and super heater (typical steam parameters: 60 bar; 430 C) Flue Gas Cleaning System - baghouse filter or E-filter, stack Steam Turbine/Generator 39 Grate Type Biomass to Energy Plant C intermediate fuel bunker C fuel through put C travel grate C furnace C superheater evaporator C economizer primary / secondary air wet ash extractor 1 flue gas cleaning 40 Harvesting Options 40 manual harvesting mechanical harvesting with skid-steer loader mechanical harvesting with excavator mechanical harvesting with vehicle type kangaroo - different harvesting methods are applied in Namibia - every mechanical harvesting method has a capacity of appr. 100.000 tons per year and vehicle slight advantages of mechanical harvesting with excavator evaluation matrix 41 Plant Description and Typical Plant Site 1 Boiler House 2 Biomass Combustor 3 Boiler 4 Cyclones 5 Baghouse Filter or E-Filter 6 ID Fan 7 Stack 8 Residue Silo 9 Air-cooled Condenser 10 Open Biomass Fuel Storage 11 Storage Boxes 12 Push Floor (canopied) 13 Fuel Oil Tanks 14 Turbine Room 15 Control Room 16 Water Treatment 17 Pipe Rack 18 Trafo Boxes 19 Unit Transformer 20 Pipe Rack 21 Solar Field 22 Absorber Possible Size for Solar Field with Absorber 1 Boiler House 2 Biomass Combustor 3 Boiler 4 Cyclones 5 Baghouse Filter or E-Filter 6 ID Fan 7 Stack 8 Residue Silo 9 Air-cooled Condenser 10 Open Biomass Fuel Storage 11 Storage Boxes 12 Push Floor (canopied) 13 Fuel Oil Tanks 14 Turbine Room 15 Control Room 16 Water Treatment 17 Pipe Rack 18 Trafo Boxes 19 Unit Transformer 20 Pipe Rack 21 Solar Field 22 Absorber Possible Size for Solar Field with Absorber Single axis tracking Direct steam generation Fixed receiver Combination via joint Water-Steam-Cycle with one Turbine / Generator Biomass Combustion Plant Design and function corresponds to decentralized biomass pp concept Solar Thermal Plant Technology: Fresnel reflectors Heat Transfer Medium: saturated steam (typical parameters: 55 bar / 270 C) pre-heating / vaporizing of feed water for the biomass combustion boiler 42 Resource Supply Situation Power Output [MW] Population [-] Theoretical Power Demand [MW] Biomass Demand (undried) [t/a] Bush Density [t/ha] 10 - 15 15 - 20 Average Bush Density [t/ha] Harvesting Amount [%] Availability [%] 50 - 100 50 - 100 Harvest Area [ha/a] 7,000 - 14,000 5,000 - 10,000 Average Harvest Area [ha/a] Total Harvest Area for 10-Year-Harvest-Cycle [ha] Harvest Radius [km] 15.4 - 21.4 12.8 - 18.1 50 50 10,500 7,500 105,000 75,000 12.5 17.5 45,000 45,000 Okahandja Otjiwarongo 5 5 Location 28,000 5.4 6.7 22,500 Assumptions - Operating Hours: 7,500 h/a - Electrical Efficiency: 25 % - Water Content (before Drying): 40 % - Calorific Value (before Drying): 12.5 MJ/kg - Water Content (after Drying): 10 % - Calorific Value (after Drying): 18 MJ/kg - Harvesting Cycle: 10 a - Harvest Rate per Hectare: 50 % 43 Economic Analysis At the Moment no Economic Analysis possible due to limited Data concerning the Development of Plant Design Important Parameters: - solar share due to energy demand fluctuations during the whole day (daytime / nighttime demand) - solar irradiation conditions (DNI Index Direct Normal Irradiation) (e.g. appr. 0.5 t/h saturated steam per 1,000 m 2 land area at 800 W/m 2 corrected DNI) - implementation point for saturated steam from solar field (EBSILON calculation) Recommendation: Further Detail Study in due Consideration of Namibian Conditions 44 Fields of Application limited households, small-scale industrial applications Potential Evaluation National Consumption low potential limited demand and existing supply Potential Evaluation Export low potential limited demand and existing supply Biomass Based Fuels - Briquettes/Logs - Typical Material Properties Calorific Value: 16-18 MJ/kg Moisture Content: 8-12 wt.-% Volatile Matter: 70-75 wt.-% Ash Content: 0-2 wt.-% Bulk Density: 350-500 kg/m 3 Energy Density: 5.2-7.4 GJ/m 3 Hydrophobic: No Grindability in Coal Mills: No Production Costs: Medium Transportation Costs: Medium Briquette Biomass Dust Screw Feeder Cooling Zone Fly Wheel Piston Eccentric Tappet Feed Duct Shape Duct (Variable) Pressed Biomass Briquette Biomass Dust Screw Feeder Cooling Zone Fly Wheel Piston Eccentric Tappet Feed Duct Shape Duct (Variable) Pressed Biomass particle size: 20 x 6 x 6 cm 45 Biomass Based Fuels - Briquettes/Logs - Diameter mm Length mm Moisture Content % Ash Content % Net Calorific Value MJ/kg Particle Density g/cm 3 Additives wt% S % N % Cl % As mg/kg Cd mg/kg Cr mg/kg Cu mg/kg Pb mg/kg Hg mg/kg Zn mg/kg Unit 0.03 0.04 - 0.11 15.5 15.9 - 18.2 0.3 0.51 - 0.65 0.05 - 0.07 P h y s i c a l
P a r a m e t e r Parameter E l e m e n t a r y
C o m p o s i t i o n < 0.43 < 2.13 T r a c e
e l e m e n t s 10.0 0.5 < 10.7 < 0.27 < 5.33 < 3.73 10.0 0.1 100 < 1.81 n.a. n.a. 1.7 - 6.6 4.3 - 10.2 n.a. n.a. Invader Bush " ENplus" Briquetts variable variable variable DIN EN 14961-3 100 0.1 10.0 10.0 " DINplus" variable Briquetts 1.0 1.0 0.02 0.7 12 15 1.5 15.3 1.0 0.03 0.5 <2 % Biomass Only 0.02 1.0 0.5 10.0 10.0 Quality Standards existent, but not required for Marketing Opportunities in Europe 46 Biomass Based Fuels - White Pellets - " DINplus" " ENplus A1" " ENplus A2" Class B Pellets Pellets Pellets Pellets Diameter mm 6 - 8 6 - 8 6 - 8 6 - 8 n.a. Length mm 3.15 - 40 3.15 - 40 3.15 - 40 3.15 - 40 n.a. Moisture Content % 10 10 10 10 4.3 - 10.2 Ash Content % 0.7 0.7 1.5 3.0 1,7 - 6,6 Bulk Density kg/m 600 600 600 600 n.a. Net Calorific Value MJ/kg 16.5 - 19.0 16.5 - 19.0 16.3 - 19.0 16.0 - 19.0 15.9 - 18.2 Ash Melting Behavior C 1,200 1,200 1,100 n.a. n.a. Fines < 3,15mm 1.0 1.0 1.0 1.0 n.a. Additives wt% n.a. S % 0.3 0.3 0.5 1.0 0.05 - 0.07 N % 0.03 0.03 0.03 0.04 0.51 - 0.65 Cl % 0.02 0.02 0.02 0.03 0.04 - 0.11 As mg/kg 1.0 1.0 1.0 1.0 < 2.13 Cd mg/kg 0.5 0.5 0.5 0.5 < 0.43 Cr mg/kg 10.0 10.0 10.0 10.0 < 1.81 Cu mg/kg 10.0 10.0 10.0 10.0 < 3.73 Pb mg/kg 10.0 10.0 10.0 10.0 < 5.33 Hg mg/kg 0.1 0.1 0.1 0.1 < 0.27 Zn mg/kg 100 100 100 100 < 10.7 <2 % Biomass Only P h y s i c a l
P a r a m e t e r T r a c e
E l e m e n t s E l e m e n t a r y
C o m p o s i t i o n Invader Bush DIN EN 14961-2 Unit Parameter Quality Standards in Europe existent, but only required for Marketing Opportunities of high Quality Pellets (certificated DINplus/ENplus Pellets) 47 Multiple Heat Furnace Rotary Kiln Reactor Torbed Reactor Screw Conveyor Reactor Moving Bed Reactor Oscillating Belt Reactor Multiple Heat Furnace Rotary Kiln Reactor Torbed Reactor Screw Conveyor Reactor Moving Bed Reactor Oscillating Belt Reactor Source: ECN Biomass Based Fuels - Black / Bio-Coal Pellets - 48 Gas Loop linked to Burner (low O 2 ) Gas Loop with Exchanger (no O 2 ) Torrefaction Indirect heating Direct heating - Stramproy Green (Netherlands) Oscillating Belt Reactor - 4Energy Invest (Belgium) Oscillating Belt Reactor - ECN (Netherlands) Moving Bed Reactor - Rotawave (United Kingdom) (Micro Wave Reactor) - Thermya/Areva (France) Moving Bed Reactor - Topell Energy (Netherlands) Torbed Reactor - ThyssenKrupp Pol ysius (Germany) Multiple Hearth Furnace - Andritz (Denmark) Multiple Hearth Furnace - Andritz (Austria) Rotary Kiln Reactor - TorrCoal (Netherlands) Rotary Kiln Reactor - Fox Coal (Netherlands) ScrewConveyor Reactor - BioLake (Netherlands) ScrewConveyor Reactor Gas Loop linked to Burner (low O 2 ) Gas Loop with Exchanger (no O 2 ) Torrefaction Indirect heating Direct heating - Stramproy Green (Netherlands) Oscillating Belt Reactor - 4Energy Invest (Belgium) Oscillating Belt Reactor - ECN (Netherlands) Moving Bed Reactor - Rotawave (United Kingdom) (Micro Wave Reactor) - Thermya/Areva (France) Moving Bed Reactor - Topell Energy (Netherlands) Torbed Reactor - ThyssenKrupp Pol ysius (Germany) Multiple Hearth Furnace - Andritz (Denmark) Multiple Hearth Furnace - Andritz (Austria) Rotary Kiln Reactor - TorrCoal (Netherlands) Rotary Kiln Reactor - Fox Coal (Netherlands) ScrewConveyor Reactor - BioLake (Netherlands) ScrewConveyor Reactor Biomass Based Fuels - Black / Bio-Coal Pellets - 49 [N$/t] - - 400 - 650 [N$/GJ] - - 31 - 50 [N$/t] 1,000 - 1,500 1,500 - 2,600 2,000 - 3,000 [N$/GJ] 56 - 83 83 - 144 111 - 167 [N$/t] - - 3,000 - 3,250 [N$/GJ] - - 167 - 181 [N$/t] - 2,000 - 2,500 1,650 - 1,850 [N$/GJ] - 111 - 139 89 - 103 [N$/t] - - 1,950 - 2,350 [N$/GJ] - - 89 - 103 Namibia South Africa Europa Chips* Briquetts** DinPlus Industrial White Pellets** Black Pellets*** * calorific Value: 12 - 13 MJ /kg ** calorific value: 17 - 18 MJ /kg *** calorific value: 22 - 25 MJ /kg Biomass Based Fuels - Price Comparison - 50 Plant Description - White / Black Pellets - Torrefaction Reactor Ai r or Water Cooling System Hot Steam/ Hot Water Pelletization Screw Feeder Ai r Cooling System Dosage, Pressing Additi ves Conveyor Belt Transport System Hammer Mill Heat Exchange (Indirect Suppl y) Condi tioning Loading or Storage Silo Storage with Chipped Raw Material Onl y for Torrefaction Torrefaction Reactor Ai r or Water Cooling System Hot Steam/ Hot Water Pelletization Screw Feeder Ai r Cooling System Dosage, Pressing Additi ves Conveyor Belt Transport System Hammer Mill Heat Exchange (Indirect Suppl y) Condi tioning Loading or Storage Silo Storage with Chipped Raw Material Onl y for Torrefaction 51 Gobabis Otjiwarongo 100 km Swakopmund Walvis Bay Arandis Usakos Omaruru Grootfontein Tsumeb Outjo Windhoek Karibib Otavi Oshivela Omuthi ya Ondangwa Oshikango Bush Density: Low 8-12 t/ha Medium 12-16 t/ha High 16-20 t/ha Additional Demand for Biomass Pellet Production Max Biomass Demand for Decentralized Power Plant Max Okahandja Gobabis Otjiwarongo 100 km 100 km Swakopmund Walvis Bay Arandis Usakos Omaruru Grootfontein Tsumeb Outjo Windhoek Karibib Otavi Oshivela Omuthi ya Ondangwa Oshikango Bush Density: Low 8-12 t/ha Medium 12-16 t/ha High 16-20 t/ha Additional Demand for Biomass Pellet Production Max Biomass Demand for Decentralized Power Plant Max Okahandja Power Output [MW] Pellet Output [t/a] Biomass Demand (undried) [t/a] Bush Density [t/ha] 10 - 15 15 - 20 Average Bush Density [t/ha] Harvesting Amount [%] Availability [%] 50 - 100 50 - 100 Harvest Area [ha/a] 23,000 - 46,000 17,000 - 34,000 Average Harvest Area [ha/a] Total Harvest Area for 10-Year-Harvest-Cycle [ha] Harvest Radius [km] 27.2 - 38.4 23.0 - 32.5 350,000 255,000 12.5 35,000 145,000 17.5 25,500 50 50 Location Okahandja Otjiwarongo 5 100,000 5 100,000 145,000 Assumptions - Operating Hours: 7,500 h/a - Electrical Efficiency: 25 % - Water Content (before Drying): 40 % - Calorific Value (before Drying): 12.5 MJ/kg - Water Content (after Drying): 10 % - Calorific Value (after Drying): 18 MJ/kg - Harvesting Cycle: 10 a - Harvest Rate per Hectare: 50 % Resource Supply Situation - White Pellets - 52 Gobabis Otjiwarongo 100 km Swakopmund Walvis Bay Arandis Usakos Omaruru Grootfontein Tsumeb Outjo Windhoek Karibib Otavi Oshivela Omuthi ya Ondangwa Oshikango Bush Density: Low 8-12 t/ha Medium 12-16 t/ha High 16-20 t/ha Additional Demand for Bio-coal Pellet Production Max Biomass Demand for Decentralized Power Plant Max Okahandja Gobabis Otjiwarongo 100 km 100 km Swakopmund Walvis Bay Arandis Usakos Omaruru Grootfontein Tsumeb Outjo Windhoek Karibib Otavi Oshivela Omuthi ya Ondangwa Oshikango Bush Density: Low 8-12 t/ha Medium 12-16 t/ha High 16-20 t/ha Additional Demand for Bio-coal Pellet Production Max Biomass Demand for Decentralized Power Plant Max Okahandja Power Output [MW] Torrefied Pellet Output [t/a] Biomass Demand (undried) [t/a] Bush Density [t/ha] 10 - 15 15 - 20 Average Bush Density [t/ha] Harvesting Amount [%] Availability [%] 50 - 100 50 - 100 Harvest Area [ha/a] 34,000 - 68,000 24,000 - 48,000 Average Harvest Area [ha/a] Total Harvest Area for 10-Year-Harvest-Cycle [ha] Harvest Radius [km] 32.7 - 46.3 27.6 - 39.1 50 50 Otjiwarongo 5 Location Okahandja 5 100,000 100,000 210,000 12.5 210,000 17.5 51,000 510,000 360,000 36,000 Assumptions - Operating Hours: 7,500 h/a - Electrical Efficiency: 25 % - Water Content (before Drying): 40 % - Calorific Value (before Drying): 12.5 MJ/kg - Water Content (after Drying): 10 % - Calorific Value (after Drying): 18 MJ/kg - Harvesting Cycle: 10 a - Harvest Rate per Hectare: 50 % Resource Supply Situation - Black Pellets - 53 53 [N$/t] 400 - 650 1,650 - 1,850 1,950 - 2,350 [N$/GJ] 31 - 50 89 - 103 89 - 103 [N$/t] 2,057 - 2,145 1,340 - 1,424 1,583 - 1,708 [N$/GJ] 114 - 119 74.4 - 79.1 71.2 - 77.6 * calorific Value: 12 - 13 MJ /kg ** calorific value: 17 - 18 MJ /kg *** calorific value: 22 - 25 MJ /kg Chips* White Pellets** Black Pellets*** Current Market Prices (ARA) Biomass Supply Costs (ARA) Economic Analysis Supply Chain Costs
Supply Chain cost critical for the viability of biomass utilisation projects due t its impact on generation costs
< 30 % for local destinations
50 % for international destinations
Pref. on local consumption model vs. export Namibia transport infrastructure (1) Defined linear network with N-S and W-E extension (2) Large distances between population/economic hubs (3) Defined transport/trade patterns and corresponding trade flows These patterns Favour harvesting areas along these transport network lines Dis-favour areas that are de-linked from these networks (prohibitive additional costs) for equipment mobilisation and transportation)
Supply Chain Steps Three Supply Chain Steps Local level: from Farm (harvesting) to Site (processing) Regional level: from Site (supply) to local/regional Markets (demand) International level: from Site supply) to International Port Destination (demand)
(1) Local level: farm to site Core parameters
Transport costs Specialised equipment: to cater for low bulk density product Distance: Harvesting radius of current biomass utilisation programs vary between 25 75 km (supported by recent Nampower study) 20 N$ per running km
Additional costs Storage. Handling and packing +/- 60 N$ (2) Regional level: plant to site Core parameters Distance between Processing site and Market (12.5 N$ p. running km) Alignment of biomass transport with existing trade patterns One way versus return rates for on-/off areas (+ 100% transport costs) Varying modal ton/km transport rates (differ by a factor of 2.5) Absolute variation between 0.2 N$ and 1 N$ per t/km (factor 5)
(3 International level: plant to int. port destinations Include inland transport, port charges, ocean freight Break bulk transport preferable due to available transport infrastructure and (sea freight) services Impact of economy of scales Conclusions Supply chain costs impact on viability of biomass utilization projects, due to its relative share of generation costs
More specifically: transport economics are a critical component for locational options
Decision on biomass processing projects need to analyse the underlying transport economics on a case by case mode