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MTO Biomass Cogeneration Model.xls

June 24th, 2012 Posted in renewable energy

MTO Biomass Cogeneration Model.xls

Biomass cogeneration system is carried out mostly in the countryside where biomass is abundant from agricultural activity such as sugar cane fields.

This MTO first-year tariff model for biomass cogeneration makes use of the basic assumptions of the country’s RE regulator for rated capacity (34 MW), capacity factor (75%), plant own use (10%), and transmission line loss (3%).

It assumes an overnight capital cost, fixed and variable O&M, spare parts replacement cost, substation and transmission line cost and distance, access road cost and distance, project development cost, 12% VAT, working capital and contingency. VAT recovery is 70% on the 5th year.

Construction period is 18 months while operating period is 20 years. Cost of capital is 16% p.a. for 30% equity and 10% p.a. for 70% debt.

Exchange rate is 44.00 PhP/US$.

Incentives provided by the RE Law is applied such as the 7 years income tax holiday, after which a 10% income tax is applied. Property tax of 1.5% applied on 80% of book value. Local business tax is 1% while DOE 1-94 contribution is 0.01 PhP/kWh.

It also assumes an average biomass thermal efficiency of 23%, biomass fuel cost is 1.2% of bunker fuel cost (27 PhP/L) and gross heating value of 4,000 Btu/lb.

To order, pay and download this model, follow this link:

http://energydataexpert.com/product_info.php?cPath=19_32&products_id=134

The summary worksheet is shown below:

 

Executive Summary
CO-GENERATION   PLANT Bagasse
Investors’   Returns:           NPV-FC (0)
  Equity IRR (% p.a.) 16.00%
  Payback Period (years) 5.82
Uses   and Sources of Funds During Construction:          000 US$           $ / kW
Uses   of Funds:
Initial investment in land (10 PhP/sqm) x (10,000 sqm/ha) 144.68 $4
Freight on Board = FOB USA = $/kW 51,124.18 $1,504
Ocean Freight = FRT = 5% x FOB 2,556.21
Insurance = INS = 1% x FOB 511.24
Cargo, Insurance & Freight = CIF = FOB + FRT + INS 54,191.63
Value Added Tax = VAT = 12% x CIF 6,503.00
Customs Duty = (CIF + VAT) x (% Duty) x (1 + % VAT) 0.00
Duty-Paid Landed Cost = DPLC = CIF + VAT + Duty 60,694.63
Local Freight Cost = LFC = 3% x CIF 1,625.75
Delivered Cost at Site = DCS = DPLC + LFC 62,320.38
Installation Cost = IC = 5% x FOB 2,556.21
Transmission line cost 69 kV (2,000,000 PhP/km) = T/L 425.53
Total EPC = DCS + IC + T/L 65,302.12
Contingency (10%) = EPC x 10% 6,530.21
Documentary Stamps (1%) = EPC x 1% = DS 653.02
Total Fixed Assets (EPC + Contingency + DS) 72,485.35 $2,132
Capitalized Expenses:
Development costs (developer, modeler) 363.15
Other Costs including taxes, contingencies 0.00
Carbon Emission Registration & Consultancy 40.00
Initial investment in capitalized expenses 403.15 $12
Working Capital:
         months
  Working capital (adjustment to   meet DSCR = 1.1) 0.00
  Expenses from biomass purchase 2,891.62 2
  Purchase of chemical materials 554.51 2
  Utilities (fuel, lubes,   electricity, water) 0.00 3
  Maintenance of the installation 1,005.24 3
  Personnel expense 0.00 3
  Land lease, rent 0.00 1
  Taxes, Insurance, services, and   others 0.00 1
  Transport 0.00 1
  Total Working Capital 4,451.37 $131
Interest During Construction:
Dev’t fees (developer, loan arranger) 387.42
Front end fees (modeler, loan arranger) 387.42
Commitment fees (bank) 387.42
Interest During Construction (bank) – 18 months 11,622.68
  Total Legal &   Financing Fees and IDC 12,784.95 $376
Total Uses of Fund, ‘000 US$ 90,269.50 $2,655
Sources   of Fund:
  % to be financed by capital 27,080.85 30.00%
  % to be financed by non   refundable subsidy 0.00 0.00%
  % to be financed by debt 63,188.65 70.00%
Total Sources of Fund, ‘000 US$ 90,269.50 100.00%
Weighted Average Cost of Capital (WACC):          Returns
  Equity 16.00% 30.00%
  Subsidy 0.00% 0.00%
  Debt 10.00% 70.00%
  WACC 11.80%
Loan:
  Interest rate of debt, % p.a. 10.00%
  Loan term, years 12
  Grace period (construction   period), months 18.00
Rated Capacity:
  Unit Capacity (MW/unit) 17.000
  No. of Units 2
  Total Gross Installed   Capacity (MW) 34.000
  Plant Own Use (MW) 3.400 10.00%
  Net Capacity (MW) 30.600

 

National   Renewable Energy Board
Licensed to: (Name of   Client)
Generation and Sales:
  Capacity Factor (% of rated) 75.00%
  Days per year 365
  Hours per day 24
  Gross Generation (MWh/year) 223,387
  Power Plant Own Use (%) 10.000%
22,339
  Net Generation (MWh/year) 201,049
  Transmission Line Loss assumed (%) 3.000%
6,031
  Net Sales (MWh/year) 195,017
Transmission Line:
  Line Voltage 69     kV
  Power 34,000     kW
  Length 10.000     km
  Power Factor 0.850     lag
  No. of Circuit 3
  Transmission Line Loss calculated (%) 0.774%
  Cost per km: 2,000,000     PhP
42,553     $
Capital and O&M Cost   Assumptions:
Cost per kW FOB USA ($/kW) 1,504
Variable O&M ($/kWh): 0.00520      Year 1
  Purchase of chemical materials 3,327.05     000 US$
  Utilities (fuel, lubes, electricity, water) 0.00     000 US$
Fixed O&M ($/kW/year) 0.430
  Maintenance of the installation 4,020.97     000 US$
  Personnel expense 0.00     000 US$
  Land lease, rent 0.00     000 US$
  Taxes, Insurance, services, and others 0.00     000 US$
  Transport 0.00     000 US$
  DSRF Expense 13.91     000 US$
Regulatory Costs:
  Special Privilege Tax – 2% 414.93     000 US$
  Special Realty Tax – 2.5% 1,270.76     000 US$
  DOE 1-94 : 0.01 PhP/kWh sales 41.49     000 US$
Debt Service Reserve Fund:
  Months of debt service 6
  DSRF Income -interest on Foreign Currency   Deposit 4.0%
  Withholding Tax on Foreign Currency Deposit 7.5%
  DSRF Expense 0.30%
Taxes and Regulatory Costs:
  VAT recovery at 5th year 70%
  Special Privilege Tax – 2% 1.00%
  Special Realty Tax – 2.5% 1.50%
  DOE 1-94 : 0.01 PhP/kWh sales 0.01
  Corporate income tax rate (% of taxable   income) 10%
  Income tax holiday (ITH), years 7
  Profit Sharing, % of IAT 0.00%
  Social Benefit Fund – Host Community,   PhP/month 0
Working Capital Needs:     months
  Cash needed for operations (+) 3.00
  Customers / Receivables (+) 1.00
  Stocks / Inventory (+) 2.00
  Suppliers / Payables (-) 1.00
Exchange Rate and   Escalation: 0   No Escalation
  Exchage Rate, PhP / US$ 47.00 0.00%   depreciation
  RP CPI (Local) 5.00%   local escalation
  US CPI (Foreign) 2.50%   foreign escalation
  First Year Tariff (PhP/kWh) 10.0000 0.00%   tariff escalation
  Variable O&M:     weight 0.00%   variable escalation
    % Local (30%) 50.00% 5.00%
    % Foreign (70%) 50.00% 2.50%
  Fixed O&M:     weight 0.00%   fixed escalation
    % Local (70%) 50.00% 5.00%
    % Foreign (30%) 50.00% 2.50%
Fuel & Lubes Properties:       Btu/lb         kg/L            % fuel blend
  Low Sulfur Fuel Oil (LSFO – 1% S) – boiler   fuel 18,400 0.9659 0.00%
  Biomass (Solid Waste, Woodwaste) – per kg 4,000 100.00%
  Lube Oil 0.8500 100.00%
Fuel & Lubes Costs &   Escalation:        PhP/L
  Low Sulfur Fuel Oil (LSFO – 1% S) – boiler   fuel 27.11 0.00%   diesel escalation
  Biomass (Solid Waste, Woodwaste) – per kg 2.36 0.00%   bunker escalation
  Lube Oil 174.85 0.00%   lube escalation
Plant Heat Rate and Lube Oil   Rate:
  Diesel Engine Heat Rate (Btu/kWh gross) 13,649 25.00%   thermal efficiency
  Lube Oil Consumption Rate (g/kWh) 0.2535   not used

 

 

 

 

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