Ana Shell visits Philippines to discuss gasification project
On August 14th, 2013, the Department of Agriculture (Philippines) held a business meeting with Ana Shell, owner of the Fund known as the ’Territory of Shell’, and NRGLab Company (Singapore) in conjunction with Atty. Emerson U. Palad, Undersecretary & Chief of Staff of the Department of Agriculture (Philippines), Manuel Jose C. Regalado, Deputy Executive Director of Philippine Rice Research Institute, Rex L. Bingabing, Executive Director, Philippine Center for Postharvest Development and Mechanization (PHILMECH), science research specialists of the Department of Energy jointly with Jamie Joseph Q. Castillo.
The Philippines annually produces up to 1.0 billion tons of biomass, which has an energy equivalency of about 200 million tons of LNG (worth $100 billion). For power purposes, it is technically possible for the Philippines to consume up to 500 million tons of shrub biomass (coconut trees, paddy rice, banana and pineapple waste, mango, etc.) on a yearly basis. Gasification of 500 million tons of biomass per year has a fuel equivalency of 100 million tons of LNG. Cost recovery of the construction of a power plant from synthetic gas (syngas) is 3 years after the plant’s launch.
Potential use of biomass in the Philippines can help replace coal, gas or oil burned for electricity production. Moreover, carbon dioxide emissions would be cut in half.
One issue that was intensely discussed at the business meeting was NRGLab’s construction of the first gasification plant, using its intellectual turbine at 25 mWh (with a cost of about $25 million).
Feedstock for such a plant would be supplied by Filipino farmers at $25/ton. One operational year of the plant would require 210,000 tons of agricultural waste (feedstock) at a cost of $5,250,000. From this agricultural feedstock, 215 billion kWh of electricity would be produced. The average selling price of this electricity is $0.12, equivalent to an earnings ratio of $25.8 million.