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BIOENERGY TECHNOLOGY STATUS IN THAILAND:
CHALLENGES AND OPPORTUNITIES
By Srichattra CHAIVONGVILAN, PhD
Senior Policy Researcher, Energy and Environment Division
National Science Technology and Innovation Policy Office (STI), THAILAND
Email: [email protected]
22nd European Biomass Conference and Exhibition
Hamburg, Germany
June 26, 2014
Outline 1. Thailand – The country in brief
2. Government policies on renewable energy
3. Bioenergy Status• Potential• Yield improvement technology• Thermochemical conversion technology• Liquid biofuel technology• Biogas technology
4. Opportunities
5. Challenges
1. Thailand – The country in brief
Location - Southeastern Asia, bordering the Andaman Sea and the Gulf of Thailand
Climate – Tropical, rainy, warm
Time zone - +07.00
Population – 67 million
Literacy level – 93.5% of total population
Life expectancy – 74 years
GDP Growth rate – 2.9% (2013)
GDP (ppp) – $673 billion (2013)
GDP composition (2013)
agriculture: 12.1%, industry: 43.6% ,services: 44.2%
Agricultural products
rice, cassava (manioc), rubber, corn, sugarcane, coconuts, soybeans
Source: CIA World factbook, 2014
Land resource
km2 %
Total land area 513,120 100
Landmass 510,890 99.6
Water mass 2,230 0.4
AgricultureForests Others
205,248159,067148,805
41%31%28%
Economic summary
Labor force - 39.38 million (2011)Labor composition: services: 48.2%; agriculture: 38.2%; industry: 13.6% (2011)
Exports - $225.4 billion (2013)Commodities: Electronics, computer parts, automobiles and parts, electrical appliances, machinery and equipment, textiles and footwear, fishery products, rice, rubberPartners:China 11.7%, Japan 10.2%, US 9.9%, Hong Kong 5.7%, Malaysia 5.4%, Indonesia 4.9%, Singapore 4.7%, Australia 4.3% (2012)
Imports - $219 billion (2013)Commodities: Capital goods, intermediate goods and raw materials, consumer goods, fuelsPartners:Japan 20%, China 14.9%, UAE 6.3%, Malaysia 5.3%, US 5.3% (2012)
Major agriculture 2013
Production million tons/year
Export World Rank (FAO)
Rubber 4 1
Cassava 29 3
Sugar cane 102 -
Rice 38 6
Source: Office of Agricultural Economics (OAE), 2014
Source: CIA World factbook, 2014
Source: CIA World factbook, 2014
The energy sector
Total Primary Energy Consumption in 2011: 136 Mtoe❐ Fossil fuels contribute more than 80% of Thailand’s primary
energy consumption
Final Energy Consumption in 2011: 70.6 Mtoe• Fossil fuel (petroleum, coal and natural gas) share more than 63%
of the final energy consumption• More than 90% of electricity generation contributed by fossil fuel
(71% by natural gas, 21.4% by coal and 1.6% by oil)
Hydro
5.9%
Fuel Oil
1.4%Diesel Oil
0.2%
Coal and
Lignite
21.4%
Natural
Gas
71.0%
Others
0.0%
Source: DEDE, Thailand Energy Situation 2011
Electricity Generation
=> Import energy more than 50% of primary energy consumption
2. Government policies on renewable energy
The Eleventh “National Economic and Social Development Plan” (2012-2016)
1
Development Strategies
Promoting a just society
2 Developing toward a sustainable lifelong learning society
3 Strengthening the agricultural sector, food and energy security
4 Restructuring the economic toward quality growth and sustainability
5 Creating regional connectivity for social and economic stability
6 Managing natural resources and environment toward sustainability
By Office of the NationalEconomic and SocialDevelopment Board
Alternative Energy Development Plan (AEDP) (2012-2021)
By Ministry of Energy
AEDP Target: Using 25% of renewable energy for total energy consumption (heat and electricity generation) by the year 2021
Source: DEDE, Thailand Energy Situation 2011
National Science Technology and Innovation Master Plan (2012-2012)
By National Science Technology and Innovation Policy Office
Ensuring energy, resource and environmental security with STI
Thailand’s Energy Policies (Current Situation) as of June 2014
National Council for Peace and Order (NCPO)
Formulate energy policy Reform to ensure fair energy
prices Revise the energy pricing
structure Restructure institution Coordinate with state
enterprises and the private sector
Social Economy
Security
Special Tasks
Legal
Peace&Order Forces
NCPO secretary
Others
- Ministry of Science
and Technology Ministry of EducationMinistry of Public HealthMinistry of Social Development and Human Security- etc.
as a prime minister
- Ministry of EnergyMinistry of Agriculture and CooperativesMinistry of CommerceMinistry of LabourMinistry of FinanceMinistry of Transport- etc.
National Energy Policy Council (NEPC)
play a key role in formulating criteria and conditions for setting energy prices
Source: Bangkokpost, 2014
Performance on Alternative Renewable Energy
Types of Energy Unit Target in 2021 2013
SolarWindSmall HydroBiomassBiogasMSWNew Energy
MWMWMWMWMWMWMW
3,0001,800324
4,8003,600400
3
823.46222.71108.80
2,320.78265.2347.48
-
Total Electricity MW 13,927 3,788
SolarBiomassBiogasMSW
KtoeKtoeKtoeKtoe
1008,5001,000200
4.544,69449585
Total Heat Ktoe 9,800 5,279
EthanolBiodieselNew Energy Replacing DieselCompressed Bio-methane Gas (CBG)
ML/dayML/dayML/day
ton
97.20
31,200
2.62.9--
RE Consumption: Energy Consumption 25% 10.9%
Ele
ctri
city
Hea
tB
iofu
el
Source: Alternative Energy Development Plan, Department of Alternative Energy Development and Efficiency, 2014
Performance of bioenergy is ongoing with opportunities and challenges!!
Electricity Heat
Biofuel
Source: Alternative Energy Development Plan, Department of Alternative Energy Development and Efficiency, 2014
Renewable energy share in 2013
Having high potential but not enough to convert to energy.
69.5% in RE share
99.9% in RE share
3. Bioenergy Status
Bioenergy Supply Chain
1) Potential
2) Yield Improvement Technology
FeedstockSupply
BiomassConversion
Bioenergy Distribution
BioenergyEnd Use
3) Thermochemical Conversion Technology
4) Liquid Biofuel Technology
5) Biogas Technology
STI cross cutting
Electricity and Heat
Source: Thailand Bioenergy Technology Status Report 2013
Transportation
1) Potential
Source: Thailand Bioenergy Technology Status Report 2013
Agriculture residues for
Electricity and Heat
Top 3 potential resources for bioenergy in 2012
Sugar cane: Top & Trash 3,672 ktoe
Biogas Biofuels
Rice:Husk 800 ktoe
Straw 1,610 ktoe
Total potentials 9,232 ktoe
Palm: EFB 639 ktoe
Total potentials 6,561 ktoe
Wastewater: 5,927 ktoe
Cattle:151 ktoePig:109 ktoe
MSW: 269 ktoe
Bio-ethanol:642 million litres
(324 ktoe)
Bio-diesel:883 million litres
(697 ktoe)
Total potentials 1,020 ktoe
Corn, Cassava, Bark, Saw dust, etc. Chicken, Duck, Elephant, etc.
Potential in Thailand
Woody bunch
TapiocaRice strawSugar cane leaf and trash
Thailand has strong potential in bioenergy, but:
Compete with food and feed. Collection and conversion are barriers.
2) Yield improvement technology
Source: Thailand Bioenergy Technology Status Report 2013ASEAN Bioenergy Technology Status Report 2014
Crop Improvement Propagation Cultivation Harvesting
Conventional Breeding
- Genomics Technology- Marker Assisted Selection (MAS) - Genetic Engineering (GMO)
Tissue Culture
Stem Cutting
Crop Management
Integrated Pest Management
Precision Farming
Mechanising Farming
Advanced and practical in sugar industries
Status Sugarcane Cassava Oil palm
Conventional Breeding Implementation Implementation Implementation
MAS R&D R&D R&D
GMO R&D R&D R&D
Precision Agriculture Implementation Implementation Prototype stage
Mechanised Agriculture Implementation Prototype stage R&D
Yield can be around 2 times of the average yield when better management such as integrated pest control, precision farming and mechanized system applied.
Yield can be lifted to 3-4 times when technologies improved.
3) Thermochemical conversion technology
Source: Thailand Bioenergy Technology Status Report 2013
In Thailand, biomass is used as fuel for electricity and heat production mainly via combustion boiler and steam turbine.
Gasification is applied only for small-scale power generation systems (i.e. less than 1 MW) or for industrial heat application, while pyrolysis is still in the laboratory scale study.
4) Liquid biofuel technology
Source: Thailand Bioenergy Technology Status Report 2013
Majority of ethanol production is produced by the fermentation of molasses, a by-product of sugar manufacture.
The governmental plan on 10% ethanol blended with gasoline, so called gasohol E10, is currently applied, as well as promotion of E20 and E85.
Source: Thailand Bioenergy Technology Status Report 2013
Biodiesel is manufactured from the transesterificationof palm oil.
Insufficient due to compete with food.
5) Biogas technology
Source: Thailand Bioenergy Technology Status Report 2013
Commercial and successful for electricity and heat.
1) Potential
2) Yield Improvement Technology
FeedstockSupply
BiomassConversion
Bioenergy Distribution
BioenergyEnd Use
3) Thermochemical Conversion Technology
4) Liquid Biofuel Technology
5) Biogas Technology
STI cross cutting
Electricity and Heat
Transportation
Good
R&D
Commercial for heat Small scale for electricity
Conflict with food
Commercial for heat and electricity
4. Opportunities
Regulatory framework supporting renewables
Energy Conservation and Promotion Act (1992, amended 2007) provided a basis for:
• Power Purchase Regulations - permits private Small Power Producers (SPPs) and very small power producers (VSPPs) using renewables to connect to the grid since 1995.
• Introduced “adder” (a kind of Feed-In-Tariff) in 2007, now being revised to “Feed-in-Tariff”.
• Price incentives for biofuels.
Adder and FIT for renewables in Thailand
Fuel Adder (Baht/kWh) VSPP
Extra adder*(Baht/kWh)
Supporting period (Year)
Biomass- Installed capacity <= 1 MW
- Installed capacity > 1 MW0.500.30
1.001.00
77
Biogas (all categorise of production sources)- Installed capacity <= 1 MW- Installed capacity > 1 MW
0.500.30
1.001.00
77
Waste (community waste, not hazardous industrial waste, and inorganic waste)- AD &b LFG - Thermal Process
2.503.50
1.001.00
77
Wind power- Installed capacity <= 50 kW- Installed capacity > 50 kW
4.503.50
1.501.50
1010
Mini and micro hydropower- Capacity 50-200 kW- Capacity < 50 kW
0.801.50
1.00100
77
Solar power 6.50 1.50 10
Pilot project on green energy for community enterprise (biogas production form Napier grass) (1MW)
Feed-in-Tarff4.50 20
Solar PV Rooftop 0-10 kW>10-250 kW>250-1,000 kW
6.966.556.16
252525
Solar Community 9.75 (Year 1-3) 6.50 (Year 4-10)
4.50 (Year 11-25)25
*Special Adders for - 3 Southern Provinces- Diesel-Gen. replacement on PEA system
New
New
New (30 Baht = 1 USD)
Good to invest in bioenergy
Napier grass projectObjective1. Power generation 3,000 MW2. CBG for transportation 3. Replace LPG
• Encourage community enterprise for energy crop production • Contract between community enterprise and biogas plant• Secure income for farmers• All stakeholders generate income from biogas utilisation • Energy security in Thailand
CBG pilot station at ERDI in Chiang Mai province Feed
Source: DEDE, 2014
Biogas
Still in R&D, we need technology transfer!
Price Incentive for Liquid Biofuel
Price of molasses-based ethanol
Pmol = Rmol + Cmol
WherePmol = Price of molasses-based ethanol (Baht/Liter) Rmol = Raw material cost of molasses (avg. export price)Cmol = Production cost of molasses-based ethanol (6.125 Baht/Liter)
Price of cassava-based ethanol
Pcas = Rcas + Ccas
WherePcas = Price of cassava-based ethanol (Baht/Liter) Rcas = Raw material cost of cassava (avg. export price)Ccas = Production cost of cassava-based ethanol (7.107 Baht/Liter)
Tax incentive and State oil fund applied to subsidy E20 and E85
Biodiesel (B2,B5, B20, B100)
Source: Klanarong Sriroth, 2011
- Mandatory of B5 rules (January 2012)
- Promote by B5 HSD lower than of regular diesel at 0.50 Baht/Liter
- Price subsidy on B100
B100CPO = 0.94CPO + 0.1MtOH +3.82
WhereB100 = Price of Biodiesel CPO = Price of crude palm oil ST = Price of stearinRBD = Price of RBD crude palm oilMtOH = Price of methanol
B100ST = 0.86ST + 0.09MtOH +2.69
B100RBD = 0.93RBD + 0.1MtOH +2.69
Source: DEDE, 2014
Good to invest
Compete with food
Compete with food
5. Challenges
• Efficiency improvement and technology upgrading for biomass conversion: bagasse, rice husk, wood waste, co-firing
• Feedstock yield improvement and utilization of alternative feedstocks: rice straw, sugarcane leaf, palm empty fruit bunch, cassava rhizome (Collection, handling processing, conversion technologies)
• Preprocessing: Pellets and torrefaction
• Gasification, pyrolysis research and development
1.) Technology for heat and power
Pilot gasification plant, JGSEE, KMUTT, Thailand
• Biogas management in community scale
• Reactor design and operation optimization of conventional systems (animal manure and wastewater)
• Gas cleaning and enrichment
• Technology and policy for biogas production from cellulosic materials (agricultural and agro-industrial wastes; short-rotation energy crops)
• Innovative use of biogas: CHP
• CBG technology in transport
2.) Technology for biogas
1st CBG project in Chiangmai, Thailand
• Feedstock yield improvement: sugarcane, cassava, oil palm
• Logistic management
• Conversion process improvement, automation, co-product utilization
• Sustainability issues: food, fuel, land use (zoning), water
• Economic and technology viable of 2nd
generation: Cellulosic and biomass-to-liquid (BTL) and 3rd generation: algae
3.) Technology for liquid biofuel
Biodiesel plant in community scale, Jantaburi, Thailand
• Competition with food, competing use of land and water
• Access to biomass feedstock at volume & pricing
• Access to financing for biomass ventures
• Lack of support from domestic market
• Commercialisation of local technologies
• Sustainability requirements and certifications
• Low-value utilisation of biomass by local companies
Cross cutting
Area for collaboration with Thailand
Policy Technology transfer Pilot project
Technology roadmap Capacity building Technology for community system
Science technology and Innovation Policy
Technology for feedstock management
Pellet production standard for commercial purpose
Further information on www.sti.or.th
Thailand Bioenergy Technology Status Report
2013
ASEAN Bioenergy Technology Status Report
2014
THANK YOU
