- 0 - © hms bergbau ag not to be copied or distributed without written consent from coal to biomass...

- 1 -© HMS Bergbau AGnot to be copied or distributed without written consent

From Coal to BiomassHMS Bergbau AG

HEAT AND POWER GENERATION WITHRENEWABLE ENERGY17th May 2011, Dublin

- Confidential and Preliminary -not to be copied or distributed without written consent


HMS Bergbau AG (www.hms-ag.com)

HMS, based in Berlin, trading of steam coal, coking coal, anthracites and biomass (wood pellets, PKS, agro biomass)

• into Europe, India, Asia

• from Russia, South Africa, Americas, Indonesia

Expanding into coal production with projects in Poland, South Africa, Indonesia

and strongly growing in the field of biomass

Founded by Heinz Schernikau in 1995

• industry veteran, used to run Eastern Germany‘s coal and energy trading business Publicly listed at Frankfurt stock exchange in December 2008

• still family run and majority owned by Schernikau family


HMS Representative Office Bristol, Tennessee, USA

HeadquarterHMS Bergbau AGBerlin, Germany

HMS Bergbau Polska Sp. Z o.o.Katowice, Poland

HMS Niwka Coal Production Sp. z o.o.Katowice, Poland

PT. HMS Bergbau IndonesiaJakarta, Indonesia

HMS Representative Office Singapore

HMS Representative Office Lahore, Pakistan

HMS Representative Office Mumbai, India

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Where we are active…


Port Kintap, South Kalimantan


World – Primary energy mix – Scenario 2100What lies behind the oil age?

Source: World Coal Institute, www.wci-coal.org, i001

Nuclear

Hydro

Biomass

GASSolar

Other

0%

20%

40%

60%

80%

100%

1850 1900 1950 2000 2050 2100

Oil

Coal


From Coal to Biomass – EU Reduction Targets

Main biomass driver: EU 20/20 reduction targets

• Substitution of coal by biomass – in stand alone plants or in co-firing systems

• Countries with a high share of coal in their electricity production matrix can reach the ambitious EU-target only by burning biomass

• Biomass is the cheapest and smoothest way in order to have a fast reductions of CO2 emissions.

Main importing countries of biomass in Europe:

Denmark, Sweden, Belgium, Netherlands, Italy, Poland, UK,

Situation in Germany:

• Solid biomass is only subsidized in the domestic market and in CHP plants

• No support for big co-firing projects due to the unbundling approach of the EEG – Renewable Energy Law


Worldwide Technical Biomass Potential

Source: Kaltschmitt, 2009, p. 10f


Worldwide Biomass trade – Traders Market

Canada

USA

W. Europe

E. Europe & Russia

Brazil

Malaysia & Indonesia

Japan

Australia S. Africa

Ethanol Wood pellets Veg. oils & biodiesel

Source: IEA Bioenergy ExCo65

(in Mio. t) Bio ethanol Bio diesel Wood Pellets

Worldwide Production 52,9 10,6 11,5

Internationally traded volume 3,7 2,9 ca. 4,0

Main exporting countriesBrazil

USA, Argentina, Indonesia, Malaysia

Canada, USA, Baltic Countries, Finland, Russia

Main importing countriesUSA, Japan, EU EU

Belgium, Netherlands, Sweden, Italia

International Biomass trade

Liquid Biomass:

Ethanol – has a very long history in Brazil – fuel flex cars.

Bio Diesel – driven by EU subsidies

Solid Biomass:

Woodchips: 30 Mio tons; 4,5 (15 % for power and heat supply)

Wood Pellets: 4,0 Mio tons Industrial Pellets – nearly no seaboard trading of premium pellets.


HMS Biomass – What we trade…

Wood Pellets: Premium pellets for residential usage

and industrial pellets for commercial and industrial customers

Different cooperations with reputable pellet producers

Wood Chips: Mainly on a regional basis

Agro Biomass: Sunflower-husk-pellets and straw-pellets from the Ukraine

olive cake North-Africa

Palm Kernel Shells: From Indonesia and West-Africa

Torrefied Pellets: “The Holy Grail” of the Industry – but no quantities available on the market yet


Palm Kernel Shells

Since 2007, Indonesia has become the largest palm oil producer

Annual production approx. 20 mio tonnes crude palm oil (CPO)

During the production of palm oil several residues become available

Palm kernel shells (PKS) or palm nut shells (PNS) are the biggest residues in terms of quantity.

PKS represents about 6-8% of the fresh fruit bunch production


Characteristics of PKS

• Low ash content below 3 % (ARB)

• Moisture content 15-20 % (ARB)

• High energy density 15-18 GJ/t – 60% higher than green wood chips

• Not sensitive to rain and can be stored open without an significant increase of water content.

• Bulk density 650kg/m3 (coal: 850-900kg/m3)

• PKS are shipped in bulk

• Very slow degradation of material

• Negligible dusting

• Can be used as a single fuel in power plants but can also be used for blending or co-firing.


Black Pellets - Torrefication Process

Torrefication: Partial-combustion without oxygen Process: Pre-drying 100-130°C, heating up to 130-250°C, pyrolysis 250-300°C Effect: Reduction of moisture content, reduction of acids, reduction of volatile

matters, reduction of mass by 30%, reduction of NCV by 10%

Agricultural residues

Mixed organic waste

Woody biomass

Torrefication Pelletisation


Torrefied Pellets

Advantages: High Feedstock-Flexibility: agricultural residues, wood waste, saw dust, wood chips – increase in production potential & availability

Storage characteristics: water resistance - can be stored in uncovered stockpiles

Excellent Grindability: existing coal infrastructure can be used

Very homogenous end-product

Reduction of SOx and NOx during combustion

Characteristics Torrefied Pellets Normal Wood Pellets

NCV (ARB) 20-22 MJ/Kg 16-18 MJ/Kg

Bulk Density 800-850 Kg/m3 650 Kg/m3

Energy Density 20-22 MJ/kg 10-12 GJ/m3

Moisture 3% ~ 10%

Market Situation:

Huge demand but no significant supply yet

Most projects are still in very early stages

“Power producers are willing to pay extra 2-3€ /GJ only due to the better storage- and handling characteristics” Rob Marcus, Vattenfall


Thank You!(www.hms-ag.com)

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