Sustainable Indigenous
Energy for Tea Industry in Sri
Lanka
L P Jayasinghe
Bio Energy Association of Sri Lanka
Sri Lanka Energy Mix
Energy Mix
100
90
% Contribution
80
70
60
Hydro
Thermal
50
40
30
20
10
0
1995
2005
Year
2015
Oil Price and Tariff Change
120
Price Rs/$ and $/bbl
100
80
Dollar Parity
Oil Price
60
40
20
0
1999 2000 2001 2002 2003 2004 2005 2006 2007
Year
Mankind’s use of fossil fuel
5000 Years hence
5000 Years ago
Now
Energy Needs for Tea
Production in Sri Lanka
Electrical 0.75 kWh/kg of MT
15% [1]
Potential Optimum
0.23 kWh/kg [4]
Total Energy
Consumption
7.1 kWh/kg of
MT 100%
Thermal 21700 kJ/kg of MT 85%
Potential Optimum ???
Options for Energy Savings
• Improvement of Efficiency of usage –
Potential national savings Rs 400 Million
per year
• Fuel switching – 50% saving in fuel wood
or > Rs 10/kg MT by oil to wood
changeover
Efficiency Improvements
• Withering fans the prime candidate – 40%
saving in electricity by VSDs
• Dryers – improved combustion
– Better heat exchangers - current 20- 40% to
65% – Switching to SRC wood from logs – 50%
reduction in wood consumption
Concerns & Barriers
• High cost of funds and lack of credit
• Perception that the tea quality will suffer
• Inadequate appreciation of the potential
• Lack of dissemination of considerable
available information
Quality !!!
&
Consistency of Quality !!!
is possible only through
measurement and control
Alternate Energy Sources
• Grow you own fuel and fertilizer
• Use fuel at optimum size and moisture
content for better combustion efficiency
• Use combined heat and power option and
maximize waste heat usage
CHP Options
• Option II
Fuel Wood
Gasifier
Producer
Gas
Electrical
Energy
250 kWe
Gas Engine
Alternator
Waste Heat
From
Engine Exhaust
Atmospheric
Air
10,000 cfm
Waste Heat
Exchanger
Hot Air
10,000 cfm
Wet Tea
535 kg/hr
Hot air
Generator
Tea Drier
Dry Tea
250 kg/hr
Energy for Additional Revenue !
• Using Steam Turbine Technology
• Minimum capacity 500 kW
Water Cooled or Air Cooled options
• Grid Connection needed for export of
power
• Using own fuel wood plantations
• Foliage and added benefit
• Carbon Credits
• Option III Self Generation &
Export to Grid
Electrical
Fuel Wood
Energy
500 kWe
Factory
Direct Fire
Boiler
STG
Alternator
Steam
@30Bar/400C
Export
Steam
@3Bar/180C
Atmospheric Air
10,000 cfm
Radiator Type
Air Heater
Wet Tea
535 kg/hr
Tea drier
Hot Air
10,000 cfm
Dry Tea
250 kg/hr
Steam Turbine Generator 300 kW
Carbon Credits Potential
• CO2 Equivalent of 500 kw – 3000 Tons
• Current CER Prices – $10-15 per Ton
• Potential revenue per factory - $ 30,000/yr
• The CERS from thermal energy not
included
• National potential > $ 15,000,000
Barriers to Overcome
• Funding for the capital expenditure
• Generation of adequate energy plantations
• Grid connection issues
• Bundling to get full benefits of Carbon
Credits
• Lack of appreciation of true potential
500 kW Dendro Plant with Grid Connection
Equity
40,376,000
Loans
60,564,000
Income
54,970,200
Costs before interest
21,730,000
Profit after Interest before Tax
23,307,704
Capital Employed
100,940,000
Operating Parameters
Cost of wood /kg dry
1,000.00
Interest rate
0.16
O D Rate
0.20
ROC (Return On Capital)
33%
ROSE
58%
Capital Cost US$/KW
1,750.00
6,992,311
Tariff Rs /KWh
12.06
16,315,393
No of days Run/Yr
330
13%
Wood Consumption
kg/kWh
1.80
Tax at 30%
Profit after Interest and Tax
IRR
Payback Period (Yrs)
3.0
Carbon Revenue not included
Lets Grow
Our Own Energy
Re-Greening Sri Lanka
Money Does Grow On Trees
Bio Energy Association of Sri Lanka
465/1 Sunethradevi Road
Pepiliyana
Sri Lanka
Tel + 94 11 2812373,
Email [email protected]
www.bioenergysrilanka.com
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Sustainable Indigenous Energy for Tea Industry in Sri Lanka