5 production and utilization of biomass pellet in vietnam by mr nguyen dang anh thi

International Renewable Energy Asia Conference 2015ASEAN Renewable Energy Market Development under Energy Price Volatility. Bangkok, June 2015

Indochina Capital Corporation | page INDOCHINA CAPITAL ADVISORS | page of 22

Production and Utilization of Biomass pellet in VietnamInternational Renewable Energy Asia Conference 2015

ASEAN Renewable Energy Market Development under Energy Price VolatilityBangkok, June 2015



I. Biomass resources in VietnamII. Biomass related projects and history of biomass pellet in Vietnam

III. National utilization of biomassIV. Production and utilization of biomass briquette and pelletV. Global biomass pellet consumptionVI. Conclusion & recommendation

Table of contents



Biomass resources in Vietnam

Biomass classification: 4 main groups with 19 types

(Source: Nguyen Duc Cuong, GIZ 2011)



Great biomass resources with more than 118 million tonnes annually





Key technical characteristics of main biomass fuels

Biomass differs by driving factors: Energy content (MJ/kg) Density Composition Moisture content Seasonal availability Handling requirements




Project name Project objectives Project parties Scope and contents

Multi benefit solution to minimize climate change in Vietnam and South East Asian nations by development of biomass energy.Duration: 2011‐2016

To develop a transcendentbiomass energy process in both economic and environmental factors and aiming towardpromotion of worldwideusage of this process.

Japan International Cooperation Agency (JICA) and Vietnam National UniversitySize: US$5 million

Planting trees for oil (Jatropha) and other plants on fallow and polluted areas;

Development of green technology in order to produce biological diesel

Greater Mekong Sub‐region (GMS) technical support project for increasing the usage of biomass waste sourcesDuration: 2011‐2015

Increase the rate ofbiomass waste usage inagriculture in order to meet the increasing demand for clean energy and food security for poor households in rural areas

Funded by Asian Development Bank (ADB), Nordic Development Fund (NDF).Partners: 3 countries including Cambodia, Laos, Vietnam.Size: US$ 4.6 million.

Implementation of the projects with sustainable biomass exploitation and usage

Studying the supply chain of biomass fuel to power plants and industrial boilers in Vietnam” projectDuration: 2011‐2012

Developing and establishing stable biomass supply chain (from sellers, transporters, purchasers) for power plants and industrial boilers in Vietnam

Funded by the Ministry for Foreign Affairs of Finland and Nordic Development Fund.Partners: Vietnam Institute of Energy, Technical Research Centre VTT of Finland

Evaluating the current situation on biomass supply chain

Proposing sample researches

Presenting sample researches for 2 factories

Disseminating the results

Biomass related projects and history of biomass pellet in Vietnam




Project name Project objectives Project parties Scope and contents

Three phases of COGEN programme

To promote the implementation of projects on Cogeneration,CHP technology in South East Asian nations

Funded by European Commission and ASEAN. Management: Asian Institute of Technology (AIT)Partner: Research Center for Energy and Environment (Vietnam)

Cogen 1 & 2: 1991‐1998: all kinds of fuelCogen 3: 2000‐2004, only focusing on biomass

Study and presentation of improved biomass compression system” project within the scope of regional study on renewable energy technologies in AsiaDuration: 1997‐2003

To study, select anddisseminate the improvedbiomass compressionsystem and cooking stovesusing drying biomass briquette and pellets in Vietnam

Funded by SIDA. Management: Asian Institute of Technology (AIT). Partner: Institute of Energy Vietnam)Size: app. US$150,000

Importing, Testing andImproving compressing machine according to Vietnam conditions

Designing forms of cooking stoves using high‐productivity drying biomass pellets

Disseminating technologiesSmall biomass projects such as improved biomass cooking stoves, survey on biomass energy usage of residential households, survey on types of fire wood, etcBefore 2000

Promoting effective usageof biomass and environmental protection in household rural areas and small‐scale home craft

Funded by World Bank, FAO and a number of other organizations

Studying the real situation Disseminating biomass equipment (high productivity cooking stoves replacing traditional stoves)

Biomass related projects and history of biomass pellet in Vietnam




Wood residues: 80% is self consumption as fuel in industrial kilns or household cooking. Rice straw: Only 10% is used as fuel, about 40% is used as mushroom planting,

construction material etc. remaining is burn of left at the rice fields. Rice husks: About 38% is used as fuel in Mekong Delta, rice husk pellet and briquette

production are increasing. Bagasse: About 80% of bagasse is burned to feed boilers that produce heat and power for

sugar refining. Only 5/40 sugar mills connected the producing electricity to the grid. Other by‐products: 40% is used as fuel (coffee bean shells, peanut shells, corn stems and

cobs, soybean plants, coconut shells, sugarcane leaves and buds, sawdust and wood chips)

Utilization of biomass by type and user (kTOE in 2010) (Source: Institute of Energy, Vietnam 2010)

National utilization of biomass



Mostly from rice husk, just a small percentage of sawdust. Technologies were introduced by SIDA, AIT and Institute of Energy (1997‐2003):

Demonstration, Improvement, Training and Dissemination. Briquette production:

Machines imported from China, but now can be made locally by mechanical companies such as An Giang Mechanical.

Starting machines capacity 70‐100 kg/hour of rice husk, now up to 500 kg/hour. From small households with 1‐2 machines to big companies such as An Giang Plant

Protection Company with a series of briquette making facilities in its supply chain. About 30‐50 rice husk biomass briquette producers in Vietnam.

Production of biomass briquette and pellet



Pellet production: Machines imported from China, Japan but had been modified to adapt with

Vietnam’s production condition. Not yet produced locally. Capacity 30‐50 tonnes/day of rice husk. One of the pioneering producer is An Viet Company in An Giang Province. Less than 10 rice husk biomass pellet producers in Vietnam. Average capacity of

10,000 tonnes/year.

Production of biomass briquette and pellet



Briquette: About 60‐70% is burnt in industrial boilers. Most of them is consumed by energy service companies such as Tin Thanh, Green Energy, Ocean Energy… who supply heat to industrial clients by service contracts.

About 10‐15% is burnt in the industrial kilns such as brick making, pottery making.

About 10% is burnt by households and small household business es (rice paper making, coconut candy making etc).

About 10‐15% is exported. Price: US$ 50‐70/ton, seasonal difference.

Utilization of biomass briquette and pellet

Pellet: About 20‐30% is burnt in industrial

boilers. About 70‐80% is exported. Price: US$ 70‐100/ton, seasonal

difference.



Global Biomass Pellets market is forecasted to grow at a CAGR of 11% over the period 2014‐2019 (TechNavio).

Retail price of wood pellets is 200 euro/tonne in Europe and $300/tonne in America.

Pellet Production and Consumption in Korea and Japan

Global biomass pellet consumption



Vietnam is being considered as one of the countries with significant potential of biomassenergy (world leading rice exporter, second largest coffee exporter, leading exporter inother products such as cashew, coconut and wooden products…), the exploitation ofavailable biomass sources to provide fuel of medium and large energy production projectsis insignificant in comparison to Thailand, Malaysia…

Biomass pellet production and utilization is just in the beginning stage but has hugepotential for development because of available biomass resources in Vietnam as well asgrowing demand from developed countries.

Business opportunities for biomass pellet in Vietnam: Technology transfer and equipment supply Trading of biomass briquette & pellet Investment in production of biomass briquette & pellet

Conclusion & recommendation



Contact:NGUYEN DANG ANH THI, M. Eng

Mobile: + 84.918 393 767Email: [email protected]

Thank you for your attention!

5 production and utilization of biomass pellet in vietnam by mr nguyen dang anh thi

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