Procurement of a service provider for Biomass Feasibility Study

This is an invitation to tender (ITT) 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).

Timeline

Timelines for this process are anticipated to follow the schedule below:

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

Estimated start date for study: mid-March to early-April 2024

Estimated timeline for study completion: 3 months.

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 Strongim Bisnis throughout the study. The final report will be submitted to all the three partners in electronic formats.

Applications and questions should be sent to:  Krista.Likaveke@strongimbisnis.com.sb

 

Background and Introduction

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.

The feasibility study will be completed in two phases.
Phase I 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 undebarked 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.

 

Methodology and Deliverable for Phase I: 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 Strongim Bisnis.

Phase II 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.

 

Methodology and Deliverable for Phase II: 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.

 

 

Tender submission requirements

Interested parties should submit their tender to Krista.Likaveke@strongimbisnis.com.sb by 11.59pm on 29 February 2024.

Tenders should not exceed 7 pages.

Tenders should include:

Introduction & Background (up to half a page) Should provide background information about you/your company including a summary of relevant experience. Briefly explain your commitment to quality and meeting deadlines.
Team Composition and Qualifications (up to 1 page) Introduce any staff that will be supporting the feasibility study. This should include their qualifications and relevant experience.
Methodology and Approach (up to 2 pages) Describe your methodology and approach to conducting the study. Highlight any technology used for the study.
Timeline (up to half a page) Present a timeline outlining the two stages of the study and the anticipated completion date for each milestone.
Cost & Budget

(up to 1 page)

Provide a transparent and details breakdown of the budget, including any planned travel.
Annex 1 (up to 2 pages) Complete and submit the questions in Annex 1 of this document.
Assessment criteria

This call for expression of interest will be assessed based on the following criteria:

No. Area Evaluation Guiadance Score
1. Experience and Expertise

 

o   Have experience in conducting biomass feasibility studies with expertise in biomass energy, including relevant technologies, regulations, and market trends an advantage.

o   Team members who will be involved in the study are suitably qualified and have the relevant certifications.

o   Have provided evidence of past projects and case studies related to biomass feasibility studies.

o   Can provide references and feedback from past clients on their experiences with the service provider.

/30
2. Methodology o   Demonstrates a clear understanding of the project’s goals, objectives, and requirements.

o   Methodology for conducting the feasibility study is comprehensive, well-defined, and aligned with industry best practices.

o   Project timeline and deliverables are within expectations and deadlines.

o   Have good communication skills, including the ability to clearly convey complex technical information to diverse audiences.

/35
3. Value for Money o   Estimated budget is within the project allocation and provides value for money.

 

/30
4. Innovation and Technology o   Have awareness of and willingness to incorporate innovative technologies and approaches in the feasibility study.

 

/5

 

Right to Cancel, Clarify or Vary the Process

Strongim Bisnis and ASI shall not be committed to any course of action as a result of:

  1. Issuing this call or any invitation to participate in this procurement exercise.
  2. Communicating with a service provider in respect of this procurement exercise.
  3. Any other communication between Strongim Bisnis/ASI (whether directly or by its agents or representatives) and any other party.

By taking part in this competitive exercise, service providers accept that Strongim Bisnis/ASI shall not be bound to accept any Tender and reserves the right not to conclude a Contract for some or all of the services for which Tenders are invited.

Strongim Bisnis/ASI reserves the right to explore other options if this call does not provide what Strongim Bisnis/ASI considers to be the best value option available. The Strongim Bisnis/ASI reserves the right to amend, add to or withdraw all or any part of this call at any time during the procurement exercise.

Cost of the ITT

Service providers responding to this invitation to tender will remain responsible for all costs and expenses incurred by them, their staff, and their advisers or by any third party acting under their instructions in connection with this ITT. This will be regardless of whether such costs arise as a result of any direct or indirect amendments made to this ITT by Strongim Bisnis and/or ASI at any time. For the avoidance of doubt, Strongim Bisnis and ASI shall have no liability whatsoever to respondents for the costs of any amendments, changes, discussion, or communications.

 

Annex 1: References

 

This form should be completed and attached to your submission.

 

Service provider information
Organisation Name  Insert full legal name
Point of Contact  Name: 

Title: 

Phone number: 

Email:

 

Conflict of Interest
Conflicts  Please list any known conflicts

 

 

Examples of previous work and references

Applicants should provide at least three (3) references with descriptions of the work undertaken.

 

Reference 1
Client name  Insert full legal name
Client Contact  Name: 

Title: 

Phone number: 

Email:

Study Details  

 

 

 

 

 

 

Reference 2
Client name  Insert full legal name
Client Contact  Name: 

Title: 

Phone number: 

Email:

Study Details  

 

 

 

 

 

 

 

Reference 3
Client name  Insert full legal name
Client Contact  Name: 

Title: 

Phone number: 

Email:

Study Details