A Case Study on a Rice Husk Cogeneration Power Plant Capacity Development for the Clean Development Mechanism 26-27 March 2003 Sunway Hotel, Phnom Penh, Cambodia Mila J. Jude Cogen 3 Country Coordinator

A Case Study on a Rice Husk Cogeneration Power Plant Presentation Outline Cogen3 Programme Cogeneration: How Does It Work? Angkor Prosperous Rice Mill Environmental and Economic Benefits Conclusion

Cogen 3 Programme is the third phase of the European Commission (EC)-ASEAN cooperation programme promotes the implementation of Proven, Clean and Efficient Biomass, Coal and Gas cogeneration projects by facilitating business partnerships between EU suppliers and ASEAN industries The Full-Scale Demonstration Project (FSDP) – a grant of 15% of the cost of the equipment will be given to a project that qualifies as FSDP. An FSDP is a showcase in ASEAN aiming to convince other potential end-users to select the appropriate technology in order to replicate successes. Country Coordinators in: Cambodia, Thailand, Malaysia, Vietnam, Philippines, Indonesia and Singapore Cambodia Team email: cambodia@cogen3.net

Cogeneration Cogeneration (Combined Heat and Power or CHP) is the simultaneous production of electricity and heat, both of which are used.

Existing FSDP (Implemented between 1991-1998) High Tech Paper Co. 600kW Ban Heng Bee Rice Mill – 450 kW Chia Meng RiceMill2.5MW Homet Raya Sdn. Bhd. 1.65 MW (woodwaste) Kilang Sawit Palm Oil 1.2MW PT Plywood 3.2 MW IB Timber 1.5MW

Angkor Rice Mill website: www.angkorrice.com

Location Map of Angkor Rice Mill

Angkor Rice Mill

The rich, fertile soil of Central Cambodia provides optimal environment for growing Neang Malis rice

Angkor Rice’s carefully selected planting area is in four provinces in Central Cambodia: Kandal, Kampong Speu, Takeo and Kampot

A farmer transplanting seedlings

The region’s (central Cambodia) naturally fertile and sandy soil enables farmers to grow Angkor Rice’s premium-quality Neang Malis rice in a traditional way without chemicals.

More than 25,000 families are Angkor Rice’s members and growing Neang Malis rice. There are no middlemen. Angkor Rice sets a high standard. The Agriculture Division distributes high quality seeds and instructs the farmers in planting rice.

Products of Angkor Rice: 100% Neang Malis

Proposed Rice Husk-Fired Cogeneration Power Plant Angkor Rice Mill Steam turbine system with 1 MW electric capacity Present capacity of the mill is 10 tons/hour. Proposed expansion of another 10 tons/hour Rice husk will be used as fuel Two scenarios: steam has no value steam has value equal to 50% of the cost for steam generation in a boiler using fuel oil Excess Electricity exported to other customers Utilization of heat for drying

Proposed Rice Husk-Fired Cogeneration Power Plant Angkor Rice Mill Scenario: Steam has no value Total Investment Cost including contingency: 1.5 million euro Net Present Value: 3.1257 million euro IRR: 49.7% Discounted Payback Time: 2.3 years Cogeneration Project Lifetime: 20 years

Proposed Rice Husk-Fired Cogeneration Power Plant Angkor Rice Mill Scenario: Steam has value equal to 50% of fuel oil cost Total Investment Cost including contingency: 1.5 million euro Net Present Value: 4.659 million euro IRR: 64.4% Discounted Payback Time: 1.6 years Cogeneration Project Lifetime: 20 years

Cogen3 Pre-evaluation and Recommendations Project seems feasible Further investigations are recommended, concerning: detailed design (electricity capacity of steam turbine, utilization of capacity) necessary investment real value of steam (benefits of drying using steam) necessary investment in drying process necessary investment in electricity distribution grid all issues, (especially government regulations) related to selling of electricity to other parties Requires a full feasibility study and investigation

Benefits of the Rice-Husk Cogeneration Power Plant Environmental Benefits Less pollution Uses rice husk, which is considered an agricultural waste Economic Benefits Savings (electricity production) Income generating (selling excess electricity, ash sales) Generates job Saves on fuel, no foreign currency needed

Opportunities in Cambodia Biomass – opportunities in rice mill, rubber processing plants, palm oil refinery Gas – gas supply in Cambodia is in the exploratory stage. If gas is available, there will be opportunities in Buildings (hotels, restaurants, hospitals, schools, offices, supermarkets,etc.) and Industries (cement, pharmaceuticals, garments)

For more information, please visit COGEN 3 Website at: http://www.cogen3.net Thank You !