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Procurement of a service provider for biomass feasibility study

Submission deadline

February 29, 2024

This is a call for expression of interest (EOI) from any interested service providers (individuals or companies) to conduct a biomass feasibility study for Australia’s Strongim Bisnis in partnership with SolTuna and Kolombangara Forest Products Limited (KFPL).

Background to the Biomass Feasibility Study

Australia's Strongim Bisnis in partnership with SolTuna and Kolombangara Forest Products Ltd. (KFPL) is commissioning a feasibility study to assess the economic and technical feasibility of supplying woody biomass from KFPL plantations to SolTuna. The study will evaluate the requirements and costs associated with transitioning SolTuna's energy production from diesel to biomass boilers and steam turbines. Additionally, it aims to provide comprehensive insights into feedstock consumption requirements, feedstock supply specifications, physical fuel properties, supply logistics, storage logistics, investment costs, methodology, economic assumptions, risks analysis, and environmental impact.

Deadline for submissions to EOI: 11:59pm on 29 February 2024

Applications will be assessed on a rolling basis and applications and questions to this call should be sent to Krista.Likaveke@strongimbisnis.com.sb by 11.59pm on 29 February 2024

The study will take a two-phase approach

Phase 1 will assess the following remotely:

  1. Need Assessment: Identify the requirements of SolTuna to produce steam for factory production and separately identify electricity needs of SolTuna for a potential replacement of diesel generators with steam turbines to produce energy. Based on the requirements, specify  boiler design requirements, including redundancy, moisture control,  acceptable bark and foreign object levels, ash removal methods, and sizing to meet future factory needs.
  2. Biomass Production Potential: Analyze the biomass production potential in  KFPL plantations, including harvesting residues, bark, sawmill offcuts, sawdust, and potential energy dedicated plantations, while excluding biomass  from carbon stock areas and highly biodiverse areas. In addition to the tree  species available, including Eucalyptus deglupta, Eucalyptus pellita, Acacia  mangium, Albizzia falcata, and others, explore the potential of  fast-growing, short rotation crops like Eucalyptus and Acacia to supplement the supply.
  3. Feedstock Supply/Specifications: Specify the types of feedstock, including underbarked thinnings, harvesting residue, reject logs, sawmill offcuts, sawdust, and plantation logs. Determine woodchip specifications, the need for  woodchip screening, and assess the impact of sand/dirt limitations on  production costs.

 

Phase 1 Methodology and Deliverable:

Online meetings with SolTuna and KFPL and desk-based research would be used to collect the information for this phase. Inception  Report detailing the study approach and methodology and Interim Report highlighting progress  and key findings will be shared with  SolTuna, KFPL and Australia's Strongim Bisnis.

Phase 2 of the study will include an in-country visit and will consider the following:

  1. Feedstock Consumption Requirements: Define the indicative woodchip quantity  required for SolTuna's  boilers and establish the unit of measurement. Identify the weighing  equipment needed and provide a conversion table for multiple woody biomass  products to chipped volume/green weight.
  2. Physical Fuel Properties: Conduct lab testing for each species to  determine calorific values, moisture content, bulk volume, wood density with  bark, and chemical content. Analyze the impact of sand and dirt limitations  on the cost of woodchip production.
  3. Supply Logistics: Evaluate the machinery and equipment  requirements, including new dedicated machinery. Assess the suitability of  current equipment for small-scale harvest, extraction, and haulage  operations. Determine appropriate, cost-effective harvest/manufacturing/transport  processes for each woody biomass type. Estimate the investment costs for chainsaws, mobile chippers, extraction  equipment, biomass compression and transportation equipment, containerized  tip trailers, dump trucks, and woodchip storage facilities at Ringgi.
  4. Storage Logistics: Define the storage logistics of wood chips  before and after  transport to SolTuna,  including moisture control and storage facility requirements at Ringgi and Noro.
  5. Energy Wood Chip Pricing: Calculate the cost breakdown for delivering  wood chips to the Noro power plant and assess export price competitiveness of  biomass from standing trees.
  6. Wood Chips at SolTuna Facility: Evaluate woodchip transport options, such as  woodchip carriers (e.g., tug/barge), and assess the continuity of supply.  Estimate the investment needed for chosen loading/unloading methods. Calculate the safety stock needed on-site,  assess space availability at the factory site, and determine moisture control  measures. Estimate the investment required for facilities and equipment.
  7. Infrastructure at  SolTuna: Identify infrastructure and equipment needs,  including a landing area, storage yard, building extension, front loader,  biomass boiler, and related equipment.
  8. Methodology and Economic Assumptions: Utilize discounted cash flow analysis,  internal rate of return (IRR), payback period, and consider exchange rates in  economic assumptions for SolTuna and  KFPL. Compare the cost of biomass energy with  current and future diesel fuel costs, benchmarking historical price  fluctuations.
  9. Risks Analysis: Identify potential risks such as price  variations, continuity of the supply chain, natural disasters,  weather-related challenges, and environmental regulations. Evaluate the environmental  advantages and disadvantages of transitioning to biomass. Ensure that all operations and practices  conform to FSC certification standards by implementing a forest management  plan that utilizes best practices for energy wood and optimizes harvesting  operations to support energy wood production.
  10. Required Investment  for SolTuna: Assess the requirements and costs associated  with replacing diesel-fired boilers with biomass boilers in Phase 1 and  replacing diesel generators with steam turbines in Phase 2.

 

Phase 2 Methodology and Deliverable:

The study will be conducted through a  combination of desk research, field assessments, data analysis, and  consultations with relevant stakeholders. Final Feasibility Study Report  encompassing all aspects mentioned above, with clear recommendations for decision-making.

Timeline of Study

The estimated timeline for completing the feasibility study is 3 months with Phase I starting from mid-March to early-April 2024

Budget

The estimated budget for this study is AUD 125,000

Reporting and Communication

Regular communication and progress updates will be provided to SolTuna, KFPL and Australia's Strongim Bisnis throughout the study. The final report will be submitted to all the three partners in electronic formats.

Expression of Interest Submission Requirements

Applications should include:

  • A Completed Tender Application - including details such as the full company name, contact person’s name, position title, phone number, and email address. This should also include a proposed timeline and budget for the study. For more information please refer to the supporting document attached below.
  • References - including examples of previous work with contact information for references who can provide feedback on the service provider’s previous work.

Supporting documentation

Invitation To Tender - Biomass Feasibility Study (Strongim Bisnis)

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