Biomass Power Project -2

8/3/2019 Biomass Power Project -2

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Prepared by Sunil Kumar

Corrtech Energy Ltd.

[email protected]


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Contentsy Project Descriptiony Market & Growth Drivers

y Potential of Bagasse based power generation

y Bagasse based power plant policies

yWhy Gujarat

y Technology /Processes

y

Suggested projecty Project cost


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Continuey Funding

y Returns

y

Parties Involvedy Risk & Risk Mitigation

y Progress

y Players in the market


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Project Descriptiony The proposed project is to set up bagasse based highefficient grid connected cogeneration power plant atexisting sugar mill

y

Private or cooperative sugar plants has accepted theimportance of cogeneration power plant for exportingsurplus power

y Gujarat as one of the leading sugar producers has greatpotential for cogen plant

y The plant will generate required steam for the plantand electricity for the plant and for exporting to thegrid


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Market & Growth Driversy Increasing price of petroleum crude and other fossil

fuels world over and in India in the last two decades,has forced us to cheaper, renewable source of energy

y Present energy deficit..

y In Gujarat..

y 10% of total power generation must come fromRenewable Energy

y Government policies to promote Renewable Energy

y CDM benefits


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Potential of Bagasse based power

plantsy Gujarat has 17 sugar plants in operation with crushing

capability of more than 10 million MT per year

y Bagasse production is 30% of total crushing of sugarwhich creates a potential of 250-300 MW powergeneration

y So far only two sugar plants of all have gone for

execution of cogeneration power plant, rest are waitingfor capable partners


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Bagasse based power plant

policiesy Supply of biomass, In principal agreement

y Subsidy

y Gridy PPA/ Tariff

y Transmission/ Wheeling.

y Tax benefits.

y CDM.

y Other benefits


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Technology/ Processes


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Suggested projecty Mahua Sugar Plant

y Capacity: 4000 TCD

y

Bagasse generated(28%): 1120 Tons/ Dayy Self consumption of bagasse in the process and

running turbines for 6 MW power generation: 1000Tons/ Day

y Days of operation: 190

yAmount of bagasse required to generate 1Kwe=2.2Kg

y Possible power project from 1000 Tons per day bagasse:27.4 MW


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Continuey Power plant proposed: 21 MW

y Total energy generation in a year: 156.37 MU

y

Net energy available for billing: 94.61 MUy Price of biomass: Rs.750 per ton, in case of buying from the

mill Rs. 250 per ton (special rate)

y Mills additional benefit from selling biomass to us atspecial rate is Rs. 2.87 Crore a year

y Mills will give us land and water at free of cost and bagasseat special rate

y The cogeneration power plant will be completely owned bysugar mills after 15 years of it operation


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Project Costy Project cost: Rs. 88 Crore


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Fundingy Loan: 70 % of the project

y Subsidy: Up to 15% of the project

y Equity partners: Axis Bank, CORRTECH & NeoGeoy Net investment of CORRTEC: Rs. 14 crore over a

period of 18 months


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Financials (without CDM

benefits)Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Energyavailable forsale

94.61 MU 94.61 MU 94.61 MU 94.61 MU 94.61 MU

Revenue @Rs. 3 perunit

2838.2 lacs 2838.2 lacs 2838.2 lacs 2838.2 lacs 2838.2 lacs

Fuel, O&M,

Insurance,Interest,Depr.

2160.5 lacs 2068.1 lacs 2065.0 lacs 2033.0 lacs 2003.6 lacs

PAT 677.7 lacs 770.1 lacs 773.2 lacs 805.2 lacs 834.6 lacs


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Returns: without CDM

benefitsy ROE: 31.3% (10 years average)

y IRR: 31.2%

y Repayment of Loan: 10 yearsy DSCR: More than 3.0


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Parties Involvedy Ministry of Non Conventional Energy

y Gujarat Energy Development Agency (GEDA)

y Gujarat Electricity Regulatory Commissiony Sugar Factory Co-operative society

y Other biomass suppliers

y Bank

y Equity partners


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Risk & Risk Mitigationy Funding

y Fuel Supply & Prices fluctuation

y Location disadvantagesy Government policies


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Progressy Meetings with Sugar Factories

y Meetings with regulatory bodies

y Discussion with equipment suppliers


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Players in the markety Kalpataru Power Transmission Ltd.

y Surya Chamble Power Ltd.

yAmrit Envi. Tech Pvt. Ltd.y Birla Corporation Ltd.

y Transend Green Power Ltd.

y Sambhav Energy Ltd.

yJ K Laxmi Cement Ltd.

y Satyam Power Ltd.

y Star Biomass Power Pvt. Ltd.

Documents

Biomass Power Project -2