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:
- 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.
- 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.
- 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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Infrastructure at SolTuna: Identify infrastructure and equipment needs, including a landing area, storage yard, building extension, front loader, biomass boiler, and related equipment.
- 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.
- 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.
- 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
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.