From Coal to Biomass
HMS Bergbau AG
HEAT AND POWER GENERATION WITH
RENEWABLE ENERGY
17th May 2011, Dublin
- Confidential and Preliminary not to be copied or distributed without written consent
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not to be copied or distributed without written consent
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HMS Bergbau AG (www.hms-ag.com)
HMS, based in Berlin, trading of steam coal, coking coal, anthracites and biomass (wood
pellets, PKS, agro biomass)
•
•
into Europe, India, Asia
from Russia, South Africa, Americas, Indonesia
Expanding into coal production with projects in Poland, South Africa, Indonesia
and strongly growing in the field of biomass
Founded by Heinz Schernikau in 1995
•
industry veteran, used to run Eastern Germany‘s coal and energy trading business
Publicly listed at Frankfurt stock exchange in December 2008
•
still family run and majority owned by Schernikau family
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Where we are active…
HMS Bergbau Polska Sp. Z o.o.
Katowice, Poland
HMS Niwka Coal Production Sp. z o.o.
Katowice, Poland
HMS Representative
Office Singapore
HMS Representative
Office Lahore,
Pakistan
privileged and confidential
HMS Representative Office
Bristol, Tennessee, USA
Headquarter
HMS Bergbau AG
Berlin, Germany
HMS Representative
Office Mumbai, India
PT. HMS Bergbau Indonesia
Jakarta, Indonesia
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Port Kintap, South Kalimantan
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World – Primary energy mix – Scenario 2100
What lies behind the oil age?
100%
Biomass
Hydro
Other
Solar
80%
GAS
Nuclear
60%
Oil
40%
Coal
20%
0%
1850
1900
1950
2000
2050
2100
Source: World Coal Institute, www.wci-coal.org, i001
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From Coal to Biomass – EU Reduction Targets
Main biomass driver: EU 20/20 reduction targets
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Substitution of coal by biomass – in stand alone plants or in co-firing systems
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Countries with a high share of coal in their electricity production matrix can
reach the ambitious EU-target only by burning biomass
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Biomass is the cheapest and smoothest way in order to have a fast reductions
of CO2 emissions.
Main importing countries of biomass in Europe:
Denmark, Sweden, Belgium, Netherlands, Italy, Poland, UK,
Situation in Germany:
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Solid biomass is only subsidized in the domestic market and in CHP plants
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No support for big co-firing projects due to the unbundling approach of the EEG
– Renewable Energy Law
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Worldwide Technical Biomass Potential
Source: Kaltschmitt, 2009, p. 10f
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Worldwide Biomass trade – Traders Market
International Biomass trade
Liquid Biomass:
Ethanol – has a very long history in
Brazil – fuel flex cars.
Bio Diesel – driven by EU subsidies
E. Europe &
Russia
W. Europe
Canada
Solid Biomass:
Woodchips: 30 Mio tons; 4,5 (15 %
for power and heat supply)
Japan
USA
Wood Pellets: 4,0 Mio tons Industrial
Pellets – nearly no seaboard trading
of premium pellets.
Malaysia &
Indonesia
Brazil
Australia
en
S. Africa
Ar
g
Wood pellets
tin
a
Ethanol
Veg. oils &
biodiesel
(in Mio. t)
Bio ethanol
Bio diesel
Wood Pellets
Worldwide Production
52,9
10,6
11,5
Internationally traded volume
3,7
2,9
ca. 4,0
Brazil
USA, Argentina, Indonesia,
Malaysia
Canada, USA, Baltic Countries,
Finland, Russia
USA, Japan, EU
EU
Belgium, Netherlands, Sweden,
Italia
Main exporting countries
Main importing countries
Source: IEA Bioenergy ExCo65
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HMS Biomass – What we trade…
Wood Pellets:
Premium pellets for residential usage
and industrial pellets for commercial and industrial customers
Different cooperations with reputable pellet producers
Wood Chips:
Mainly on a regional basis
Agro Biomass:
Sunflower-husk-pellets and straw-pellets from the Ukraine
olive cake North-Africa
Palm Kernel Shells: From Indonesia and West-Africa
Torrefied Pellets:
“The Holy Grail” of the Industry – but no quantities available on the
market yet
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Palm Kernel Shells
Since 2007, Indonesia has become the largest palm oil producer
Annual production approx. 20 mio tonnes crude palm oil (CPO)
During the production of palm oil several residues become
available
Palm kernel shells (PKS) or palm nut shells (PNS) are the biggest
residues in terms of quantity.
PKS represents about 6-8% of the fresh fruit bunch production
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Characteristics of PKS
• Low ash content below 3 % (ARB)
• Moisture content 15-20 % (ARB)
• High energy density 15-18 GJ/t – 60% higher than green wood
chips
• Not sensitive to rain and can be stored open without an
significant increase of water content.
• Bulk density 650kg/m3 (coal: 850-900kg/m3)
• PKS are shipped in bulk
• Very slow degradation of material
• Negligible dusting
• Can be used as a single fuel in power plants but can also be
used for blending or co-firing.
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Black Pellets - Torrefication Process
Torrefication:
Partial-combustion without oxygen
Process:
Pre-drying 100-130°C, heating up to 130-250°C, pyrolysis 250-300°C
Effect:
Reduction of moisture content, reduction of acids, reduction of volatile
matters, reduction of mass by 30%, reduction of NCV by 10%
Agricultural residues
Mixed organic waste
Torrefication
Pelletisation
Woody biomass
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Torrefied Pellets
Advantages:
High Feedstock-Flexibility: agricultural
residues, wood waste, saw dust, wood
chips – increase in production potential &
availability
Storage characteristics: water
resistance - can be stored in uncovered
stockpiles
Characteristics
Torrefied Pellets
Normal Wood Pellets
NCV (ARB)
20-22 MJ/Kg
16-18 MJ/Kg
Bulk Density
800-850 Kg/m3
650 Kg/m3
20-22 MJ/kg
10-12 GJ/m3
3%
~ 10%
Energy Density
Moisture
Excellent Grindability: existing coal
infrastructure can be used
Very homogenous end-product
Market Situation:
Reduction of SOx and NOx during
combustion
Huge demand but no significant supply yet
Most projects are still in very early stages
“Power producers are willing to pay extra 2-3€ /GJ only
due to the better storage- and handling characteristics”
Rob Marcus, Vattenfall
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Thank You!
(www.hms-ag.com)
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