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Biogas in Thailand Hannover, Branchen- und Export Forum Erneuerbare Energien Booming market and challenges to be addressed Hannover Messe Dipl.-Ing. Torsten Fritsche Director Resource-Efficinecy and Energy German Technical Cooperation – GTZ Thailand

2010 GIZ Torsten_Fritsche Biogas in Thailand

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Page 1: 2010 GIZ Torsten_Fritsche Biogas in Thailand

Biogas in Thailand

Hannover, Branchen- und Export Forum Erneuerbare Energien

Booming market and challenges to be addressed

Hannover Messe

Dipl.-Ing. Torsten Fritsche

Director Resource-Efficinecy and EnergyGerman Technical Cooperation – GTZ Thailand

Page 2: 2010 GIZ Torsten_Fritsche Biogas in Thailand

Outline

• Sources

• Investment Costs

• GTZ Biogas Project

• Thailand Renewable Energy Development Plan

• Biogas Production Projects

• Supporting schemes and incentives

Page 3: 2010 GIZ Torsten_Fritsche Biogas in Thailand

SourcesSourcesSourcesSources

Industrial wastewaterIndustrial wastewaterIndustrial wastewaterIndustrial wastewater

• Tapioca/Palm Oil/Ethanol

• Food canning and process

• Frozen Seafood• Frozen Seafood

Agriculture wastewaterAgriculture wastewaterAgriculture wastewaterAgriculture wastewater

• Pig/Chicken/Duck/Cow

Municipal Solid Waste (MSW)Municipal Solid Waste (MSW)Municipal Solid Waste (MSW)Municipal Solid Waste (MSW)

Page 4: 2010 GIZ Torsten_Fritsche Biogas in Thailand

Industrial Wastewater

Data: : : : 2008

Total factories Biogas systems No Biogas

1. Starch/Tapioca 86 60 26

Industry

Source: Chulalongkorn University, http://www.thaibiogas.com

2. Palm oil 49 22 27

3. Ethanol 24 11 13

4. Rubber 88 4 84

5. Food processing 66 26 50

Page 5: 2010 GIZ Torsten_Fritsche Biogas in Thailand

Agricultural Wastewater

• Pig farm is most developed in biogas installation with 20% of potential.

• With government subsidy target, pig farms will reach 40% of potential in 2013

• Other farms still behind in biogas development due to technical, financial barriers,

collection of sources, and competing use in other sectors

Chicken, 292

Buffalo, 169

Duck, 28

Dairy, 58

Pig, 480

Cow, 1131 mil m3/yr

mil m3/yrmil m3/yr

mil m3/yr

mil m3/yr

mil m3/yr

Installed biogas 89mil m3/yr

Source: Chulalongkorn University, http://www.thaibiogas.com

Page 6: 2010 GIZ Torsten_Fritsche Biogas in Thailand

MSW and Domestic Wastewater

MSW No. Biogas Potential (mil m3/year) No. (mil m3/year) No. (mil m3/year)

Municipality and Sub-district

7,948 1,218 2 3.5 7,946 1,215

Biogas in operation Remaining Potential

• Good potential for

CDM projects

• Many landfill

biogas projects are

now being

developed

Source: Pollution Control Department, 2004

Page 7: 2010 GIZ Torsten_Fritsche Biogas in Thailand

Investment CostsInvestment CostsInvestment CostsInvestment Costs

Waste sources Baht/m3 biogas Baht/kWhDried fruit 0.33 0.28Tapioca 0.77 0.64Palm Oil 0.84 0.70Pig farm 0.96 0.80Starch 1.37 1.14Slaughter (pig) 2.65 2.21Slaughter (pig) 2.65 2.21Paper 3.11 2.60Alcoholic beverage 3.52 2.93Beer 5.12 4.26Solid Waste 5.44 4.53Non-alcoholic beverage 7.19 5.99

Source: A Study on Biogas Potential, KMUTT, 2006

Cost of biogas systems depends on several factors. The above table shown average investment cost regardless of technology from field survey, interview, and secondary data from 190 systems in Thailand.

• Only Initial Investment Cost• System life time 15 years• Overall biogas production

Page 8: 2010 GIZ Torsten_Fritsche Biogas in Thailand

GTZ Biogas Project

Problems/barriers in Thai Biogas sector• Human resource: under qualified operators leads to inefficient operation

of systems/shut down• Lack of mutual agreement on standards• Lack of network for cooperation among several stakeholders• Lack of network for cooperation among several stakeholders

GTZ Biogas Project• Identify incentives/measures for impenetrate sub-sectors• Quality system for operator/planner and human resource development • Biogas network/association

Project period: 2 years (October 2009 – September 2011)

Page 9: 2010 GIZ Torsten_Fritsche Biogas in Thailand

Target for 2020:

20.3 % RE of total Energy consumption

Thailand Renewable Energy Development Plan

15-years RE-Development Plan

1,300 MW

Solar +

Wind

320 MW

Small and

Mini Hydro

Bio Energy

Biomass Biogas MSW

4,000 MW 160 MW 120 MW

Bio fuels

•Ethanol

•Biodiesel

20% oil substitution

20.3 % RE of total Energy consumption

Source: Ministry of Energy; Thailand National Energy Policy and Strategies

Page 10: 2010 GIZ Torsten_Fritsche Biogas in Thailand

Biogas Production Projects

ProjectsProjectsProjectsProjects InvestmentInvestmentInvestmentInvestment

Support Support Support Support (Mil Baht)(Mil Baht)(Mil Baht)(Mil Baht)

Biogas Biogas Biogas Biogas (Mil m³/a)(Mil m³/a)(Mil m³/a)(Mil m³/a)

Energy Energy Energy Energy

SavingSavingSavingSaving(Mil Baht/yr)(Mil Baht/yr)(Mil Baht/yr)(Mil Baht/yr)

Target 1,783 3,769 762 5,400Target 1,783 3,769 762 5,400

Operating Results

2008-2009

507 926.6 393.7 2,697

Livestock and Related 441 408.8 78.7 516.9

Industry 49 498.7 314.5 2,175.0

Food waste 17 19.1 0.35 2.9

Data of Jan. 2010

Source: Ministry of Energy; Update & Progress on Thailand 15 Years Renewable Energy Development Plan (REDP)

Page 11: 2010 GIZ Torsten_Fritsche Biogas in Thailand

Supporting schemes and incentives

Tax Incentives (Board of Investment Tax Incentives (Board of Investment Tax Incentives (Board of Investment Tax Incentives (Board of Investment ---- BoI)BoI)BoI)BoI)

• 8 year income tax holiday

• plus extra 5 year (9th – 13th) 50% tax reduction• plus extra 5 year (9 – 13 ) 50% tax reduction

• Exemption of import duty on machinery

• Land ownership rights for foreign investors

• Permission to bring in foreign experts and technicians to

work for the projects

• Long-term visa for foreign investors

Source: Ministry of Energy; Update & Progress on Thailand 15 Years Renewable Energy Development Plan BOI Policy & Investment Incentives for Enhancing Alternative Energy Investment in Thailand

Page 12: 2010 GIZ Torsten_Fritsche Biogas in Thailand

Fu

nd

Fu

nd

Fu

nd

Fu

nd

FeedFeedFeedFeed----in Premiums in Premiums in Premiums in Premiums –––– “Adder” on top of regular tariffs“Adder” on top of regular tariffs“Adder” on top of regular tariffs“Adder” on top of regular tariffs

Biogas (all categories of Biogas (all categories of Biogas (all categories of Biogas (all categories of

production sources)production sources)production sources)production sources)

Adder Adder Adder Adder

(B/kWh)(B/kWh)(B/kWh)(B/kWh)

Special Adder * Special Adder * Special Adder * Special Adder *

(B/kWh)

Supporting Supporting Supporting Supporting

periodperiodperiodperiod

Supporting schemes and incentives

Fu

nd

ed

by

Fu

nd

ed

by

Fu

nd

ed

by

Fu

nd

ed

by

En

Co

nE

nC

on

En

Co

nE

nC

on production sources)production sources)production sources)production sources) (B/kWh)(B/kWh)(B/kWh)(B/kWh) (B/kWh) periodperiodperiodperiod

Installed capacity ≤ 1MW 0.50 1.00 7

Installed capacity > 1MW 0.30 1.00 7

* Special adder for 3 provinces in the south of Thailand

Source: Ministry of Energy; Thailand National Energy Policy and Strategies

Investment grantsInvestment grantsInvestment grantsInvestment grants

10 – 30 % grants for design, consultant and partial investment

Page 13: 2010 GIZ Torsten_Fritsche Biogas in Thailand

Technical AssistanceTechnical AssistanceTechnical AssistanceTechnical Assistance

Maps, Tech Catalog, 1-Stop Service

Supporting schemes and incentives

Fu

nd

Fu

nd

Fu

nd

Fu

nd

Soft LoansSoft LoansSoft LoansSoft Loans

2-Stepped Loan, Max. Fix 4% , 7 yr. loan period

Gov CoGov CoGov CoGov Co----Investing Scheme ESCO FundInvesting Scheme ESCO FundInvesting Scheme ESCO FundInvesting Scheme ESCO Fund

Source: Ministry of Energy; Update & Progress on Thailand 15 Years Renewable Energy Development Plan

Fu

nd

ed

by

Fu

nd

ed

by

Fu

nd

ed

by

Fu

nd

ed

by

En

Co

nE

nC

on

En

Co

nE

nC

on

Page 14: 2010 GIZ Torsten_Fritsche Biogas in Thailand

ESCO Fund Scheme

Energy Conservation Promotion FundEnergy Conservation Promotion FundEnergy Conservation Promotion FundEnergy Conservation Promotion Fund

ESCO FundESCO FundESCO FundESCO Fund

InvestorInvestor

Credit Guarantee Facility (?)

ESCO FundESCO FundESCO FundESCO FundInvestment Comitee

InvestorInvestor

ESCO Venture Capital Equity Investment Equipment Leasing

Carbon Market Technical Assistance

Fund ManagerFund ManagerFund ManagerFund Manager

NEW

Source: Ministry of Energy; Update & Progress on Thailand 15 Years Renewable Energy Development Plan

Page 15: 2010 GIZ Torsten_Fritsche Biogas in Thailand

ESCO Fund Scheme

• ESCO Venture CapitalESCO Venture CapitalESCO Venture CapitalESCO Venture Capital

• Joint Venture at 10-30% of total investment, Less than 50

MB, Within 3-7 years

• Equity InvestmentEquity InvestmentEquity InvestmentEquity Investment

• Project Investment, 10-50% of total investment, • Project Investment, 10-50% of total investment,

Less than 50 MB, 3-7 years

• Equipment LeasingEquipment LeasingEquipment LeasingEquipment Leasing

• Equipment Leasing, Less than 10 MB, Within 5 years

• Technical AssistanceTechnical AssistanceTechnical AssistanceTechnical Assistance

• Technical Support on Project Design, Planning, &

Implementation

• Carbon MarketCarbon MarketCarbon MarketCarbon Market

• Able to joint invest on CDM projects

Source: Ministry of Energy; Update & Progress on Thailand 15 Years Renewable Energy Development Plan (REDP)

Page 16: 2010 GIZ Torsten_Fritsche Biogas in Thailand

Revolving Fund scheme

ConditionsConditionsConditionsConditions

Period Lending Not over 7 years

Who Factory/Building,Who Factory/Building,

Energy Management Company(ESCO)

Project Type Renewable and Efficiency energy project in

Compliance with ENCON Act B.E. 2535

Article 7 and 17

Budget 50 MB./Project

Interest Rate 4 %

Source: Ministry of Energy; Update & Progress on Thailand 15 Years Renewable Energy Development Plan (REDP)

Page 17: 2010 GIZ Torsten_Fritsche Biogas in Thailand

GTZGerman Technical Cooperation

Thank you very much for your kind attention!

Torsten FritscheTorsten FritscheTorsten FritscheTorsten Fritsche

Director Resource-Efficiency and Energy

Thai-German Programme for Enterprise Competitiveness

c/o Ministry of Natural Resources and Environment (MoNRE),

3rd floor, PCD-Buildung, 92 Soi Phahonyothin 7, Thanon Phahonyothin,

Phayathai, Bangkok 10400, Thailand

T: +66- 2 298-2593, Fax: -2629

E-Mail: [email protected]/thailand; www.thai-german-cooperation.info