Presentation

PRESENTATION ON

HYBRID COGENERATION POWER PLANTS

WHAT IS COGENERATION POWER

GENERATION OF CONSISTENT POWER AND STEAM FOR THE DOWN THE LINE PROCESS STEAM REQUIREMENT IS CALLED COGENERATION POWER.

WHO ARE THE END USERS

ANY PROCESS INDUSTRY CONSUMING PROCESS STEAM AND WHO ARE IN NEED OF CONSISTENT POWER OTHER THAN DG SETS.

WHY COGEN POWER?

IN TODAY’S SCENARIO DUE TO FREQUENT POWER CUTS AND INFLATED FURNACE OIL PRICE THE PROCESS INDUSTRIES ARE FORCED TO INCREASE THEIR INPUT COSTS. DUE TO THIS THEY FACE EITHER REDUCTION IN PROFIT OR LOSING OUT IN COMPETITION.

TARGET CLIENTS• PADDY PROCESSING (24X7) & • SOLVENT EXTRACTION INDUSTRIES.

• SMALL PAPER AND BOARD MILLS

• CHEMICAL INDUSTRIES

• TEXTILE MILLS INCLUDING SPINNING MILLS, TEXTILE PROCESSING MILLS.

• CLUSTER OF SMALL AND MEDIUM SCALE INDUSTRIES WHO ARE IN NEED OF CONSISTENT POWER.

TYPES OF COGENERATION PLANTS1.SIMPLE BACK PRESSURE 2.EXTRACTION CUM BACK

PRESSURE3.SIMPLE FULLY CONDENSING.4.EXTRACTION CUM

CONDENSING

MAIN EQUIPMENTS FOR COGENERATION PLANTS

1. BOILER WITH AUXILIARIES2. STEAM TURBINE3. AIR COOLED CONDENSER4. FUEL AND ASH HANDLING SYSTEM5. WATER TREATMENT PLANT6. POWER CYCLE PIPING.7. AUX COOLING TOWER8. CIVIL FOUNDATIONS, TG HALL ETC..,9. ELECTRICALS LIKE PCC, MCC, CABLES

ETC..,10.INSTRUMENTATION AND CONTROL

SYSTEM11.FIRE FIGHTING SYSTEM, HOT CRANES12.AIR CONDITIONING AND VENTILATION

SYSTEM

RESOURCES FOR COGENERATION

BIOMASS INCLUDING WOOD CHIPS, RICE HUSK, GROUND NUT SHELL, COCONUT SHELL ETC.., ARE AVAILABLE @ Rs 2500 PER TON

NAPIER GRASS – WITH OWN ENERGY PLANTATION – AVAILABLE @ Rs 1500 PER TON.

BOTTLENECKS OF TODAY!!!FEED STOCKAvailability of biomass fuel on continuous basis - Erratic seasons & frequent changes in harvest plansOften the biomass is diverted to produce manure or left in the field for decay/decompose Growing demand from other industry for biomass, non-existence of medium/long term fuel procurement plans, no scientific pricingFuel preparation related issues – handling, storage, preparation..etcDESIGN & ENGGAdaptability of fuel to Boiler combustion technology – Non-compatibility of wide range of input fuel costing the efficiency/heat rate and increased cost of generationFrequent troubles of plant equipment – Frequent failures, Open ends of engineering interface and commissioningEquipment and systems lack proper warranty coverage arrangementO&MNon-availability of qualified and skilled man-powerTeething problems of downstream equipment – improper logging /recording of system operation and equipment behaviour. Non-existence of right O&M proceduresAfter sales service arrangement (ASS) with equipment supplier is not-existing.OTHER FACTORSLower tariff offered from utilities absorbing biomass powerHigh interest rates for debts, not able to sustain with the existing revenues

INDIA –POTENTIAL & ACHIEVEMENTS

•Indian climatic conditions offer an ideal environment for biomass production. Bio-energy has remained critical to India’s energy mix. A total of 288 biomass power and cogeneration projects aggregating to 2665 MW capacity have been installed in the country; consisting of 130 biomass power projects of 999 MW and 158 bagasse cogeneration projects of 1666 MW.

•The availability of biomass in India is estimated at about 540 million tons per year covering residues from agriculture, forestry and plantations. The current potential of surplus agro and forest residues to energy is estimated at 16,881 MW

•Waste-to-energy potential of 2,700 MW

•Bagasse cogeneration is estimated at 5,000 MW.

•The present cumulative installed capacity, of grid-interactive biomass and Bagasse cogeneration power is around 3000 MW as of Jujy’2011.India has approximately 50 million hectares of degraded wasteland that lie outside the areas demarcated as national forests and cultivable lands. In addition, around 30 biomass power projects of 350 MW and 70 Cogeneration projects of 800 MW are under various stages of implementation.

GENERATION POTENTIAL…..contd

•States which have taken leadership position in implementation of biomass power projects are Andhra Pradesh, Chhattisgarh, Tamil Nadu, Karnataka, Maharashtra Madhya Pradesh, Gujarat and Uttar Pradesh.

•The combined potential of the techno-economically viable biomass power generation capacity is 3800 MW covering the states of Tamilnadu, Karnataka, Maharashtra, AP, Gujarat, Punjab, UP, MP and Orissa.

POLICY INITIATIVES

•Subsidy Schemes of Government of India•Priority lending for renewable energy projects•RPO – Renewable Purchase Obligation by utilities and bulk consumers•REC Trading – Renewable Energy Certificate to sell in the energy exchange as a part of RE benefit•CDM – Carbon benefit available in International market•GBI- Generation Based Incentives available from MNRE•Power Trading allowed – Renewable power could be traded in energy exchange across India

State Tariff fixed by REC (Rs /Unit)

Remarks Capacity (MW)

AP 4.28 363

Bihar 4.17

Chhattisgarh 3.93

Gujarat 4.40

Haryana 5.46 35

Karnataka 3.66 365

Kerala 2.80

Maharashtra 4.98 403

MP 3.43 to 5.14 20 years with escalation of 3ps to 8 paisa 7

Orissa 4.09

Punjab 5.26 74

Rajasthan 4.72 5.17

water cooledair cooled

73

Tamil Nadu 4.60 to 4.74 488

Uttarakand 3.06 10

UP 4.29 4.38

existingfor new with 4 paisa/year escalating – 2006 base year

592

WB 4.36 fixed for 10 years for biomass 16

BIOMASS TARIFF AS ON JULY’2011 Total capacity as of July’2011 is 2664 MW

VALUES THAT WE COULD BRING!

•We would play a key role at all stages of project right from conceptualization taking through commercial operation of the plant.•The various process involved and value addition has been elaborated in to –•Assisting in financial tie-up•Feed stock arrangement•Project Development/Execution Stage•Technical support to implement Briquette/Pellet manufacturing and forward integration for ash utilisation

FEED STOCK ARRANGEMENT•Approximately, 10 MW Biomass power plant needs 55,000 tons of biomass per annum. This works out to cultivation at 450 acres of land. •Planning to grow Napier Grass in the available land closer to the proposed plant location and further plantation through contract or lease farming, to reach feed stock annual target. •Napier grass is a long term fuel having reasonably good heat value, quicker yields and minimum investment. •Napier grass does not cause any eco-imbalance and degradation.•With the above to secure 100% of feed requirement for each unit.

Rapid growth to 4 m height and Perennial grass with 6 year life cycle Very high productivity, up to 170 tonnes/acre (wet), four or more harvests per

year possible. Best in tropical and subtropical areas. Needs >100 days of sunshine per

year, maximum 800 mm rain or irrigation Little growth below 10 deg.C, roots can survive and propagated by division or

seedlings Also as feed for cows, sheep and other domestic animals Suitable for wide range of soils including acidic red loam and mildly saline

soil. Can be planted on dry lands, agricultural fields, hillsides and plains Very good heat value - >3200 kcals/kg and very low ash < 9% Employment in rural areas by engaging them for mass cultivation With proper harvest planning , power generation could be achieved

throughout the year.

Why Napier Grass?

Napier Grass grown at Chhattisgarh

Napier Grass being harvested using a toolNapier Grass – 11 to 12 ft after 100 days

Shredding of Napier Grass before feeding Biomass after harvest – can coppice again

PROJECT DEVELOPMENT & EXECUTION STAGE

Technology sourcing from ENMAS O &M with grate firing concept -which has flexibility and adoptability over a wide range of fuel inputs

Commercial support- in economizing the generation cost, cash flow and exposures

Engineering optimisation – To achieve better operational availability. Optimizing the cycle parameters, schemes, layout and specifications

Seamless interface engineering - to achieve better performance of auxiliary systems thereby reduced aux power consumption.

Procurement support – In sourcing of reputed/reliable equipment, proper warranty and long term After Sales Support arrangement.

Project Management - Project monitoring and controlling as per technical deliverables, project planning and budget

Erection and Commissioning support - Using the competent supervision team for erection, commissioning and start up

Plant documentation – To maintain the archives, and Erection and Commissioning data to use in the lifetime of the plant operation. Drawing up of detailed O&M procedures.

Plant O&M – In sourcing of qualified man-power offering long term career prospects and involving right from the days of pre-commissioning of plants, establishing programmes with critical equipment suppliers for O&M interventions/support

Technical support towards ash utilisation

What is the proposal ?Provide a comprehensive solution addressing – Feed stock integrationSelection of efficient and right technologyIdentifying right supplier to secure technical deliverables, within the defined time frame and at competitive costPutting in place - Qualified O&M team and best operational practicesForward value addition for effective ash utilizationRevenue modeling and optimizationFeed stock security through Briquetting and PelletisingRefinancing/scaling-up financing through low cost funds from abroad once the plant is stabilised in operation

TYPICAL HYBRID COGENERATION PLANT PARAMETERS

Size of the plant 3 MW Cost of the project 20Cr Debt: Equity 70% :30% Implementation time 12 months from readiness

of funds Land required for plant 5 acres Biomass fuel required at 2700 Kcals/Kwh heat rate 17000 tons/annum Land required for biomass growing 150 acres Cost of growing biomass Rs 30,000/acre/year Fund required to grow biomass Rs 1.80 Cr per year Landed cost of fuel Around Rs 1300 / ton Market price of fuel today Rs 2500 to Rs 2600/ton Payback period for investor 6 to 7 years


PROJECT COSTDESCRIPTION COST

Land & Site Development 34.00

Civil Works 150.00

Plant & Machinery including taxes & duties 1640.00

Technical Knowhow Fee 25.00

Miscellaneous Fixed Assets 22.50

Preliminary, Pre-operative and startup expenses 33.00

Provision for Contingency 37.41

Interest during Construction 35.00

Margin for Working Capital 25.00

Grand Total 2002

MEANS OF FINANCE AMOUNT

Term Loan 1401.3

Equity 600.6

Total 2002


ESTIMATE OF UNIT COST OF GENERATION

DESCRIPTION 1 2 3 4 5 6 7

Sale Price 6.00 6.09 6.18 6.27 6.37 6.46 6.56

Total Revenue 6.00 6.09 6.18 6.27 6.37 6.46 6.56

Fuel Cost 2.64 2.72 2.80 2.88 2.97 3.06 3.15

Operating and Maintenance Cost 0.22 0.23 0.24 0.25 0.26 0.28 0.29

Administrative Expenses 0.11 0.11 0.12 0.13 0.13 0.14 0.14

Salaries and wages 0.38 0.40 0.42 0.44 0.46 0.48 0.51

Utilites cost 0.11 0.11 0.12 0.13 0.13 0.14 0.14

Depreciation 0.76 0.76 0.76 0.76 0.76 0.76 0.76

Interest on

Term Loan 1.06 1.06 0.95 0.79 0.64 0.49 0.34

Working Capital Loan 0.10 0.11 0.11 0.11 0.11 0.12 0.12

Tax ([email protected]%) 0.05 0.05 0.05 0.06 0.07 0.08 0.09

Cost of Generation 5.42 5.53 5.56 5.55 5.54 5.54 5.54

Profit per Unit 0.58 0.56 0.62 0.73 0.83 0.93 1.02


PAYBACK PERIOD

PAY BACK PERIOD (Rs in Lakhs)

YEARProfit bef. Tax & depn.

But aftr. Int.Taxes Cash Accruals

Cum. Cash Accruals

Year 1 256.50 8.93 247.57 247.57

Year 2 251.51 8.55 242.97 490.54

Year 3 265.21 9.60 255.62 746.15

Year 4 286.20 11.21 274.99 1021.14

Year 5 306.55 12.77 293.78 1314.92

Year 6 326.24 14.28 311.95 1626.87

Year 7 345.23 15.74 329.49 1956.36

Year 8 363.50 17.15 346.35 2302.72

Year 9 380.13 18.42 361.70 2664.42

Year 10 376.68 18.16 358.52 3022.94

Total Project Cost is Rs. 2001.91 lakhs

Hence the Pay Back Period is 7 Years &

0 Months

ENMAS O & M Introduction

Enmas O&M Services Private Limited is a constituent of Resurgent group.

The Group has been operating for more than two decades, ENMAS and GB are well known brands of the group, for high quality products and services to Thermal Power Plants – Captive, Cogen and Biomass IPPs.

For Higher sized Power plants above 100 MW, Enmas has collaboration with PMEG (PIC - Marubeni Energy Group), Atlanta, USA, Operating 13500 MW in 9 countries. Visit “www.pmeg.com”

Collaborators - PMEG

Enmas O&M Services Private LimitedIIIFloor, Guna Building ,443, Anna Salai, Teynampet, Chennai

– 600 018INDIA

Phone: +91 44 4901 7050 Fax : +91 44 4901 7060 E-mail: [email protected],

[email protected],[email protected]

Web: http://www.enmasindia.com

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