M Sc Thesis Project in SEE Dendro Power for Industrial Printing Press at Wijeya Newspapers Ltd. Sri Lanka Piladuwa Parana Hewage Janaka Aruna Rathnakumara Master of Science Thesis KTH School of Industrial Engineering and Management Energy Technology EGI_2016-103 MSC EKV1173 Division of Heat and Power Technology SE- 100 44 Stockholm 2 MW Dendro Power Feasibility Report 1 M Sc Thesis Project in SEE Master of Science Thesis EGI_2016-103 MSC EKV1173 Dendro Power for Industrial Print- ing Press at Wijeya Newspapers Ltd. Sri Lanka Piladuwa Parana Hewage Janaka Aruna Rathnakumara Approved Date: Examiner: Supervisor: December 21st, 2016 Assist. professor Peter Hagström Assist. professor Peter Hagström Dr. N.S. Senanayake Eng. Ruchira Abeyweera Commissioner: Contact person: Piladuwa Parana Hewage Janaka Aruna Rathnakumara 2 MW Dendro Power Feasibility Report 2 M Sc Thesis Project in SEE Abstract Wijeya Newspapers Limited (WNL) is one of the leading newspaper and magazine publish- ers in Sri Lanka. The company has their main factory (printing plant) located at Hokandara which is 15 km from Colombo City. Total power requirement of the factory is 3000 kVA (2.4 MW) and the Company’s annual energy demand is 3.8 GWh which is currently sup- plied by the Ceylon Electricity Board (CEB). As a strategy of the higher management, the company is moving in to renewable power generation projects such as biomass, solar and wind energy in addition to their existing energy conservation and management practices in the factory. In order to fulfil the vision of WNL, a 2 MW alternative green and clean bio- mass energy generation facility is going to be installed as the first pilot energy project of the company. The Proposed biomass power plant site will be on the company’s own coconut plantation site and is to be within 15 to 20 km of the main electric substation in the North Western province. The goals of WNL are to develop economically viable energy produc- tion facilities using readily available renewable biomass fuel sources at an acceptable cost per kilowatt hour, to use green and clean energy in their printing operations and provide new revenue generation for their business portfolios. The Biomass power project (Dendro) will provide needed green energy supply system to their printing operations and additional revenue while providing energy in an environmentally sound manner. In addition to help- ing meet the company goals, the project will help reduce dependency on imported non- renewable energy sources in the country. In this backdrop, this research is conducted to as- sess the present situation of Dendro power generation and its applications in Sri Lanka and to evaluate the feasibility of utilizing Dendro power to meet the power requirement of the printing industry. This study concludes that Dendro power generation for the operations at WNL is economically and technically feasible and that the optimum plant capacity for this biomass fuel based electricity generating plant would be 2-5 MW. It was also revealed that there is good social acceptability for biomass based electricity generation in the local com- munity. As recommendations, the study proposes that the government takes action to inte- grate renewable energy in the national electricity generation plan. 2 MW Dendro Power Feasibility Report 3 M Sc Thesis Project in SEE Sammanfattning Wijeya Newspapers Limited (WNL) är en av de ledande tidnings- och tidskriftsförlagen på Sri Lanka. Företaget har sin huvudfabrik (tryckeri) i Hokandara, 15 km från Colombo City. Totalt effektbehov för fabriken är 3000 kVA (2,4 MW) och bolagets årliga energibehov är 3,8 GWh, som för närvarande tillhandahålls av Ceylon Electricity Board (CEB). Som en strategi av den högre ledningen genomför företaget projekt rörande förnybar elproduktion, såsom bioenergi, sol- och vindenergi utöver sin befintliga energitillförsel och energianvändning i fabriken. För att uppfylla WNL:s vision om 2 MW alternativ grön och ren energiproduktion skall en biomassabaserad anläggning installeras som det första pilotenergiprojektet i företaget. Det föreslagna området för detta kraftverk kommer att vara på det egna kokosplantaget, och kommer att förse den nordvästra provinsen med elektricitet inom en radie av 15 – 20 km. Målet för WNL är att utveckla ekonomiskt bärkraftiga energianläggningar som använder lättillgängliga förnybara biomassbränslen till en acceptabel kostnad per kilowattimme, att använda grön och ren energi i sin tryckeriverksamhet och att ge ny intäktsgenerering för sina affärsportföljer. Biomassa- kraftprojektet (Dendro) kommer att generera ett grönt energiförsörjningssystem till sin tryckeriverksamhet och samtidigt skapa extra intäkter. Förutom att bidra till att uppfylla företagets mål kommer projektet att bidra till att minska beroendet av importerade icke- förnybara energikällor i landet. Mot denna bakgrund utförs denna forskning för att bedöma den nuvarande situationen för Dendros kraftproduktion och dess tillämpningar i Sri Lanka och att utvärdera möjligheten att utnyttja Dendros makt för att möta effektbehovet från den grafiska industrin. Denna studie drar slutsatsen att Dendros kraftgenerering för verksamheten vid WNL är ekonomiskt och tekniskt genomförbart och att den optimala anläggningskapaciteten för biobränslebaserade kraftverk skulle vara 2-5 MW. Det har också visats att det finns god social acceptans för biomassabaserad elproduktion i det lokala samhället. Som en rekommendation föreslår studien att regeringen vidtar åtgärder för att integrera förnybar energi i den nationellaelproduktionsplanen. 2 MW Dendro Power Feasibility Report 4 M Sc Thesis Project in SEE List of Abbreviations ADB Asian Development Bank AFBC Atmospheric Fluidised Bed Combustion ASME American Society of Mechanical Engineers AVR Automatic Voltage Regulator BEASL Biomass Energy Association of Sri Lanka BIG/STIG Biomass Integrated Gasification Steam Injected Gas Turbine BIGCC Biomass Integrated Gasification Combined Cycle BOI Board of Investment BSI British Standard Institution CC Carbon Credit CDM Clean Development Mechanism CEB Ceylon Electricity Board CER Certified Emission Reduction CRI Coconut Research Institute DOE Department of Energy EIRR Economic Internal Rate of Return ENPV Economic Net Present Value EU European Union FBC Fluidised Bed Combustion FIRR Financial Internal Rate of Return FNPV Financial Net Present Value GDP Gross Domestic Product GHG Greenhouse Gas GWh Giga Watt hour ha Hectare IAPL Informatics Agrotech (Pvt) Ltd IC Internal Combustion IMF International Monetary Fund IOS International Standard Organization IPP Independent Power Producers kV kilo Volt kW kilo Watt MASL Mahaweli Authority of Sri Lanka MOST Ministry Of Science and Technology MPE Ministry of Power and Energy MV Medium Voltage MW Mega Watt MWh Mega Watt hour GWh Giga Watt hour NGO Non-Government Organisation NPV Net Present Value 2 MW Dendro Power Feasibility Report 5 M Sc Thesis Project in SEE OPEC Organization of Petroleum Exporting Countries PV Photo Voltaic RERED Renewable Energy for Rural Economic Development SLR Sri Lankan Rupee SPPA Small Power Purchase Agreement SRC Short Rotation Coppice T Tonne (1000 kg) UNFCCC United Nations Framework Convention for Climate Change USD United States’ Dollars 2 MW Dendro Power Feasibility Report 6 M Sc Thesis Project in SEE Table of Content 1 Introduction .......................................................................................................... 9 1.1 General Overview .........................................................................................................................9 1.2 Wijeya Newspapers Ltd. ..............................................................................................................9 1.3 Problem Statement .................................................................................................................... 10 1.4 Objectives .................................................................................................................................. 10 1.5 Methodology .............................................................................................................................. 10 1.6 Significance of the Study ............................................................................................................ 11 2 Literature Survey ................................................................................................. 12 2.1 Dendro / Biomass Energy ........................................................................................................ 12 2.1.1 Dendro Power ........................................................................................................................... 12 2.1.2 Dendro/Biomass Power Generation Technologies ................................................................... 12 2.1.3 Conclusions of the Technology ................................................................................................. 20 2.1.4 Dendro Power in the world Scenario ........................................................................................ 21 2.2 Dendro Plantation in Sri Lanka .............................................................................................. 23 2.2.1 Availability of Land for Bio Mass Plantation ............................................................................. 23 2.2.2 Climate Condition for Gliricidia Sepium .................................................................................... 24 2.2.3 Cost of biomass fuel .................................................................................................................