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B I OM ASS E N E RGY
C O N S UMP TIO N PAT T ERNS
I N C A MBODIA: C H ALLEN GES
A N D O P P O RTUNI TIES
R o m a i n J OYA – G E R E S
APRIL 23RD 2015 RAFFLES HOTEL
PHNOM PENH
Outline
• Objective: to set the context of Biomass Energy in Cambodia and to provide you with some needed background before we actually get into more in-depth discussions later in this break-out session.
1. Main concepts & Significance of Biomass Energy in
Cambodia
2. Current Biomass Consumption Patterns & Challenges
3. Sustainable solutions & related business opportunities
Nota: All the results shared in this presentation come from 2 years of research work undertaken by GERES to bring new evidences to decision makers and projects implementers.
KEY definitions (source: FAO)
• Biomass energy: “material of biological origin excluding
material embedded in geological formations and transformed
to fossil”.
• Woodfuels: “woodfuel refers to all types of biofuels derived
directly and indirectly from trees and shrubs grown on forest
and non-forest lands, from silvicultural activities, harvesting
and logging, as well as industrial by-products”.
BIOMASS ENERGY
Agricultural by-products - Rice husk - Corn cob
Woodfuels
Firewood or Fuelwood
Charcoal Saw dust
Cambodia: One of the highest reliance on
biomass energy in SEA
• Cambodia and Myanmar have the lowest energy consumption per capita in Southeast Asia.
• The significance of biomass energy in the national energy balance is similar in Cambodia, Vietnam and Myanmar.
• Context of Cambodia: unreliable electricity grid with limited coverage and high prices, low enforcement of the forest laws, tremendous land conversions undergoing
→wood is by far the cheapest source of energy than you can find in Cambodia with easy and nearly free accessibility.
0%
10%
20%
30%
40%
50%
60%
70%
80%
%
Share of biomass energy in the total energy consumption
(Source: IEA energy balances)
0
0.5
1
1.5
2
2.5
3
toe/
cap
ita
Primary Energy Supply per capita (Source: IEA energy balances)
Biomass Energy: the 1st energy source in Cambodia
• Biomass energy accounts for 70% of the energy mix.
• Woodfuels (firewood + charcoal + sawdust) account for more than 90% of the final biomass energy demand.
• Primary wood demand = 4.3 million tons annually = 2 million ton oil equivalent
→3 times the energy needs of the transport sector.
• Wood energy = major market for Cambodia (> 350 million USD/yr).
24% 70%
6%
Total final energy consumption in Cambodia, in 2012 (Source: IEA)
Oil products Biomass energyElectricity
75.4%
7.5%
0.4%
0.2%
0.1%
16.4%
Final biomass energy consumption in Cambodia, in 2013
Source: The FloWood project, GERES 2014.
Firewood Rice husk Sawdust
Garment wastes Leaves Charcoal
4730 ktoe 3324 ktoe
TITLE
• Domestic cooking drives more than 70% of the final biomass energy demand.
• Traditional charcoal consumes about one million ton oil equivalent of forest wood
annually!
• …but forest wood demand from industries is on the rise, driven by economic growth.
• Alternative biomass energies (agricultural residues) contribute to only 7 % of the
biomass energy mix although they could potentially replace a significant share of the
wood energy burned if converted in denser materials.
The FloWood project, GERES 2014 Processing: GERES, 2015. All rights reserved.
SMEs & Industry consume 660 thousand
tons of wood annually.
• Wood energy is often the main cost in the business models of the sector studied but also the most reducible if EE measures are taken (contrary to labor cost).
• Existing processes are inefficient, threatening the long term growth, financial viability and competitiveness of key sectors such as rubber processing, bricks for construction and garment.
• Wood scarcity threatens small scale businesses who cannot afford the current price increase or cannot travel to the wood collection areas anymore (small scale food processing.
• Biomass energy users face an abyssal lack of technical assistance that hampers energy efficiency and innovation.
Gasification for ice making (bars & cubes)
7.0%
Cookstove firing 0.4%
Brick manufacturing
27.8%
RSS & ADS rubber
processing 1.6%
Fish smoking 6.2%
Tobacco curing 5.4%
Small scale food
processing 6.6%
Garment factories
45.1%
Wood energy consumption in SMEs / Industries Source: The FloWood project, GERES 2014.
Gasification in rice milling
34%
Gasification for ice
making (bars & cubes)
1% Cookstove
firing 3%
Brick manufacturin
g 36%
Small scale food
processing 17%
Salt refining 9%
Rice husk final consumption in SMEs / Industries Source: The FloWood project, GERES 2014.
Impact of woodfuels on forests
• Last GERES’ estimates: 88% of woodfuels are coming from natural forest
→ (only 12% from farming lands, plantations, orchards, hedges; etc.).
• The impact of woodfuel collection on forests is very heterogeneous throughout
the country, either being a direct driver of degradation/deforestation or an
opportunistic activity depending on other drivers such as forest conversion to
agricultural land (e.g. ELCs)
• Industrial activities being more concentrated in geographically restricted areas,
they locally drive drastic amounts of wood from Cambodian forests.
0
100,000
200,000
300,000
400,000
500,000
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
hec
tare
s
Hectares of ELCs granted in the last 20 years (LICADHO, 2015)
→ The wood energy sector is currently benefiting from the tremendous forest area being recently clear-cut through ELC granting (prices are artificially low!) but this cheap sourcing might come to an end in the coming years.
RGC’s moratorium
3 main levers of action
• Need to address the biomass energy value chain as a whole, from forest and
field to end users:
– 1: energy efficiency
• Provide technical assistance for better process management
• Improved technologies (multi-layer rubber dryers, VSBK brick kilns,
ICS, etc.
→See coming presentation from NCPO-C...
– 2: Improved conversions
• Improved charcoal kilns
• Improved wood gasifiers or switch to RH gasifiers (for ice factories) to
generate cleaner captive power
– 3: Fuel switch to renewable sources
• Woodfuels from sustainably managed forests
• Agroforestry / Wood plantations on already degraded lands or public
areas.
• Development of Waste Agricultural Biomass Energy
→See coming presentation from SGFE.
Focus on fuel switch:
what about Agricultural by-products?
• 6% of the Agri by-product potential being used.
• 14% of the national rice husk production being tapped.
• Wood prices are soaring → Agricultural by products might become competitive.
• Agri. by-products are bulky (e.g. low density of rice husk),→high transportation cost.…
• …BUT high potential if converted into a denser material.
• Careful:
– Potential ≠ accessibility
– Competition with feedstock
– WAB can contribute to maintain soil fertility and limit erosion
0
20,000
40,000
60,000
80,000
100,000
Potential of WAB Current biomass energy supply
TJ
Current biomass energy supply vs alternative potential from Agri by-product in 2013)
Sources: The FloWood project, GERES 2014. NCPO-C, 2013.
Wood Corn cobs
Cassava residues Rice husk
Rice straw Bagasse from sugar can processing
Saw dust
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
2
4
6
8
10
12
14
2009 2010 2011 2012 2013 2014
An
nu
al c
han
ge in
fir
ew
oo
d p
rice
USD
/m3
of
wo
od
Average price of firewood in Kampong Cham province
% Increase from year to year
Firewood price (USD/m3)
Focus on Rice husk: a largely untapped
resource despite a significant potential.
• Contrary to non-properly managed
forests, agricultural biomass is carbon
neutral and renewable.
• Rice mills concentrate rice husk from
hundreds of farms and are widesread
throughout the country
• Rice husk is well valorized in some
countries (e.g. India).
A heap of rice husk next to a rice mill in Bantey Manchey
Rice husk Briquettes Rice husk pellets
Engagement of the private sector
• Engagement of the private sector will be crucial in ensuring the
long-term viability of some key sectors in Cambodia.
• Private sector interventions should focus on the following:
– Financial Institution Engagement: engage with commercial banks, specialized banks, and
MFIs and provide incentives for the development of tailored loan products to facilitate
access to suitable technologies such as improved kilns & stoves, efficient gasification and
biomass briquetting technologies.
– Business-to-business (B2B) services: to bridge the existing information asymmetry
associated with adoption of improved technologies (e.g., availability of technologies (off-the-
shelf solutions or new technologies), manufacturing information, quality, lifespan etc.) and
associated cost analyses (e.g. return on investment, etc.).
– Development of sustainable, community charcoal businesses: follow-on projects undertaken
by GERES. Refinement of the business model of community charcoal businesses, support in
business planning, technical training on kiln technologies and sustainable fuel sourcing, and
downstream activities to raise awareness and effectively market sustainable charcoal.
– Tax incentives/ deductions: Design and extend tax incentives/ deductions to encourage
adoption of improved technologies and alternative fuels, and to support the ongoing
development, strengthening, and competitiveness of “green” enterprises.
THANK YOU
• Questions?
Romain JOYA - [email protected]
http://www.geres.eu/en/
This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of Eurocham Cambodia and can in no way be taken to reflect the views of the European Union.