UTT PowerPlant

Miss Nittaya Miss Nipanan Miss Piraya Miss Patsanee Miss Wanrath Miss Warunee Miss Russarin Miss Sarita Narares Noonnak Nujplien Tongdee Kosonnirathtiwong Kaenkaew Passaveedilokpath Kettrakul 5331203052 5331203054 5331203077 5331203084 5331203111 5331203112 5331203117 5331203130

Project Feasibility Study and Evaluation 2012

School of Management

Mae Fah Luang University

Part I Introduction

Chapter 1
Introduction

Biomass Power Plant

Chapter 1: introduction

1.1

Background and significance of the project

Electric energy is vital things to the economy system, human activities. It is important

factors that effect to the progressive of the world. Also, Energy is a universal product that trading around the world. However, finding the power supply and energy use are requiring investing a lot. At now, in Thailand has rate of electricity consume increase rapidly in the same time in our country has electric energy do not sufficiency for demand of population in country. So, Thailand has to import electric energy from neighborhood countries in particular of peak period that used by population. The electric energy that imported from Laos, Malaysia, and Cambodian which impact to cost of electricity in Thailand are expensive. Moreover, Thai government supported private company to construct the electricity-factory for meet to sufficiency demand of population. Electricity Generating Authority of Thailand said that In 2013, Thailand face to lack of reserve electric problem which it can effect to stability of energy in Thailand. According to Suthasana said that In 2012, have trend to use electricity grow up to 8% but even estimated will increase 4-5 %. Therefore, Electricity Generating Authority of Thailand supports private company to invest in electricity factory. (http://www.egat.co.th/images/stories/annual/reports/2554/annual2011_eng_p86.pdf) Thailand has extensive agriculture made with remaining materials from agriculture such as chaff, molasses. So, biomass electricity uses remaining raw materials from other agriculture as a fuel to produce electricity commercially. The foundation of biomass electricity factory cause does not accept the electric coal and nuclear more in Thailand. That increase in natural gas more. Because has the material is fuel already that supporting in biomass electricity factory more useful in this country. In addition to use the fuel in owner country that reduces buying from another country.

Source: http://www.egat.co.th/images/stories/annual/reports/2554/annual2011_eng_p86.pdf

Source: Electricity Generating Authority of Thailand 2012

Figure: shown the peak period that most used in electric energy per days.

Source: http://www.eppo.go.th/power/power2554.pdf

Source :

Electricity Generating Authority of Thailand 2012

Cost of produce electric energy

Cost per unit Baht per Kwh*

Solar energy Wind wheel Garbage Biomass Nuclear Coal Gas Existing Marginal Gas

12.5 5.2 3-5 3-3.5 2.79 2.94 3.96 4.34

Source: Electricity Generating Authority of Thailand 2

Compare labor cost

Minimum Wage (Baht)

Province

300

Bangkok,

Nakorn

Pathom,

Nonthaburi,

Pathum Thani, Phuket, Samut Prakarn, and Samut Sakorn 273 269 265 264 259 258 255 254 252 251 250 246 244 243 241 Chonburi Chachoengsao and Saraburi Phranakorn Sri Ayuddhaya Rayong Phang Nga Ranong Nakorn Ratchasima and Prajeenburi Lopburi Kanjanaburi Chiangmai and Ratchaburi Chanthaburi and Petchburi Songkhla and Singburi Trang Nakornsrithammarat and Ang Thong Chumpon, Srakaew 240 Prajuabkirikhan, Yala, Samut Songkram and Surat Thani 239 Narathiwat, Ratchathani 237 236 234 233 Nakorn Nayok and Pattani Trad, Buengkal, Lampoon and Nong Khai Kamphaengpetch and Uthai Thani Kalasin, KhonKaen, Chainart and SuphanBuri Udon Thani and Ubon Patthalung, Loei, Satun and

232

Chiangrai,

Nakorn

Sawan,

Buriram,

Petchaboon, Yasothorn, Roi-ed and Sakon Nakorn 230 Chaiyaphoom, Mukdaharn, Lampang,

Sukothai and Nongbualampoo 229 227 Nakorn Panom Pichit, Phitsanulok, Phrae, Mahasarakham, Mae Hong Son, Amnartcharoen and Utraradit 226 225 223 222 Tak and Surin Nan Srisaket Phayao

Source: Ministry of labor in Thailand, April 2012

Number of sugar industry in North.

Name Sugar Industry

Province

THIP SUGAR KAMPANGPETCH

Lampang Sukothai Uttaradit Uttaradit Phitsanulok Kamphaengpetch Kamphaengpetch Nakorn Sawan Nakorn Sawan Petchaboon

THIP SUKOHAI SUGAR INDUSTRY THAI IDENTITY SUGAR INDUSTRY UTTARADIT SUGAR INDUSTRY PHITSANULOK SUGAR INDUSTRY KAMPHAENGPETCH SUGAR INDUSTRY NAKHONPETCH SUGAR INDUSTRY RUAMPHOL NAKHONSAWAN SUGAR INDUSTRY KASET THAI INDUSTRY SUGAR INDUSTRY
THAI ROONG RUANG SUGAR INDUSTRY

Source: Office of the Cane and Sugar Board

Location of Biomass Power Plant

We have two alternative are Uttaradit and Nakhonsawan to be Biomass Power Plant. Finally, we choose Uttaradit to be Biomass Power Plant because; Uttaradit has two sugar industry and near province (Sukothai , Phitsanulok ) also have sugar industry. Uttaradit has labor cost rate cheaper than Nakhonsawan.

1.2 project objective

To study information of power plant and to know the problem about scares of electric power in Thailand To study feasibility for open Biomass power plant in Uttaradit province. To study and analyze that why each of private power plant can produce an electric power to little. To study problem, opportunity, weakness and strength of power plant. To study of feasibility of financial and analyze risk of Biomass power Plant in Uttaradit province. To study in power plant problem that effect to local community.

1.3

Benefits of projects
To know history, problem of power plant, and community problem. To know about risk and financial of power plant. To know about advantage and disadvantage of each type to be material for producing the electric power. To know how to planning and investment in power plant. To solve problems that occurs in study project.

1.4 Frame work

Chapter 2
Industry Profile

Chapter 2: Industry Profile

2.1 Nature of industry

Power plant became the first light on December 31, 1879 at Menlo Park. New Jersey, United States. In 1882, there are build of electricity system at London, England. Power plant in Thailand was established on September 20, 1884 during in reign of King Rama 5. Electricity Generating Authority of Thailand has become distinctly when Denmark company ask for permission to produce electric current for propel the train and expand electricity production by set up a permanent system. Electricity Generating Authority of Thailand initial to involve the generation and transmission of energy throughout Thailand for selling electricity to public on 1930s. After that electricity is well-known and private company as possible to set up many concessions Power plant used to change other energy become electric energy which can divide many types that can use produce electric energy has two types. Power plant used fuel is electricity factory that used nonrenewable to become electricity energy such as coal, oil which these fuel causes of the pollution. Power plant do not uses fuel is electricity factory that used energy from a permanent energy source such as chaff and molasses. The advantage of the energy source is a pure energy source that doesn't burn fuel such as biomass electricity. Therefore, we would like to establish electricity factory by Biomass power plant classified as renewable energy used to the benefits.

Source: Electricity Generating Authority of Thailand

2.1.1 Advantage and limitation of fuel for produce the electricity

Biomass to produce electricity Advantage Used benefit from remain of material in agriculture as renewable energy Produce the electric energy that environment-friendly. It is not cause to Greenhouse effect To support with electric system are increase Limitation Uncertain of the quantity of material Fuel managements are difficult Trend of material cost may be glow up because demand increasing Capability of biomass have high of moisture effect to happen with the pollution

The use of coal to produce electricity. Advantage The cost of producing electricity from coal cheaper than other fuel such as natural gas, oil, and Limitation The coal usage to produce electricity need to use control system of air pollution that expensive Burn of coal is major cause of acid rain and global warming Thailand needs to import the coal from aboard

renewable energy. High reserve quantity of coal that it can use more than 200 years. Nowadays, there is technology that

can eliminate pollution.

The coal usage to produce electricity energy need to have good

transportation. There are against from community

Garbage to produce electricity Advantages Source of cheap energy Reduce the problem of garbage disposal Garbage electricity factory from Limitations Some technology have high cost if business smaller cannot make profit Manage the garbage have expense Garbage electricity factory against from community

landfill help reduce global warming

Limitations cannot

of

an

entrepreneur quantity

control

garbage

which cost of delay in negotiation process

Source: http://www.eppo.go.th/power/power2554.pdf

2.2Situation of industry
The electricity situation in Thais economic during the year 2011 lower than the same period of the previous year because of the earthquake and tsunami in Japan. This resulting in the production of some industry in Thailand have to s top. However, during the third quarter of 2011, the electricity demand grown 2.25 percent and 3.34 percent. From flooding in Thai country it causes the effect to electricity consumption directly. The amount of electricity consumed in October, November and December decline 1.7 percent, 3.5 percent and 5 percent respectively. From the situation this above in 2011 the country has peak requirement electricity at 23,900.21 MW. These are decline to 0.46 percent when compared with statistic of 2010. For the year 2012, the government has a policy to support growth of GDP increase to 5 percent. Affect to rate of electricity demand increase about 5-6 percent. So, the private company demand estimated that will be expanded from the employment of the company and policy of government to support the expenditure such as measurement to raise the income of people.
4

Source:http://www.ubifrance.com/medias/press/1.-tfta-thai-energy-15-02-2012-copy-1_20_2_2012_8_8.pdf
4

Source: http://hilight.kapook.com/view/70845

The National Energy Policy Council (NEPC) and the Cabinet are approved the Thai power development plan in March 2010 to significance on the electricity production by cogeneration system. During the preparation for the adjustment of the long term power development plan occurred flood disaster in October-September 2011 influence on all economic. From the flooding disaster, affect to electricity demand and stability of electrical system in Thailand. It can effect to the Energy Ministry have to revise new PDP plan are listed as follows;
5

2.2.1 New power projects

Between 2012-2019 totals 3,932.80 MW

2.2.2 Power purchasing

Independent Power Producer (IPP) Projects

Total during 2012-2019 a total of IPP provided 4,400 MW

Small power producer project (SPP)

The PDP plan 2010 includes 6,430.50 MW to be purchased from small power producers during 2012-2019 including 5,024 MW using cogeneration systems, 90 MW using renewable energy, and 1,316.50 MW using non-firm energy contracts.
5

Power import from neighboring country

The EGAT purchased a total 2.913 MW from Xayaburi Hydro-electric project in Laos. The total capacity of foreign energy purchase between 2012 and 2019 will be 4,012 MW from six projects as follows;
5

2.2.3 Research and Development

The Electricity Generating Authority of Thailand has policy give capital to support institution including with External & Internal Research Agencies for perform R&D project consists of ;

To replace import of electrical energy equipment, technologies and materials To develop efficiency and lower production cost to support social research for quality of life of community around power plant. To improve new energy alternative for electricity generation. To prevent environment and social impact caused by power operation and activity.

2.2.4 Product and Service

Biomass Power Plants produce electricity current for sell to Electricity Generating Authority of Thailand. Product of Biomass Power Plants is supplies and service in term of Industrial Goods.
5

Source: http://www.egat.co.th/images/stories/annual/reports/2554/annual2011_eng_p86.pdf

PART II Marketing

Chapter3
Market Feasibility Study

Chapter3: Market Feasibility Study

3.1 Market Analysis
3.1.1 General Environment Analysis

Politic
Power plant in Thailand is monopoly business to sell for Provincial Electricity Authority which they transport electricity to each department for distribute to the public. Provincial Electricity Authority has policy develop electricity system from renewable energy, transportation electricity system, power plant quality for each country needs and help to manage cost effectively1. In addition, Ministry of Energy has policy for stability in supply to electric energy also they increase role of private for reduce cost of government and support small and smaller business electricity system from renewable energy. As a result, Private bio mass power plant businesses are growing up. Power Development Plan of Thailand is long term plan for respond demand, to create stability of investment and green environment with renewable energy. Supporting smaller business electricity in 2030 Thailand provides electricity from renewable energy not less than 5 present. In 2015-2021 to buy electricity from small business electricity firm increase 2,000 MW In 2022-2030 determine quantity of small business electricity increase per year 360 MW

Source: http://www.eppo.go.th/power/power2554.pdf

Economic
Survey of CEO forecasts economic outlook for first half of year 2556 by opinion survey of senior executives of listed companies (Ltd.) in stock exchange amount 81 companies from all 9 industries. Found that most executives of 26 companies expected that growth rate of Thailand's economy in year 2556 will be at 4.5 to 5 percentage, while only 12 companies. See that Thailand's economy will expand more than 5 percentages when compared to the monthly survey in April 2555 found that most executives believe that Thailand's economy has tends to increase from the original that expected to growth 4 to 4.5 percentag2 Therefore is evident from the situation of this economy rather will is the good news in part of establishing power plant. Because of Thailand's industrial economy have industrial factory increased and make number of electricity consumption increased as well. So, suitable to build a power plant to generate electricity for used distribution to respond the needs of industry factory in Thailand.

Source: http://www.mcot.net/site/content?id=50c6ed50150ba0af19000398#.UQlKVpv4-CU

Social
Due to the fact that demands for electricity has increased steadily. Because population growth and economic expansion. The primary energy will decrease therefore drive to development of renewable energy. So electricity is essential to daily life and it is important to drive the economy. For support completely the requirement of electricity and population can use electricity throughout and continuously. Nowadays Thailand have a lot of biomass such as agricultural residues which not be used that can produce more electricity. Therefore a lot of biomass were disposed incorrectly and cause problems of environment pollution. Using biomass to produce electricity tends to get the energy and also can decrease pollution at the same time. However a lot of burning biomass to produce steam for generator rotation will cause pollution and health hazards that may impact on the environment. And cause pollution and the health hazards that may impact on the environment and public health if without proper management by we will set up industry so far from the community to reduce pollution, toxic for preserve the environment of the community.
3

Source: http://www.vcharkarn.com/electric/article/view.php?id=42673

Technology
Electricity is a necessity to us but nowadays electricity will bring various technologies come to help. Technology that most widely used in production of electricity with biomass is direct-Fired system is the biomass such as husk or wood chips used as a fuel for burns in boilers. And heat transfer to the boiler and become to the hot steam and high pressure. Which steam will spin turbines or steam engine that connected to generator causes of incurs electricity or the production system thermal power. Mainly used in rice industry, sugar industry and drying agricultural produces. Which point of operation size of power plants should not be less than 5 MW for this system4.

Source: region2.prd. (2011, September 14). Biomass power plant. Retrieved from
http://region2.prd.go.th/ewt_news.php?nid=20096&filename=letgogreen

The power of this system burns cleanly and reduces air pollution due to the combustion chamber burns wood and smoke. This can be used to generate electricity in rural villages with a good source of raw materials and the development of a large power plant.

Source: http://nstda.or.th/rural/03tech-urban06.html

3.2 Corporate Social Responsibility (CSR)

The BPP power plant is expected on effectively performance and to be good organization of social vision. We are power plant from biomass to produce high quality of electricity, appropriate cost, and secure. We are driving the corporation social responsibility by "sustainable development" concept. This is a new direction of development does not expect on progressive in economic but consider on environment and to be an ally with community and labor to happy in work. Therefore, the committee of BPP set policies and provide professional for responsible for corporation social responsibility operation to be a standard of Thailand. Our policies as following; In Human Right aspect

Company will provide redress for community which gets impact from a company.

In Environment aspect o The appointment a legal authority about environment for control and check in air pollution, water, and wasting of industry. There is reporting to the government and have an emergency plan to reduce the impact of the environment. The process to check the quality of the environment such as air, water, noise, soil, and variety of biological. o To appointing a group to energy conservation for managing electricity energy. They have efficiency and saving to reduce the impact of climate change. There is the communication about management of environmental information with the social. o The company choose the clean and efficiency of technology that environmentally-friendly to used in process electric power as well as compliance with legal and regulation strictly.

o Green area project Company will create add green area project which this project will planting many perennial in space inside power plant. This project will help a company reduce amount of carbon dioxide gas. Moreover, this project can increase pure air and mitigate global warming problem. Besides, perennials can build up good panorama and environment inside power plant. Officers also work smoothly because a company has a good atmosphere.

o There is the activity to reduce the waste, recycle, and reuse through various the project by bank of recycle consist of project to reduce used plastic and foam, project exchange plastic to bag, the purchase of used vegetable oil, biological agriculture sufficient, campaign the environment, reduce to use the paper. In order to reduce the consumption of resource and pollution in environment.

In Labor force aspect o Company will employ local employees for support them to get work and reduce conflict between company and community.

Company will have public relation about operation of power plant to stakeholders of company.

In participate and developed with community o Development community fund The company have project to establishment of "Development community funds nearby the power plant" for provide money to develop the quality life of people and environment. The approach is the community nearby power plant to be beneficiary. The public have important role to handle these funds for improve sustainable community. From that approach as above indicate that the benefit would be to community directly. To build strengthen to community resulting in the well-being of people in the community better.

o childrens day event Company will organize childrens day event inside power plant. This event will provide exposition about power plant knowledge and there is buses tour within power plant. Juvenile will learn about step to produce electricity in each activity that set by company. Besides, this activity can stimulate conscious of juvenile to think of save energy and focus on important of environment.

o Public health to community project The project provides medical service to the public. The company gives the important in the community that who attend this service do not have to pay anything in this program. This project has participant of all sector such as local government, district, and private hospital.

o Local curriculum project Company will provide training for teacher in local school about energy and environment for develop background knowledge of teachers. The goal of this project is to increase knowledge and understanding of students

3.3 Sales Forecast/Profit Estimation 3.3.1 Sale forecast

For sales forecast we estimate sales from rate of usage electricity increase in year 2002-2011 for base on information to calculate demand to use electricity in MW include:

Demand to use electricity in Thailand: 2002-2011

Unit: MW (%)
Year MW +Increase / Decrease +3.44 +8.63 +6.65 +6.27 +2.56 +7.23 -0.08 +0.12 +8.91 -0.46

2545 2546 2547 2548 2549 2550 2551 2552 2553 2554

16,681.10 18,121.40 19,325.80 20,537.50 21,064.00 22,586.10 22,568.20 22,044.90 24,009.90 23,900.21

Source: http://www.egat.co.th/

We estimate percentage of usage electricity increase. From table, there is increase to use electricity certainly by average increase about 4%.

Type of Biomass Power Plant

Machine have power 10 MW Capacity to produce electricity: 10 MWh (10,000 units per hour) Keep using in firm: 0.7 MWh ( 700 units per hour ) Remained: 9.3 MWh (9300 per units) *(Sale to EGAT)

Capacity to produce electricity per day Time of use: TOU rate (EGAT) Price of produce electricity Peak Off-peak 2.8322 2.0424 Price of transportation electricity 1.0226 Rate all of sale 3.8548 2.0424

Source: http://www.egat.co.th/

Peak period Off-peak period

: :

09:00-22:00 22:00-09:00 00:00-24:00

Monday-Friday (13 hours/day) Monday-Friday (11 hours/day) Saturday-Sunday (24 hours/day)

Calculate sale forecast electricity per day (Monday-Friday) Peak period

9300 unit 3.8548 Baht/units 35,849.64 Baht/hrs 35,849.64 Baht/hrs 13 hrs 466,045.32 Baht/ 13hrs Total Peak period = 466,045.32 Baht/day Off-Peak period

9300 unit 2.0424 Baht/units = 18,994.32 Baht/hrs 18,994.32 Baht/hrs 11 hrs = 298,937.52 Baht/11hrs Total Off-Peak period = 298,937.52 Baht/day

Total Peak period + Total Off-Peak period (Monday-Friday) = 466,045.32 + 298,937.52 = 674,982.84 Baht/day

Calculate sale forecast electricity per day (Saturday-Sunday:24hour) Off-Peak period

9300 unit 2.0424 Baht/units = 18,994.32 Baht/hrs 18,994.32 Baht/hrs 24 hrs = 455863.68 Baht/24hrs Total Off-Peak period = 455,863.68 Baht/day

Total Off-Peak period (Saturday - Sunday) = 455,863.68 Baht/day

Calculate sale forecast electricity per month 1 year = 365 day/year 365 12 = 30 day/ month

Monday-Friday have 20 day per month Saturday-Sunday have 8 day per month

674,982.84 20 days = 13,299,656.8 Baht 455,863.68 8 days = 3,646,909.44 Baht

Total sale forecast electricity per month: 13,299,656.8 + 3,646,909.44 = 16,946,566.24 Baht/month

Total sale forecast electricity per year: 16,946,566.24 12 = 203,358,794.9 Baht/year

Total sale forecast electricity per 5 years: 203,358,794.9 5 = 1,016,793,974 Baht

Sale forecast For UTT Power Plant sale forecast in each month have sale equally because EGAT have condition to purchases same rate with Namthip Sukhothai Company. Sale Year 1 (2015)
Month

Product

Jan

Feb

Mar

April

May

June

Jul

Aug

Sep

Oct

Nov

Dec

Total

Electricity

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

203,358,794.9

Sale Year 2 (2016)

Month

Product

Jan

Feb

Mar

April

May

June

Jul

Aug

Sep

Oct

Nov

Dec

Total

Electricity

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

203,358,794.9

Sale Year 3 (2017)

Month

Product

Jan

Feb

Mar

April

May

June

Jul

Aug

Sep

Oct

Nov

Dec

Total

Electricity

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

203,358,794.9

Sale Year 4 (2018)

Month

Product

Jan

Feb

Mar

April

May

June

Jul

Aug

Sep

Oct

Nov

Dec

Total

Electricity

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

203,358,794.9

Sale Year 5 (2019)

Month

Product

Jan

Feb

Mar

April

May

June

Jul

Aug

Sep

Oct

Nov

Dec

Total

Electricity

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

16,946,566.24

203,358,794.9

3.4 Marketing Expense 3.4.1 Market tools Corporate Social Responsibility (CSR)
Marketing expense Year 1 (2015)
Description Capital to redress for community Green area project Development community fund Childrens day event Public health to community project Local curriculum project Total Jan 300,000 1,695 36,400 Feb Mar April May June 1,695 100,000 4,500 July Aug Sep Oct Nov 1,695 4,500 Dec 100,000 Total 100,000 300,000 20,340 36,400 100,000 18,000 574,740

1,695 1,695 1,695 1,695 4,500 -

1,695 1,695 1,695 1,695 1,695 4,500 -

Marketing expense Year 2 (2016)

Description Capital to redress for community Green area project Development community fund Childrens day event Public health to community project Local curriculum project Total

Jan 300,000 1,695 36,400 -

Feb -

Mar -

April -

May -

June 1,695 100,000 4,500

July -

Aug -

Sep -

Oct -

Nov -

Dec 100,000

Total 100,000 300,000

1,695 1,695 1,695 1,695 4,500 -

1,695 1,695 1,695 1,695 1,695 4,500 -

1,695 4,500

20,340 36,400 100,000 18,000 574,740

Marketing expense Year 3 (2017)

Description Capital to redress for community Green area project Development community fund Childrens day event Public health to community project Local curriculum project Total

Jan 300,000 1,695 36,400 -

Feb -

Mar -

April -

May -

June 1,695 100,000 4,500

July -

Aug -

Sep -

Oct -

Nov -

Dec 100,000

Total 100,000 300,000

1,695 1,695 1,695 1,695 4,500 -

1,695 1,695 1,695 1,695 1,695 4,500 -

1,695 4,500

20,340 36,400 100,000 18,000 574,740

Marketing expense Year 4 (2018)

Description Capital to redress for community Green area project Development community fund Childrens day event Public health to community project Local curriculum project Total

Jan 300,000 1,695 36,400 -

Feb -

Mar -

April -

May -

June 1,695 100,000 4,500

July -

Aug -

Sep -

Oct -

Nov -

Dec 100,000

Total 100,000 300,000

1,695 1,695 1,695 1,695 4,500 -

1,695 1,695 1,695 1,695 1,695 4,500 -

1,695 4,500

20,340 36,400 100,000 18,000 574,740

Marketing expense Year 5 (2019)

Description Capital to redress for community Green area project Development community fund Childrens day event Public health to community project Local curriculum project Total

Jan 300,000 1,695 36,400 -

Feb -

Mar -

April -

May -

June 1,695 100,000 4,500

July -

Aug -

Sep -

Oct -

Nov -

Dec 100,000

Total 100,000 300,000

1,695 1,695 1,695 1,695 4,500 -

1,695 1,695 1,695 1,695 1,695 4,500 -

1,695 4,500

20,340 36,400 100,000 18,000 574,740

3.5 Marketing Feasibility Analysis Summary Capital to redress for community

Our company has policy for redress community 100,000 Baht per year. The considerate of company base on amount of pollution that effect to community and environment. Moreover, it might be protect for community problem. Green area project1 The establishment green area investing the trees only first times. Apart from that have expenditure in wage and other material for maintenances.

Development community fund The calculation the money from capacity of production as 0.01 % / revenue per month

Childrens day even

The expenditure for decoration in Power Plant 3,000 Bath. The expenditure for food 15,000 Baht. The expenditure for 2 boards 1,000 Baht. The expenditure for give vouchers to children 14.900 Baht. The expenditure for instructor 500baht/persons. Have 5 instructors = 2,500 Baht. ** (Cost can be change in each year depend on the fluctuation of prices in goods, food and wage).

Source: Thongsri, K. (n.d.). Nanagarden. Retrieved from http://www.nanagarden.com/ ^1-11.html

41

Public health to community project3 The company provided medical treatment to the public. All expenditure depend on

amount of people the service. (99baht/person) Measurement from population receiving the service from these medical around 1,000 persons. Local curriculum project The company employs the professional in the company to be the tutor. Professional will give knowledge about energy environment for teacher in community.

2 3

Source:http://www.muslimthaipost.com/main/content.php?page=sub&category=104&id=8191 Source: http://www.a4lcenter.co.th

42

Part III Technical Analysis

Chapter 4
Investment Cost

43

Chapter 4: Investment Cost

4.1 Cost of Investment 4.1.1 Pre-Operating Cost

Pre-operating cost Landscape Prepare-land cost1 - 2 Baht per 1 hectare (1 Rai = 1,600 hectare) *we use 100 Rai = 160,000 hectare (160,000 hactare 2)

Total cost

320,000

Cover soil2 1 dump = 500 Baht We use 1,200 dump (500 dump 1,200)

600,000

Drawing3

300,000

Fee Water4 Telephone Total

681,500 680,000 1,500 1,901,500

Source: http://www.bb.go.th Source: Local area; Lablae Uttaradit Source: Akarawat Co.,Ltd

Source: http://www.mwa.co.th/ewt_news.php?nid=301&filename=index 4.1.2 Investment Cost Land

44

Our company purchase land 100 Rai at DanMaeKhamMan, Lablae Uttaradit. Calculation following; 55,000 baht per Rai 55,000 100 = 5,500,000 baht

Power plant area ( 100 Rai )

Total power plant area ( 100 Rai ) Manufactory Warehouse Area for drying material Office Green area Car Park Other

39 Rai 21 Rai 14 Rai 400 Hectare or 0.25 Rai 20 Rai 1 Rai 4.75 Rai

45

 Building Building Cost (1) Building cost 10,000 per hectare Our office have 400 hectare = 4,000,000 baht

(2)

(3)

46

(4)

47

An Engineering Construction Contracting Company (Ware house and Office)

Company name: ch-karnchang.co.th Address : 587 Viriyathavorn Building, Sutthisarnvinitchai Road, Dindaeng District, Bangkok, Thailand 10400 E mail : webmaster@ch-karnchang.co.th Contact : 66(0)-2277-0460, 66(0)-2275-0026

We choose this company because they have famous work and have experience for long time. Moreover, they have design, construct and consult service and many specialists team. This company has modern equipments cause of operation process quickly. Construction Contracting Company (Machine produce electric)

Company name : K.S. GROUP Address : 587/70 m.2 E mail : kgcenter@ksgroup.co.th Contact : (02)-709-748 Monitor : K.Pholakit 081-3573457 We choose this company because they have experience for long time and have construct power plant many project both Thailand and foreign. So, this company have skill to design and control all system in power plant. Thus, we have confident to select this company to construct our project.

48

Investment cost Tools / Equipment cost

No.

Product

Price

Unit

Cost

1.

Stable HS1675+SD120I (Manager)

15,200

91,200

2.

Stable DBR 18863

4,500

12

54,000

3.

Chair MONO SA-47

1,390

28

38,920

49

4.

Chair PATONG/H

3,200

22,400

5.

Meeting Table Conference2

29,400

29,400

6.

Table SQ-6

4,290

4,290

50

7.

Sofa

6,200

12,400

8.

Dining Table LILY

5,300

5,300

9.

Computer Dell Inspiron one 19 (T201019TH)

22, 994

206,946

51

10.

Air condition Grand Hybrid GH-20 / 19,400 BTU

33,900

135,600

11.

Air condition Grand Hybrid GH-25 / 25,400 BTU

41,900

125,700

12.

BenQ MS614 Projector

15,900

15,900

52

13.

Paper Shredder DWS-1006CD

2,900

2,900

14.

File cabinet SC1280New

4,290

34,320

15.

CASIO FR-2650T

1,990

9,950

53

16.

CASIO DJ-240D

725

14

10,150

17.

Telephone HT-828

469

3,752

18.

Time recorder VT-810

6,990

6,990

54

19.

Printer Epson K100

4,300

12,900

20.

Brother FAX-878

3,090

6,180

21.

H-403

55

24

1,320

Source: http://www.officemate.co.th

55

22.

A4 Double A - 80 g.

550

1,100

23.

Stapler DS-45N

169

12

2,028

24.

Max Stapler 1208FA-H

59

24

1,416

56

25.

TR-2910/U1-24

790

4,740

26.

Lancer Rally Two 8330

109

218

27.

H-600G

146

876

57

28.

Plug - Smith 306B

355

1,065

29.

Extinguisher

940

2,820

30.

Sink NOVABATH - EP-86004

1,500

3,000

58

31.

AMERICAN STANDARD - TF2775W

3,900

7,800

Total Cost

855,581

59

4.1.3 Location Our location of UTT Power Plant is DanMaeKhamMan, Lablae Uttaradit. Contact with K.Sirisak Janapichai Tel. 085-7187545. Have area 60 rai, faraway from main road 500 m. This location is plain area, near river and faraway community so, community dont worry about the effect to community such as pollution. This area have road through easy to transportation raw material and suitable for build Biomass Power Plant.

60

4.1.4 Facility Layout

1. Warehouse 2. Energy Machine 3. Electric Control Room 4. Electric Control Room (2) 5. Reservoir

6. Office 7. Car Park 8. Information 9.Keepers Box

61

4.1.5 Machine / Tools / Equipment

We choose K.S. Group Company to construct energy machine because this company made all construction such as set machine include with maintaining until machine can produce electricity for sale and have guarantee a machine.

Machine

Total cost

Machine Boiler and ESP system Turbines Cooling water system Steam Condenser Generator Transformer Set process Warehouse

Total *1MW = 60,000,000 baht

600,000,000

62

4.2 Depreciation Depreciation (Building Cost) First Year 2015 No. Product Price Unit Total cost Depreciation (Year) 20 20 Depreciation (5%) 30,000,000 200,000 30,200,000 Depreciation (Per month) 2,500,000 16,666.67 2,516,666.67

1. 2.

Factory / Warehouse Office

600,000,000 4,000,000 Total Depreciation cost

1 1

600,000,000 4,000,000

Second Year 2016 No. Product Price Unit Total cost Depreciation (Year) 20 20 Depreciation (5%) 30,000,000 200,000 30,200,000 Depreciation (Per month) 2,500,000 16,666.67 2,516,666.67

1. 2.

Factory / Warehouse Office

600,000,000 4,000,000 Total Depreciation cost

1 1

600,000,000 4,000,000

63

Third Year 2017 No. Product Price Unit Total cost Depreciation (Year) 20 20 Depreciation (5%) 30,000,000 200,000 30,200,000 Depreciation (Per month) 2,500,000 16,666.67 2,516,666.67

1. 2.

Factory / Warehouse Office

600,000,000 4,000,000 Total Depreciation cost

1 1

600,000,000 4,000,000

Fourth Year 2018 No. Product Price Unit Total cost Depreciation (Year) 20 20 Depreciation (5%) 30,000,000 200,000 30,200,000 Depreciation (Per month) 2,500,000 16,666.67 2,516,666.67

1. 2.

Factory / Warehouse Office

600,000,000 4,000,000 Total Depreciation cost

1 1

600,000,000 4,000,000

64

Fifth Year 2019 No. Product Price Unit Total cost Depreciation (Year) 20 20 Depreciation (5%) 29,999,999 199,999 30,199,998 Depreciation (Per month) 2,499,999.92 16,666.58 2,516,666.5

1. 2.

Factory / Warehouse Office

600,000,000 4,000,000 Total Depreciation cost

1 1

600,000,000 4,000,000

65

 Depreciation (Office Equipment Cost) First Year 2015 No. Product Price Unit Total cost Depreciation (Year) 5 5 5 5 5 5 5 5 5 Depreciation (20%) 18,240 10,800 7,784 4,480 5,880 858 2,480 1,060 41,389.2 Depreciation (Per month) 1,520 900 648.67 373.33 490 71.5 206.67 88.33 3449.1

1. 2. 3. 4. 5. 6. 7. 8. 9.

Stable HS1675+SD120I (Manager) Stable DBR 18863 Chair MONO SA-47 Chair PATONG/H Meeting Table Conference2 Table SQ-6 Sofa Dining Table LILY Computer Dell Inspiron one 19 (T201019TH)

15,200 4,500 1,390 3,200 29,400 4,290 6,200 5,300 22, 994

6 12 28 7 1 1 2 1 9

91,200 54,000 38,920 22,400 29,400 4,290 12,400 5,300 206,946

10.

Air condition Grand Hybrid GH-20 / 19,400 BTU

33,900

135,600

27,120

2260

66

11.

Air condition Grand Hybrid GH-25 / 25,400 BTU

41,900

125,700

25,140

2,095

12.

BenQ MS614 Projector

15,900

15,900

3,180

265

13. 14. 15. 16. 17. 18. 19.

Paper Shredder DWS-1006CD File cabinet SC1280New CASIO FR-2650T Telephone HT-828 Time recorder VT-810 Printer Epson K100 Brother FAX-878

2,900 4,290 1,990 469 6,990 4,300 3,090

1 8 5 8 1 3 2

2,900 34,320 9,950 3,752 6,990 12,900 6,180

5 5 5 5 5 5 5

580 6,864 1,990 750.4 1,398 2,580 1,236 163,810

48.33 572 165.83 62.53 116.5 215 103 13,651

Total Depreciation Office Equipment Cost

67

Second Year 2016 No. Product Price Unit Total cost Depreciation (Year) 5 5 5 5 5 5 5 5 5 Depreciation (20%) 18,240 10,800 7,784 4,480 5,880 858 2,480 1,060 41,389.2 Depreciation (Per month) 1,520 900 648.67 373.33 490 71.5 206.67 88.33 3449.1

1. 2. 3. 4. 5. 6. 7. 8. 9.

Stable HS1675+SD120I (Manager) Stable DBR 18863 Chair MONO SA-47 Chair PATONG/H Meeting Table Conference2 Table SQ-6 Sofa Dining Table LILY Computer Dell Inspiron one 19 (T201019TH)

15,200 4,500 1,390 3,200 29,400 4,290 6,200 5,300 22, 994

6 12 28 7 1 1 2 1 9

91,200 54,000 38,920 22,400 29,400 4,290 12,400 5,300 206,946

10.

Air condition Grand Hybrid GH-20 / 19,400 BTU

33,900

135,600

27,120

2260

11.

Air condition Grand Hybrid GH-25 / 25,400 BTU

41,900

125,700

25,140

2,095

68

12.

BenQ MS614 Projector

15,900

15,900

3,180

265

13. 14. 15. 16. 17. 18. 19.

Paper Shredder DWS-1006CD File cabinet SC1280New CASIO FR-2650T Telephone HT-828 Time recorder VT-810 Printer Epson K100 Brother FAX-878

2,900 4,290 1,990 469 6,990 4,300 3,090

1 8 5 8 1 3 2

2,900 34,320 9,950 3,752 6,990 12,900 6,180

5 5 5 5 5 5 5

580 6,864 1,990 750.4 1,398 2,580 1,236 163,810

48.33 572 165.83 62.53 116.5 215 103 13,651

Total Depreciation Office Equipment Cost

69

Third Year 2017 No. Product Price Unit Total cost Depreciation (Year) 5 5 5 5 5 5 5 5 5 Depreciation (20%) 18,240 10,800 7,784 4,480 5,880 858 2,480 1,060 41,389.2 Depreciation (Per month) 1,520 900 648.67 373.33 490 71.5 206.67 88.33 3449.1

1. 2. 3. 4. 5. 6. 7. 8. 9.

Stable HS1675+SD120I (Manager) Stable DBR 18863 Chair MONO SA-47 Chair PATONG/H Meeting Table Conference2 Table SQ-6 Sofa Dining Table LILY Computer Dell Inspiron one 19 (T201019TH)

15,200 4,500 1,390 3,200 29,400 4,290 6,200 5,300 22, 994

6 12 28 7 1 1 2 1 9

91,200 54,000 38,920 22,400 29,400 4,290 12,400 5,300 206,946

10.

Air condition Grand Hybrid GH-20 / 19,400 BTU

33,900

135,600

27,120

2260

11.

Air condition Grand Hybrid GH-25 / 25,400 BTU

41,900

125,700

25,140

2,095

70

12.

BenQ MS614 Projector

15,900

15,900

3,180

265

13. 14. 15. 16. 17. 18. 19.

Paper Shredder DWS-1006CD File cabinet SC1280New CASIO FR-2650T Telephone HT-828 Time recorder VT-810 Printer Epson K100 Brother FAX-878

2,900 4,290 1,990 469 6,990 4,300 3,090

1 8 5 8 1 3 2

2,900 34,320 9,950 3,752 6,990 12,900 6,180

5 5 5 5 5 5 5

580 6,864 1,990 750.4 1,398 2,580 1,236 163,810

48.33 572 165.83 62.53 116.5 215 103 13,651

Total Depreciation Office Equipment Cost

71

Fourth Year 2018 No. Product Price Unit Total cost Depreciation (Year) 5 5 5 5 5 5 5 5 5 Depreciation (20%) 18,240 10,800 7,784 4,480 5,880 858 2,480 1,060 41,389.2 Depreciation (Per month) 1,520 900 648.67 373.33 490 71.5 206.67 88.33 3449.1

1. 2. 3. 4. 5. 6. 7. 8. 9.

Stable HS1675+SD120I (Manager) Stable DBR 18863 Chair MONO SA-47 Chair PATONG/H Meeting Table Conference2 Table SQ-6 Sofa Dining Table LILY Computer Dell Inspiron one 19 (T201019TH)

15,200 4,500 1,390 3,200 29,400 4,290 6,200 5,300 22, 994

6 12 28 7 1 1 2 1 9

91,200 54,000 38,920 22,400 29,400 4,290 12,400 5,300 206,946

10.

Air condition Grand Hybrid GH-20 / 19,400 BTU

33,900

135,600

27,120

2260

11.

Air condition Grand Hybrid GH-25 / 25,400 BTU

41,900

125,700

25,140

2,095

72

12.

BenQ MS614 Projector

15,900

15,900

3,180

265

13. 14. 15. 16. 17. 18. 19.

Paper Shredder DWS-1006CD File cabinet SC1280New CASIO FR-2650T Telephone HT-828 Time recorder VT-810 Printer Epson K100 Brother FAX-878

2,900 4,290 1,990 469 6,990 4,300 3,090

1 8 5 8 1 3 2

2,900 34,320 9,950 3,752 6,990 12,900 6,180

5 5 5 5 5 5 5

580 6,864 1,990 750.4 1,398 2,580 1,236 163,810

48.33 572 165.83 62.53 116.5 215 103 13,651

Total Depreciation Office Equipment Cost

73

Fifth Year 2019 No. Product Price Unit Total cost Depreciation (Year) 5 5 5 5 5 5 5 5 5 Depreciation (20%) 18,239 10,799 7,783 4,479 5,879 857 2,479 1,059 41,388.2 Depreciation (Per month) 1,519.92 899.92 648.58 373.25 489.92 71.42 206.58 88.25 3449.02

1. 2. 3. 4. 5. 6. 7. 8. 9.

Stable HS1675+SD120I (Manager) Stable DBR 18863 Chair MONO SA-47 Chair PATONG/H Meeting Table Conference2 Table SQ-6 Sofa Dining Table LILY Computer Dell Inspiron one 19 (T201019TH)

15,200 4,500 1,390 3,200 29,400 4,290 6,200 5,300 22, 994

6 12 28 7 1 1 2 1 9

91,200 54,000 38,920 22,400 29,400 4,290 12,400 5,300 206,946

10.

Air condition Grand Hybrid GH-20 / 19,400 BTU

33,900

135,600

27,119

2259.92

11.

Air condition Grand Hybrid GH-25 / 25,400 BTU

41,900

125,700

25,139

2,094.92

74

12.

BenQ MS614 Projector

15,900

15,900

3,179

264.92

13. 14. 15. 16. 17. 18. 19.

Paper Shredder DWS-1006CD File cabinet SC1280New CASIO FR-2650T Telephone HT-828 Time recorder VT-810 Printer Epson K100 Brother FAX-878

2,900 4,290 1,990 469 6,990 4,300 3,090

1 8 5 8 1 3 2

2,900 34,320 9,950 3,752 6,990 12,900 6,180

5 5 5 5 5 5 5

579 6,863 1,989 749.4 1,397 2,579 1,235 163,791

48.25 571.92 165.75 62.45 116.42 214.92 102.92 13,649.25

Total Depreciation Office Equipment Cost

75

Chapter 5 Production and Operations Analysis

77

Chapter 5: Production and Operations Analysis

5.1 Product characteristics (in Detail) Main product of Biomass Power Plant is the Electricity. Electricity

Source: http://www.tatgreenheart.com/archives/3058

Main Component in Biomass Power Plan (machine system)

Source: http://www.trueenergy.co.th/biomass.html

78

1. Boiler 2. Fuel handing System 3. Ash handing System 4. Steam Turbine and Generator 5. Water Treatment System 6. Control and Instrument 7. Transmission Line 5.2 Production process 1. When you receive bagasse that take biomass fuel transport to combustion chamber boiler to produce stream. 2. High pressure steam will continue to spin turbines that connect to generate electricity. 3. Steam that through a steam turbine remaining heat. It will be through the condenser to change to the water and re-fill the boiler to re-produce steam to use in the system again. The heated cooling water from the condenser will sent to a cooling tower for cooling and re-circulating to the cooling water in the system. 4. Electrostatic precipitator fly ash and hot steam will pass through the electrostatic Precipitator (ESP) to trap dust before discharge to the outside. 5. Ashes stored in the trap will be loaded into containers and packaged in strong and enclosed packaging to deliver to customer such as agricultural industries, cement industries and construction industries. Electricity production

Source: http://www.trueenergy.co.th/biomass.html

79

Operation Cost
Year : 2015 Direct Jan Feb Mar April May June July Aug Sep Oct Nov Dec Totals Materials* 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000 Bagasse 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000 Husk 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 Total cost 54,000,000 Direct Labors Salaries and wages Total cost Jan 192,000 Feb 192,000 Mar 192,000 April 192,000 May 192,000 June 192,000 July 192,000 Aug 192,000 Sep 192,000 Oct 192,000 Nov 192,000 Dec 192,000 Totals 2,304,000

2,304,000

Overhead Factory Depreciation Indirect labors

Totals Cost

Jan
3,333,333.33

Feb
3,333,333.33

Mar
3,333,333.33

April
3,333,333.33

May
3,333,333.33

June
3,333,333.33

July
3,333,333.33

Aug
3,333,333.33

Sep
3,333,333.33

Oct
3,333,333.33

Nov
3,333,333.33

Dec
3,333,333.33

Totals
39,999,999.96

322,800
3,656,133.33

322,800
3,656,133.33

322,800
3,656,133.33

322,800
3,656,133.33

322,800
3,656,133.33

322,800
3,656,133.33

322,800
3,656,133.33

322,800
3,656,133.33

322,800
3,656,133.33

322,800
3,656,133.33

322,800
3,656,133.33

322,800
3,656,133.33

3,873,600
43,873,599.96

80

Year : 2016 Direct Materials* Bagasse Husk Total cost Jan Feb Mar April May June July Aug Sep Oct Nov Dec Totals

2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 54,000,000

Direct Labors Salaries and wages Total cost

Jan 192,960

Feb 192,960

Mar 192,960

April 192,960

May 192,960

June 192,960

July 192,960

Aug 192,960

Sep 192,960

Oct 192,960

Nov 192,960

Dec 192,960

Totals 2,315,520

2,315,520

Overhead Jan 3,333,333.33 Factory Depreciation Factory Utilities Indirect labors Totals Cost 324,414
3,657,747.33

Feb
3,333,333.33

Mar
3,333,333.33

April
3,333,333.33

May
3,333,333.33

June
3,333,333.33

July
3,333,333.33

Aug
3,333,333.33

Sep
3,333,333.33

Oct
3,333,333.33

Nov
3,333,333.33

Dec
3,333,333.33

Totals
39,999,999.96

324,414
3,657,747.33

324,414
3,657,747.33

324,414
3,657,747.33

324,414
3,657,747.33

324,414
3,657,747.33

324,414
3,657,747.33

324,414
3,657,747.33

324,414
3,657,747.33

324,414
3,657,747.33

324,414
3,657,747.33

324,414
3,657,747.33

3,892,968
43,892,976.96

81

Year: 2017

Direct Materials* Bagasse Husk Total cost

Jan

Feb

Mar

April

May

June

July

Aug

Sep

Oct

Nov

Dec

Totals

2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 54,000,000

Direct Labors Salaries and wages Total cost

Jan 193,925

Feb 193,925

Mar 193,925

April 193,925

May 193,925

June 193,925

July 193,925

Aug 193,925

Sep 193,925

Oct 193,925

Nov 193,925

Dec 193,925

Totals 2,327,100

2,327,100

Overhead Jan Feb Mar April May June July Aug Sep Oct Nov Dec Totals 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 3,333,333.33 39,999,999.96 Factory Depreciation Factory Utilities Indirect labors Totals Cost 326,036
3,659,369.33

326,036
3,659,369.33

326,036
3,659,369.33

326,036
3,659,369.33

326,036
3,659,369.33

326,036
3,659,369.33

326,036
3,659,369.33

326,036
3,659,369.33

326,036
3,659,369.33

326,036
3,659,369.33

326,036
3,659,369.33

326,036
3,659,369.33

3,912,432
43,912,431.96

82

Year: 2018

Direct Materials* Bagasse Husk Total cost

Jan

Feb

Mar

April

May

June

July

Aug

Sep

Oct

Nov

Dec

Totals

2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 54,000,000

Direct Labors Salaries and wages Total cost

Jan 195,864

Feb 195,864

Mar 195,864

April 195,864

May 195,864

June 195,864

July 195,864

Aug 195,864

Sep 195,864

Oct 195,864

Nov 195,864

Dec 195,864

Totals 2,350,368

2,350,368

Overhead Factory Depreciati on Factory Utilities Indirect labors Totals Cost

Jan
3,333,333.33

Feb
3,333,333.33

Mar
3,333,333.33

April
3,333,333.33

May
3,333,333.33

June
3,333,333.33

July
3,333,333.33

Aug
3,333,333.33

Sep
3,333,333.33

Oct
3,333,333.33

Nov
3,333,333.33

Dec
3,333,333.33

Totals
39,999,999.96

329,296
3,662,629.33

329,296
3,662,629.33

329,296
3,662,629.33

329,296
3,662,629.33

329,296
3,662,629.33

329,296
3,662,629.33

329,296
3,662,629.33

329,296
3,662,629.33

329,296
3,662,629.33

329,296
3,662,629.33

329,296
3,662,629.33

329,296
3,662,629.33

3,951,552
43,951,551.96

83

Year : 2019

Direct Materials* Bagasse Husk Total cost

Jan

Feb

Mar

April

May

June

July

Aug

Sep

Oct

Nov

Dec

Totals

2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 2,250,000 27,000,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 54,000,000

Direct Labors Salaries and wages Total cost

Jan 197,823

Feb 197,823

Mar 197,823

April 197,823

May 197,823

June 197,823

July 197,823

Aug 197,823

Sep 197,823

Oct 197,823

Nov 197,823

Dec 197,823

Totals 2,373,876

2,373,876

Overhead

Jan
3,333,333.25

Feb
3,333,333.25

Mar
3,333,333.25

April
3,333,333.25

May
3,333,333.25

June
3,333,333.25

July
3,333,333.25

Aug
3,333,333.25

Sep
3,333,333.25

Oct
3,333,333.25

Nov
3,333,333.25

Dec
3,333,333.25

Totals
39,999,999

Factory Deprecia tion Factory Utilities Indirect labors Totals Cost

332,589
3,665,922.25

332,589
3,665,922.25

332,589
3,665,922.25

332,589
3,665,922.25

332,589
3,665,922.25

332,589
3,665,922.25

332,589
3,665,922.25

332,589
3,665,922.25

332,589
3,665,922.25

332,589
3,665,922.25

332,589
3,665,922.25

332,589
3,665,922.25

3,991,068
43,991,067

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*Reference

Cost of Raw material Cost per Ton 300 Baht 300 Baht

Bagasse Husk

Our company buys bagasse from THAI IDENTITY SUGAR INDUSTRY.

Contact: 055-407-241 Our company buys husk from T.Prasert Uttaradit Co., Ltd.

Contact: K.Tai 084-3608173 Raw material to produce electricity

Bagasse Husk

Per Day 250 Ton 250 Ton

Per Mouth 7,500 Ton 7,500 Ton

Per Year 90,000 Ton 90,000 Ton Bagasse 1 : Husk 1

Note: Cost of material to produce electricity calculates by use ratio from Thipsukhothai Bio Energy. (This company produces electricity 38 MW and use raw material 1,800 per day)

Reference of Salary
In 2015 2017 Salary increase in 0.5% In 2018 2019 Salary increase in 1%

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5.3.1 Logistic Management Nowadays logistics has important of role to run business related to storage, procedure to produce and delivery supply chain is integrated for implementing the business.

Biomass Power Plant use logistic for management the procedure to produce by transportation bagasse to our factory. Our company will transport raw material by outsource.

Our company use Wanna Agricultural Company to transportation. Company Address Contract Wanna Agricultural company 41 M.10 T.MaeSai, Amphoe.MaeSai, Chiangrai 053-731744 ,089-9551469

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Cost of transportation
Year Truck 1 2 3 4 5 Jan 2,475,000 2,475,000 2,475,000 2,475,000 2,475,000 Feb 2,475,000 2,475,000 2,475,000 2,475,000 2,475,000 Mar 2,475,000 2,475,000 2,475,000 2,475,000 2,475,000 Apr 2,475,000 2,475,000 2,475,000 2,475,000 2,475,000 May 825,000 825,000 825,000 825,000 825,000 Jun 825,000 825,000 825,000 825,000 825,000 Total Jul 825,000 825,000 825,000 825,000 825,000 Aug 825,000 825,000 825,000 825,000 825,000 Sep 825,000 825,000 825,000 825,000 825,000 Oct 825,000 825,000 825,000 825,000 825,000 Nov 2,475,000 2,475,000 2,475,000 2,475,000 2,475,000 Dec 2,475,000 2,475,000 2,475,000 2,475,000 2,475,000 Total 19,800,000 19,800,000 19,800,000 19,800,000 19,800,000 99,000,000

November April ( 6 month ) Bagasse 1 round = 2,500 Baht ( 25 Ton per round ) 1 day = 22 round Husk 1 round = 2,500 Baht ( 25 Ton per round ) 1 day = 11 round

May October ( 6 month ) Husk 1 round = 2,500 Baht ( 25 Ton per round ) 1 day = 11 round

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5.3.2 Facility Management Electricity We are using the electricity from capacity that we can produce (average 0.7 MW per day). We calculate electricity usage depend on machine in the power plant, electrical appliances and light in the office. Computer Computer use to make business in part of information compile and send important information to customers. Telephone Telephone use to contract communication with customer and within organization for convenience in operation. Calculator Calculator use to calculate other cost of accounting. Fax Fax use to send and receive document from customer or other organization. Printer Printer bring to electronic document and use to printing or copy important document.

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Chapter 6
Administration Analysis

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Chapter 6: Administration analysis

Organization chart Board of directors

Risk management committee

Human resources and remuneration committee

Chief Executive officer

Audit committee

Chief operating officer

Chief financial officer

Electrical engineering

Control engineering

Design engineering

Maintenance engineering

Accounting Manager

Management Manager

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6.1 Management analysis Salary ( financial division) 1. Chief financial officer (50,000 up depend on capabilities and experiences) 2. Accounting manager ( 30000-35000 Baht) Responsibilities Set of accounting functions, including accounting policy, month/quarter-end closing, financial reporting, management reporting, budgeting, and taxation. Prepare statutory reports and fillings Manage continual improvement of accounting operation process and standard procedure Supports budget and forecasting activities. Monitors and analyzes department work to develop more efficient procedures and use of resources while maintaining a high level of accuracy.

Qualification Male or female over 30 years. Bachelor s degree in accounting. 5 years in accounting system. Leadership skill

3. Management manager (30000-35000 Baht) Responsibilities Gather and organize information on problems or procedures. Analyze data gathered and develop solutions or alternative methods of proceeding. Prepare manuals and train workers in use of new forms, reports, procedures or equipment, according to organizational policy. Design, evaluate, recommend, and approve changes of forms and reports. Plan study of work problems and procedures, such as organizational change, communications, information flow, integrated production methods, inventory control, or cost analysis.

Qualification Male or female over 30 years. Master degree in business administration. 5 years experiences about operation. Good command both English and Thai.
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4. Accountant

2 position (15000-18000 Baht)

Responsibilities Report to management regarding the finances of establishment. Establish tables of accounts and assign entries to proper accounts. Maintain or examine the records of government agencies. Analyze business operations, trends, costs, revenues, financial commitments, and obligations, to project future revenues and expenses or to provide advice. Develop, maintain, and analyze budgets, preparing periodic reports that compare budgeted costs to actual costs.

Qualification Female 25 35 years Bachelor s degree in accounting. Fluent in Computer literature i.e. Ms. Excel

5. Office management division 1 position (15000-18000 Baht) Responsibilities Answer telephones and give information to callers, take messages, or transfer calls to appropriate individuals. Create, maintain, and enter information into databases. Set up and manage paper or electronic filing systems, recording information, updating paperwork, or maintaining documents, such as attendance records, correspondence, or other material. Maintain scheduling and event calendars. Schedule and confirm appointments for clients, customers, or supervisors.

Qualification Female 25 35 years Bachelor s degree in business administration of related field. Fluent in Computer literature i.e. Ms. Excel Communicating effectively in writing as appropriate for the needs of the audience.

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6. Human resource division Responsibilities

1 position (15000-18000 Baht)

Prepare or maintain employment records related to events such as hiring, termination, leaves, transfers, or promotions, using human resources management system software. Interpret and explain human resources policies, procedures, laws, standards, or regulations. Hire employees and process hiring-related paperwork. Schedule or conduct new employee orientations.

Qualification Male or female 25 37 years Bachelor s degree in business administration , Human resource management or related field. Services mind and understand sense of urgency. Interpersonal skill and problem solving skills.

7. Cooperate relation division 1 position (15000 18000 Baht ) Responsibilities Respond to requests for information from the media or designate an appropriate spokesperson or information source. Establish or maintain cooperative relationships with representatives of community, consumer, employee, or public interest groups. Prepare or edit organizational publications for internal and external audiences, including employee newsletters and stockholders' reports. Consult with advertising agencies or staff to arrange promotional campaigns in all types of media for products, organizations, or individuals.

Qualification Female 23 32 years Bachelor s degree in faculty of arts , faculty of journalism or related field. Interpersonal skill and problem solving skills. Good spoken and written in English.

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8. Security guard Responsibility

position ( 8500 9000 Baht )

Monitor and authorize entrance and departure of employees, visitors, and other persons to guard against theft and maintain security of premises. Operate detecting devices to screen individuals and prevent passage of prohibited articles into restricted areas. Escort or drive motor vehicle to transport individuals to specified locations or to provide personal protection.

Qualification Male 25 38 years. Healthy

9. House keeper 2 position ( 8500 9000 Baht ) Responsibilities Wash windows, walls, ceilings, and woodwork, waxing and polishing as necessary. Dust and polish furniture and equipment. Notify managers concerning the need for major repairs or additions to building operating systems. Service, clean, or supply restrooms.

Qualification Female over 30 years Have responsibility and diligent.

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Salary ( operating division) 1. Chief operating officer (50,000 up depend on capabilities and experiences) 2.Construction management team experience ) 2.1 design engineer Responsibilities Plan and design project about mechanical and electrical Analysis problem about product Design purchase order in mechanical and electrical. Finding the distributor and offer the procurement/employment relate with the installation Monitoring about document Supported in any activities in organization Design on electrical system in organization Advisor about electrical energy 4 position ( 30,000 Up depend on capability and

Qualification Male over 23 years old Graduated in Bachelors degree about engineering course Have experience will be considering before Have knowledge in law of environment and Standard system ISO 9001/2008 and ISO 14001

2.2 electrical engineer Responsibilities Create report about administration in save energy to other related government. Control and organize in electrical system under the pattern of project. Create in power circuit. Control the operation of labors to following in project. Monitoring about installation and meeting with customer. Solving problem in work.

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Qualification Male , Age not over than 30 years. Electrical engineer Bachelor or Master degree 2-5 years. Experience in preparation of engineering documentation. Good relation and willing to work as team work

2.3 Maintenance engineer Responsibilities Manage and control maintenance cost Responsible for fulfillment and follow up the maintenance system according ISO9001 Looking for room of improvement of all tooling /equipment and plant utility with new update technology Looking for cost saving project Coordination with production department/others for the smooth operation of production/others activities Control and ensure the optimum spare parts, materials and tools that necessary for maintenance, breakdown, etc.

Qualification Male 25-32 years old with 3 years experience up Bachelors degree in Mechanical/Electrical Engineering or equivalent Capable of handling multiple priorities and tasks and able to work under pressure Good problem solving skills, including ability to identify and resolve issues a challenges

2.4 Mechanical engineering Responsibilities Reporting to maintenance Manager, Mechanical Section Head. Maintain and repair all mechanical equipment in the plant in safe, efficient, economical and timely manner. Insuring that all mechanical equipment stay well maintained and in safe working order.

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Qualification Male, Age not over than 32 years. Mechanical engineer or Industrial Technology or equivalent Bachelor or Master degree 2-5 years. Experience in power plant maintenance will be considering before.

3. Mechanical Plant 3 position ( 12000 Up depend on capability and experience) Responsibilities Repair the general mechanical system in the power plant. Check and test value of electrical in the work shop and onsite. Test run motor. Record information from test run motor. Connect and disconnect at substation. Turn on-off mechanical system on time. Keep information Offer the solution and comment for improve job. Protection in problem Maintenance and follow the rules in safety and environment

Qualification Male, Age between 22-32 years old. Bachelors degree in Mechanical/Electrical Engineering or equivalent. Good healthy. Do not be allergy Can be work in part time Have responsible and attitude for public

4. Electrician

3 position ( 12000 Up depend on capability and experience)

Responsibilities Repair the general electric system in the power plant Check and test value of electrical in the work shop and onsite Connect and disconnect at sub station Turn on-off electrical system on time Keep information of using electrical statistic Offer the solution and comment for improve job. Protection in problem Maintenance and follow the rules in safety and environment

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Qualification Male, Age between 22-32 years old Bachelors degree in Mechanical/Electrical Engineering or equivalent Good healthy. Do not be allergy Can be work in part time Have responsible and attitude for public

5.Gardener

2 position (9900 Baht)

Responsibilities Maintain or repair tools, equipment, or structures, such as buildings, greenhouses, fences, or benches, using hand or power tools. Mix and spray or spread fertilizers, herbicides, or insecticides onto grass, shrubs, or trees, using hand or automatic sprayers or spreaders. Provide proper upkeep of sidewalks, driveways, parking lots, fountains, planters, burial sites, or other grounds features.

Qualification Male , Age between 28-45 years old Love the service have a good interpersonal skills

Source: http://www.jobthai.com Source: http://www.onetonline.org/

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6.2 Facilities Cost Electricity We using the electricity from capacity that we can produced (average 0.7 MW per day). We calculate electricity usage depend on machine in the power plant , electrical appliances and light in the office.

One peak Off peak

Monday Sunday from 09.00 AM to 17.00 AM Monday Sunday from 17.00 AM. to 9.00 AM.

**Ref. Thai Numtip energy Co.Ltd producing electrical for 26 MW. used own electricity about 2 MW. Therefore, our power plant producing electricity for 10 MW. used own electricity about 0.7 MW. Computer Computer use to make business in part of information compile and send important information to customers. Telephone Telephone use to contract communication with customer and within organization for convenience in operation. Calculating telephone expenses Telephone usage = = = ** Telephone fee 3 baht per time times to call * telephone fee 300 * 3 900 Cost of computer is 22,994 baht per each computer. Depreciation of computer is 4,598 baht per each computer.

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Calculator Calculator use to calculate other cost of accounting. Fax Fax use to send and receive document from customer or other organization. Printer Printer bring to electronic document and use to printing or copy important document. Cost of printer is 4,300 baht per each printer. Depreciation of printer is 860 baht per each printer. Cost of fax is 3,090 baht per each fax. Depreciation of fax is 618 baht per each fax. Cost of calculator is 1,990 baht per each calculator. Depreciation of calculator is 398 baht per each calculator.

100