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Executive Summary EXECUTIVE SUMMARY UNIDO is implementing a project under GEF-4 cycle entitled “Mini-Grid Based Renewable Energy (RE) Biomass sources to Augment Rural Electrification in Nigeria”. Previous feasibility studies identified nine Local Government Areas (LGAs) in Ondo and Ogun states with large potential for power generation utilizing biomass waste from saw-mills. UNIDO engaged an International Biomass Expert to develop business proposals for the identified LGAs. Under this project, business proposals are developed for wood waste based biomass power plant in eight identified clusters. Abeokuta North and South LGAs are considered as one cluster in this business plan report. Table A provides the summary cluster characteristics from the nine LGAs. Table A: Cluster characteristics No. Characteristics Abeokuta Abeokuta Ijebu Ode Ijebu Akure North Akure South Idanre Odigbo Owo North South North 1. Age of the sawmills (years) 8 - 40 1 -40 1 – 40 1 – 40 1 – 30 1 – 30 1 – 30 1 – 30 1 – 30 15 19 63 41 36 88 26 44 52 2. No. of sawmills 15 18 63 41 36 88 26 44 52 3. No. of diesel generators (service + back-up) 50 – 250 50 – 150 60 – 150 60 – 250 85 – 250 85 – 250 85 – 250 85 – 250 85 – 250 4. Capacity of diesel generator (min- max) (kW) 1.5 – 25 1 – 25 1 – 25 1 – 25 1 – 20 1 – 20 1 – 20 1 – 25 1 – 20 5. Age of diesel generators (years) 60 60 60 60 60 60 6. Diesel consumption of 60 60 70% of power is generator for 10-hour non- available daily continuous operation with from grid on one band saw and 1 circular average (not saw (litre) consistent). Remaining hours Diesel generator is used with 2 hours break in between. No. Characteristics Abeokuta Abeokuta Ijebu Ode Ijebu Akure North Akure South Idanre Odigbo Owo North South North Average wood waste sale 1,600 1,600 1,600 7. 2,000 2,000 1,600 1,600 2,000 2,000 price/ton Naira/ton Naira/ton Naira/ton Naira/ton Naira/ton Naira/ton Naira/ton Naira/ton Naira/ton 8. Current pattern of energy use No grid No grid Sawmills The saw Sawmills are Sawmills are 20% of No grid 30% of power. power. are mills are connected to connected to power is power. power is connected connected grid. Grid power grid. Grid power available available 10 hours of 10 hours 10 hours of to grid. to grid. is available for 6 is available for 2- daily from daily from Diesel of Diesel Diesel Grid power Grid hours a day. 3 hours a day. grid on grid on generator generator generator is available power is Remaining time Remaining time average average (not use with use with use with 2 for 2 to 3 available diesel generator diesel generator (not consistent). 2 hours 2 hours hours break hours a for 2 -3 is used. is used. consistent). Remaining break in break in in between day. hours a Remaining hours diesel between between Remaining day. hours generator is time diesel Remaining Diesel used with 2 generator time generator hours break is used. diesel is used in between. generator with 2 is used. hours break in between. Above 135 Above 135 115 Above 135 105 9. Weighted average cost Above 107 Above 107 66 105 of electricity (Naira/kWh) 50 10 10 30 10 11. No. of wood working units in 25 10 30 40 the cluster The waste generated from each sawmill was estimated through the average log processing capacity of each sawmills. The waste generated includes sawdust, wood off cuts, wood barks, plain shavings, wood rejects, etc. The summary of all wastes – wood waste, slabs, sawdust that are available for power generation is provided in Table B. Table B: Total waste available for power generation from sawmills Waste type Abeokuta North & South Ijebu Ode Ijebu North Akure North Akure South Idanre Odigbo Owo Quantity available for power generation (ton) Wood waste 11,722 27,797 20,375 20,181 64,348 9,730 28,098 23,497 Sawdust 9,890 23,454 17,192 17,028 54,294 8,210 23,708 19,826 Slabs 6,593 15,636 11,461 11,352 35,828 5,473 15,805 13,217 Total 28,205 66,886 49,028 48,561 154,470 23,413 67,611 56,541 At present sawdust is burned and some part of the wood waste is used in bakery and other commercial enterprises for heating applications. However, the government is planning to introduce LPG and other clean cooking fuel for cooking application. Once the clean cooking fuels usage is adopted, the current use of wood waste in such cooking practice will be significantly reduced. The electricity demand in the different clusters is due to the presence of circular saws, band saws, auxiliary loads and the wood working factories. The electricity demand in different clusters is given in Table C. Table C: Total and actual electricity demand in the clusters No. Cluster Total demand (kW) Actual demand (kW) 1. Abeokuta North 615 492 No. Cluster Total demand (kW) Actual demand (kW) 2. Abeokuta South 779 623 Sub-Total 1,394 1,115 3. Ijebu Ode 3,800 3,040 4. Ijebu North 2,656 2,124 5. Akure North 2,481 1,985 6. Akure South 6,690 5,352 7. Idanre 1,017 815 8. Odigbo 4,528 3,622 9. Owo 3,826 3,061 A minimum of 2 MW a n d m a x i m u m o f 1 0 MW power plant size is considered for implementation, based on the fuel availability in the LGAs and the load demand available in each cluster. The quantity of estimated annual wood waste generated from each cluster exceeds the power plant requirement for, ensuring the fuel security for the continuous operation of the power plant for each cluster. Apart from this, around 10% of the fuel requirements can be from other biomass residues such as forest logging wastes, cassava rhizome, palm tree trunks, palm shell, rice straw, etc. The wood wastes available from sawmills from other LGAs in the state also can be utilized for the power plant. These possibilities of other biomass fuel availability for power plant usage can be studied in detail during power plant implementation. Gasification and steam thermal technologies were considered for power plant. Gasification technology has not been successful for sawdust fuel and to certain extent for other wood wastes as well. Steam thermal technology is proven one for such biomass power generation for more than 100 years. Hence, steam thermal technology is chosen for this project. The technical parameters for steam thermal system are summarized in Table D. Table D: Technical summary of the 2 MW steam thermal power plant Parameter Abeokuta Ijebu Ode Ijebu North Akure North Akure South Idanre Odigbo Owo North & South Gross power generation, MW 2 5 5 5 10 2 5 5 Parasitic load,% 12 10 10 10 8 12 10 10 Capacity utilization factor, % 95 95 95 95 95 95 95 95 Net power generation, MW 1.760 4.5 4.5 4.5 9.20 1.760 4.5 4.5 Transmission loss, % 5 5 5 5 5 5 5 5 Net power available for sales, 1.672 4.275 4.275 4.275 8.74 1.672 4.275 4.275 MW LHV of fuel, MJ/kg 12 12 12 12 12 12 12 12 Annual operating hours 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Fuel required per hour, tons 3.5 8.75 8.75 8.75 17.5 3.5 8.75 8.75 Fuel required per year, tons 26,600 66,500 66,500 66,500 133,000 26,600 66,500 66,500 Water required, m3/hr 12 30 30 30 60 12 30 30 Land required, acres 10 25 25 25 40 10 25 25 Man-power requirement, 40 45 45 45 50 40 45 45 numbers The power plants may be located near each LGA sawmill cluster. The state governments can provide land for the power plant site as its contribution to this project. For Nigerian conditions, EPC approach is the most recommended one. The project can follow international practice/rules in EPC selection and contracting. This would also ensure plant construction and commissioning activities in compliance with international standards. The summary of electricity off-take from the power plant is provided in Table E. Table E: Electricity off-take from power plant Parameters Unit Abeokuta Ijebu Ode Ijebu North Akure Akure Idanre Odigbo Owo North & South North South Gross electricity MW 2 5 5 5 10 2 5 5 generation MWh/y 15,200 38,000 38,000 38,000 76,000 15,200 38,000 38,000 Parasitic load & MW 0.328 0.725 0.725 0.725 1.26 0.328 0.725 0.725 transmission losses MWh/y 2,493 5,510 5,510 5,510 9,576 2,493 5,510 5,510 Net power available for MW 1.672 4.275 4.275 4.275 8.74 1.672 4.275 4.275 sales MWh/y 12,707 32,490 32,490 32,490 66,424 12,707 32,490 32,490 The existing electricity generation cost of different consumers using diesel generators and grid power can also be taken into account in fixing the sale price of electricity. This price varies from 70 Naira/kWh to 135 Naira/kWh. The short description of such electricity costs is provided in the main report.
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