RE: GAS-L: Market for small scale gasifiers & open burning regulations

[Harald Kleiven <harald.kleiven@organicpower.com>]

Motie asked: "...I am very interested if you have something available in the
size range of 50-350 tons/day. What types of materials are you capable of
gasifying? Feedstocks can range from Municipal Solid Waste to farm crop
residues to Coal, wood or Peat...."

Such a small-scale gasifier is available from Organic Power ASA in Oslo,
Norway. A short introduction is presented below. You can also look at our
web-page: www.organicpower.com
We are in the process of commercialization, after several years as an R&D
company. Our gasifiers are modular, each processing up to 6,000 metric tons
per year(20 tons/day), combined up to 6-cell plants (36,000 tpa/120 tpd).
Among other projects, a 2-cell plant is operating in Elverum, Norway,
supplying district heating and gasifying pre-sorted and baled MSW (Municipal
Solid Waste). As any new start-up, especially in these times, we are
constantly looking for investors, but also for technology partners. Our
company is following a conservative technical approach, and currently the
technology is only used for heat production (steam, hot water). The small
plant size opens an attractive market for sale of steam & hot water, either
to process plants or district heating networks. The relative capital and O&M
costs are not higher than large-scale Energy from Waste plants. The plants
can operate on multiple solid/bio fuels. I would be happy to supply more
information to interested parties. 

Best regards,

Harald Kleiven


ORGANIC POWER ASA 
  
Organic Power was established in January 1997 following a research and
development cooperation between the Norwegian Agricultural University and
the investment company, Hurd. The gasification technology was developed
through the "Distributed Power" research project at the University and was
modified thereafter to satisfy present day requirements for clean energy
production.

The company's first waste-to-energy (WTE) plant was commissioned in November
2000. The plant delivers heat energy to a local district heating network in
the municipality of Tingvoll, Norway. A second WTE plant was commissioned in
June 2001 in Bosung City, South Korea. As of June 2001, Organic Power has
signed a total of six contracts to build WTE plants based on its
gasification technology (four in Norway, one in Denmark, and the sixth in
South Korea) with a total contract value of about $22 million. Over a dozen
other projects are in the pipeline.

The technology - small-scale, modular, multi-fuel, clean and profitable 

Organic Power's solutions are based on standard gasification modules with
thermal output of 2MWth (waste throughput of up to 6,000 tonnes per annum).
By combining several modules, the EfW plants can be adapted to serve heat
energy users with a demand of up to 12 MWth (six modules with a combined
throughput of up to 36,000 tonnes per annum). 

Each gasification module can use either sorted municipal waste, industrial
waste or biomass as feedstock. The technology can cope better than competing
technologies with feedstock of varying energy and moisture content.
Electricity generation is possible with the addition of extra equipment
(turbine, etc.) at the back-end but at the cost of lowered efficiency.   

The market - large and mostly untapped 

The potential market for Organic Power's gasification technology is huge.
Within Europe, the adoption of the Landfill Directive by member states means
that millions of tonnes of municipal waste need to be diverted from landfill
annually. For example, in the UK, the Environment Agency forecasts a need
for 40 - 130 EFW plants with annual throughputs of 150,000 tonnes per annum.

The potential demand for the technology is evidenced by the fact that eleven
projects (all in Scandinivia) are in varying stages of negotiations with
customers. If all eleven reach financial close, then the capital expenditure
required is about USD 106 million (UK£68 million). A further six tenders are
being prepared in response to invitations from potential customers (estimate
of capital expenditure = USD 88 million/£56 million). 

Corporate strategy 

Organic Power's corporate goal is two-fold. First, the company aims to be
highly profitably - a minimum annual return on equity of 15% per annum.
Second, it wants to play a significant role in the global market for
alternative energy.

To this end, Organic Power's management has identified four complementary
revenue streams: 

· Sales of gasification modules: Contracts are signed with customers for the
design, construction and commissioning of Organic Power's EFW plants.

· Operation and maintenance: Organic Power contracts to operate and maintain
its EFW plants for an annual fee. 

· Licence and royalty fees: Organic Power aims to enter new markets (the US
and the UK being foremost) via licensing agreements with local partners.
Licence fees are one-off fees payable when a licensing agreement is signed.
Royalty fees are payable per gasification module subsequently built by the
licensee.

Organic Power selected the licensing approach for new markets because (1) it
allows a faster penetration of vast foreign markets, (2) poses less
operational risks for shareholders and (3) allows a shorter time to
profitability. 

· Engineering services: Organic Power provides engineering services to
strategic partners. 

Organic Power's potential customers can be grouped into four types: (1)
utility companies, (2) waste management companies, (3) municipalities, and
(4) industrial companies. Marketing the product is by means of its own sales
force, regional licensees, local representatives and the Internet (see
www.organicpower.com).

The contact at Organic Power for interested investors is Mr. Ole Wiborg.
email: ole.wiborg@organicpower.com,  tel: +47 23 11 59 00. Cell: +47 92 26
56 08.


-----Original Message-----
From: Motie
To: 
Sent: 10/22/02 6:32 AM
Subject: Re: GAS-L: Market for small scale gasifiers & open burning
regulations


----- Original Message -----
From: "Victor Hsu" <vjh201@stern.nyu.edu>
To: <gasification@crest.org>
Sent: Monday, October 21, 2002 10:15 PM
Subject: GAS-L: Market for small scale gasifiers & open burning
regulations


> I have been very impressed with the dearth of knowledge on this
listserv.
>
> I am curious if anyone knows what the market is like for small scale
> gasifiers.  The sort of markets that I would be looking at are smaller
scale
> i.e., farms, municipalities...

Victor,
This is not a simple question that you ask. You may be aware of that. A
simple answer is not possible. In my opinion, the market is weak, but
mostly
because there is no awareness of the availabilty of a small gasifier. I
am
very interested if you have something available in the size range of
50-350
tons/day. What types of materials are you capable of gasifying?
Feedstocks
can range from Municipal Solid Waste to farm crop residues to Coal, wood
or
Peat. Matching a Gasifier to the available feedstocks is critical, or
the
inverse, matching the feedstock to your Gasifier.
>
> Also, does anyone have any information on which states have enacted
open
> burning regulations?  In other words, regulations that forbid local
burning?
> As far as I know, there are laws at the state level that forbid or
regulate
> local burning, but no Federal laws.

Regulate is a more proper term than forbid. I think all States regulate
burning in some way. There are exceptions to all regulations. 'Open
burning'
and 'gasifiers' do not seem to belong in the same conversation. Explain
your
thoughts?
>
> Thanks guys.
>
> -Victor Hsu
>

Motie


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>