Cogeneration in Southeast Asia


The COGEN Programme is an economic cooperation programme between the European Commission (EC) and the Association of South-East Asian Nations (ASEAN). The aim of the programme is to accelerate the implementation of proven technologies generating heat and/or power from wood and agro-industrial residues through partnerships between European and Southeast Asian companies.

THE COGEN PROGRAMME is coordinated by the Asian Institute of Technology (AIT) in Bangkok, Thailand, and is currently involved in the implementation of over US$100 million worth of European or Euro-ASEAN biomass energy equipment in the ASEAN region.

According to Vijay Mehta of the National Science and Technology Board (NSTB) of Singapore, "Asia accounts for 30 per cent of the world's agricultural land. Two-thirds of the population in Asia depend on agriculture for their living. ASEAN countries therefore have a significant energy resource in agro-residues, which can be converted into energy to meet the growing demand for electricity."

But the potential has yet to be realized. Chong Chok Ngee of the Standards and Industrial Research Institute of Malaysia (SIRIM) comments that "a huge amount of agro-residues such as wood wastes, rice husks, palm oil residues etc are generated annually. This, in fact, is a very large energy resource which could be tapped efficiently and utilized in an environmentally friendly manner using current technology. However, only a very small proportion of this energy resource is being utilized."

Over the past few years, the COGEN Programme has identified significant potential for the transfer of proven biomass energy technologies and has made available funds for assisting Full-Scale Demonstration Projects. Support has been provided through investment assistance, training and monitoring.

Full Scale Demonstration Projects (FSDPs) are defined as the implementation of a proven technology on a full scale basis in order to demonstrate its technical reliability and economic viability. A FSDP should:

  • produce energy cost savings for the end-user;
  • open up markets for the equipment supplier; and,
  • reduce fossil-fuel dependence and protect the environment.

To qualify as a FSDP, a project must be based on technology that has been proven elsewhere and uses biomass as a fuel, must be replicable and not have a negative impact on the environment. The end-user must allow technical and economic monitoring, dissemination of monitoring results and visits to the installation.

In Sabah, Eastern Malaysia, one project involves the implementation of a 10 MW wood waste-fired power plant, consisting of a boiler coupled to a fully condensing turbine. An efficient wood waste-fired boiler is being installed in a plymill in Indonesia. The boiler will replace two old, inefficient boilers which are unable to generate sufficient steam. A biogas plant is being installed in a rubber factory near Kuala Lumpur, Malaysia. Biogas from waste water will replace oil as the fuel for the thermal oil heaters at the factory.


Boiler

A thermal oil boiler developed by BONO ENERGIA SpA (EC-ASEAN COGEN).


A furnace and boiler system is being installed at a rice milling plant in Chakkaraj, Nakorn Ratchasima, Thailand. Using rice husks to generate power, the new system will provide all the energy needed by the plant as well as excess power to be sold to the grid.

In this case, an initial investment in equipment of US$3,865,000 (excluding civil works and building structures) is expected to result in an annual return of around US$ 1,700,000, with a payback time of less than three years.

The COGEN Programme also provides a range of information services. Strategic business information is disseminated through Southeast Asia and Europe by regular newsletters, press cuttings, sectoral reports and market surveys.

Business opportunities are identified and pursued through a network of local coordinators and a database is used to track and analyse equipment suppliers, potential customers, joint venture partners, relevant government agencies and financing institutions.

A techno-economic model has been developed to analyse the technical and economic feasibility of specific biomass equipment investments. Finally, workshops, seminars and study tours are organized to create awareness amongst ASEAN biomass users and European equipment suppliers.


Further information

Michael Pennington, EC-ASEAN COGEN Programme, Asian Institute of Technology, Outreach Building 301/1, GPO Box 2754, Bangkok 10501, Thailand. Fax: 66-2-5245396.