B80m for biogas project

[KoratCat]

B80m for biogas projects

Writer: YUTHANA PRAIWAN
Published: 17/08/2009 at 12:00 AM
Newspaper section: Business

The Energy Ministry has earmarked 80 million baht to invest in building biogas projects in 10 municipalities, according to Energy Minister Wannarat Channukul.

The ministry is following up on the success of pilot projects in five municipalities, in collaboration with the local administrations and universities, to build biogas plants that use methane from sludge and waste.

The pilot projects started in 2006 and have resulted in better waste management in communities as well as electricity cost savings. "Not only are the municipalities managing waste better, they also can produce fertilisers and use methane as a cooking gas in the community," Mr Wannarat said.

The selected municipalities produce 24,000 tonnes of waste per year out of a national total of 14 million. About 74% of the waste in the target municipalities goes to recycling plants or incinerators and the rest to landfills.

The 10 municipalities are expected to produce 635,100 cubic metres of biogas per year, equivalent to 300 tonnes of liquefied petroleum gas, with carbon emissions cut to 5,700 tonnes.

Local administrations will provide the sites and workers. Bids will be called for contractors by the end of this year and operations should start 12 to 18 months afterward.

The selected municipalities include Sam Ngam in Nakhon Pathom, Kok Kroud and Phimai in Nakhon Ratchasima, Wang Kapi in Uttaradit, Yan Ta Koa in Trang, Klang in Rayong, Isan in Buri Ram, Dej Udom in Ubon Ratchathani, Ban Klang in Lamphun and Singha Nakorn in Songkhla.

Bangkok Post Aug 17, 2009

[KoratCat]

Biomass, biogas adders could rise

Producers complain of higher fuel costs

The Energy Ministry may increase the so-called adder tariff rate for biomass and biogas power producers to ease the impact of more expensive fuel.

Energy Minister Wannarat Channukul said small power producers using renewable energy sources had filed several complaints over the higher costs of fuel.

"So we have to conduct a study to seek appropriate measures to help SPPs and VSPPs [very small power producers] who have developed power plants using biomass and biogas," he said yesterday.

The adder tariff is a payment above normal market rates made by the government for electricity from renewable resources in order to encourage investment in green energy.

"Many operators who use agricultural wastes to produce power - such as waste from paddy rice, rubber, palm oil and cane - face this problem. Prices for some types of material have jumped more than 10 times in recent years," said Mr Wannarat.

Jay Saraff, managing director of the Saraff Group, said the adder tariff needed to more than double to 0.70 baht per kilowatt/hour (unit) from the current 0.30 baht to cover the rise in costs.

"Our key fuels - palm fruit shell and fibre - are skyrocketing to 2,000 baht a tonne from only 500 baht in 2006," said Mr Saraff.

But these waste products have gained value mainly due to the fast development in alternative and renewable fuels in line with the surge in oil prices.

Since oil prices began rising quickly in 2008, business operators have shifted to renewable and alternative fuels, said Mr Wannarat.

"Saraff now cannot seek long-term purchasing contracts from palm-oil crushers in Krabi since the crushers are also using their own waste to produce other alternative fuels," said Mr Saraff.

"When we cannot find long-term contract purchasing of fuel, banks will also be reluctant to approve loans to us or they will require a higher interest rate as they see us as high risk."

He also called for government investment in human resources. The sector has no training courses although the business is expanding, he said.

Saraff's 96-million-baht second phase biogas power plant in Krabi will be ready to operate by March, with a capacity of 17,850 cubic metres per day for methane and power of 1.26 megawatts. The 700-million-baht first phase, producing 12 MW fuelled by biomass, started operating in December 2006.

In a related development, the Electricity Generating Authority of Thailand has said that other alternative energy sources will become essential if planned nuclear plants are delayed.

Under the existing power development plan, Egat is to build two nuclear power plants, each with a capacity of 1,000 MW, to begin operating in 2021 and 2022 at a cost of 70 billion to 87 billion baht per site.

Five potential locations have been selected in Trat, Nakhon Sawan, Nakhon Ratchasima and Surat Thani, and a final decision will be made in May, said Chavalit Pichalai, the deputy director-general of the Energy Policy and Planning Office.

Bangkok Post