2. Sustainable Indigenous Energy for Tea Industry in Sri Lanka L P Jayasinghe Bio Energy Association of Sri Lanka

3. Sri Lanka Energy Mix

6. Total Energy Consumption 7.1 kWh/kg of MT 100% Electrical 0.75 kWh/kg of MT 15% [1] Potential Optimum 0.23 kWh/kg [4] Thermal 21700 kJ/kg of MT - 85% Potential Optimum ??? Energy Needs for Tea Production in Sri Lanka

9. Options for Energy Savings Improvement of Efficiency of usage – Potential national savings Rs 400 Million per year Improvement of Efficiency of usage – Potential national savings Rs 400 Million per year Fuel switching – 50% saving in fuel wood or > Rs 10/kg MT by oil to wood changeover Fuel switching – 50% saving in fuel wood or > Rs 10/kg MT by oil to wood changeover

10. Efficiency Improvements Withering fans the prime candidate – 40% saving in electricity by VSDs Withering fans the prime candidate – 40% saving in electricity by VSDs Dryers – improved combustion Dryers – improved combustion –Better heat exchangers - current 20- 40% to 65% - –Switching to SRC wood from logs – 50% reduction in wood consumption

11. Concerns & Barriers High cost of funds and lack of credit High cost of funds and lack of credit Perception that the tea quality will suffer Perception that the tea quality will suffer Inadequate appreciation of the potential Inadequate appreciation of the potential Lack of dissemination of considerable available information Lack of dissemination of considerable available information

12. Quality !!! & Consistency of Quality !!! is possible only through measurement and control

13. Alternate Energy Sources Grow you own fuel and fertilizer Grow you own fuel and fertilizer Use fuel at optimum size and moisture content for better combustion efficiency Use fuel at optimum size and moisture content for better combustion efficiency Use combined heat and power option and maximize waste heat usage Use combined heat and power option and maximize waste heat usage

14. CHP Options

16. Energy for Additional Revenue ! Using Steam Turbine Technology Using Steam Turbine Technology Minimum capacity 500 kW Water Cooled or Air Cooled options Minimum capacity 500 kW Water Cooled or Air Cooled options Grid Connection needed for export of power Grid Connection needed for export of power Using own fuel wood plantations Using own fuel wood plantations Foliage and added benefit Foliage and added benefit Carbon Credits Carbon Credits

18. Steam Turbine Generator 300 kW

20. Carbon Credits Potential CO2 Equivalent of 500 kw – 3000 Tons CO2 Equivalent of 500 kw – 3000 Tons Current CER Prices – $10-15 per Ton Current CER Prices – $10-15 per Ton Potential revenue per factory - $ 30,000/yr Potential revenue per factory - $ 30,000/yr The CERS from thermal energy not included The CERS from thermal energy not included National potential > $ 15,000,000 National potential > $ 15,000,000

21. Barriers to Overcome Funding for the capital expenditure Funding for the capital expenditure Generation of adequate energy plantations Generation of adequate energy plantations Grid connection issues Grid connection issues Bundling to get full benefits of Carbon Credits Bundling to get full benefits of Carbon Credits Lack of appreciation of true potential Lack of appreciation of true potential

22. 500 kW Dendro Plant with Grid Connection Equity40,376,000 Loans60,564,000 Income54,970,200 Costs before interest 21,730,000 Profit after Interest before Tax 23,307,704 Capital Employed 100,940,000 ROC (Return On Capital) 33% ROSE58% Tax at 30% 6,992,311 Profit after Interest and Tax 16,315,393 IRR IRR13% Payback Period (Yrs) 3.0 Cost of wood /kg dry 1,000.00 Interest rate 0.16 O D Rate 0.20 Capital Cost US$/KW 1,750.00 Tariff Rs /KWh 12.06 No of days Run/Yr 330 330 Wood Consumption kg/kWh 1.80 1.80 Operating Parameters Carbon Revenue not included

23. Re-Greening Sri Lanka

24. Money Does Grow On Trees Bio Energy Association of Sri Lanka 465/1 Sunethradevi Road Pepiliyana Sri Lanka Tel + 94 11 2812373, Email bioenergy@sltnet.lkbioenergy@sltnet.lk www.bioenergysrilanka.com