Supply chain initiated for 1 million tonnes of feedstock per annum.
Development of biomass pellet and power plants.
On 28th November 2017, InfraCo Asia Development Pte Ltd announced that as part of its Co-Development Program, it has signed a Joint Investment and Development Agreement (JIDA) and other definitive agreements with Biomass Group for investment in Biomass Ventures Pte Ltd. As part of the agreement, InfraCo Asia is investing US$2.44 million in Singapore-based Biomass Ventures. The investment will support the development of a biomass supply chain and pellet plants at various locations in Sri Lanka.
Biomass Ventures has established two subsidiaries (Biomass Supplies and Trinco Pellets) to establish the biomass supply chain and produce pellets for the Japanese market. Established in 2016, Trinco Pellets is expected to start producing 150,000 tonnes of pellets per year from a manufacturing facility at Trincomalee in the fourth quarter of 2019.
Another subsidiary, Dendro Power, is to be set up to develop biomass plants for the domestic market, with the goal of establishing at least four 10 MW plants to supply power to the Ceylon Electricity Board.
On the supply chain side, the scope of the agreement includes supporting the development of an IT platform which will help track and streamline smallholder farmers’ production of raw materials from Gliricidia trees, and the logistics infrastructure required to collect the materials and aggregate them for both export and domestic use.
On the pellet plant side, InfraCo Asia’s investment will assist and support the covering of design and procurement costs, along with other steps necessary to achieve financial close of the first stage of the overall project. The development of the initial pellet plants, including the engineering design and the tendering for the EPC of the first plant, will also be undertaken as part of the agreement. The plants will convert Gliricidia feedstock into biofuel pellets, with an initial production target of 150,000 tonnes of pellets per year. The pellets are intended to be available for export, as well as for domestic power production.
Seeger Green Energy (Seeger Engineering) completed a pre-feasibility study for Biomass Ventures in 2016 on pelleting Gliricidia. Plant Engineering GmbH was subsequently appointed as the engineering consultant, and designed a pellet facility in March 2017.
In December 2018, Biomass Supplies told Pellet Mill Magazine that its 50,000 outgrower partners have planted approximately 100 million Gliricidia trees to date, which will produce 1 million tonnes of wood each year. This biomass feedstock will be sold to Trinco Pellets and Dendro Power for conversion into pellets. Biomass Ventures also reports that it has supplied 300 tonnes of Gliricidia pellets to a coal-fired power station in Japan for trials.
The Bio-Energy Association of Sri Lanka estimates that 54 million tonnes of biomass can be produced in Sri Lanka per annum, translating to up to a capacity of 4,000 MW produced from sustainably grown biomass.