Bali Biomass Gasification Power Plant 10MW

1. Bali Biomass Gasification Power Plant 10MW

2. Who are we? The Project has been jointly developed by: PT. Indo Asia Energy Development CV. Bali Komunika Internasional Supported by: Udayana University The Project Entity will be: PT. Indo Asia Energy Development (based on a new share holding structure with the director of CV. Bali Komunika Internasional holding 50% of the shares of PT. Indo Asia Energy Development prior to investment stage proposed)

3. Who are we? PT. Indo Asia Energy Development Indo Asia Energy Development, Ltd (IAED) is an international development team of business and financial experts who have come together to build a world class commercial renewable energy company in Indonesia in the coming decade. IAED believes there is a real and necessary opportunity to develop a large scale renewable energy industry in Indonesia. With petrochemical energy supply continuing to increase in financial and political cost, a real alternative to Indonesia’s energy and transport fuels needs are an urgent priority.

4. Who are we? CV. Bali Komunika Internasional (Bali International Consulting Group) Is an international consulting group advising on sustainable development, corporate social responsibility, sustainability reporting, solutions for renewable energy and are now focusing specifically on the clean development mechanism under the Kyoto protocol. At BICG, we advise our clients on project development with their social and environmental footprint in mind. We work with selected international partners in Europe, Australia and Asia and recognize the GRI sustainability reporting guidelines as Indonesia’s first organizational stakeholder since 2006.

5. Advantages of GREEN Energy • Reducing the costs of purchasing energy (electricity and fuel)   • Additional profit from selling surplus electricity to the grid • Additional profit from selling • Certified Emission Reduction (CER)   • Additional profit from selling by-products • (e.g. ash from rice husk gasification) • Increasing security of energy supply

6. What kind of GREEN Energy? Bali Green Energy Options: Geothermal - currently not preferred due to previous failure Solar - not economically Wind - not sufficient Biogas - not enough supply, logistic problem Hydro - small scale opportunities, not scalable yet Nuclear - no priority for Bali Biofuel - no sufficient supply in Bali, not yet viable Biomass - feed stock available, proven, suitable

7. What kind of GREEN Energy? Why Gasification and not Co-Generation? Diversified supply input, less dependency on price fluctuations >20% more competitive in investment cost Available technology, no waiting periods Turn key operations only 10 months from order Lower maintenance less operational staff Feed stock treatment cost 50% Plant power consumption 50% Smaller land size Water recycling, no need for water wastage Lower emissions Overall proven as more efficient

8. The Project Project : Biomass Gasification “Syngas” Power Plant Capacity : 10 MW Feed Stock : Biomass Elephant Grass and agricultural by products from Rice, Maize, Cassava, Coconut, Palm, Gloves (husk, starch, saw dust, chips, fiber) Location : Klungkung/Karangasam, Bali Market : Electricity - State Owned Electricity Company (PT PLN Persero)

9. Feedstock Supply Pennisetumperennials, Giant Napier (South Perennial) Gramineae grass: Pennisetumperennials, Pennisetum Ratoon, China imported from Colombia, because of its resemblance to bamboo stem it is referred to as the "Queen of bamboo grass." Plant height of 2.5 m, a total of 12-16 sections, diameter 2 to 4 cm, about 160 centimeters long leaves, leaf width from 3 to 6 cm, dried leaves and stems containing 18.6% crude protein, crude fat 3.33%, 33.64% crude fiber, N-free extract 33.85%, per mu is equivalent to 8 to 10 acres of corn protein content. Leaves soft, crisp, good palatability. At the same time can produce more than 10,000 aging stem root, bamboo can be used for aircraft use, as well as in China's southern Henan, Hebei and other places are growing well. In particular, the products developed root system, root length up to 3 meters may be the formation of fibrous roots in the relatively short period of time the network can be firmly locked to prevent water and soil erosion on steep slopes and embankments of wasteland ideal plant. Upstream region in Sichuan over the past few years the implementation of "planting grass Pennisetum industrial integration" works to the masses in many poverty-stricken counties to engage in cattle breeding, poverty, achieving remarkable economic, ecological and social benefits. Expected output 300 t/ha, calculated at 233 t/ha

10. Biomass Syngas Power Plant *information provided by technology provider

11. Biomass Syngas Power Plant The biomass gasification system produces a valuable gas named producer gas - “Syngas” (Synthetic gas). The biomass (agricultural), used for this purpose is materials such as: rice stems, rice husks, cotton stalks, corn stalks, millet stalks, wood dust, cane trash, wheat straws, hemp palm husks and other forms of biomass. This system can produce electric power in the range of 400kW – 15.0MW by using a few parallel modular units. Since Biomass itself is almost sulfur free, the gasification process will not produce any sulfur oxide emissions (SOx). However, fuels such as diesel and HFO contain a considerable amount of sulfur. HFO could have as much as 4% sulfur and therefore requires special additional treatment to neutralize these emissions. Similarly the gasification of biomass produces very low concentrations (if any) of nitrous oxide emissions (NOx) when manufacturing the “Syngas” and thereafter leads also to low emissions in the combustion engines. *information provided by technology provider

12. Biomass Syngas Power Plant Production of 1 KW power, requires only 1.55 - 1.95kg of rice husks, wood dust or crop stalks as fuel. The water used in the cooling system of this process can be recycled after undergoing a simple treatment and thereby having no harmful effects to the ecological system and the environment. Self power consumption of this systems is low with percentages ranging between 5 - 8% of the generated total power. This project is an ideal solution for regions where there are large quantities of biomass waste resources, mills, farms, nearby forests etc. In consideration of the above mentioned particulars, the feasibility of such Power station will give a high ROI (Return of Investments) in a short period of time. The reasoning to this high ROI is due to the cost of the fuel being negligible – near ZERO (0), only labor, drying and grinding (if woods) has to be considered. In most other power stations, fuel cost corresponds to approximately 60-75% of power selling price, in our case, there is a saving of approximately 70% compared with other forms of power stations. *information provided by technology provider

13. Biomass Syngas Power Plant The technology of producing power by gasification of biomass is easy to operate, simple and economical in maintenances and service, has no high pressure steam/boilers, no turbines, easy to start, run standard combustion generator- NO STACK / CHIMNEY at ALL !!! The power station requires a small land area to operate. It is environmental-friendly, simple to install, and it can gasify most kinds of agricultural biomass. These will in turn produce very low cost valuable electric power energy source. In order to remove the soot, ash and tar particles in the biomass producer gas - “Syngas” and prevent the formation of secondary pollution to the environment, the biomass gasifying equipment effectively uses mechanical & electronic systems, which reduce the soot, dust and tar particle content in the produced gas to a certain extent, the equipment for collecting soot, ash and tar is highly efficient, it was designed and developed mainly for large-scale fossil-fuel power plants, chemical plants and waste incineration plants. *information provided by technology provider

14. Biomass Syngas Power Plant As the “Syngas” flow is relatively small in ordinary biomass gasifying generating projects, and there are some differences between biomass gas and the gas treated in fossil-fuel plants, temperature are low, less oxygen, therefore the adopting technology can solve most of biomass gasification demands. Requirement of the feedstock granule size is ≤2cm, moisture content ≤20%, the whole project could be supplied with special drying system if needed, that can be done by using special dryer system which is heated by using the residual heat for drying. *information provided by technology provider

15. Biomass Syngas Power Plant Biomass pyrolysis gasification has different production ratio of soot and tar at different operating temperatures. If carbonization temperature is 400-600℃, the production ratio of tar is 13% - 37%, and it is 5% - 15% when using fixed bed gasification furnace, when operating temperature is 800℃, the production ratio in a fluidized bed gasifying furnace is about 2.5%. Tar content in raw Producer gas - “Syngas” without treatment is about 1 - 3 g/Nm3. The Syngas must be condensed to remove soot & tar before it is sent to internal combustion engine. As it is well known, the caloric value of tar is very high and it is about 30MJ/kg (7,140Kcal/Kg). The heat value of tar increases up to 10% of total heat value of gas. “Syngas” standards shouldn’t have particulates more than 50mg/m3 which is the highest acceptable figure for internal combustion engines, some engine manufacturers also requires that dust/ash/soot content should be ≤ 25mg/Nm3, H2S≤10mg/Nm3. In our gasification system, according to long practical field tests, output content of soot, tar ash and dust is < 23mg/Nm3 only. *information provided by technology provider

16. Biomass Syngas Power Plant Technological flow-chart of biomass gasification power system Biomass feedstock: *information provided by technology provider

17. Biomass Syngas Power Plant Syngas analysis： CO:12-18%, CO2: 10-16%, CH4: 4-8%, H2: 3-7%, CnHm: 1-1.4% , O2: 0.5-1.2%, N2: 54-60%. Heating caloric value - 5,200KJ/Nm3 (LHV 1,240Kcal/Nm3, HHV 1,350Kcal/Nm3). Content of dry ash after gasification (near 30% of raw material): Density at free state:   172.5Kg/m3 Density compressed state:  295 Kg/m3 Carbon (when using rice husk) ash: 40 - 45%. Silica content: 50 - 52% *information provided by technology provider

18. Biomass Syngas Power Plant *information provided by technology provider

19. Financial Feasibility

20. Financial Feasibility

23. Financial Feasibility Mixed Loan & Equity Based Investment Developer Equity 30% (IP, BC, Development valuation) Investor Equity 70% USD 5,300,423 Loan USD 12,367,654 Interest rate 9% 5 Year IRR 20.65%*2,3 Equity Return for Investor 14.45%*2,3 *1(including operational setup 12 months, loan repayment grace period 60 months) *2 Including CDM Carbon Credits on fuel switch from fossil to RE *3 Based on electricity sales to PT. PLN (State Owned Electricity Company) @ USD 0.055/kWh 5 Year IRR 39.69% Equity Return for Investor 27.78% *3 Based on electricity sales to PT. PLN (State Owned Electricity Company) @ USD 0.075/kWh

24. What is the CDM? The Clean Development Mechanism (CDM) enables countries that are signatories of the Kyoto Protocol to meet part of their GHG reduction commitment through projects located in another host country. Participation is on a voluntary basis and more and more Kyoto signatories have put in place the necessary administrative structures. In the specific case of CDM, countries belonging to the Annex I of the Kyoto protocol can fund and help implement projects in non-Annex I countries. Non-Annex I countries are typically developing countries. Successful CDM projects generate Certified Emission Reduction credits (CERs), each CER representing a quantity of avoided GHG emissions in the non-Annex I host country, which are then transferred to the Annex I country.

25. Similar Projects approved Around 15 projects registered so far

26. How to apply for CDM?

27. Conclusions Based on similar projects the CERs can amount to ~500,000 for a ten year fixed period Based on the Frauenhofer Institute CERs can reach Euro 20/CER by 2009; general market expectations Euro 25/CER Over a 5 year term if feedstock supply can be guaranteed at USD 18 and below even without CERs more profitable compared to the use of diesel generators (constantly rising oil prices and high maintenance/replacement costs) in case of Vita Life Resort

28. Next Steps • Feasibility and environmental impact study to apply a 10 MW gasification biomass plant based on rice husk (mainly) • Validation of applicable technology • Assessment if the power supply is self-operated or in partnership • Identification of partners/investors • Options: • Independent Power Plant selling to PT. PLN @ 0.055/kWh • JV with Resort selling directly to Resort @ 0.12/kWh (no land investment cost)*4 • Develop the PDD under the CDM for certified emission reductions • *4 Vita Life Resort project not yet financially closed

29. Additional Data -Investment cost for imported technology USD 840/kWh -Annual operational costs ~1.5% of plant investment excluding feed stock -Operational labor 12 long term employees additional labor for logistics (transportation) -Annual biomass consumption ~140,000 t (90% load factor, 8200 h/y) -Medium Scale Power Generation using Renewable Energy: Developer : Business Entity/Capacity : 1 < Cap ≤ 10 MW Electricity Price by Utility :60% x Utility’s Production Cost, if connected to the low voltage grid, 80% x Utility’s Production Cost, if connected to the medium voltage grid; Purchase Contract : 10 years and could be extended – for overproduction -byproduct biomass ash assumption to be sold at ~US$ 50/t

30. Thank you for your kind attention chris@bicg.org PT. Indo Asia Energy Developments CV. Bali Komunika Internasional