One powerful future.

Managing Risks, Reaping Rewards Through

Biogas Power Generation

Securing success in POME biogas power generation

Biogas AP Forum

June, 2014

Kuala Lumpur, Malaysia

John C Y Lee, Steve Szymanski, Michael A Devine

Contact: johncylee@cat.com

Caterpillar Inc.

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Managing Risks • Fuel (reliability, quality, price)

• Revenue (energy sales or savings)

• Technology (equipment track record, performance, efficiency)

• Operations (uptime, ease and availability of operation and

maintenance)

• Construction (schedule, plant performance, cost)

• Credit (financing, debt payment)

• Insurance (physical damage, public liability)

• Permitting (environmental, noise, structure, etc.)

• Inflation (for both revenue and expense)

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Special Purpose

Project Company

(Borrower)

Operator Operations & Maintenance

Agreement Off-Taker(s) Power Purchase

Agreement,

General Contractor

Engineering, construction

and procurement

Gas and Power

Generation

Equipment

Legal Framework Law and Regulation

Feedstock

Supplier

Lender (debt)

Loan and Security

Agreement

Sponsors /

Shareholders

Insurance

Developer

Each Agreement and each relationship contains risks

All Agreements must work together, be consistent, and not be in conflict

Legal Agreements

Risk Identification, Mitigation and Management

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Risk Allocation Each risk must be assigned to the party who is best prepared to manage it!

Operational risk Operator

Credit risk Lender

Construction risk (schedule,

plant performance, cost)

Engineering, Procurement

and Construction

Contractor (EPCC)

Physical damage, public

liabilityInsurance company

Fuel supply risk Gas company

Each contract must have appropriate compensation for failure to perform

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Typical Biogas and Power Generation System

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Uptime vs Efficiency

MYR MYR

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Requirement for 1 MW Power Production

Feedstock Waste Name Volume/Count Typical Unit

Palm POME 30 TPH of FFB

Cassava Wastewater 70 TPH of Starch

Cassava Wetcake 70 TPH of Starch

Dairy Cow Manure 10,000 Head

Sow Manure 100,000 Head

Hen Manure 1,000,000 Head

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Simplified POME Biogas Process Flow Diagram Biogas

Generator

Wastewater

80°C Fertilizer

H2S

Scrubber

Biogas

Storage

Buffer

Tank

CSTR

Reactor

Raw

Biogas

Clean

Biogas

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Continuous Stirred Tank Reactor (CSTR)

Advantages

• High concentration of TS:

8%~12%

• Optimized mixing with mixers

• Large capacity and high

biogas yield

• Easy maintenance

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Expanded Granular Sludge Bed (EGSB)

Advantages

• High SS content

• High COD removal rate

• Resistant to changes in

loading

• Small footprint

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CSTR Mixer

Advantages

•Customized, innovative mixer

with energy consumption per

volume of digester reduced

from typical 10 W/m3 to ≤ 4

W/m3

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Desulfurization or H2S Scrubber

• The concentration of H2S in the raw

biogas can be decreased to less than

100 ppm by typical desulphurization

process. The removal efficiency can

be over 95%.

Advantages

• Lower operating cost

• Higher removal rate

• Resistant to changes in loading

• Easier to start-up and to operate

• Simple automated system

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Gas Storage Double-membrane gas holder is made of

outer membrane, inner membrane and

bottom membrane

• The outer membrane is the ball-

shaped gas bag

• The inner membrane and the bottom

membrane together compose a

compartment in which biogas is stored

• The gas holder is equipped with EX

rated blower which is used to regulate

the amount of gas and keep a balance

of the air pressure in the gas holder

• Proper inflation can also provide

protection to bad weather

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Caterpillar Line of Biogas Products

Special rating, application, and configuration available through custom order

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Caterpillar Line of Biogas Products

Special rating, application, and configuration available through custom order

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Caterpillar Gas Generator Set Technologies

CG132

• VCyl 2,2 l

• BMEP 18,9 bar

• CR 12 (natural gas)

• CR 15 (biogas)

• N = 1 500 rpm (50 Hz)

• N = 1 800 rpm (60 Hz)

• ƞel 42,5 %

CG170

• VZyl 4,4 l

• BMEP 18,6 bar

• CR 13,5

• N = 1 500 rpm

• ƞel 43,7 %

CG260

• VZyl 17 l

• BMEP 19,6 bar

• CR 12 : 1

• N = 1 000 rpm (50 Hz)

• N = 900 rpm (60 Hz)

• ƞel 44,1 %

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Complete Systems – More then Just Generator Sets Different Container Solutions + CHP and Cooling Modules

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• Primary distribution is through independent dealers

• Dealers develop and support lifelong relationships with customers

• Dealer financial strength is a competitive advantage

• Our dealer network

– 191 dealers

– 3,313 stores

– More than 140,000

employees

– $20 Billion in infra-

structure investment

Market Coverage and Support

North America

45,959

55

31

South America 26,724

49 EAME

33,541

56

Asia Pacific

35,037

Cat Dealer Employees

Cat Dealers

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Page 19

Customer Service Agreements (CSA)

Cat provides a full range of service contracts

Full Value Chain

Inspection contract

Preventive-maintenance contract

Maintenance contract

Full-service contract

Scheduled maintenance and repairs

Scheduled and unscheduled maintenance and repairs

Inspections at regular intervals

Caterpillar holds risk position in project

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Facts and figures

Storage space 12,000m²

Office and common space 600m²

Parts numbers / parts in stock Ø 40,000 / 2,000,000

Customer orders Ø 200 / day

Order items Ø 800 / day

Number of parcels Ø 200 / day

Weight shipped Ø 7,500 kg / day

Hours of operation Mo.–Fr. 7:00 am to 8:00 pm

Emergency service 24/7, 365 days / year

Orders placed by 5:00 pm (CET) will leave the logistic center the same day

CAT Service Logistic Center

Distribution Centers

• Morten and Frankfurt

• Singapore

• Shanghai

• Bangalore

• Melbourne

Frankfurt

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How can we help…?

• Equipment

– CAT world class technical solutions

• High efficiency gas gensets from 70 kw – 10 MW

• Factory supplied turnkey packages available

– Partners can provide total turnkey, end-to-end solutions

• Financing Solutions

– CAT Power Finance specializes in financing COMPLETE projects using Cat

gensets (not just the gensets…the entire project)

– Experience in financing complex and riskier projects

– Balance sheet or non-recourse project finance

• After Sales Services

– CAT dealers have extensive in-country coverage for sales and service

– Long term, competitive service agreements available

One powerful future.

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Caterpillar Asia Pacific Dealer Network Australia

Energy Power System Australia

David Moore

+61-417-357-406

China (South & West)

China Engineers Ltd

Lu Yi Hong

+86-136-0289-0110

Japan Caterpillar Services Ltd.

Shinya Suzuki

+81-90-3243-6489

Singapore & Maldives

Tractors Singapore Ltd.

Sean Ang

+65-9232-7596

Bangladesh

BanglaCAT Ltd.

Zahid Islam

+880-171-309-0331

China (SW and NW)

ECI-Metro

Nicholas Thew

+86-139-8181-7050

Korea

Hae-In Co.

S.H. Kim

+82-2-3498-4572

Sri Lanka

United Tractors Ltd.

Manjula

+94-773-157-824

Cambodia

Metro Cambodia

Kim Veng Tan

+855-1251-2333

India (North)

Tractors India Ltd.

Rakesh Ananad

+91-971-133-1139

Malaysia & Brunei

Sime Darby Industrial

Chun Hoong Ng

+60-3-8068-8192

Taiwan

Capitol Machinery Ltd

CS Horng

+886-937-957-288

China (North)

Westrac China

Bill Chu

+86-10-5902-1666 ext. 6011

India (South)

Gmmco Ltd

Chandrasekaran

+91-984-096-6123

Myanmar

Myanmar Tractors Ltd.

Yee Yee Htwe

+951-547-304

Thailand & Laos

Metro Machinery Co. Ltd.

Somkiat Chawitcharoenwong

+66-848-743-642

China (Central)

Leishinghong Machinery

Johnson Jiang

+86-186-1677-2856

Indonesia

PT Trakindo Utama

Edwin Sentoro

+62-812-100-7681

Philippines

Monark Equipment Co.

Luis Diaz

+63-906-314-2735

Vietnam

Phuthai

Truong Dong Phuong

+84-903-830-498

www.catelectricpowerinfo.com/gas

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Page 23

Thank you!

Questions?

Caterpillar has the full line of products and services to

support your renewable energy (biogas, syngas, coal

mine methane, associated gas, wellhead gas,

combined heat and power) needs

www.catgaspower.com