Biomass power generation heating raw material supply is the key

It is reported that the "12th Five-Year Plan" new energy industry locked in the four major industries of nuclear power, wind power, solar energy and biomass energy. Among them, the installed capacity of biomass power generation will reach 13 million kilowatts in the next five years, an increase of 160% over 2010. This shows that biomass power generation is expected to become the highlight of the new energy industry changes. And it is worth noting that the installed capacity of biomass power generation has exceeded that of Fengtou Zhengjian, so the concept of biomass power generation will attract more “eyeballs”.

The expectation of the “Twelfth Five-Year Plan” for the development of national strategic emerging industries (hereinafter referred to as “Planning”) will increase again. According to reports, the "plan" has entered the consultation stage.

The reporter noted that the current industry's installed capacity for biomass energy is relatively certain. It is reported that in the next five years, the installed capacity of biomass power generation will reach 13 million kilowatts. At the same time, some experts believe that the low cost of biomass power generation and the high cost of solar power are one of the main reasons that lead to faster development of biomass in the next five years. Therefore, biomass power generation is expected to become a major change in the new energy industry.

Affected by this, the relevant concept stocks of biomass power generation were active yesterday. The industry leader Kaidi Power (000939) (000939) hit a daily limit, while TEDA shares (000652, shares) (000652), Fuchun Environmental Protection (002479, Shares) (002479), Sheng Yun shares (300090, stock it) (300090) intraday gains are more than 3%.

Katie Power is a leader. In fact, compared with the hot investment in solar energy and nuclear power, biomass power generation has received relatively less attention. In the A-share market, the only authentic biomass power generation company currently is Katie Power.

Yesterday, the reporter called the Kaidi Power Board of Directors as an investor to understand the company's biomass power generation. However, as of the time of writing, the company's phone number still remained unanswered.

According to statistics, in mid-2010, Kaidi Power invested in seven biomass power generation projects such as the Nanling Kaidi Biomass Power Plant Project. After that, biomass power generation has been accelerating the pace of power plant construction. In the first quarter of this year, Katie Power already had 23 biomass power plants.

On July 29, Katie Power disclosed its interim results. According to the mid-year report, the company's biomass power generation revenue reached 122 million yuan, an increase of 289.33% over the same period of last year. The main business revenue accounted for 8.89%. At the end of 2010, Katie Power's biomass power generation was only 937.692 million yuan, and its main revenue was 2.97%.

“From the report point of view, the company's biomass power generation business is constantly rising,” said Chen Chenghui, an analyst at Xiangcai Securities Electric Power, in an interview with reporters. “In the future, Katie Power’s business in biomass power generation should also have Growth, because the revenue of this company's business only includes four power plants, and public information shows that the company has 23 power plants. In this way, the future biomass power generation will contribute to the company's performance."

Zhu Chenghui told reporters: “The current policy for biomass power generation is 0.75 yuan/kWh, and Kaidi Power’s gross profit margin for this business is 20%, which means that the company’s biomass power generation costs 0.6 yuan/kWh. In the total cost of biomass power generation, the fuel cost accounts for 70%."

In addition, Tianhe Investment Electric, an analyst of the public utilities, said that Kaidi Power's biomass power generation business is developing steadily. It is expected that by the end of this year, there will be 11 grid-connected power generation, and the remaining power plants will also be completed in 2012. At the same time, as biomass power generation and biomass fuel are still in the policy guidance support period, it is expected that the relevant support policies will be gradually clarified and refined in the next 3-5 years. Therefore, Kaidi Power will enjoy good policy support.

Many companies have successively intervened to look at the profitability of a single biomass power plant by Katie Power. Perhaps the situation is not bad. So is the case of the entire biomass power generation industry?

Zhu Chenghui said that in fact, for biomass power generation enterprises, it does not have higher-end technology, so the technical threshold for entry is not high, but the key is that the raw material of straw currently has uneven supply and demand.

The reporter learned from the interview that due to the policy support of biomass power generation, many companies competed to enter the industry, and in order to save costs, the companies were located in villages with more straw producing areas. In this way, a situation arises in which straws are produced by villages and towns, and the needs of many enterprises. In this way, the broker will raise the price of straw and increase the cost of straw acquisition, which will obviously affect the performance of the industry.

Taking rice husk fuel as an example, the red line of Kaidi Power's current profitability is the acquisition price of RMB 400/t. However, this red line was touched when it hit the “price war” in 2009. At that time, the price of rice husks was increased. 380 yuan/ton. With the adoption of ultra-high pressure fluidized bed technology, the red line for profitability of power plants may be raised to 600 yuan/ton, and the profitability of power plants will also rise.

“The acquisition cost of straw has a greater impact on biomass power generation companies. From our understanding of Katie Power’s acquisition of straw, the company’s disclosed information is 240 yuan/ton, but the actual purchase price is higher than this. This shows that the purchase price of straw has been bullish, said Zhu Chenghui.

It is worth noting that another listed company that entered the biomass power generation company (000601) (000601) prepared a considerable amount of raw materials for biomass power generation when entering the industry. According to the company’s announcement, Shanneng Energy has signed a letter of intent for cooperation in the supply of biomass fuel with 12 forest farms, 5 wood processing plants and some brokers. The annual supply reaches 510,000 tons, and the continuous and stable supply of fuel has been achieved. Full protection. From this point of view, the supply of biomass fuel has become an important weight for the continued growth of biomass power generation companies.