FY 2014 Project for Promoting the
Spread of Technologies to Counter
Global Warming
(Feasibility Study of Biocoke technology JCM
project in Thailand)
Report
March, 2015
Mizuho Information and Research Institute, Inc.
Contents
1. What is Bio-coke? ..................................................................................................... 1
1.1 What is Bio-coke? ............................................................................................... 1
1.2 Track Record of Bio-coke Production and Use .................................................. 7
2. Feasibility of Manufacturing and Sales of Bio-coke in Thailand ........................ 13
2.1 Assessment of Local Demand for Bio-coke...................................................... 13
2.2 Feasibility Assessment ..................................................................................... 24
2.3 Economic Effects of the Plan ........................................................................... 35
3. Exploration of Methodology to Evaluate Emission Reductions and Estimation of
Emission Reductions Using the Methodology ........................................................... 38
3.1 Exploration of methodology to evaluate emission reductions ........................ 38
3.2 Estimation of emission reductions expected in the project ............................ 45
3.3 Regarding the estimation results .................................................................... 48
4. Proposal of JCM-related Policies for the Diffusion of Bio-coke Technology ........ 49
Issues with material procurement ......................................................................... 49
Issues with the securement of distribution channels ............................................ 50
Issues with the protection of intellectual property ............................................... 51
Issues with research and development .................................................................. 51
1. What is Bio-coke?
1.1
What is Bio-coke?
1.1.1
Biomass Utilization Technologies
For use as fuel, biomass can not only be directly combusted but also be processed so that its properties
are changed as shown below:



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.
Table 1: Major Uses and Utilization Technologies of Biomass
Energy use
Direct combustion (power generation, thermal
utilization)
Methane fermentation (power
Into gaseous generation, thermal utilization)
fuel
Gasification (power generation,
thermal utilization)
BDF
Into liquid
BTL
fuel
Ethanol
Chips
Into solid fuel Pellets/briquettes
Bio-coke
Wood chips
Material use
1.1.2
Feed
Fertilizer
Soil conditioner (carbonization)
Bio-coke: Overview
Bio-coke is a type of solid fuel that is produced by applying heat and compression; it is a new biomass
fuel developed by Dr. Tamio IDA, Professor, the Research Institute of Biocoke, Kinki University,
Japan. Bio-coke features high strength and long combustion duration--two of the properties that have
been deemed difficult to achieve with traditional biomass fuels. It has also a major advantage that it
can be produced from almost all kinds of plant biomass, including those that have rarely been utilized
to date. Biocoke is recognized as a trailblazing technology of using biomass as energy from these
characteristics.
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.
Figure 1: Bio-coke Production Process
Source: Kinki University
2
Table 2: Characteristics of Bio-coke
Characteristic
1
It can substitute for
coal-coke (due to its high
compressive strength and
long combustion duration
at high temperature)
Characteristic
2
It can use almost all kinds
of biomass as the raw
material.
Characteristic
3
It can make effective use
of all the energy contained
in the raw material.
 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.
 This characteristic has unleashed the potential of
biomass in areas where it is difficult to put
conventional biomass to good use.
 In fact, various demonstration trials and research
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
waste (konara oak, cherry tree), sawdust, tree bark,
apple peel, banana peel, distillery waste, soymeal,
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
converting the raw material to solid fuel does not
release its volatile components such as methane,
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.
1.1.3
Raw materials of bio-coke
Bio-coke can be produced from almost all kinds of plant-derived waste. Many other biomass
utilization technologies focus on the carbohydrates that account for 70-80% of wood biomass,
including cellulose and hemicellulose; but they do not make effective use of lignin, which makes up
for the remaining 20-30%.
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
1.1.4
Advantages of the Bio-coke Production Process and Products
The bio-coke production process features semi-carbonized forward reaction at 180 deg C (approx. 450
K). This reaction prevents carbon from being converted to methane or other gases. No reduction in the
amount of carbon means a yield of almost 100% on a weight base. (For example, one kilogram of dry
raw material is converted to one kilogram of bio-coke.)
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
Carbonization temperature
range
Gasification temperature
range
Bio-coke temperature range
Used tea
leaves
Temperature [K]
Bio-coke is generated in this temperature range
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.
Figure 4: Cross-sections of the Raw Material (Biomass) and Bio-coke
Source: Kinki University
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:
Table 3: Comparisons of Major Properties of Selected Types of Coke
Functional criteria
Coal-coke
Bio-coke
Calorific value
Cold strength
7000
20 MPa
4000-6000
40-100 MPa
Ogalite charcoal
(biomass coke)
8000
1-3 MPa
Hot strength
n/a
High
Average
Apparent specific gravity
Drop strength
Rotational strength
Porosity
Thermal fluidity
Ash fusibility
Combustibility
Solubility
1.1
High
High
1,000-20,000
0
100
1.4
Very high
Very high
0
n/d
40-50
40-50
0.3?
Average
Average
20-30
70-80
Data source/Unit
kcal/kg
Compression test
Pressurized
combustion test
Actual measurement
No test conducted
No test conducted
No test conducted
JIS fluidity test
No test conducted
Charcoal = 100
Coal-coke = 100
Source: Kinki University
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
Ignitability
Combustion
temperature
range
Combustion time
Clinker
generations
1.2
Bio-coke
Low
Wood pellets
High
Wood chips
High
1,300-1,500 deg C
(In a melting furnace)
600-800 deg C
410 deg C
(In a stove)
Long
Short
Short
Almost none
Much
Much
Track Record of Bio-coke Production and Use
Many cases in Japan and other countries have already shown that bio-coke can serve primarily as a
substitute heat source for coal-coke in a range of applications, including metalworking such as casting
and forging, as well as waste incineration.
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.
Table 5: History of Bio-coke Production and Use
Date
April 2010
April 2011
September 2011
2012
January 2012
December 2012
Event
Kinki University and Naniwa Roki Co., Ltd. jointly developed a practical type of
bio-coke production unit with an output capacity of one ton per 24 hours.
The Osaka Prefecture Forest Owners Association constructed the world’s first
commercial bio-coke plant in Takatsuki City, Osaka Prefecture. The plant still
manufactures bio-coke primarily from forest thinnings for sale.
Kinki University, JFE Engineering Corporation, Naniwa Roki Co., Ltd., and
Nihon Kouken Co., Ltd. jointly conducted demonstration trials, successfully
replacing 56.5% of the coal-coke in a gasification and direct melting furnace.
Kinki University successfully developed continuous manufacturing unit with an
output capacity about four times higher than the conventional unit in 2012,
which was incapable of continuous production of bio-coke. This project was
funded under the Project for Regional Innovation Creation and R&D within the
framework of the supplementary national budget for FY2010.
Bio-coke won the New Energy Award (Director-General Prize of Agency of
Natural Resources and Energy) for FY2011
Kinki University, Toyota Industries Corporation, Naniwa Roki Co., Ltd., and the
Osaka Prefecture Forest Owners Association jointly won the Environment
Minister’s Award for Global Warming Prevention Activity for FY2012.
7
2013
August 2013
March 2014
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.”
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.
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.
1.2.1
Production of Bio-coke
<Takatsuki Bio-coke Processing Plant of the Osaka Prefecture Forest Owners Association>
Takatsuki Bio-coke Processing Plant of the Osaka Prefecture Forest Owners Association, completed in
April 2011, is the world’s first commercial bio-coke manufacturing plant. This is the result of a project
designed jointly by the Osaka Prefecture Forest Owners Association, Kinki University, Naniwa Roki
Co., Ltd., and Takatsuki City to produce bio-coke from locally sourced forest thinnings as a fuel for
melting iron.
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
material
(Chips)
Storage
Finished
product
Figure 6: Takatsuki Bio-coke Processing Plant
Source: MHIR
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)
Figure 7: Molding plant
Source: Kinki University
<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.
Figure 9: The Pilot Plant in Malaysia
Source: Osaka Gas Engineering Co., Ltd.
1.2.2
Use of Bio-coke
This section introduces some of the cases in which bio-coke can be put to practical use.
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.
<Waste incineration (in a gasification and direct melting furnace)>
Gasification and direct melting furnaces are incinerators that gasify the components and extract the ash
content as slugs and metals through high-temperature pyrolysis. As the pyrolysis of waste requires
external energy, coal-coke is used in the conventional incineration process where waste itself is burnt.
Kinki University’s Research Institute of Bio-coke has demonstrated that up to 50% of such coal-coke
can be replaced with bio-coke.
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
2.1
2.1.1
Assessment of Local Demand for Bio-coke
Demand for Coke in Thailand
Thailand is relatively endowed with coal resources. The open-pit mine in Mae Moh in Northern
Thailand, for example, produces coal that is used for coal-fired power plants. Almost all the coal
produced in Thailand, however, is lignite, which is unsuitable for coke production. 2 The country
imports almost all the coal-coke it uses.
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
(In
tons)
（トン）
208,729
200,000
150,000
100,000
117,544
66,385 70,958
53,672
66,317
52,593
50,000
108,164
36,019 39,090
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Figure 11: Changes in Thailand’s Imports of Coal-coke
Note:
Coal-coke is defined as the range of products that are classified as HS Code No. 2704 (Coke & semicoke of coal,
lignite, peat; retort carbon).
Source: WTO, International Trade Center Database (http://www.intracen.org/trade-support/trade-statistics/)
Compiled by MHIR
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
(cf.) Japan
Total imports: 1,532,198 tons
Imports from China: 1,030,258 tons
(In tons)
Other
countries
China
Thailand
Indonesia
Malaysia
Philippines
Vietnam
Figure 12: Imports of Coal-coke by Major ASEAN Countries (2013)
Note:
Coal-coke is defined as the range of products that are classified as HS Code No. 2704 (Coke & semicoke of coal,
lignite, peat; retort carbon).
Source: WTO, International Trade Center Database (http://www.intracen.org/trade-support/trade-statistics/)
Compiled by MHIR
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.
Table 6: Major Advantages and Disadvantages of Cupola Furnaces
Advantages


Disadvantages
 While induction furnaces are relatively easy to operate
automatically, cupola furnaces demand much manpower
Cupola furnaces can mass-produce high-quality
for melting operations, pushing up labor costs.
molten metals steadily at a low cost.
 Cupola furnaces, if they are small in size, require manual
For the iron source, cupola furnaces can use
repairing every time they are used.
galvanized steel sheets, which are generally not  Cupola furnaces generate much dust, making it difficult to
applicable for use in an induction furnace.
keep the surrounding environment clean.
 Cupola furnaces emit more CO2 than induction furnaces or
gas furnaces.
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.)
Molten metal
Coke
Bed coke
Figure 13: Structure of a Cupola Furnace
Source: Nihon Kouken Co., Ltd., “Baiokokusu Jigyoka Kanosei Chosa Hokokusho [A study
report on the feasibility of bio-coke business]”
(This study was commissioned by Aomori Prefecture within the framework of the Ministry of
Health, Labor and Welfare’s special fund program for stimulating hometown employment.)
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
Table 7: Major Characteristics of Foundry Coke
Foundry coke
Metallurgical coke
Remarks (on foundry coke)
Low ash content coke boosts the absorption of
carbon by the molten iron, thereby increasing its
temperature.
Ash content
6-10%
10-12%
Sulfur
content
0.6-0.7%
Around 0.7%
When the molten iron contacts with coke, the
sulfur content of the coke is absorbed into the
molten iron, which often has adverse effects.
Drop
strength
93% or higher
―
This is important because the coke needs to bear
the load pressure of the material in the furnace
at high temperatures.
Porosity
30-40%
45-50%
A higher porosity is undesirable because it is
more reactive (and therefore more combustible).
The grain size should be small enough to
maintain the voids in the furnace and thus
Normally 25-75 mm;
Grain size
facilitate the dripping of the molten iron and
50 mm on average
ventilation. Generally, it should be 1/6-1/12 of
the inside diameter of the furnace.
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.)
Normally 60 mm or larger
(depending on the
dimension of the cupola
furnace)
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
Apr.-Jul. 2008
Car parts manufacturer
Oct.-Nov. 2013
Cast iron pipe
manufacturer
Description and outcomes
Demonstration trials in a cupola furnace for manufacturing car engine
parts confirmed an effective substitution rate of 11.4%.
Demonstration trials tested substitution rates of 5%, 10%, 15%, and
20% on a calorific value basis. They showed that bio-coke can replace
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.
Table 9: Casting Production of Major Economies in the World (2013)
Rank
Economies
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
China
US
India
Japan
Germany
Russia
Brazil
ROK
Italy
France
Mexico
Turkey
Ukraine
Poland
Taiwan
Spain
Canada
UK
Czech
South Africa
Austria
Thailand
Iron castings
Steel castings
32,750
8,416
7,760
3,864
3,953
2,800
2,571
1,798
1,077
1,339
831
1,108
515
857
752
906
378
297
226
220
158
131
5,500
1,423
1,100
182
208
700
233
164
70
81
79
135
470
55
76
75
92
64
76
118
13
30
Nonferrous
castings
6,250
2,411
950
1,492
1,026
600
268
600
825
329
742
300
380
354
330
131
235
123
106
37
146
156
(1,000 tons)
Castings in
total
44,500
12,250
9,810
5,538
5,187
4,100
3,071
2,562
1,971
1,748
1,652
1,543
1,365
1,266
1,158
1,112
705
484
408
375
317
316
Note:
“Pig 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.)
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)
Indonesia
Malaysia
Thailand
Figure 15: Changes in the Number of Automobile Units Manufactured
in Three Major Economies in ASEAN
Source: Compiled by MHIR from OICA, Production Statistics.
2) Number of Foundries and Product Shipment Unit Prices
As of 2013, there were a total of 580 foundries in Thailand. They included 280 iron foundries, 40 steel
foundries, and 260 nonferrous foundries. The average production per foundry was 467 tons for iron
castings, 745 tons for steel castings, and 600 tons for nonferrous castings. These figures roughly
represent 1/10, 1/3, and 1/2 of the Japanese counterparts, respectively.
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)
280
40
Nonferrous
castings
260
467
745
600
546
1,599
1,935
2,399
2,025
817
75
1,193
2,085
4,730
2,422
1,251
2,656
2,122
6,418
6,702
3,497
Iron castings
Thailand
Japan
No. of foundries
Production per
foundry (t)
Unit shipment price
(US$/t)
No. of foundries
Production per
foundry (t)
Unit shipment price
(US$/t)
Steel
castings
Castings in
total
580
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.)
3) Geographical Distribution of Foundries
According to the 2013 directory of the Thai Foundry Association, there are 158 member
companies--including foreign-affiliated foundries such as Japanese ones--as of 2013. Of them, 72 are
ferrous foundries while 34 are nonferrous foundries. Geographically, these 72 companies concentrate
in the Central region, especially the capital city of Bangkok, Samut Sakorn, and Samut Prakarn.
18
Northern region
11 foundries or
more
6-10 foundries
5 foundries or
less
Central region
Northeastern
region
Total
Figure 16: Geographical Distribution of Ferrous Foundries in Thailand
(members of the Thai Foundry Association only)
Source: Compiled by MHIR from the Directory of Thai Foundry Association 2013.
c Foundries that Use a Cupola Furnace to Melt Metals
There are about 50 foundries that use a cupola furnace for melting metals in Thailand. All of them are
small- and medium-sized local companies. Geographically, they are concentrated in Samut Sakorn (the
province that is traditionally known for its casting production), which is located immediately
southwest of Bangkok. 4
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
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.
5
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:
Table 11: The Use of Advantages of Cupola Furnaces
Company profile
Company H
Production of parts of gas ovens
and small arms
Monthly output capacity: 200 tons



Company I
Production of cast iron water pipes
Monthly production: 400-500 tons


Use of cupola furnace
Uses a cupola furnace that was
introduced more than 20 years
ago (with a melting capacity of
2 tons), as well an induction
furnace for melting purposes.
Uses the cupola furnace during
the day and the induction
furnace at night (from 10:00
p.m. to 9:00 a.m.) when electric
power rates are lower.
Uses the cupola furnace for
melting purposes only three
days a week due to the need for
regular repairing.
Uses 2 cupola furnaces (with a
melting capacity of 4 tons) and
5 induction furnaces for melting
metals.
Melts FC in a cupola furnace
during the day and FCD in an
induction furnace at night.
Advantages, etc.
 Advantages include a small
initial investment and the ability
to produce high quality molten
iron.
 Hopes to continue using the
cupola furnace, though its
maintenance requires
experience and skill.
 The cupola furnace generate
some dust, but no complaints
from the neighborhoods.
 The cupola furnaces are
equipped with an instrument to
reduce dust emissions. Little
complaints from the
neighborhoods.
 Uses the cupola furnaces to
curtail costs. They are more
cost-effective when melting
metals in large quantities.
Source: Interview survey on selected Thai foundries in October 2014.
d Foundry Coke: Demand and Price
Our interviews with officials at Company J, a Thai trading house specializing in casting materials,
showed that the monthly demand for foundry coke in Thailand usually hovers around 500 tons
although it reached 1,000 tons in a few occasions in the past.
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 12: Price of Foundry Coke
Foundry
Company H
 Purchases 70 tons
monthly at the price
of 17,000 bahts
(approx. 59,500 yen)
per ton.
Foundry
Company I
 Procures around 50
tons a month. They
are all made in China.
The price is 20,000
bahts (approx.
70,000 yen) or less.
Specialized trading house
Company J
 Foundry coke is all
imported from China
via five importers in
Thailand.
 Buys foundry coke at
the price range from
approx. 440 dollars
(approx. 52,800 yen) to
450 dollars (approx.
54,000 yen).
cf. Japanese foundry
(Anonymous)
 The price per ton used
to be on the order of
90,000 yen but now
less than 70,000 yen.
 The price is an
important factor for
the application of
bio-coke. It should be
at least on the order
of 60,000 yen.
Note:
Calculations are based on the exchange rates of 120 yen to the US dollar and 3.5 yen to the baht.
Source: Interview survey of some foundries and a trading house specializing in casting materials in October 2014.
e Potential Partners for Securing Distribution Channels
If we are to produce bio-coke in Thailand and sell it to local foundries, it is important to gain
cooperation from a local trading house. Our interview survey in Thailand of a Japanese trading house
specializing in casting materials and a local counterpart has shown that the latter is in a far better
position than the former to deliver bio-coke to local foundries due to the latter’s overwhelming track
record. Because only local foundries use cupola furnaces for melting metals, we should preferably
select a local trading house as a partner for securing distribution channels.
Table 13: Transactions with Local Foundries in Thailand by Trading Houses Specializing
in Casting Materials
Local trading house
J Company
 Company J has business relationship with some
90% of the foundries in Thailand.
 It does business with those that use cupola furnaces
for melting metals, including selling foundry coke
to them.
Japanese trading house
Company K
 Company K’s head office in Japan deals in coke
that is produced in China. Company K does not
deal in coke as Japanese foundries in Thailand do
not use coke for a heat source.
 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.
(2) Other Potential Applications
Applications of coke are diverse, including the heat source of metallurgy (blast furnace ironmaking
and sintering as well as casting, etc.), carbon materials (carbide, for electrodes etc.), and fuel (for the
fired body of limes, ceramics, etc.). 7 Focusing on casting using an induction furnace, we asked local
businesses in Thailand about the usage of coal-coke and potential applications of bio-coke. We also
asked relevant industrial associations in Japan.
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
Industrial
sector
Potential
applications of
bio-coke
Usage of coke
Interviewee
None
 There is only one nonferrous smelter in Thailand,
that is, Company L, which is a zinc smelter.
 Yet Company L uses chemical agents, not coke, for
zinc smelting.
Company L (zinc
smelter)
Steel (induction
furnace)
None
 There is no opportunity to use coke as a heat source
in the process of producing steel materials in an
induction furnace.
Non-Integrated Steel
Producers’ Association
Casting (melting
in an induction
furnace)
Could serve as a
recarburiser.
Yet the components
must meet strict
requirements. The
pulverization
process is costly.
 None
Thai Foundry
Association
Company K (Japanese
trading house)
None
 Even in China, only some foundries use coke as the
heat source for heat furnaces for forging. Globally,
electric power or gas is generally used for the heat
source to address environmental concerns and ensure
stable quality.
Japan Forging
Association
It is unlikely that
bio-coke will be
used as the heat
source as it may
not be so
cost-effective
compared with
coal.
 Coal is the primary heat source in the cement
production process. This is because coal is
inexpensive and the ash content can be used as a
cement material.
 Some cement plants mix petroleum coke with coal to
boost the calorific value, but they constitute only a
minority. Globally only a minority of cement plants
use petroleum coke as the heat source.
 More and more efforts have recently been made to
use biomass as a source or a material.
Cost-effectiveness is the key.
Japan Cement
Association
None
 (We were told that coke is used as a heat source in
the food processing industry. We found out later,
however, that food processors use coal, not coke.)
Industrial Waste
Management Bureau,
Department of
Industrial Works
Nonferrous
smelting
Forging
Cement
Food
processing, etc.
 Currently direct landfilling is the mainstream in
waste management.
 In the face of a limited land fill capacity, however,
None
the government has recently begun to construct waste
incineration facilities.
 There is a chance that gasification and direct melting
furnaces will be introduced in the future.
Source: Interview survey from October to December 2014
Waste
incineration
(gasification and
direct melting
furnaces)
23
Industrial Waste
Management Bureau,
Department of
Industrial Works
Company M, Company
N (waste management)
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.
2.2.1
Selecting Raw Materials
In this feasibility study, we selected EFB and rice husks. We selected EFB for three major reasons.
First, it is underexploited at palm oil mills. Second, it is possible to procure EFB from more than one
mill on a steady basis. Third, the procurement price is not so high. We selected rice husks because we
decided that the facility cost would be low. Because of their low water content, rice husks do not need
drying before converting them to bio-coke, although their procurement price is higher than EFB as
they are much in demand for power generation purposes. Originally we also considered cassava peels
as a candidate material, but we eventually screened out this option because an 80% water content, this
means a higher drying cost, and because its price is not so low on a dried weight basis.
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.
2.2.2
Production Volume and Sales Price of Bio-coke
For the purpose of feasibility assessment, we assumed that the casting industry in Thailand and Japan
is the buyer of bio-coke products as it is the most promising market. Based on the survey findings
described in 2.1.2(1)d. (annual consumption of foundry coke in Thailand: 6,000-12,000 tons), we
assumed the annual sales of 1,000 tons in Thailand, roughly 10% of the domestic sales of foundry
coke. We also assumed that 2,330 tons of bio-coke produced in Thailand will be sold in Japan annually.
In sum, the annual production of 3,330 tons (or daily production of 10 tons with 333 days of
operation) is assumed for the feasibility assessment.
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).
2.2.3
Bio-coke Production Facility
We assumed that a bio-coke production facility will be installed besides each mill that generates
biomass resources (palm oil mills for EFB and rice mills for rice husks) to curtail the cost of
transporting the biomass materials. We studied the production flow and the facility cost of a biomass
production plant with a daily output of 10 tons as discussed earlier. The results of the study for the
EFB and rice husks types are as follows.
(1) Bio-coke Production Flow
The assumed process of producing bio-coke from EFB is described below. Figure 20 shows a
summary production flow. To produce 10 tons of bio-coke a day, 18.4 tons of EFB is needed a day.
24
1)
2)
3)
4)
5)
Put the material to primary crushing so that it will be broken into pieces 30-50 mm long in each
dimension.
Put the crushed material to the sieving machine to remove impurities.
Put the sieved material so that it will be broken (secondary crushing) into pieces up to 10 mm
long in each dimension.
Put the material to the dryer so that its water content will be reduced to 8%.
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)
2)
3)
Put the material to primary crushing so that it will be broken into pieces up to 10 mm long in each
dimension.
Put the crushed material to the sieving machine to remove impurities.
Convert the material to bio-coke with bio-coke production unit.
1) Primary
crusher
2) Sieving
machine
3) Secondary
crusher
6) Bio-coke
production
unit
Figure 20: Production Process Flow (EFB type)
Source: Osaka Gas Engineering
25
4) Dryer
5) Dried
material feeder
Table 15: Facility Specifications (EFB type)
1)
2)
3)
4)
Primary crusher
Sieving machine
Secondary crusher
Primary crushing of the moist
material
Material feeder
Feeder conveyor to crusher I
Feeder conveyor to crusher II
Primary crusher
Removal of impurities
Feeder conveyor to sieving
machine
Sieving machine
Secondary crushing of most
material
Feeder conveyor to crusher
Secondary crusher
Capacity 4 m3
500 W × 7.5 mL; centralizer belt; legs
500 W × 4 mL; centralizer belt; legs
1 t/h; equipped with hammer mill and dedicated
control panel
1
1
1
1
Units/
sets
Unit
Unit
Unit
Unit
500 W × 7.5 mL; centralizer belt; legs
1
Unit
1 t/h; equipped with hammer mill and dedicated
control panel
1
Unit
500 W × 7.5 mL; centralizer belt; legs
1 t/h, equipped with dedicated control panel
1
1
Unit
Unit
500 W × 7.5 mL Centralizer belt; legs
Equipped with hopper; twin screw
Three-pass rotary dryer; 2.75 m x 10 mL;
equipped with emergency open valve
Suction fan; multi-cyclone
Traversing screw cut-out; capacity: 30 m3
1
1
1
Unit
Unit
Set
1
2
Set
Units
2
2
2
20
1
Units
Units
Units
Units
Unit
Dryer
Feeder conveyor to dryer
Feeder to dryer
Dryer
Suction equipment
5)
6)
No. of
Dried material feeder
Bio-coke production
unit
Dry material conveyor I
S-shaped flight conveyor
Dry material conveyor II
500 W × 20 mL; centralizer belt; legs
Dry material conveyor III
500 W × 10 mL; centralizer belt; mobile
Production unit
Horizontal continuous type
Bio-coke conveyor
500 W × 20 mL; centralizer belt; legs
Source: Osaka Gas Engineering
1) Crusher
2) Sieving
machine
4) Bio-coke
production
unit
3) Dried
material feeder
Figure 21: Production Process Flow (rice husks type)
Source: Osaka Gas Engineering
26
Table 16: Facility Specifications (rice husks type)
1)
2)
3)
4)
Primary crusher
Sieving machine
Dried material
feeder
Bio-coke
production unit
Primary crushing of the moist
material
Material feeder
Feeder conveyor to crusher I
Feeder conveyor to crusher II
Primary crusher
Removal of impurities
Feeder conveyor to sieving
machine
Sieving machine
Suction equipment
Traversing screw cut-out;
capacity: 30 m3
No. of
Capacity 4 m3
500 W × 7.5 mL; centralizer belt; legs
500 W × 4 mL; centralizer belt; legs
2 t/h; equipped with hammer mill and
dedicated control panel
1
1
1
1
Units/
sets
Unit
Unit
Unit
Unit
500 W × 7.5 mL Centralizer belt; legs
1
Unit
2 t/h; equipped with hammer mill and
dedicated control panel
Suction fan; multi-cyclone
Traversing screw cut-out; capacity: 30 m3
1
Unit
1
2
Set
Units
2
2
2
20
1
Unit
Units
Units
Units
Unit
Dry material conveyor I
S-shaped flight conveyor
Dry material conveyor II
500 W x 20 mL; centralizer belt; legs
Dry material conveyor III
500 W x 10 mL; centralizer belt; mobile
Production unit
Horizontal continuous type
Bio-coke conveyor
500 W x 20 mL; centralizer belt; legs
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.
Facility site area
工場敷地面積
（Ｄ）
(A) Truck scale
（Ｃ）
（Ａ） トラックスケール
3,230 m2 (38 m × 85 m)
3,230 ㎡ （３８ｍ×８５ｍ）
30 m2 (3 m × 10 m)
30 ㎡ （３ｍ×１０ｍ）
(B)（Ｂ）
Material
(moist) reception yard300 ㎡ 300
m2 (30 m × 10 m)
原料（湿）受け入れヤード
（３０ｍ×１０ｍ）
(C)（Ｃ）
Product
storage warehouse
製品保管庫
（Ｆ）
管理棟
（Ｄ）
(D)
Administration
building
（Ａ）
⑥
⑥
60 ㎡ （６ｍ×１０ｍ）
2
バイオコークス製造工場
1,260 ㎡ （３０ｍ×４２ｍ）
Bio-coke production plant
①
1次破砕機
1) Primary crusher
②
④
①
②
ふるい機
2) ③
Sieving
machine
2次破砕機
⑤
③
60 m
(6 m × 10 m)
1,260 m2 (30 m × 42 m)
50 ㎡ （１０ｍ×５ｍ）
50 m2 (10 m × 5 m)
50 ㎡ （１０ｍ×５ｍ）
2
50 m (10 m × 5 m)
50 ㎡ （１０ｍ×５ｍ）
2
3) ④
Secondary
乾燥機crusher
50 m (10 m × 5 m)
180 ㎡ （３０ｍ×６ｍ）
4) ⑤
Dryer乾燥原料供給装置
100 ㎡ 180
（１０ｍ×５ｍ×２基）
m2 (30 m × 6 m)
⑥
バイオコークス製造装置
5) Dried material feeder
（Ｆ） メンテナンスエリア
（Ｅ）
50 ㎡ （５ｍ×１０ｍ）
50 m2 (5 m × 10 m)
（Ｅ） 保全エリア
(E) Conservation area
⑤
2
m (25 m × 10 m)
250 ㎡ 250
（２５ｍ×１０ｍ）
320 ㎡ （２ｍ×８ｍ×２０基）
2
100 m
(10 m × 5 m × 2 units)
291 ㎡ （３ｍ×９７ｍ）
6) Bio-coke production unit
320 m2 (2 m × 8 m × 20 units)
(F) Maintenance area
291 m2 (3 m × 97 m)
（Ｂ）
Figure 22: Plot Plan of a Production Facility for EFB
Source: Osaka Gas Engineering
28
Facility
site area
工場敷地面積
（Ｄ）
2
m (38 m
3,230 3,230
㎡ （３８ｍ×８５ｍ）
（Ａ） scale
トラックスケール
(A) Truck
（Ｃ）
（３ｍ×１０ｍ）
30 ㎡ 30
m2 (3 m
（Ｂ） 原料（湿）受け入れヤード
（Ｃ） 製品保管庫
（Ｄ） 管理棟
× 10 m)
300 ㎡ （３０ｍ×１０ｍ）
300 m2 (30 m × 10 m)
(B) Material (moist) reception yard
(C) Product storage warehouse
× 85 m)
250 ㎡ （２５ｍ×１０ｍ）
250 m2 (25 m × 10 m)
50 ㎡ （５ｍ×１０ｍ）
（Ｆ）
(D) Administration
（Ｅ） 保全エリアbuilding
（Ａ）
(E)バイオコークス製造工場
Conservation area
④
④
①
1次破砕機
2
m (5 m
（６ｍ×１０ｍ）
60 ㎡ 50
2
1,080 ㎡ （３０ｍ×３６ｍ）
60 m
ふるい機
1) Primary crusher
③
③
③
①
（Ｅ）
②
乾燥原料供給装置
(6 m × 10 m)
65 ㎡ （１３ｍ×５ｍ）
1,080 m2 (30 m × 36 m)
Bio-coke production plant
②
× 10 m)
65 ㎡ （１３ｍ×５ｍ）
65 m2 (13 m × 5 m)
100 ㎡ （１０ｍ×５ｍ×２基）
2
2) Sieving
machine
④ バイオコークス製造装置
m (13 m × 5
（２ｍ×８ｍ×２０基）
320 ㎡ 65
（Ｆ） メンテナンスエリア
3) Dried
material feeder
273 ㎡ （３ｍ×９１ｍ）
2
100 m
m)
(10 m × 5 m × 2 units)
4) Bio-coke production unit
320 m2 (2 m × 8 m × 20 units)
(F) Maintenance area
273 m2 (3 m × 91 m)
（Ｂ）
Figure 23: Plot Plan of a Production Facility for rice husks
Source: Osaka Gas Engineering
(3) Bio-coke Production Facility Cost
Table 17 shows the estimated cost of a bio-coke production facility that uses EFB or rice husks for the
raw material. The cost of the buildings and foundation works is estimated to be 30% of the total
facility case, although it may differ greatly depending on the site. The total facility cost is estimated at
approx. 310 million yen for the EFB type and approx. 230 million yen for the rice husks type.
Table 17: Facility Cost for Each Type of Facility
(Unit: 1 million yen)
Total
For EFB
307
Source: Osaka Gas Engineering
29
For rice husks
226
2.2.4
Running Cost
(1) Power Consumption and Unit Power Rates
Table 35 shows estimated electric power consumption for each type of facility.
Table 18: Electric Power Consumption for Each Type
(Unit: kW)
Primary crusher
Sieving machine
Secondary crusher
Dryer
Dried material feeder
Bio-coke production unit
Total
For EFB
48
7
45
31
11
159
301
For rice husks
39
26
–
–
11
159
234
Source: Osaka Gas Engineering
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
(2) Staffing Plan and Labor Costs
The following staffing plan is envisaged for this plan:
 24/7 operation
 Four-team two-shift (daytime/nighttime) system (Each team consists of three employees.)
 Another three employees work daytime shift only.
 15 employees in total: One mid-level manager (daytime shift only), five engineers (one in each
team and one for daytime shift only), and nine general workers (two in each team and one for
daytime shift only)
 Wages for each type of employee are set as follows based on the survey findings
Table 19: Unit Labor Cost
Mid-level manager
Engineer
General worker (unit)
2,058,840 yen/year
915,978 yen/year
479,388 yen/year
Source: Osaka Gas Engineering
(3) Transportation costs for bio-coke
The bio-coke produced at palm oil mills and rice mills needs to be transported to Bangkok and its
surrounding areas where foundries are concentrated. The product also needs to be transported on land
to Bangkok, by sea to Japanese ports, and then again on land to local foundries in Japan. Table 20
shows some of the estimated parameters for estimating the transportation cost.
30
Table 20: Selected Parameters for Estimating the Transportation Costs
Land transportation distance
(From plant to Bangkok)
Unit land transportation cost
(in Thailand)
Marine transportation
(From Bangkok to Japan)
Land transportation distance
(From Japanese ports to local
foundries)
Unit land transportation cost
(in Japan)
EFB type
800 km
Rice husks type
600 km
3.5 bahts/km/t
(1 baht = 3.5 yen)
37,311 bahts/40ft container (36 t):
3,627 yen/t
50 km
100 yen/km/t
Source: Osaka Gas Engineering
(4) Other Parameters
Other parameters for feasibility assessment are set as follows:
 Land costs: 100 bahts/m2/month on the assumption that the land is rented. This figure represents
50% of the average rent in industrial parks.
 Maintenance costs: 3% of the facility cost
 Administrative costs: 5% of sales
 Effective tax rate: 20%
 Operation period: 20 years
 Depreciation period: 7 years
2.2.5
Results of the Feasibility Assessment
Table 21 shows the results of the feasibility assessment in the cases of EFB and rice husks each. They
are a profit-and-loss plan and the projected internal rate of return (IRR) for the operation period of 20
years.
 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
3,123 million yen
2,768 million yen
356 million yen
86 million yen
269 million yen
7%
Sales
Cost of goods sold
Ordinary profit
Corporate taxes
Net profit
IRR (20 years)
Rice husks
3,123 million yen
2,626 million yen
497 million yen
99 million yen
398 million yen
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.
Table 22: Major Parameters for Sensitivity Analysis (for EFB)
Parameter
Unit
Price of raw
material
Bahts/dry-t
Base
350
For EFB
Maximum Minimum
640
73
Transportation
cost
(Within
Thailand)
Land rent
Survey findings
This price is set so that it will be
equal to the price of coking coal
per unit calorie. The price range
of coking coal is 50,000-70,000
yen/t in Thailand.
This price is set so that it will be
equal to the price of coking coal
per unit calorie. The price range
of coking coal is 60,000-80,000
yen/t in Japan.
The range reflects the margin of
error in estimating facility costs.
(Thailand)
In 10,000 yen/t
4.2
4.9
4.93.5
(Japan)
In 10,000 yen/t
4.9
5.6
4.2
In million yen
307
+30％
-30%
Yen/t
9,800
+50%
-50%
Provisional (±50%)
Yen/m2/yr.
4,200
+50%
-50%
Provisional (±50%)
Unit sales price
of bio-coke
Facility cost
Basis for setting the range
Source: Osaka Gas Engineering
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)
Transportation cost within Thailand
Unit price of BIC (for Japan)
Construction cost of BIC production unit
Land rent
Unit price of BIC (for Thailand)
Unit price of raw material (bahts/dry ton)
Figure 24: Results of the Sensitivity Analysis (tornado chart)
Source: Osaka Gas Engineering
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
1
Greater Bangkok
Central region2
Northern region
Northeastern region
Southern region
2010
8,766
9,563
6,659
11,428
5,116
2011
9,237
10,835
7,275
11,252
5,180
Unit: ton/day
2012
9,750
10,663
6,901
10,800
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.”
2) Reducing manufacturing costs:
 We will explore feasible processes for reducing the costs of bio-coke production facilities as
well as power consumption there in the ongoing pilot project.
 We will reduce the running costs by meeting the energy need for the drying process through
energy sharing with the contiguous mills (palm oil mills for EFB and rice mills for rice husks),
including gaining access to the surplus heat generated from them.
 We will reduce transportation costs by such means as locating production plants near
consumption regions and optimizing transportation means (replacing land transport with
marine transport, shifting to more efficient ports in Thailand for exports to Japan, etc.).
 We will also opt for sites and partners that will make it possible to reduce land rents.
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.
2.3.1
Economic Benefits for the Local Economy
For convenience in procuring and transporting raw materials, this planned plant should preferably be
built adjacent to a palm oil mill or a rice mill.
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.
Table 24: Average Household Income in Thailand (2013)
Region
Greater Bangkok1
Central region2
Northern region
Northeastern region
Southern region
Bahts/month
43,058
26,114
19,267
19,181
27,504
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 data from National Statistical Office
35
Table 25: Overview of Factories Approved by the Ministry of Industry of Thailand (2012)
Number of
factories
Factories
Greater Bangkok1
Central region
Eastern region
Western region
Northern region
Northeastern region
Southern region
Total
39,778
5,850
11,175
6,073
17,307
43,301
11,346
Investment
%
29.5
4.3
8.3
4.5
12.8
32.1
8.4
134,830 100.0
1,000,000
bahts
1,479,040
703,618
1,923,183
231,044
275,452
451,235
234,994
%
27.9
13.3
36.3
4.4
5.2
8.5
4.4
5,298,566 100.0
Number of
employees
Employees
1,880,242
364,432
639,450
161,000
289,590
411,176
223,294
cf. Population
%
Employees
%
47.4
9.2
16.1
4.1
7.3
10.4
5.6
10,455,800
3,007,527
4,720,951
3,712,174
11,802,566
21,697,488
9,060,189
16.2
4.7
7.3
5.8
18.3
33.7
14.1
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.”
2.3.2
Reducing Thailand’s Dependency on Imported Foundry Coke
As discussed in 2.1.1, Thailand is not endowed with coal resources suitable for coke production,
making the country heavily dependent on imports from China to meet its demand for coke. And such
coke is thought to be largely used for casting.
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.
2.3.3
Establishing the National Status as a “Bio Power” by Developing Markets in
Industrialized Countries
Globally many foundries have been shifting from cupola furnaces to induction furnaces because the
former are labor intensive, meaning a higher labor cost. In Japan and other developed countries that
enjoy comparative advantage in mass production, however, many foundries continue to use a cupola
furnace for melting metals as far as such items as car parts and cast iron pipes (straight pipes) are
concerned. Such foundries in developed countries use far more foundry coke than Thai counterparts.
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.
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.
9
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
Annual demand for
foundry coke is
230,000 tons (2010)1
Large plants with a
monthly output
capacity of 3,000 tons
account for 80% of the
total demand for
foundry coke2
70% of foundry coke is
imported from China3
The price is less than
70,000 yen per ton
(2014).
Germany
 85 out of the 268
foundries use cupola
furnaces. Coke is
100% imported. Total
imports stand at
450,000 ton (2010).4
 The price of foundry
coke in Europe hovers
around 400 euros per
ton (2013)5
US
 Cupola furnaces
account for 9.8% of all
the melting furnaces
for casting in terms of
the number of units
(1997)6.
 Demand for foundry
coke is 1,30,000 tons
(1999).7




cf. Thailand
Around 50 foundries
use cupola furnaces to
melt metals. They are
all SMEs.
Foundry coke is
imported from China.
Monthly demand is
500-1,000 tons.
The price is
17,000-19,000 bahts
(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
3.1
Exploration of methodology to evaluate emission reductions
This chapter explores the methodology used to evaluate greenhouse gas emissions to be reduced by
introducing bio-coke technology. To be specific, a project for bio-coke production using biomass in
Thailand in order to use the bio-coke in domestic cupola furnaces was examined in terms of the
applicable condition, the reference scenario, and formulas for evaluating emission reductions.
3.1.1
Setting of the applicable condition
The methodology is presented in the form of its applicable condition by specifying project types to
which the methodology can be applied to calculate emission reductions. For the methodology to be
applied as extensively as possible, the following applicable condition has been set:
 Applicable condition: To use bio-coke in place of coal-coke in cupola furnaces in Thailand.
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.
3.1.2
Setting of the promising reference scenario
The situation expected if bio-coke technology was not introduced was explored with regard to the
following two elements:
1) The energy source to be used (From what should the heat source for casting be obtained?)
2) The utilication of biomass (In what way should biomass be used or landfilled?)
(1) The energy source
As specified in the applicable condition, the methodology targets projects that replace coal-coke with
bio-coke. That is, the energy source will be coal-coke if bio-coke is not used.
(2) The utilication of biomass
Biomass decomposes naturally and emits methane when it is left unused as well as when it is
landfilled. For the evaluation of greenhouse gas emissions to be reduced by the bio-coke project, it is
important to examine whether the biomass to be used as a raw material for bio-coke production is
unused biomass (whether it is used for other purposes if not used for the production).
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.
3.1.3
Setting of the boundary and identification of emission sources
Coal-coke to be replaced with bio-coke is all produced outside Thailand. Therefore, energy
consumption and concomitant CO2 emission actually occur when coal-coke is produced outside the
country.
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
CO2,
CH4
Reference
Scenario
（RS）
Thailand
CO2
Coal Mining
& Coking
Transport
of coke
（in China）
（China→Thailand）
CO2
Combustion
Biomass
decomposition
CH4
Boundary
Thailand
CO2
Transport
of biomass
CO2
CO2
Bio-coke
production
Transport
of biomass
Project
（PJ）
CH4
Biomass
decomposition
Fig. 25: Boundary and emission sources
39
CO2
Combustion
Table 27: Identification of emission sources
Reference
Emission source
Coal-coke
combustion
Biomass
decomposition
Project
Electricity
consumption due to
bio-coke production
Fuel consumption
due to biomass
transport
Fuel consumption
due to bio-coke
transport
3.1.4
Gas
CO2
Included?
Yes
Justification / Explanation
Major emission source
CH4
N2O
No
No
CO2
No
CH4
Yes
N2O
No
CO2
CH4
NO2
CO2
Yes
No
No
Yes
No emission
No emission
Excluded for simplification
(conservative evaluation)
Major emission source
Excluded for simplification
(conservative evaluation)
Major emission source
No emission
No emission
Major emission source
CH4
NO2
CO2
CH4
NO2
No
No
Yes
No
No
No emission
No emission
Major emission source
No emission
No emission
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.
According to a survey by the DEDE (Biomass Database Potential in Thailand, Department of
Alternative Energy Development and Efficiency), the quantity of rice husks generated in entire
Thailand is about 1.26 million tons/day, of which some 20%, or about 2500 tons/day, is unused.
3.1.5
Setting of formulas for evaluating emission reductions
Formulas for evaluating emission reductions are explored based on the reference scenario, boundary,
and emission sources discussed above. Estimation of emission reductions specifically expected in this
project is addressed later.
40
(1) Project emissions
Project emissions are the sum of CO2 emissions from biomass transport, bio-coke production and
bio-coke transport.
PE y = PEbiomass ,transport , y + PEbiocoke, production , y + PEbiocoke,transport , y
Symbol
PEy
PEbiomass,transport,y
PEbiocoke,production,y
PEbiocoke,transport,y
Description
Project emissions
Project emissions (from biomass transport)
Project emissions (from bio-coke production)
Project emissions (from bio-coke transport)
Unit
ton-CO2e/y
ton-CO2e/y
ton-CO2e/y
ton-CO2e/y
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).
PEbiocoke,transport , y = ∑ ( N biomass ,i , y × Dbiomass ,i × 2) × EFCO 2,km
i
Symbol
PEbiomass,transport,y
Nbiomass,i,y
Dbiomass,i
EFCO2,km
Description
Project emissions (from biomass transport)
Number of trips of biomass transport from the point i
Transport distance from the point i to the bio-coke plant
CO2 emission factor for a truck
Unit
ton-CO2e/y
trip/y
km
t-CO2/km
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.
PEbiocoke, production , y = EC y × EFCO 2, y
Symbol
PEbiocoke,production,y
ECy
EFCO2,y
Description
Project emissions (from bio-coke production)
Electricity consumption in bio-coke production
CO2 emission factor for an electricity system
Unit
ton-CO2e/y
MWh/y
ton-CO2/MWh
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
Symbol
PEbiocoke,transport,y
Nbiocoke,j,y
Dbiocoke,j
EFCO2,km
Description
Project emissions (from bio-coke transport)
Number of trips of bio-coke transport to the point j
Transport distance from the bio-coke plant to the point j
CO2 emission factor for a truck
Unit
ton-CO2e/y
trip/y
km
t-CO2/km
(2) Reference emissions
As mentioned earlier, the bio-coke project leads to a reduction in CO2 emissions from coal-coke
combustion. Additionally, if biomass is expected to be left intact in case it is not used as a raw material
for bio-coke, the amount of methane emitted by biomass decomposition can also be included in
reference emissions.
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
REy
REcoke,y
REdecay,y
Description
Reference emissions
Reference emissions (from coal-coke combustion)
Reference emissions (from biomass decomposition)
Unit
ton-CO2e/y
ton-CO2e/y
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.
REcoke, y = BRy × H × EFcoke
Symbol
REcoke,y
BRy
H
EFcoke
Description
Reference emissions (from coal-coke combustion)
Quantity of biomass materials
Calories of bio-coke
CO2 emission factor for coal-coke
Unit
ton-CO2e/y
ton/y
MJ/ton-biocoke
ton-CO2/MJ
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
REdecay,y
BRy
EFCH4
GWPCH4
Description
Reference emissions (from biomass decomposition)
Quantity of biomass materials
Factor of methane emission from biomass
Global warming potentials for methane
Unit
ton-CO2e/y
ton/y
ton-CH4/ton-biomass
ton-CO2e/ton-CH4
(3) Emission reductions
Emission reductions are determined by subtracting project emissions from reference emissions.
ERy = RE y − PE y
(4) Items to be determined before the project starts
Factors listed below must be determined before the project starts. To make the methodology more
convenient, values published by the IPCC, TGO, etc. should be set as the default values.
Data parameter
Unit
Description
How to determine
EFCO2,km
t-CO2/km
CO2 emission factor for a truck
Adopt the default value (1.097 x 10-6 tCO2/km) in Table 1-32,
IPCC 1996.
Data parameter
Unit
Description
How to determine
EFCO2,y
ton-CO2/MWh
CO2 emission factor for an electricity system
Adopt the latest value (0.5113) for the CM emission factor for the
grid issued by the Thailand Greenhouse Gas Management
Organization (TGO). (Source: The Thai study of emission factor
for an electricity system in Thailand 2010)
Data parameter
Unit
Description
How to determine
EFcoke
ton-CO2/MJ
CO2 emission factor for coal-coke
Calculate from the amount of carbon per calorie for coal-coke
(29.5 tC/TJ) in IPCC’s “CO2 emissions from stationary
combustion of fossil fuels”.
Data parameter
Unit
Description
How to determine
EFCH4
ton-CH4/ton-biomass
Factor of methane emission from biomass
Adopt the default value for methane emissions from the anaerobic
decomposition or spontaneous combustion of a biomass residue
(0.001971) in the CDM methodology ACM0006.
Data parameter
Unit
Description
How to determine
GWPCH4
ton-CO2e/ton-CH4
Global warming potentials for methane
Adopt the latest value specified in an institutional document of
JCM.
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
Unit
Description
Monitoring method (example)
Monitoring frequency (example)
Data parameter
Unit
Description
Monitoring method (example)
Nbiomass,i,y
time/y
Number of trips of biomass transport from the point i
Record the number of trucks from each supplier of
biomass materials.
Every month
Monitoring frequency (example)
Dbiomass,i
km
Transport distance from the point i to the bio-coke plant
Estimate, on the map, transport distance to the plant for
each supplier of biomass materials.
Every month
Data parameter
Unit
Description
Monitoring method (example)
Monitoring frequency (example)
ECy
MWh/y
Electricity consumption in bio-coke production
Measure on site using a wattmeter.
Continuous measurement
Data parameter
Unit
Description
Monitoring method (example)
Monitoring frequency (example)
Nbiocoke,j,y
time/y
Number of trips of bio-coke transport to the point j
Record the number of trips for each bio-coke buyer.
Every month
Data parameter
Unit
Description
Monitoring method (example)
Monitoring frequency (example)
Dbiomass,i
km
Transport distance from the bio-coke plant to the point j
Estimate, on the map, transport distance from the plant for
each bio-coke buyer.
Every month
Data parameter
Unit
Description
Monitoring method (example)
Monitoring frequency (example)
BRy
ton/y
Quantity of biomass materials
Sum up the delivery slips, etc. of biomass materials.
Every month
Data parameter
Unit
Description
Monitoring method (example)
H
MJ/ton-biocoke
Calories of bio-coke
Estimate from the elemental analysis results of bio-coke
or biomass.
For each type of biomass material
Monitoring frequency (example)
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].)
<Prerequisites for estimation>
 Estimating emission reductions for 1,000 tons/year of bio-coke expected to be sold in
Thailand under the project assessed in the feasibility study
 Assuming bio-coke plants to be set up at biomass generation sites (This will eliminate the
possibility of greenhouse gas emissions associated with biomass collection.)
 Assuming the calories of dried biomass to be 70% of those of coal-coke in either case
 There are three differences between the case using rice husks and the case using EFB:
 Electricity consumption in preprocessing, etc. in bio-coke production
 Transport distance from bio-coke plants (located at biomass generation sites) to the
buyer in Bangkok
 Whether methane is emitted by biomass decomposition in case there is no bio-coke
project (Methane is emitted when the biomass is EFB.)
3.2.1
Rice husks
The following shows the reference and project scenarios for carrying out the bio-coke project using
rice husks as the raw material for the production:
CO2,
CH4
Reference
Scenario
（RS）
Thailand
CO2
Coal Mining
& Coking
Transport
of coke
（in China）
（China→Thailand）
CO2
Combustion
Rice husk
Thailand
CO2
Transport
of biomass
CO2
CO2
Bio-coke
production
Transport
of biomass
CO2
Combustion
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
Biomass transport
PEbiomass,transport,y
412 tCO2/y
0 tCO2/y
Bio-coke production
PEbiocoke,production,y
324 tCO2/y
Bio-coke transport
PEbiocoke,transport,y
Project emissions
Reference emissions
88 tCO2/y
2,120 tCO2/y
2,120 tCO2/y
Coal-coke combustion
REcoke,y
Biomass decomposition
REdecay ,y
Electricity consumption in bio-coke production
ECy
CO2 emission factor for an electricity system
EFCO2,y
Project emissions (from bio-coke production)
PEbiocoke,production,y
Number of trips of bio-coke transport to the point j (using a 15 ton truck)
Ny
Transport distance from the bio-coke plant to the point j (one way)
D
CO2 emission factor for a truck
EFCO2,km
Project emissions (from bio-coke transport)
PEbiocoke,transport,y
87.8 tCO2/y
-
Biomass materials
BRy
Calories of bio-coke
H
1,000 t-biomass(dry)/y
19.6 GJ/t-biocoke
Set at 70% of coal-coke calories
CO2 emission factor for coal-coke
Efcoke
Reference emissions (from coal-coke combustion)
REcoke,y
Leakage emissions
Emission reductions
0 tCO2/y
0 tCO2/y
1,708 tCO2/y
[Project emissions]
Bio-coke production
Bio-coke transport
634 MWh/y
0.5113 tCO2/MWh
324 tCO2/y
Per 1,000 tons of bio-coke
TGO
-
67 trip/y
Assuming use of a 15 ton truck
600 km/trip
-
0.001097 tCO2/km
Table 1-32, IPCC 1996
[Reference emissions]
Coal-coke combustion
3.2.2
0.108 tCO2/GJ
2,120 tCO2/y
-
IPCC
-
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
46
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).
47
Table 29: Results of the estimation of emission reductions (in the case of EFB)
EFB
Project emissions
Biomass transport
PEbiomass,transport,y
515 tCO2/y
0 tCO2/y
Bio-coke production
PEbiocoke,production,y
398 tCO2/y
Bio-coke transport
PEbiocoke,transport,y
Coal-coke combustion
REcoke,y
Biomass decomposition
REdecay ,y
Reference emissions
Leakage emissions
Emission reductions
117 tCO2/y
2,161 tCO2/y
2,120 tCO2/y
41 tCO2/y
0 tCO2/y
1,647 tCO2/y
[Project emissions]
Bio-coke production
Bio-coke transport
Electricity consumption in bio-coke production
ECy
CO2 emission factor for an electricity system
Project emissions (from bio-coke production)
EFCO2,y
PEbiocoke,production,y
398 tCO2/y
Number of trips of bio-coke transport to the point j (using a 15 ton truck)
Ny
66.7 trip/y
Transport distance from the bio-coke plant to the point j (one way)
D
EFCO2,km
CO2 emission factor for a truck
Project emissions (from bio-coke transport)
PEbiocoke,transport,y
[Reference emissions]
Coal-coke combustion Biomass materials
Biomass
decomposition
3.3
BRy
777 MWh/y
0.5113 tCO2/MWh
800 km/trip
0.001097 tCO2/km
117 tCO2/y
1,000 t-biomass(dry)/y
19.6 GJ/t-biocoke
Per 1,000 tons of bio-coke
TGO
Assuming use of a 15 ton truck
Table 1-32, IPCC 1996
-
-
Calories of bio-coke
H
CO2 emission factor for coal-coke
Efcoke
REcoke,y
0.108 tCO2/GJ
2,120 tCO2/y
IPCC
Reference emissions (from coal-coke combustion)
Biomass materials
BRy
1,000 t-biomass(dry)/y
-
Factor of methane emission from biomass (aerobic decomposition or
spontaneous combustion)
EFCH4
Global warming potentials for methane
GWP CH4
Reference emissions (from biomass decomposition)
REdecay ,y
tCH4/t-biomass(dry)
0.001971
21 tCO2/tCH4
41 tCO2/y
Set at 70% of coal-coke calories
-
CDM methodology ACM 0006
IPCC
-
Regarding the estimation results
In this chapter, methodology to evaluate greenhouse gas emissions to be reduced by introducing
bio-coke technology was explored, and evaluation was made using the methodology. As a result, CO2
emission reductions by the bio-coke project were estimated at 1,600 to 1,700 tons per year (1.6 to 1.7
tCO2 per ton of bio-coke).
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.)
48
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.
4.1
Issues with material procurement
4.1.1
Utilization of agricultural residue
(1) Issues
The feasibility study assumed that biomass materials could be procured stably over the coming 20
years at prices of 350 baht/dry-t (EFB) and 1,500 baht/dry-t (rice husks). Actually, however, these
price levels will, of course, vary with changes in the economic situation.
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.
(2) Policy support
Policy support to raise the rate of using rice straw and other biomass as raw materials for bio-coke
may include:




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
49
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.
(2) Policy support
Policy support to raise the rate of using waste as raw materials for bio-coke may include:



Research composition of waste and material flow of waste
Development of educational activities for urban residents and industries (to inform them that
waste can be raw materials for bio-coke and about the importance of the separate collection of
waste)
Enhancement of the separate collection of waste
4.2
4.2.1
Issues with the securement of distribution channels
Support for the bio-coke use of iron foundries performing melting in cupola furnaces
(1) Issues
Iron foundries using cupola furnaces for melting have recently been operating in an increasingly harsh
environment due to complaints from residents about smoke and dust.
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.
(2) Policy support
Whether to choose bio-coke as a substitute for foundry coke should be left to the discretion of each
iron foundry. Yet, it is desirable to take certain measures to support the bio-coke use of those foundries
by, for example, permitting them to apply PR labels to their products manufactured by using bio-coke
as the heat source.
4.2.2
Research energy demand and unutilized waste heat in Thailand
(1) Issues
Thailand have target about biomass utilization as heat source. But to achieve the target it seems to
need additional measures to promote biomass utilization. For example, developing of new utilization
way of biomass is important.
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.
50
(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.
4.3
4.3.1
Issues with the protection of intellectual property
Preservation of intellectual property rights related to “bio-coke”
(1) Issues
Using inexpensive waste as the raw material, “bio-coke” is produced through the apparently simple
process of compressing dried, crushed waste at high temperatures. This may give rise to similar
products of poor quality claiming to be “bio-coke” without permission.
(2) Policy support
To prevent the distribution of similar products of poor quality, it is hoped that patent application for
the trademarks and production methods of “bio-coke” and their standardization by the Thai Industrial
Standards Institute (TISI) will be supported by relevant ministries and agencies jointly with the
Japanese authorities.
4.4
4.4.1
Issues with research and development
Raw materials
(1) Issues
In the production of bio-coke, how to procure inexpensive raw materials stably in large quantity and
crush and dry them at low cost is essential.
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.
4.4.2
User reclamation
(1) Issues
In Thailand, while use as an alternative to foundry coke is the most promising application of bio-coke,
it will also be used as a recarburiser, which is used during the foundry process in induction furnaces,
once problems with its components and costs are cleared. It has also been found that if waste
incineration in gasification and direct melting furnaces is realized in the future, bio-coke is likely to be
used as the heat source for those furnaces.
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.
(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. And R&D activities which study how to use bio-coke in a blast furnace are
very important. So, it is also hoped that Thai government will secure funds for such research and
request cooperation to Japanese steel industry.
4.4.3
Application development
(1) Issues
Since cupola furnaces used in the foundry industry are melting furnaces designed on the premise of
using coal-coke (foundry coke) as the heat source, bio-coke, whose unit calorie is lower than that of
coal-coke, cannot be used so effectively as coal-coke in cupola furnaces. Moreover, not a few
foundries will soon need a renewal of their cupola furnaces because they are using a lot of older
models of cupola furnaces. Thus, if a cupola furnace optimized for use with bio-coke (tentatively
called an “eco-cupola” furnace) is successfully developed in a joint effort of Japan and Thailand, an
expansion of bio-coke customers can be expected through sales promotion of “eco-cupola” furnaces to
foundries considering a renewal of their cupola 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.
(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 furnace for bio-coke, to obtain analysis samples and
procure experiment equipment. It is very important that to consider waste issues in Thailand. And it is
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hoped that to consider introducing gasification and direct melting furnaces, use of bio-coke, and “eco-”
version of them.
4.5
4.5.1
Issues with investment
Clarification of positioning in the List of Investment Promotion Industries
(1) Issues
Bio-coke plants are considered to be a project eligible as an investment promotion industry, because
they meet the policy “to promote industries that are environmentally-friendly and save energy or use
renewable energy for sustainable and well-balanced growth” in Article 4.2 of the investment
promotion policies established in the No. 2/2014 Decree (Subject: Policies and Criteria for Investment
Promotion) of the Board of Investment (BOI) of Thailand.
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.
(2) Policy support
For business operators considering investment in bio-coke plants in Thailand, The BOI should clearly
position bio-coke plants in the List of Investment Promotion Industries. Since bio-coke is produced
not by simply compressing biomass but through the value-adding technology of semi-carbonization,
classification into 1.16.2 “production of fuel from agricultural products including crop scraps, garbage
and other waste” is considered more appropriate.
4.5.2
Clarification of positioning in the ENCON fund
(1) Issues
Bio-coke technology seems to be able to apply to ENCON fund. However it is not clarify.
(2) Policy support
DEDE should clarify about the applicability of bio-coke technology in ENCON fund.
4.5.3
Cooperation to Thai domestic market mechanism
(1) Issues
Bio-coke can contribute CO2 emission reduction but it hasn't got enough policy support. It is
necessary to enhance policy support for renewable heat, as same as renewable electricity.
(2) Policy support
T-VER has the methodology for renewable heat project. But it hasn't been applied to actual project.
Some methodologies have already started demonstration projects. So, Thai government should start
demonstration project for renewable heat project. And bio-coke project may be a candidate for
application.
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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