Professional Documents
Culture Documents
Report
March, 2015
Gas (by way of such means as methane fermentation under anaerobic conditions, and
gasification at high temperature)
Liquid (in such forms as bioethanol through fermentation)
Solid (by way of such means as carbonization under low oxygen conditions)
Bio-coke has a major advantage that it can be stored and combusted in ways different from the
biomass it derives from, thanks to property transformation through these processing processes. It has a
major disadvantage as well: it cannot utilize all the energy the original biomass contained because part
of the carbon is consumed or released in the process of processing the raw material. This disadvantage
has highlighted the need for increased yield.
1
It may be worth adding that bio-coke won the New Energy Foundation’s Director-General Prize of
Agency of Natural Resources and Energy in the new energy category in FY2011, as well as the
Environment Minister’s Award for Global Warming Prevention Activity in FY2012.
2
Table 2: Characteristics of Bio-coke
Bio-coke is best characterized by its high
compressive strength and long combustion time at
high temperature--the two of the properties that have
been difficult to achieve with conventional
technologies of processing biomass into solid fuel,
including pelletization and dry distillation.
It can substitute for
This characteristic has unleashed the potential of
coal-coke (due to its high
Characteristic biomass in areas where it is difficult to put
compressive strength and
1 conventional biomass to good use.
long combustion duration
In fact, various demonstration trials and research
at high temperature)
have been underway in Japan and other countries on
the possibility of bio-coke substituting for coal-coke
in cupola furnaces, blast furnaces, and gasification
and direct melting furnaces.
Its high strength makes bio-coke widely applicable
as a material.
Bio-coke can be produced from almost all kinds of
plant biomass.
Production demonstration trials have shown that
applicable raw materials include used tea leaves,
used ground coffee, rice husk, swine manure, wood
It can use almost all kinds waste (konara oak, cherry tree), sawdust, tree bark,
Characteristic
of biomass as the raw apple peel, banana peel, distillery waste, soymeal,
2
material. and reeds.
It can make use of raw materials that usually have
not been used because they cannot be used with other
biomass utilization technologies as well as residue
from materials that have been used with other
biomass utilization technologies.
All the amount of the raw material that is put into
bio-coke production unit is processed as bio-coke,
meaning that the weight of the input material weight
equals that of the product.
In other words, unlike charcoal, this process of
It can make effective use converting the raw material to solid fuel does not
Characteristic
of all the energy contained release its volatile components such as methane,
3
in the raw material. leaving all the energy contained in it in the bio-coke
produced.
In addition, the fact that the input raw material is all
converted to the product means that bio-coke is a
zero-emission fuel that does not generate byproducts
in the production process.
Source: Compiled by MHIR from various sources.
3
With its ability to utilize lignin, bio-coke can make use of raw materials that usually have not been
used because they cannot be used with other biomass utilization technologies as well as residue from
materials that have been used with other biomass utilization technologies.
Production demonstration trials have shown that applicable raw materials include used tea leaves, used
ground coffee, rice husks, swine manure, wood waste (konara oak, cherry tree), sawdust, tree bark,
apple peel, banana peel, distillery waste, soymeal, and reeds.
Figure 2: Some Kinds of Biomass That Have been Used for the Raw Material
Source: Kinki University
Because it is produced at a temperature lower than the gasification temperature range, bio-coke can
utilize the volatile biomass components that cannot be put to good use in the case of charcoal.
No residue in the production process is another characteristic of bio-coke since all the raw material is
converted to bio-coke, as shown by its nearly 100% yield on a weight basis.
4
Used tea
leaves
Carbonization temperature
Gasification temperature
range
range
Temperature [K]
Figure 3: The Temperature Range Where Bio-coke Can be Produced (for Used Tea Leaves)
Source: Kinki University
The high strength of bio-coke comes from two factors. One is high density as a result of physical
compression (20 MPa). The other is the structural change in which, as a result of heating, pyrolyzed
hemicellulose serves as an adhesive and lignin is cross-linked.
Because of its high density as a result of compression, bio-coke burns steadily for an extended period
of time. The cross-linked structure of lignin allows bio-coke to continue to burn within a high
temperature range of 1,300-1,500 deg C.
5
Figure 5: Carbonization Degree and Strength of Fuels
Source: Kinki University
These features point to the high potential of bio-coke as a substitute for coal-coke. Property
comparison among different types of coke is shown below:
Note that bio-coke is different from wood pellets though the two are often mixed up. The former is the
product of a chemical reaction induced by simultaneous compression and heating, while the latter is
the product of physical compression of biomass. The difference in the production process translates
into significant differences in strength, combustion temperature range, and combustion time between
bio-coke and biomass pellets. Comparison between bio-coke and conventional solid fuels is shown
below:
6
Table 4: Comparison between Bio-coke and Conventional Solid Fuels
Criteria Bio-coke Wood pellets Wood chips
Ignitability Low High High
Combustion
1,300-1,500 deg C 410 deg C
temperature 600-800 deg C
(In a melting furnace) (In a stove)
range
Combustion time Long Short Short
Clinker
Almost none Much Much
generations
Bio-coke is used in the context of putting locally-generated biomass to good use as well. In some cases,
bio-coke is produced from municipal solid waste (MSW) and fallen leaves from roadside trees for
road heating in cold climate areas. In other cases, bio-coke is produced from agricultural residues such
as rice husks, vegetable scraps, and used mushroom beds for greenhouse heating.
Demonstration trials on bio-coke production have also been conducted in many places. A case in point
is the project in Malaysia that has been conducted since 2013 jointly by Kinki University and Osaka
Gas Engineering Co., Ltd. under the Next Generation Technology Transfer Program (NexTEP) of the
Japan Science and Technology Agency (JST). In this project, bio-coke is made from the shells of oil
palm kernels from which oil has been extracted. This project is to explore the possibility of
mass-producing such bio-coke and export it to Japan.
7
2013 Naniwa Roki Co., Ltd. performed demonstration trials of bio-coke as a heat
source for cupola furnaces as part of the project it conducted under contract to
the Ministry of Economy, Trade and Industry (METI), which is known as the
“technical cooperation project concerning the technical application of bio-coke
that is consistent with the industrial policy of the Ministry of Industry of
Thailand.”
August 2013 As part of the Japan International Cooperation Agency (JICA)’s Preparatory
Surveys for BOP Business Promotion, demonstration trials were performed in
Laos in which sawdust from sawmills was used for the raw material of bio-coke.
March 2014 Kinki University and Osaka Gas Engineering Co., Ltd. launched a pilot project
to produce bio-coke from palm trees in Malaysia under the JST’s Next
Generation Technology Transfer Program (NexTEP).
Source: Compiled by MHIR from press releases from Kinki University.
This fully-automatic processing plant includes a crusher and dryer for the raw materials and 36
bio-coke molders. It started operations in June 2011. Now the plant manufactures about 1,800 tons of
bio-coke a year.
Raw Storage
material
(Chips) Finished
product
8
[Photos] Above: Plant exterior, Below: Plant interior,
Upper right: Conveyor carrying the ground raw
material to the dryer, Middle right: Upper part of the
reactors (cylinder), Lower right: Middle part of the
reactors (cylinder)
<Thailand>
A bio-coke production unit is also seen in the campus of the Thai-Nichi Institute of Technology in
Thailand, with which Kinki University has signed a memorandum of understanding (MOU) on
academic exchange and cooperation. This unit was installed in December 2013 as part of the
“technical cooperation project concerning the technical application of bio-coke that is consistent with
the industrial policy of the Ministry of Industry of Thailand” under METI’s trade and investment
promotion program for FY2013. The unit is an upgraded version of the Takatsuki Bio-coke Processing
Plant of the Osaka Prefecture Forest Owners Association. (This is a single unit as it is for research
purposes only.)
9
Figure 8: The Bio-coke Production Unit in Thailand
Source: MHIR
<Malaysia>
In July 2014, a bio-coke pilot plant was installed in Malaysia. This plant, made up of a few upgraded
production units like the one in Thailand, is designed to produce sample bio-coke on a trial basis for
about two years. If it proves successful, the plant will be developed into a commercial plant for
full-fledged commercial production with a view to mass-producing bio-coke, especially for melting
furnaces in Japan.
10
<Casting>
Casting refers to the process of producing the intended product by pouring melted metal into a mold
with specific dimensions and taking it out from the mold after it is solidified. Applicable metals
include pig iron and aluminum alloys. Pig iron castings account for the majority of casting products on
a production volume basis. Pig iron castings constitute important Sokeizai [formed and fabricated
materials such as castings and forgings] in the machine industry; they are used as key parts of
automobiles and industrial machinery. At a foundry, bare metals (iron scraps generated in-house or in
press shops) are melted in a melting furnace at a temperature of approximately 1,500 deg C. A melting
furnace can be a cupola furnace (explained later), which primarily uses coal-coke for the heat source
or an induction furnace (electric furnace).
Bio-coke can substitute for coal-coke as the heat source for cupola furnaces. Theoretically, it can
completely replace coal-coke. Demonstration trials conducted by Kinki University have shown that up
to 20% of the coal-coke can be replaced on a calorie basis without a major problem. The trials tested
up to 30% replacement. The substitutability of bio-coke for coal-coke in the melting process for
casting has been corroborated by separate trials that a Thai foundry conducted in 2013 in cooperation
with the Thai-Nichi Institute of Technology, with which Kinki University had signed an MOU on
academic exchange and cooperation. Thailand is the target country for this study.
Demonstration trials have also been performed on the use of bio-coke as a recarburiser in induction
furnaces. A recarburiser is a carbon substance added to the molten iron in order to increase the carbon
content of the product. A recarburiser is essential in the casting process in which steel scraps were
melted. Demonstration trials by Kinki University’s Research Institute of Bio-coke have shown that
bio-coke can serve as a recarburiser in such a process. 1
<Forging>
Forging refers to the process of plastically deforming the metal material into a given shape with given
dimensions by compressing it with a machine or tool. The products of this process, that is, forgings
outstrip castings, sinters and sheet-metal products in terms of toughness and reliability. They are often
used as key parts that support the safety of the finished product. Forgings come in many forms, which
are largely divided into open die forgings and closed die forgings, depending on how the flow of the
material is bound with a die. Steel forging includes hot forging at a temperature of 1,000-1,200 deg C,
cold forging at room temperature, and warm forging at a temperature between, that is, 600-850 deg C.
Today, the mainstream hot source for heating furnaces is electricity or gas. In the past, however,
coal-coke was widely used for this purpose. Some forges still use coal-coke. Kinki University’s
Research Institute of Bio-coke has demonstrated that bio-coke can substitute for coal-coke at such
forges.
In this way, bio-coke has proved to be applicable to various uses in Japan and other countries. At the
moment, bio-coke can replace only a fraction of such coal-coke. This is due in part to the differences
in combustion properties in terms of temperature and other factors between bio-coke and coal-coke,
which in turn will not allow furnaces designed for conventional coal-coke to completely replace it
with bio-coke.
1
Tomita, Yoshihiro, “Koshuha Yudo Yokairo wo Mochiita Chuzo ni okeru Mareshia-san Yashi Baiokokusu no Katansei no
Hyoka [evaluation of the recarburising property of bio-coke produced from palm trees in Malaysia in the casting process
using a high frequency induction melting furnace]”
11
It is deemed theoretically possible to use bio-coke in industrial processes where coal-coke is used in
large quantities as well, including the process involving a blast furnace in the steel industry, although
demonstration trials have yet to be conducted for such processes.
There should be many other industrial processes for which bio-coke has not been even tried due to its
limited availability. The new fuel is not yet mass-produced after all. This suggests that bio-coke has
vast potential for such industrial processes.
12
2. Feasibility of Manufacturing and Sales of Bio-coke in Thailand
A look at the changes in imports of coal-coke in recent years shows a quadruple increase from 53,000
tons in 2008 to 209,000 tons in 2010, followed by a sharp drop to 36,000 tons in 2012, the lowest level
in 10 years. Coal-coke imports edged up to 39,000 tons in 2013.
250,000 (トン)
(In tons)
208,729
200,000
150,000
117,544
108,164
100,000
66,385 70,958 66,317
53,672 52,593
50,000 36,019 39,090
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
A comparison in imports of coal-coke in 2013 with other major ASEAN countries shows Thailand’s
imports were less than one-third of those of Indonesia, or less than a half of those of Malaysia or
Vietnam. For reference, Thailand’s imports represented about one fortieth of those of Japan, which
also depends largely on imported coal-coke. In this regard, Thailand’s dependence on China was
relatively high, standing at more than 80%, compared with less than 60% for Indonesia and around
10% for Malaysia.
2
See, for example, Japan Petroleum Energy Center, “Kaigai Shigen Kaihatsu to Sekiyu Seisei Jigyo ni Katsuro wo Miidasu
Tai [Thailand explores opportunities in natural resources development overseas and oil refining”], JPEC Report, November
28, 2014.
13
(In tons) (cf.) Japan
Total imports: 1,532,198 tons
Imports from China: 1,030,258 tons
Other
countries
China
In Thailand, what are the major uses of coal-coke, for which it depends almost completely on imports,
over 80% of which comes from China? Globally speaking, coke is used for metallurgy in such as the
steel industry and the casting industry. In Thailand, the steel industry does not use a blast furnace.
Casting is thus the primary use of coal-coke there.
The next section overviews coal-coke demand in the casting industry, studies the substitutability of
bio-coke, and explores other industries that are potential users of bio-coke in Thailand.
Exploring Prospective Users of Bio-coke
14
2.1.2 Exploring Prospective Users of Bio-coke
(1) Casting
a Overview of cupola furnaces and foundry coke
A cupola furnace is a kind of shaft furnace designed to melt bare metals. Metals and coke are
alternately fed into the steel cylindrical shaft with a firebrick lining. Air is provided from the tuyere to
burn the coke. Note that coke not only provides the heat but also serves as a recarburiser for the
molten metals, albeit in a small quantity. Table 6 shows the major advantages and disadvantages of
cupola furnaces. The figure below shows the basic structure of a cupola furnace.
Molten metal
Coke
Bed coke
Cupola furnaces use foundry coke, which is distinctive from metallurgical coke, which is used for
blast furnaces. Unlike metallurgical coke, foundry coke is not primarily used for reduction; it is needed
both to serve as a heat source and a recarburiser and to physically support metals in the furnace.
Foundry coke thus needs to meet a number of strict requirements, including high strength that can
withstand the impact of incoming metals and bear their load, a grain size appropriate for the suitable
the diameter of the furnace, and a low reactivity, as well as lower ash and sulfur contents than
metallurgical coke.
The production of foundry coke with such characteristics has recently been on the decline in Japan,
which has no choice but to depend on coke imported from China.
15
Figure 14: Examples of Foundry Coke
Separate demonstration trials have already been carried out in Japan to assess the feasibility of
substituting bio-coke for foundry coke as the heat source of melting metals in a cupola furnace. These
trials have shown that part of such foundry coke can be replaced.
Table 8: Selected Demonstration Trials on the Substitution of Bio-coke for Foundry Coke
for Melting Bare Metals in a Cupola Furnace
Period Partner Description and outcomes
Demonstration trials in a cupola furnace for manufacturing car engine
Apr.-Jul. 2008 Car parts manufacturer
parts confirmed an effective substitution rate of 11.4%.
Demonstration trials tested substitution rates of 5%, 10%, 15%, and
Cast iron pipe 20% on a calorific value basis. They showed that bio-coke can replace
Oct.-Nov. 2013
manufacturer up to 20% of the foundry coke without causing major practical
problems.
Source: Research Institute of Bio-coke, Kinki University
16
b Overview of the Casting Industry in Thailand
1) Production
An article on the 48th Census of World Casting Production for 2013 carried in the February 2015 issue
of Chuzo Janaru [journal of casting], published by the Japan Foundry Society, Inc. shows that
Thailand produced 316,000 tons of castings--a total of iron castings, steel castings and nonferrous
castings--in 2013, ranking the country 22nd on the list of the economies surveyed. Thailand is severely
outranked by five major economies in Asia: China with 44,500,000 tons, India with 9,810,000 tons,
Japan with 5,538,000 tons, ROK with 2,562,000 tons, and Taiwan 1,158,000 tons. Still, Thailand is
among the largest casting producers among the developing countries. By type, Thailand produced
131,000 tons of iron castings, 30,000 tons of steel castings, and 156,000 tons of nonferrous castings,
which accounted for a large share of the total.
The automobile industry is a key custmer of the casting industry in most countries. And Thailand is no
exception. The casting industry in Thailand has been developing in step with the country’s automobile
industry, the largest in ASEAN. Yet, production of ferrous castings in June 2014 fell 12% from the
same month a year earlier as a result of a significant drop in the number of automobile units
manufactured due to the sluggish economy following the political confusion in 2014. 3
3
Interviews with officials at Company J, a trading house specializing casting materials
17
(1,000 units)
The unit shipment price of products per tons in the same year was 1,599 dollars for iron castings,
1,935 dollars for steel castings, and 2,399 dollars for nonferrous castings. Likewise, these figures
roughly represented 80%, 30%, and 40% of the Japanese counterparts, respectively.
Table 10: Comparison between Thailand and Japan in the Number of Foundries, Production per
Foundry, and Unit Shipment Price (2013)
Steel Nonferrous Castings in
Iron castings
castings castings total
No. of foundries 280 40 260 580
Production per
467 745 600 546
Thailand foundry (t)
Unit shipment price
1,599 1,935 2,399 2,025
(US$/t)
No. of foundries 817 75 1,193 2,085
Production per
4,730 2,422 1,251 2,656
Japan foundry (t)
Unit shipment price
2,122 6,418 6,702 3,497
(US$/t)
Note: “Iron castings” include gray iron, ductile iron and malleable iron castings.
Source: Compiled by MHIR from Japan Foundry Society, Inc., Chuzo Janaru [journal of casting], February 2015
issue. (Original source: American Foundry Society, Modern Casting, December 2014 issue.)
18
Northern region
11 foundries or
more
6-10 foundries
Central region
5 foundries or
less
Northeastern
region
Total
They produce mainly agricultural machinery, manholes, pumps and the like; they do not produce items
that require a large manufacturing scale and advanced technology such as car parts. Large foundries
that mass-produce such items use an induction furnace, not a cupola furnace. 5
4
Interviews with officials at Company J, a trading house specializing in casting materials
5
In Japan, on the other hand, foundries that mass-produce such items as car parts and cast iron pipes (straight pipes) usually
use a cupola furnace for melting metals since they enjoys comparative advantage in mass production.
19
Figure 17: A Foundry That Uses a Cupola Furnace to Melt Metals (Company H, in Samut Prakarn)
Figure 18: Another Foundry That Uses a Cupola Furnace to Melt Metals
(Company I, in Samut Sakorn)
In the casting industry in Thailand, there has been a shift in use in the melting process from cupola
furnaces to induction furnaces. One major factor behind the shift is said to be a spike in the price of
coke about a decade ago. Another factor may be that increasingly strict environmental regulations in
Thailand make it more and more difficult to operate cupola furnaces. 6 It is thus unlikely that demand
for foundry coke will increase significantly in Thailand.
The coke price surge a decade ago refers to the sudden rise in the price of China-made foundry coke
around 2004. Back then, the Chinese government significantly restricted the issuance of export
permits to foundry coke manufacturers as part of its efforts to secure coal resources for the country and
conserve the environment; these manufacturers were problematic from the environmental point of
view. As a result, the price of Chinese foundry coke for export shot up sharply. Because of its already
heavy dependence on Chinese foundry coke, the Japanese casting industry temporarily suffered a
serious shortage of coke. A serious dearth of coke also hit small-sized foundries in Thailand, which
depended on cupola furnace for metal melting. This must have precipitated a shift from cupola
furnaces to induction furnaces.
6
MHIR, “Sokeizai Sangyo no Tai tono Renkei (Shinshutu) no Arikata ni Kansuru Misshon Haken ni Yoru Chosa Kenkyu [A
study based on the study mission for exploring ways to work with the Thai Sokeizai industry (including operations there by
the Japanese counterparts)], “February 2009. (This study was commissioned by METI.)
20
Figure 19: Changes in the Price of Foundry Coke in Japan (from 1994 to September 2004)
Source: MHIR, “Imonoyo Genzairyo Mondai he no Taio ni Kansuru Chosa Kenkyu [A study on how to address issues
concerning raw materials for castings],” April 2005 (This study was commissioned by METI.)
We conducted an interview survey on two foundries in Thailand that still used cupola furnaces for
metal melting. Special focus was placed on how they used them and what advantages they had for
them. The findings of the interviews are summarized below:
21
We also asked Company J and the above-mentioned foundries about the price of foundry coke. They
said that Thai trading companies purchase foundry coke for roughly 52,800-54,000 yen per ton and
sell it to foundries for 60,000-70,000 yen per ton. This selling price is not so different from that in
Japan. Officials at a Japanese foundry told us that the price is now less than 70,000 yen in Japan.
Table 13: Transactions with Local Foundries in Thailand by Trading Houses Specializing
in Casting Materials
Local trading house Japanese trading house
J Company Company K
Company J has business relationship with some Company K’s head office in Japan deals in coke
90% of the foundries in Thailand. that is produced in China. Company K does not
It does business with those that use cupola furnaces deal in coke as Japanese foundries in Thailand do
for melting metals, including selling foundry coke not use coke for a heat source.
to them. It tends to shy away from doing business with local
foundries because it is often troublesome to collect
accounts receivable from them.
Source: Interview survey of trading houses specializing in casting materials in October 2014.
The Thai Foundry Association showed interest in the use of bio-coke as a recarburiser (a subsidiary
material to add carbon to the product) in the casting process in an induction furnace. At the same time,
TFA also pointed out some issues concerning the components and cost-effectiveness.We also learned
7
Japan Institute of Energy, Coke Note, 2004
22
that gasification and direct melting furnaces can help solve the waste management problem in
Thailand that is resulting from its rapid economic growth. Bio-coke made from biomass or municipal
waste can take the place of coal-coke as the heat source for gasification and direct melting. It is
important to take such potential applications into account.
Table 14: Usage of Coal-coke at Nonferrous Smelters and Other Companies and
Potential Application of Bio-coke
Potential
Industrial
applications of Usage of coke Interviewee
sector
bio-coke
There is only one nonferrous smelter in Thailand,
Nonferrous that is, Company L, which is a zinc smelter. Company L (zinc
None
smelting Yet Company L uses chemical agents, not coke, for smelter)
zinc smelting.
There is no opportunity to use coke as a heat source
Steel (induction Non-Integrated Steel
None in the process of producing steel materials in an
furnace) Producers’ Association
induction furnace.
Could serve as a
recarburiser.
Thai Foundry
Casting (melting Yet the components
Association
in an induction must meet strict None
Company K (Japanese
furnace) requirements. The
trading house)
pulverization
process is costly.
Even in China, only some foundries use coke as the
heat source for heat furnaces for forging. Globally,
Japan Forging
Forging None electric power or gas is generally used for the heat
Association
source to address environmental concerns and ensure
stable quality.
Coal is the primary heat source in the cement
production process. This is because coal is
It is unlikely that
inexpensive and the ash content can be used as a
bio-coke will be
cement material.
used as the heat
Some cement plants mix petroleum coke with coal to
source as it may Japan Cement
Cement boost the calorific value, but they constitute only a
not be so Association
minority. Globally only a minority of cement plants
cost-effective
use petroleum coke as the heat source.
compared with
More and more efforts have recently been made to
coal.
use biomass as a source or a material.
Cost-effectiveness is the key.
Industrial Waste
(We were told that coke is used as a heat source in
Food Management Bureau,
None the food processing industry. We found out later,
processing, etc. Department of
however, that food processors use coal, not coke.)
Industrial Works
Currently direct landfilling is the mainstream in
Industrial Waste
Waste waste management.
Management Bureau,
incineration In the face of a limited land fill capacity, however,
Department of
(gasification and None the government has recently begun to construct waste
Industrial Works
direct melting incineration facilities.
Company M, Company
furnaces) There is a chance that gasification and direct melting
N (waste management)
furnaces will be introduced in the future.
Source: Interview survey from October to December 2014
23
2.2 Feasibility Assessment
We conducted a feasibility study to assess the commercial viability of the plan to manufacture
bio-coke from domestic biomass resources in Thailand and selling it on the domestic and Japanese
markets. We focused on oil palm EFB (Empty Fruit Bunches) and rice husks as biomass resources. We
also calculated the amount of investment in equipment needed to process the materials into bio-coke,
as well as physical distribution costs and running costs such as electric power costs and labor costs.
We assumed that the casting industry is the buyer as it is the most promising market. We also set the
sales price while taking into account the price of coal-coke, the main competitor. Calculations were
made on a yen basis. Values expressed in the local currency (baht) were converted into those in the
Japanese yen at the uniform exchange rate of 3.5 yen to the baht.
We assumed that EFB costs 350 bahts/dry-t (procurement price) and includes a 50% water content.
These are the average values based on our survey. As for rice husks, we assumed the procurement
price of 1,500 bahts/dry-t and a water content of 12%, both of which are also the average values based
on our survey.
For the purpose of feasibility assessment, we set the sales price of bio-coke so that it will be equal to
that of foundry coke per unit calorie. Specifically, on the assumption that the unit-weight calorie of
bio-coke is 70% of that of foundry coke, the sales price was set at 42,000 yen/t for Thailand (on the
assumption that the sales price of foundry coke is 60,000 yen/t) and 49,000 yen/t for Japan (on the
assumption that the sales price of foundry coke is 70,000 yen/t).
24
1) Put the material to primary crushing so that it will be broken into pieces 30-50 mm long in each
dimension.
2) Put the crushed material to the sieving machine to remove impurities.
3) Put the sieved material so that it will be broken (secondary crushing) into pieces up to 10 mm
long in each dimension.
4) Put the material to the dryer so that its water content will be reduced to 8%.
5) Convert the material to bio-coke with bio-coke production unit.
In the case of using rice husks, the drying is unnecessary. To produce 10 tons of bio-coke a day, 10
tons of rice husks is needed a day. The assumed production process is described below. Figure 21
shows a summary production flow.
1) Put the material to primary crushing so that it will be broken into pieces up to 10 mm long in each
dimension.
2) Put the crushed material to the sieving machine to remove impurities.
3) Convert the material to bio-coke with bio-coke production unit.
1) Primary 2) Sieving 3) Secondary
4) Dryer
crusher machine crusher
6) Bio-coke
5) Dried
production
material feeder
unit
25
Table 15: Facility Specifications (EFB type)
1) Primary crusher Primary crushing of the moist No. of Units/
material sets
Material feeder Capacity 4 m3 1 Unit
Feeder conveyor to crusher I 500 W × 7.5 mL; centralizer belt; legs 1 Unit
Feeder conveyor to crusher II 500 W × 4 mL; centralizer belt; legs 1 Unit
Primary crusher 1 t/h; equipped with hammer mill and dedicated 1 Unit
control panel
2) Sieving machine Removal of impurities
Feeder conveyor to sieving 500 W × 7.5 mL; centralizer belt; legs 1 Unit
machine
Sieving machine 1 t/h; equipped with hammer mill and dedicated 1 Unit
control panel
3) Secondary crusher Secondary crushing of most
material
Feeder conveyor to crusher 500 W × 7.5 mL; centralizer belt; legs 1 Unit
Secondary crusher 1 t/h, equipped with dedicated control panel 1 Unit
4) Dryer
Feeder conveyor to dryer 500 W × 7.5 mL Centralizer belt; legs 1 Unit
Feeder to dryer Equipped with hopper; twin screw 1 Unit
Dryer Three-pass rotary dryer; 2.75 m x 10 mL; 1 Set
equipped with emergency open valve
Suction equipment Suction fan; multi-cyclone 1 Set
5) Dried material feeder Traversing screw cut-out; capacity: 30 m3 2 Units
6) Bio-coke production
unit Dry material conveyor I S-shaped flight conveyor 2 Units
Dry material conveyor II 500 W × 20 mL; centralizer belt; legs 2 Units
Dry material conveyor III 500 W × 10 mL; centralizer belt; mobile 2 Units
Production unit Horizontal continuous type 20 Units
Bio-coke conveyor 500 W × 20 mL; centralizer belt; legs 1 Unit
Source: Osaka Gas Engineering
2) Sieving
1) Crusher
machine
4) Bio-coke
3) Dried
production
material feeder
unit
26
Table 16: Facility Specifications (rice husks type)
1) Primary crusher Primary crushing of the moist No. of Units/
material sets
Material feeder Capacity 4 m3 1 Unit
Feeder conveyor to crusher I 500 W × 7.5 mL; centralizer belt; legs 1 Unit
Feeder conveyor to crusher II 500 W × 4 mL; centralizer belt; legs 1 Unit
Primary crusher 2 t/h; equipped with hammer mill and 1 Unit
dedicated control panel
2) Sieving machine Removal of impurities
Feeder conveyor to sieving 500 W × 7.5 mL Centralizer belt; legs 1 Unit
machine
Sieving machine 2 t/h; equipped with hammer mill and 1 Unit
dedicated control panel
Suction equipment Suction fan; multi-cyclone 1 Set
3) Dried material Traversing screw cut-out; Traversing screw cut-out; capacity: 30 m3 2 Units
feeder capacity: 30 m3
4) Bio-coke
production unit Dry material conveyor I S-shaped flight conveyor 2 Unit
Dry material conveyor II 500 W x 20 mL; centralizer belt; legs 2 Units
Dry material conveyor III 500 W x 10 mL; centralizer belt; mobile 2 Units
Production unit Horizontal continuous type 20 Units
Bio-coke conveyor 500 W x 20 mL; centralizer belt; legs 1 Unit
Source: Osaka Gas Engineering
27
(2) Plot Plan of a Bio-coke Production Facility
We have prepared a plot plan of a bio-coke production facility for the EFB or rice husks types. Figures
22 and 23 show plot plans for the EFB and rice husks types, respectively. We have learned that an area
of approx. 3,230 m2 is needed for the site for either facility.
(A) (D)
(D) 管理棟
Administration building 50 ㎡ (5m×10m)
50 m2 (5 m × 10 m)
⑥ ⑥
(E) 保全エリア 60 ㎡ (6m×10m)
2
(E) Conservation area 60 m (6 m × 10 m)
バイオコークス製造工場 1,260 ㎡ (30m×42m)
Bio-coke production plant 1,260 m2 (30 m × 42 m)
① 1次破砕機 50 ㎡ (10m×5m)
1) Primary crusher 50 m2 (10 m × 5 m)
② ふるい機 50 ㎡ (10m×5m)
2
⑤ ⑤
2) ③
Sieving machine
2次破砕機 50 m (10 m × 5 m)
50 ㎡ (10m×5m)
2
④
3) ④ 乾燥機crusher
Secondary 180 ㎡ (30m×6m)
50 m (10 m × 5 m)
①
4) ⑤
Dryer乾燥原料供給装置 100 ㎡ 180
(10m×5m×2基)
m2 (30 m × 6 m)
② ③
⑥ バイオコークス製造装置 320 ㎡ (2m×8m×20基)
2
5) Dried material feeder 100 m (10 m × 5 m × 2 units)
(F) メンテナンスエリア 291 ㎡ (3m×97m)
6) Bio-coke production unit 320 m2 (2 m × 8 m × 20 units)
28
2
Facility site area
工場敷地面積 3,230 3,230 m (38 m
㎡ (38m×85m) × 85 m)
(A) scale
(A) Truck トラックスケール 30 ㎡ 30
(3m×10m)
m2 (3 m × 10 m)
(D) (C)
(B) 原料(湿)受け入れヤード 300 ㎡ (30m×10m)
(B) Material (moist) reception yard 300 m2 (30 m × 10 m)
(C) 製品保管庫 250 ㎡ (25m×10m)
(C) Product storage warehouse 250 m2 (25 m × 10 m)
(D) 管理棟 50 ㎡ (5m×10m)
(F)
2
(D) Administration
(E) 保全エリアbuilding 60 ㎡ 50 m (5 m
(6m×10m) × 10 m)
(A)
④ ④ (E)バイオコークス製造工場
Conservation area 1,080 ㎡ (30m×36m)
2
60 m (6 m × 10 m)
① 1次破砕機 65 ㎡ (13m×5m)
Bio-coke production plant 1,080 m2 (30 m × 36 m)
② ふるい機 65 ㎡ (13m×5m)
1) Primary crusher 65 m2 (13 m × 5 m)
③ 乾燥原料供給装置 100 ㎡ (10m×5m×2基)
2
2) Sieving machine
④ バイオコークス製造装置 320 ㎡ 65 m (13 m × 5
(2m×8m×20基) m)
③ ③ (F) メンテナンスエリア 273 ㎡ (3m×91m)
2
3) Dried material feeder 100 m (10 m × 5 m × 2 units)
(E) (B)
29
2.2.4 Running Cost
(1) Power Consumption and Unit Power Rates
Table 35 shows estimated electric power consumption for each type of facility.
The unit power purchase rates per week are calculated on the assumption that the facility operates
24/7:
Unit power rates during the day (13 hours) = 4.58 bahts/kWh
Unit power rates at night (11 hours) and on Saturday and Sunday = 2.15 bahts/kWh
(4.58 bahts/kWh × 13 hrs. × 5 days + 2.15 bahts/kWh × 11 hrs. × 5 days + 2.15 bahts/kWh × 24 hrs. ×
2 days / 24 hrs. × 7 days) × 3.5 yen/bahts = 10.8 yen/kWh
30
Table 20: Selected Parameters for Estimating the Transportation Costs
EFB type Rice husks type
Land transportation distance 800 km 600 km
(From plant to Bangkok)
Unit land transportation cost 3.5 bahts/km/t
(in Thailand) (1 baht = 3.5 yen)
Marine transportation 37,311 bahts/40ft container (36 t):
(From Bangkok to Japan) 3,627 yen/t
Land transportation distance 50 km
(From Japanese ports to local
foundries)
Unit land transportation cost 100 yen/km/t
(in Japan)
Source: Osaka Gas Engineering
The assessment has found that bio-coke production from rice husks is more commercially viable
than that from EFB. Rice husks contains so low a content of water that they do not need drying,
resulting in lower facility costs, electric power costs and maintenance costs; although material
purchase costs are higher. Nevertheless, rice husks are largely used for power generation. More
accurate and detailed analysis would thus be needed regarding their availability and purchase price.
In contrast, the assessment has found that bio-coke production from EFB is not so attractive
commercially. A higher content of water means a higher cost of drying equipment and the energy it
uses; although it is readily available because there are few other applications.
31
Table 21: Business Profit-and-Loss Plan (20 years)
Item EFB Rice husks
Sales 3,123 million yen 3,123 million yen
Cost of goods sold 2,768 million yen 2,626 million yen
Ordinary profit 356 million yen 497 million yen
Corporate taxes 86 million yen 99 million yen
Net profit 269 million yen 398 million yen
IRR (20 years) 7% 13%
Source: Osaka Gas Engineering
In relation to the results of the feasibility assessment as shown in Table 21, we also assessed the
impact of the unit material cost, the sales price of bio-coke and the like will have on the commercial
viability of this plan (in terms of IRR). For the purpose of analyzing this impact assessment, we
focused only on the case of EFB because the case of rice husks is no different in this regard. Table 22
shows selected parameters, including the maximum and minimum values.
Figure 24 shows the results of the sensitivity analysis. It illustrates to what extent IRR will change
when each parameter changes in the set range (from the minimum value to the maximum) as shown in
Table 22. Taking the transportation cost within Thailand, for example, when it is 4,900 yen/t (-50%),
IRR will be approx. 14.5%, and when it is 14,700 yen/t (+50%), IRR will be approx. 0.3%. In this way,
Figure 24 shows how each parameter will affect the commercial viability of this plan. Specifically, the
parameters that will greatly affect the commercial viability include the transportation cost within
Thailand, the production cost of bio-coke (BIC) for export to Japan, and the construction cost of the
facility. Land rent and the production cost of bio-coke (BIC) for domestic consumption will also affect
business viability to some extent. These findings show that a lower transportation cost, a higher sales
price, and a lower construction cost in particular will help boost the commercial viability.
32
IRP (20 years)
Land rent
2.2.6 Conclusion
We have focused on EFB and rice husks among other domestically available biomass resources to
assess the feasibility of the plan to manufacture bio-coke in Thailand.
The feasibility assessment has found that bio-coke production from rice husks may be
commercially viable because no need to dry this material in the production process will mean lower
facility costs, electric power costs, and maintenance costs. Nevertheless, rice husks are largely used
for power generation. More accurate and detailed analysis would thus be needed regarding their
availability and purchase price.
Bio-coke production from EFB is not so attractive commercially because facility costs, power costs,
and maintenance costs will all be higher. Yet this option may be advantageous when it comes to
procuring the raw material; EFB is underexploited and therefore readily available in Thailand.
Sensitivity analysis has suggested that product transportation costs, the unit sales prices, and
construction costs will greatly affect the commercial viability of this plan.
The following actions may also boost the commercial viability of this plan:
1) Increasing the sales volume: Bio-coke has proved to be effective in facilitating waste incineration
in gasification and direct melting furnaces in Japan. Thailand has been slow in introducing waste
incineration itself. Nevertheless, if the country introduces gasification and direct melting furnaces
to address the growing waste problem in Greater Bangkok and elsewhere, more and more bio-coke
will be sold, which in turn may the commercial viability of this plan.
33
Table 23: Solid Waste Generations
Unit: ton/day
2010 2011 2012
1
Greater Bangkok 8,766 9,237 9,750
Central region2 9,563 10,835 10,663
Northern region 6,659 7,275 6,901
Northeastern region 11,428 11,252 10,800
Southern region 5,116 5,180 5,319
Notes:
1. “Greater Bangkok” here refers to Bangkok and the three provinces of Nonthaburi, Pathum Thani, and
Samut Prakarn.
2. The “central region” here includes the provinces in the “eastern region” and the “western region.”
Source: Compiled by MHIR from National Statistical Office, “Statistical Yearbook Thailand 2013.”
3) Policy support (incentives): Producing bio-coke from biomass resources and partially substitute it
for fossil fuels will contribute to the effective use of waste and help reduce CO2 emissions. The
government can provide policy support for these environmental advantages of bio-coke. Specific
measures may include subsidies for facility costs, preferential tax treatment, and CO2 credits. Such
policy support will help improve the commercial viability of this plan.
34
2.3 Economic Effects of the Plan
The plan as detailed in 3.3 envisages annually producing 3,330 tons of bio-coke, which can substitute
for foundry coke, in Thailand. It is estimated that the plan, which will produce bio-coke from biomass
(EFB from palm oil mills or rice husks from rice mills), will need an initial investment of 310 million
yen (in the case of EFB) or 230 million yen (in the case of rice husks) as well as a total of 15
employees in either case. Of the annual output of 3,330 tons, 1,000 tons will be sold to foundries in
Thailand and the remaining 2,330 tons will be exported to Japan for local foundries. Annual sales will
be 2,770 million yen in the case of EFB or 2,630 million yen in the case of rice husks.
These figures, including the initial investment, the number of employees, and annual sales, are small
for a fast-growing economy like Thailand. Yet the plan’s economic benefits for the local communities
will be not small as discussed in the following paragraphs. It should also be significant in that it will
decrease Thailand’s dependence on China for its imports of foundry coke, thereby reducing risks
associated with procuring heat sources. Moreover, exports of bio-coke to Japan and other developed
countries will increase significantly, and the plan’s economic impact on Thailand will be quite large.
In the case of the former, a most promising candidate is Thailand’s southern region, where because
palm oil mills are concentrated and EFB is widely underexploited. This region is at a disadvantageous
positon in terms of transport to Greater Bangkok, which is a large consuming region and key seaports
from which Thai products are exported to Japan are located. Average household income is about 60%
of that in Bangkok. The number of factories and the investment scale are both much smaller than in
other regions. Therefore, the construction and operation of a manufacturing plant equipped with
cutting-edge technology will likely be greatly welcome. Local palm oil mills can benefit from such a
plant, which will be a steady buyer of EFB, because they have long had difficulty disposing of. This
plan is thus expected to help promote local palm-related industries, which play a key role in the
region.
There are more candidate regions for a plant that produces bio-coke from rice husks. One such
candidate is the northeastern region, where we sent a fact-finding study mission. It is the poorest
region in Thailand. Although there are many factories, their investment scales are small. Therefore, the
construction of a bio-coke plant will have a good chance of being warming accepted as in the southern
region.
35
Table 25: Overview of Factories Approved by the Ministry of Industry of Thailand (2012)
Number of Number of
Investment cf. Population
factories employees
1,000,000
Factories % % Employees % Employees %
bahts
Greater Bangkok1 39,778 29.5 1,479,040 27.9 1,880,242 47.4 10,455,800 16.2
Central region 5,850 4.3 703,618 13.3 364,432 9.2 3,007,527 4.7
Eastern region 11,175 8.3 1,923,183 36.3 639,450 16.1 4,720,951 7.3
Western region 6,073 4.5 231,044 4.4 161,000 4.1 3,712,174 5.8
Northern region 17,307 12.8 275,452 5.2 289,590 7.3 11,802,566 18.3
Northeastern region 43,301 32.1 451,235 8.5 411,176 10.4 21,697,488 33.7
Southern region 11,346 8.4 234,994 4.4 223,294 5.6 9,060,189 14.1
Total 134,830 100.0 5,298,566 100.0 3,969,184 100.0 64,456,695 100.0
Note: “Greater Bangkok” here refers to Bangkok and the three provinces of Nonthaburi, Pathum Thani, and Samut
Prakarn.
Source: Compiled by MHIR from National Statistical Office, “Statistical Yearbook Thailand 2013.”
Recoverable reserves of coking coal (strongly caking coal) account for only 11% of those of coal. To
make matters worse, they are concentrated in a few areas such as Shanxi Province in China and
Queensland State in Australia. 8 Since May 2012, coal prices have been on the decline due to
oversupply, and coking coal is no exception. 9 The fact remains, however, that coking coal is a
precious resource. If Thailand is to increase its self-sufficiency in coke to a certain level by
successfully producing bio-coke from biomass that is readily available within its territory, then it will
be able to offer a sense of relief to local foundries that use cupola furnaces to melt metals. They will
feel that risks associated with procuring heat sources are reduced and that they can continue their
operations steadily.
Annual demand for foundry coke in Japan is estimated at 230,000 tons. 10 If 10% of this estimate, that
is, 23,000 tons of foundry coke is to be replaced by bio-coke produced in Thailand, the envisaged
bio-plant will need to have an output capacity ten times as large as the figure estimated in 2.2. In Japan,
demonstration trials have been underway on the use of bio-coke in gasification and direct melting
furnaces for waste incineration. The potential demand for bio-coke in such furnaces is estimated at
200,000-300,000 tons a year. 11 If this demand is to be met only with bio-coke from Thailand as well,
the envisaged plant will have to have an overall output capacity some 20 times as large, if the demand
for foundry coke in Japan is to be met with Thai-made bio-coke as discussed above.
8
Agency for Natural Resources and Energy, Sekitan wo Meguru Saikin no Doko [recent trends in coal],” November 2011.
9
JOGMEC, Sekai no Sekitan Jijo Chosa--2013 Nendo--[research on coal affairs in the world for FY2013]
10
Estimates by Osaka Gas Engineering Co., Ltd.
11
Op. cit.
36
If the output capacity of the envisaged bio-coke plant is to increase twentyfold, the plant will
definitely have a substantial economic impact on the local community, although the twentyfold
increase would not mean that plant investment and the number of employees need to increase
twentyfold.
Table 26: Usage of Cupola furnaces and Demand for Foundry Coke in Developed Countries
Japan Germany US cf. Thailand
Annual demand for 85 out of the 268 Cupola furnaces Around 50 foundries
foundry coke is foundries use cupola account for 9.8% of all use cupola furnaces to
230,000 tons (2010)1 furnaces. Coke is the melting furnaces melt metals. They are
Large plants with a 100% imported. Total for casting in terms of all SMEs.
monthly output imports stand at the number of units Foundry coke is
capacity of 3,000 tons 450,000 ton (2010).4 (1997)6. imported from China.
account for 80% of the The price of foundry Demand for foundry Monthly demand is
total demand for coke in Europe hovers coke is 1,30,000 tons 500-1,000 tons.
foundry coke2 around 400 euros per (1999).7 The price is
70% of foundry coke is ton (2013)5 17,000-19,000 bahts
imported from China3 (2014)
The price is less than
70,000 yen per ton
(2014).
Sources:
1: Estimates by Osaka Gas Engineering Co., Ltd.
2. MHIR, “Imonoyo Genzairyo Mondai he no Taio ni Kansuru Chosa Kenkyu [A study on how to address issues concerning
raw materials for castings],” April 2005
3. Kanamori Co., Ltd. (http://www.k-tobei.co.jp/division/metal/pop02.html)
4: M.Schulter, G. Pena Chipatecua, P. Quicker, “ Investigations on the Application of Biochar as an Alternative for Foundry
Coke” RWTH Aachen University
(http://www.teer.rwth-aachen.de/cms/upload/Votrge_und_allgemeine_PDS/2013_Schulten_Investigations_on_the_Applic
ation_of_Biochar_as_an_Alternative_for_Foundry_Coke_21st_European_Biomass_Conference_and_Exhibition.pdf)
5: New World Resources plc, “Annual Report & Accounts 2013”
(http://www.newworldresources.eu/~/media/Files/AR%202013/NWR_AR_2013_WEB_FINAL.ashx)
6: U.S. Environmental Protection Agency, “Economic Impact Analysis of Final Iron and Steel Foundries NESHAP”
(http://www.epa.gov/ttnatw01/ifoundry/foundry_report.pdf)
7: U.S. International Trade Commission, “Foundry Coke from China” November 2000
(http://www.usitc.gov/publications/701_731/pub3365.pdf)
This bio-coke project in Thailand will become even larger in scale if it envisages exporting the product
to the European and US markets as well as the Japanese market. For this to happen, it is essential to
gather information on the latest market developments. Because the price of foundry coke is generally
lower in Europe than in Asia, any attempt to enter the European market will entail efforts to cut cost.
Thailand is a hub for global agribusiness and a large exporter of agricultural products and processed
food. And Thailand has been leading the world in the use of biomass generated from these industries.
On top of that, bio-coke produced in Thailand will be able to help developed countries to reduce
greenhouse gas emissions. This will allow Thailand to establish an honored status in the international
community, which is in dire need to achieve a sustainable world.
37
3. Exploration of Methodology to Evaluate Emission Reductions and
Estimation of Emission Reductions Using the Methodology
In the casting industry, two types of furnaces are used: “cupola furnaces,” which use coal-coke, and
“induction furnaces,” which use electricity. However, since bio-coke is solid fuel and not supposed to
be used in induction furnaces, the methodology excludes its application to induction furnaces.
In general, fuel includes not only coal-coke but also liquid fuel, gas fuel and electricity. However, only
solid fuel can be used in cupola furnaces due to their shape. Moreover, coal and biomass, though they
are solid fuel, lack calories per unit quantity and are therefore inadequate as the heat source for a
cupola furnace. Thus, energy that can be replaced by using bio-coke in cupola furnaces is limited to
coal-coke.
Here in Thailand, there are commonly used biomass, such as rice husks, and relatively uncommon
biomass, such as rice straw and EFB.
Thus, the methodology is applicable both to projects that discard biomass and projects that effectively
use it for other purposes.
38
However, JCM is a scheme between two countries and targets emissions in the partner country
(Thailand) in its evaluation of emission reductions. That is, CO2 emissions associated with coal-coke
production outside Thailand and its import should be considered outside the boundary of JCM.
Meanwhile, since bio-coke is produced in Thailand, collection of biomass materials and bio-coke
production are within the boundary.
As mentioned earlier, biomass, if not used in case there is no bio-coke project, emits methane as it
decomposes. Therefore, methane emissions from biomass decomposition are counted in the reference
scenario.
In the real project, on the other hand, biomass is used as a raw material for bio-coke, preventing
methane emission. That is, methane emissions from biomass decomposition are not counted in the
project.
Boundary
Thailand
CO2,
CO2 CO2
CH4
Scenario
(RS)
Biomass decomposition CH4
Boundary
Thailand
CO2 CO2 CO2 CO2
Project
(PJ)
CH4
Biomass decomposition
39
Table 27: Identification of emission sources
3.1.4 Leakage
In Thailand, power generation using rice husks and other biomass is actively performed on the back of
a state-run system of purchasing electricity generated from renewable energy sources.
Under such circumstances, there may be a concern that if biomass used for biomass power generation
begins to be used as a raw material for bio-coke, resource competition might occur, making it difficult
for the operators of biomass power generation to obtain enough biomass materials, or that the resulting
decrease in electricity generated at biomass power plants might be offset by an increase in electricity
generated from fossil fuel, which would increase CO2 emissions.
However, rice husks and other biomass used for biomass power generation are traded by many parties
and their trading volumes are enormous. On the other hand, the quantity expected to be used by the
bio-coke project, 10 tons/day, is not as significant as affecting their supply-demand relations. Even if
10 tons/day of rice husks are used for bio-coke production, it is expected not to have any impact on
biomass power generation because the same quantity of rice husks can be easily procured from other
trading firms.
40
(1) Project emissions
Project emissions are the sum of CO2 emissions from biomass transport, bio-coke production and
bio-coke transport.
CO2 emissions from biomass transport can be calculated by determining the transport distance of each
biomass material by multiplying the number of trips by transport distance (round-trip) for each
biomass material, and then multiplying the result by the CO2 emission factor for a truck.
For the purpose of conservatively evaluating emission reductions, CO2 emissions not only during
biomass transport to the bio-coke plant but also during the return of an empty truck to its original
location are calculated by doubling the distance between the biomass generation site and the bio-coke
plant. The CO2 emission factor for a truck will be determined easily by using the IPCC default value
(the details are described later).
Energy used in bio-coke production is nothing but electricity, and other fossil fuel is not used. That is,
CO2 emissions from bio-coke production can be calculated by multiplying the amount of electricity
used for bio-coke production by the CO2 emission factor for an electricity system.
CO2 emissions from bio-coke transport can be calculated, as with those from biomass transport, by
multiplying the number of trips by transport distance (round-trip) for each destination of bio-coke
transport and then multiplying the result by the CO2 emission factor for a truck.
41
PEbiocoke,transport , y = ∑ ( N biocoke, j , y × Dbiocoke, j × 2) × EFCO 2,km
j
That is, reference emissions are the sum of CO2 emissions from coal-coke combustion and methane
emissions (in CO2 equivalent) from biomass decomposition.
RE y = REcoke, y + REdecay , y
Symbol Description Unit
REy Reference emissions ton-CO2e/y
REcoke,y Reference emissions (from coal-coke combustion) ton-CO2e/y
REdecay,y Reference emissions (from biomass decomposition) ton-CO2e/y
CO2 emissions from coal-coke combustion can be calculated by multiplying the quantity of coal-coke
to be replaced with bio-coke by the CO2 emission factor for coal-coke.
Since bio-coke and coal-coke differ in calories per unit quantity, the quantity of coal-coke to be
replaced with bio-coke must be calculated on a calorie basis. To be specific, the quantity of bio-coke
(i.e., the quantity of biomass) is multiplied by the unit calorie of bio-coke to calculate total calories to
be replaced, which are then multiplied by the CO2 emission factor for coal-coke per unit calorie to
determine CO2 emissions from coal-coke combustion.
Methane emissions (in CO2 equivalent) from biomass decomposition can be calculated by multiplying
the quantity of biomass materials by the factor of methane emission from biomass and the global
warming potentials for methane.
The factor of methane emission from biomass will be determined easily by using, for example, the
default value in the CDM methodology ACM0006 (the details are described later).
In addition, the amount of methane emitted by biomass decomposition may be excluded from
calculation if, for instance, the methods of biomass disposal cannot be identified. (The resulting
evaluation of emission reductions will be more conservative.)
42
REdecay , y = BRy × EFCH 4 × GWPCH 4
Symbol Description Unit
REdecay,y Reference emissions (from biomass decomposition) ton-CO2e/y
BRy Quantity of biomass materials ton/y
EFCH4 Factor of methane emission from biomass ton-CH4/ton-biomass
GWPCH4 Global warming potentials for methane ton-CO2e/ton-CH4
43
(5) Monitoring items
Items listed below must be monitored in the project. The monitoring method and frequency are
presented as examples, not preventing operators using the methodology from finding out the
monitoring method/frequency more suitable for their operations.
Data parameter H
Unit MJ/ton-biocoke
Description Calories of bio-coke
Monitoring method (example) Estimate from the elemental analysis results of bio-coke
or biomass.
Monitoring frequency (example) For each type of biomass material
44
3.2 Estimation of emission reductions expected in the project
Using the methodology discussed above, this section estimates greenhouse gas emissions expected to
be reduced by the project assessed in the feasibility study.
As in the feasibility study, estimation is made in two cases: one using rice husks and the other using
EFB as the raw material for bio-coke. However, since JCM only addresses greenhouse gas emission
reductions in the partner country (Thailand), estimation is made for 1,000 tons/year of bio-coke
expected to be sold in Thailand. (In either case, CO2 emissions from bio-coke production or transport
are estimated for a 1,000 tons/year portion of the total bio-coke production [3,330 tons/year].)
Thailand
CO2,
CO2 CO2
CH4
Scenario
(RS)
Rice husk
Thailand
CO2 CO2 CO2 CO2
Project
(PJ)
Rice husk
Fig. 26: Conceptual diagram of the reference and project scenarios (using rice husks)
The estimation resulted in annual CO2 emission reductions of 1,708 tons (about 1.7 tons per ton of
bio-coke) in the case of using rice husks.
45
Table 28: Results of the estimation of emission reductions (in the case of using rice husks)
Rice husk
Project emissions 412 tCO2/y
Biomass transport PEbiomass,transport,y 0 tCO2/y
Bio-coke production PEbiocoke,production,y 324 tCO2/y
Bio-coke transport PEbiocoke,transport,y 88 tCO2/y
Reference emissions 2,120 tCO2/y
Coal-coke combustion REcoke,y 2,120 tCO2/y
Biomass decomposition REdecay ,y 0 tCO2/y
Leakage emissions 0 tCO2/y
Emission reductions 1,708 tCO2/y
[Project emissions]
Bio-coke production Electricity consumption in bio-coke production ECy 634 MWh/y Per 1,000 tons of bio-coke
CO2 emission factor for an electricity system EFCO2,y 0.5113 tCO2/MWh TGO
Bio-coke transport Number of trips of bio-coke transport to the point j (using a 15 ton truck) Ny 67 trip/y Assuming use of a 15 ton truck
Transport distance from the bio-coke plant to the point j (one way) D 600 km/trip -
CO2 emission factor for a truck EFCO2,km 0.001097 tCO2/km Table 1-32, IPCC 1996
[Reference emissions]
Coal-coke combustion Biomass materials BRy 1,000 t-biomass(dry)/y -
Calories of bio-coke H 19.6 GJ/t-biocoke Set at 70% of coal-coke calories
CO2 emission factor for coal-coke Efcoke 0.108 tCO2/GJ IPCC
Reference emissions (from coal-coke combustion) REcoke,y 2,120 tCO2/y -
3.2.2 EFB
The following shows the reference and project scenarios for carrying out the bio-coke project using
EFB as the raw material for the production:
Fig. 27: Conceptual diagram of the reference and project scenarios (using EFB)
EFB is also used for power generation, but a large quantity of EFB remains unused because EFB
needs to be dried and crushed before use and because it occurs in abundance in the first place. For
instance, while the amount of biomass to be used in the bio-coke project is 10 tons/day, the amount of
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unused EFB at a palm oil plant we visited recently is 150 tons/day, suggesting that a sufficient quantity
of EFB exists unused.
In view of this, for EFB, the amount of methane emitted by biomass decomposition was also included
in reference emissions.
The method of calculating methane emissions from biomass decomposition is an area that has long
been discussed in CDM, and we have just received a comment at a hearing with TGO that it is
reasonable to follow the method of CDM.
Thus, the default value (0.001971 tCH4/t-biomass) for the factor of methane emission from biomass
specified in the CDM methodology for biomass (ACM0006) was used for estimation. The results
showed that methane emissions (in CO2 equivalent) from biomass decomposition were 41 tCO2e, or
only 2% of CO2 emissions from coal-coke combustion (2,120 tCO2).
(The small value of estimated methane emissions is also attributable to the fact that the default value is
set conservatively due to uncertainty over the conditions of biomass decomposition and other factors.
Therefore, if the conditions under which biomass materials decompose in case they are not used in this
project can be explained in more detail, it may be possible to estimate a greater effect of reducing
methane emissions than the current estimate.)
The estimation resulted in annual CO2 emission reductions of 1,647 tons (about 1.6 tons per ton of
bio-coke) in the case of using EFB.
Unlike rice husks, EFB allows considering the effect of reducing methane emissions from biomass
decomposition in the estimation of emission reductions. However, since EFB requires more energy
than rice husks for the crushing process, the overall CO2 emission reductions were estimated to be
smaller with EFB than with rice husks (CO2 emission reductions per ton of bio-coke: 1.6 tons with
EFB, 1.7 tons with rice husks).
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Table 29: Results of the estimation of emission reductions (in the case of EFB)
EFB
Project emissions 515 tCO2/y
Biomass transport PEbiomass,transport,y 0 tCO2/y
Bio-coke production PEbiocoke,production,y 398 tCO2/y
Bio-coke transport PEbiocoke,transport,y 117 tCO2/y
Reference emissions 2,161 tCO2/y
Coal-coke combustion REcoke,y 2,120 tCO2/y
Biomass decomposition REdecay ,y 41 tCO2/y
Leakage emissions 0 tCO2/y
Emission reductions 1,647 tCO2/y
[Project emissions]
Bio-coke production Electricity consumption in bio-coke production ECy 777 MWh/y Per 1,000 tons of bio-coke
CO2 emission factor for an electricity system EFCO2,y 0.5113 tCO2/MWh TGO
Bio-coke transport Number of trips of bio-coke transport to the point j (using a 15 ton truck) Ny 66.7 trip/y Assuming use of a 15 ton truck
Transport distance from the bio-coke plant to the point j (one way) D 800 km/trip -
CO2 emission factor for a truck EFCO2,km 0.001097 tCO2/km Table 1-32, IPCC 1996
[Reference emissions]
Coal-coke combustion Biomass materials BRy 1,000 t-biomass(dry)/y -
Since this estimation is based on current bio-coke production unit, the effect of reducing emissions
may become even greater with the enhancement of efficiency of the unit and improvements in
bio-coke transport methods. It should also be noted that this estimation excludes CO2 emissions from
coal-coke production and its import to Thailand, not comparing bio-coke with coal-coke from an LCA
perspective. (That is, CO2 emissions from bio-coke production are included in the estimation, while
CO2 emissions from coal-coke production are excluded from the estimation.)
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4. Proposal of JCM-related Policies for the Diffusion of Bio-coke
Technology
As discussed above, the production and distribution of bio-coke will greatly benefit Thailand, which is
active in utilizing biomass energy. Since promising plant sites are located in the southern and
northeastern parts of the country given conditions for material procurement, the bio-coke project is
expected to become an important measure for industrial development in those relatively poor areas.
Furthermore, if the bio-coke project is adopted as a bilateral project under a bilateral agreement on the
joint crediting mechanism (JCM) between Japan and Thailand expected to be concluded in the future
(as of March 2015), Thailand will be able to obtain various assistance from Japan in the transfer of
facilities and technology for bio-coke production.
However, there are actually many hurdles for private companies to establish the production and
distribution of bio-coke as a business in Thailand. For private companies to overcome those hurdles, it
is hoped that they will make efforts naturally expected of private companies, such as product cost
reduction, while the Thai government will take measures to support them. Draft policies for this
purpose are proposed below.
Since these biomass materials are easy to collect and therefore highly demanded as fuel for power
generation, it is necessary to consider the possibility of their procurement being hampered depending
on trends in oil prices. To reduce this risk in material procurement, bio-coke producers and distributors
(collectively “bio-coke plants”) should take measures to collect and use biomass materials that have
been practically unused due to their difficulty in collection, along with EFB and rice husks, as raw
materials for bio-coke. Such biomass materials may include rice straw, cassava rootstalks, and oil
palm leaves and branches.
Such unused biomass materials are currently plowed in as a fertilizer or left intact on farmland because
of their low economic values. Under such circumstances, the operators of bio-coke plants will have to
visit individual farmers and collect such biomass materials on their own if they want to use them as
raw materials for bio-coke. They will spend considerable time and costs in doing so, leading bio-coke
prices to be unaffordable.
Conduct of demonstration projects on the collection of rice straw and other unused biomass
Development of educational activities for farmers (to inform them that biomass such as rice straw
can be exchanged with cash as raw materials for bio-coke)
Setup of unused biomass collecting stations along main roads
Institutionalization of fair trades between farmers and bio-coke plants
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4.1.2 Utilization of other waste
(1) Issues
With the rapid economic growth, waste disposal has become a big problem even in Thailand.
Especially, the problem is getting serious in Greater Bangkok. While almost all amount of municipal
waste massively generated is currently landfilled, it is possible to produce bio-coke from municipal
waste and industrial waste to utilize them as a heat source for waste disposal.
To achieve this, it is necessary to separate incombustible and/or hazardous waste, which hampers
bio-coke production, from combustible waste.
Substituting bio-coke for part of coal-coke (foundry coke) as the heat source for cupola furnaces is
expected to allow these iron foundries to concurrently (1) impress outside society as an
“environmentally-friendly” company by actively using bio-coke, a renewable energy source, and (2)
lower import risks by partially replacing coal-coke imported exclusively from China with bio-coke
produced 100% in Thailand.
Bio-coke realizes high compressive strength and long combustion time at high temperature. So by
using this technology, biomass can be used in a new way. And, bio-coke is the technology that
compresses biomass. So by using this technology, transportation cost of biomass can be decreased.
To consider these new biomass utilizations, it is helpful to know about heat demand.
However, there is no information about the heat demand in Thailand.
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(2) Policy support
In Thailand, energy-intensive company reports its energy consumption amount to DEDE every year. In
addition to that, Thai government is considering introducing “Energy Performance Certification
scheme” which set energy intensity target for each facility and certify the achievement. To start this
new scheme, the government will collect detail information about energy consuming to set the
benchmark of each sector.
The government should collect not only energy consumption amount data, but also data about heat
demand (temperature and heat amount) and unutilized waste heat (temperature and heat amount) of
each facility. This information is very helpful for the private company to consider the energy business
including bio-coke.
For example, bio-coke can burn high temperature for a long time. If there is a facility that needs long
and high temperature heat, bio-coke can be a solution. And if there is a facility who has unutilized
waste heat, the heat can be utilized for production of bio-coke.
DEDE have already released the report “Biomass Database Potential in Thailand” which represents the
amount of biomass used and unused in Thailand. This report is very helpful for the private company to
consider biomass business in Thailand. If Thai government released similar report about heat demand,
it will promote biomass utilization as heat source and CO2 emission reduction.
Although rice husks are an excellent raw material because it does not require crushing and drying,
thereby enabling a reduction in production costs, it is relatively expensive as a large portion has
already been used for power generation. On the other hand, while EFB exists unused in quantities in
Thailand, costs for drying and crushing EFB push up its production costs. With this in mind, it is
important to use waste heat from neighboring plants as well as sunlight for drying EFB and develop a
technology to crush EFB inexpensively.
Additionally, for the purpose of encouraging the use of practically unused biomass, such as rice straw,
it is necessary to identify effective methods for drying and crushing such biomass and analyze its
component to determine whether it is suitable as a raw material for bio-coke.
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(2) Policy support
It is hoped that the Thai government will take measures to extend facilities and secure funds for
research institutions engaged in studies on bio-coke, to obtain analysis samples and procure
experiment equipment.
Although this study could not find any demand for bio-coke as a heat source for nonferrous smelting,
it is considered meaningful to conduct research to explore other bio-coke applications. Applications to
be explored in such research may include the heat source for lime firing and ceramics.
In Thailand, where steel industry does not use blast furnace, demand for bio-coke as an alternative to
coke for blast furnaces cannot be expected. On a global basis, however, the demand for coke for blast
furnaces is far greater than the demand for foundry coke. In view of this, it is also important to
proceed with research on such matters as component conditions for bio-coke to be adopted for blast
furnaces.
Meanwhile, as measures to address the increasingly serious problems with waste disposal in Thailand,
it is promising to use some of the waste as a raw material for bio-coke and use bio-coke as the heat
source for waste incineration. This can be achieved by using gasification and direct melting furnaces,
which are able to turn even incineration ash into slag and are in practical use at waste incineration
plants in Japan and other developed countries. If an “eco-” version of gasification and direct melting
furnaces that is optimized for the use of bio-coke as the heat source is also successfully developed by
Japan and Thailand in cooperation, a further expansion of bio-coke customers will be feasible.
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hoped that to consider introducing gasification and direct melting furnaces, use of bio-coke, and “eco-”
version of them.
However, it is not clear which industry bio-coke plants belong to between 1.16.2 “production of fuel
from agricultural products including crop scraps, garbage and other waste (e.g., biomass to liquid
(BTL), natural gas from wastewater) and 1.16.3 “production of compressed biomass fuel” in the List
of Investment Promotion Industries. As the privilege, A2 (corporate tax exemption for 8 years for up to
100% of the investment amount) applies to the former while A3 (corporate tax exemption for 5 years)
applies to the latter. Given the significance of the 3-year difference in the corporate tax exemption
period, it is desirable to clearly position bio-coke plants in the List of Investment Promotion
Industries.
In addition to that, if energy consumption amount from biomass resources is regarded as zero count on
“Energy Performance Certification scheme” biomass utilization will be promoted.
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