2016-05-malaysia palm oil mill value map public

Palm Oil

RevenueRM 221 mio

USD 53.9 mio

Boiler AshFertilizer

RM 1.5 mio

Summary Value Map for Malaysian Palm Oil Mill – Total Mill Revenue Potential of RM 242 – 250 mio

(USD 59 - 61mio) of which FiT Electricity up to RM 11.7 mio (USD 2.9 mio) or ~5% of revenue potential1

Palm Plantation

– Fresh Fruit Bunch(FFB) Input for Palm Oil

– Other: Biomass potential from Oil Palm Fond and Oil Palm

Trunk in addition to Palm Shell, Palm Fiber and Empty Fruit Bunch

(EFB)

– Fertilizer substitution: - Palm Frond RM 35 / ton (2/3 of basal frond with 1/3 nutrition)

- Palm Trunk RM 78 / ton

- Empty Fruit Bunch RM 93 / ton

Palm Plantation

“Most often integrated

plantation/ oil mill

complexPalm Oil Mill Effluent

(POME)

Discharged

waterBiogas

ElectricityGrid FiT or diesel off set

up to RM 11.7 mio with high

CapEx alternative

To waste water lagoons

and then to rivers and if gas

not collected, then methane

to the atmosphere

Typical Malaysian Mill Size

60 ton FFB/Hour or

430 ton FFB/year)

Crude Palm

Oil (CPO)RM 189 mio / USD 46.1 mio

Palm

Kernel (PK)RM 32.2 mio / USD 7.8 mio

1 2

Palm Oil Distillate ▪ RBD Crude Palm Oil - Refined,

Bleached and Deodorized

▪ Palm Fatty Acid Distillate

• Crude palm

Kernel Oil

(CPKO)

• Palm Kernel Cake (PKC)

• Palm Kernel Expeller (PKE)

Palm Mill Process Steam and Electricity• Steam for FFB Sterilization

• Steam for FFB pre-processing

• Steam also used to generate mill electricity

▪ Palm biomass as fuel in boiler/steam turbine:

– Pam Fiber

– Palm Shell

– EFB (only if dried with excess heat)

▪ Diesel – Boiler maintenance and start up

Palm oil mill revenue – Seven potential revenue outputs $Palm oil refinery/palm kernel mill revenue$Palm Oil Mill Input – Palm FFB

POME – Palm Oil Mill Effluent (methane rich waste)

Palm Oil Mill Process

Next:Detailed Revenue

value map for a 60

ton/hour Palm Oil Mill

Palm Kernel

Mill Output$$

Animal Feed

“Medium grade

protein feed”

6

CHPsteam/pre-heat water or drying EFB

Palm Output Potential

Revenue

% of

Total

1 – CPO RM 189.0 mio

USD 46.1 mio

77.5%

2 – PK RM 32.2 mio

USD 7.8 mio

13.2%

3 – Palm Shell RM 3.1 mio

USD 0.8 mio

1.3%

4 – Palm Fiber RM 1.4 mio

USD 0.3 mio

0.5%

(5 – EFB –Pressed and

de-humidified to DLF

and/or Pellets)NKEA-EPP5 Oct 2014 – Probably

better used to produce steam…

(RM 8.1 mio)

(USD 2.0 mio)(NKEA-EPP Oct 2014 RM

11.3 mio)

(3.2%)for process

steam or

DLF/Pellets

– Not both

6 – FiT Electricity RM 11.7 mio

USD 2.9 mio(CHCR+UASB)

4.8%

7 - Fertilizer RM 4.8 mio

USD 1.2 mio

2.0%

Grand Total

Grand Total excl EFB

RM 250.3 mio

USD 61.0 mio

RM 242.2 mio

USD 59.1 mio

Na

100%

Palm Kernel Mill - Value Add RM 5.2 mio / USD 1.3 mio

1 MW gen set power requirements as off-grid solution

7

~22,500 ha

(~55,500 acre)

Palm Plantation

~ 430,000 ton/year

Palm FFB

(24hr/300 days)

Fertilizer

RM 3.3 mio(Wu et al 2009)

Palm Oil Output

Palm

Bio

mass

output

Palm ShellRM 3.1 mio / USD 0.8 mio

3

Palm FiberRM 1.4 mio / USD 0.3 mio

4

Palm Empty Fruit

Bunch (EFB)RM 8.1 mio in DLF/Pellets (according to NKEA-EPP5 Oct 2015)

250 KWh power need (plus drying…)

5

Palm Refinery

Output$

$

FFB 60 ton/h~ 430,000 ton/year at

24h/300days /

7200h/year

7

1

2

3

4

5

6

7

Fertilizer

RM 3.3 mio(Wu et al 2009)

Fertilizer

RM 1.5 mio

Palm Oil Mill

FFB 60 ton/h430,000 ton/year at

24h/300days / 7200h/year

Detailed Value Map - Revenue Potential of up to RM 242-250 mio (USD 59 - 61

mio) of which FiT Electricity up to RM 13.3 mio (USD 3.2 mio) ~5% of revenue

SOURCES: multiple official and public web-sites with specific

references in each text box

Local

ExMill

Local

www.bepi.mpob.com.my

Palm oil prices

RM/ton and 4.1 RM per USD

CPO – Crude Palm Oil

PK – Palm Kernel

CPKO – Crude Palm Kernel Oil

PKE – Palm Kernel Expeller

Source: NKEA-EPP5-Update Oct 2015

Palm Shell

Palm Fiber

Dry Long Fiber – from EFB

Pellet/Briquette – from EFB

December

2013

December

2014

December

2015

Sime Darby

2014/2015

December

2014

December

2015

Palm biomass prices

RM/ton December

2013Used in

calculations

2,570

1,800

3,560

511

-

-

-

-

2,300

1,670

2,500

345

130

30

400

300

2,150

1,520

3,350

390

-

-

-

-

2,222

1,474

-

-

-

-

-

-

Used in

calculations

2,200

1,500

3,350

390

CER – Certified emission reduction

EUR/ton (only limited after 2011…)

0.33 0.02 0.58 - 0.50

120

25

350

250

Diesel off-set with Bio gas at Palm

mill operations (excl. vehicles)

- - - - -Diesel RM/ton - - 1,916 - 2,000

Palm plantation – Palm Fresh Fruit Bunch (FFB) Input

Malaysia Yield

~19 ton FFB/ha

FFB = Fresh Fruit Bunch

Sime Darby Plantation

2014/15 22 ~ton/ha

Palm Kernel Mill - Value Add RM 5.2 mio/ USD 1.3 mio

Palm Kernel Mill Power

consumption

CPKO Value

RM 33.2 mio / USD 8.1 mio

100k ton / day crusher

90-100 KWh/ton=> 0.9-1.0

MW

- CPKO 46% extraction rate

- CPKO 9,900 ton/year

- RM 3,350 per ton

PKE Value

RM 4.2 mio / USD 1.0 mio

• PKE 50% extraction rate

• PKE 10,700 ton/year

• RM 390 pe rton

Palm Oil Refinery

RBD Crude Palm Oil

Palm Fatty Acid

Distillate

Revenue RM 189 mio

USD 46 milo

Palm Oil

RevenueRM 221 mio

USD 51.4 mio

CPO 86,000 ton/year

@ RM 2,200

CPO extraction

20% of FFB

Palm Oil Output

Revenue RM 32.2 mio

USD 7.9 mio

PK 21,500 ton/year

@ RM 1,500

PK extraction

5% of FFB

Source: Sarawak Energy

NKEA–EPP5/www.bepi.com.my

~22,500 ha

(~55,500 acre)

Palm Plantation

430,000 ton/year

Palm FFB

(24hr/300 days)

% of FFB / annual supplyHeat Value

Dry (KJ/Kg

Energy/Heat Value Potential

Mwhr

6% of FFB (12%

humidity)

Annual:

25,800 ton @ RM 120

RM 3.1 mio / $ 0.7 mio

19’114 KJ//Kg

430’000x6%

x0.88x19’114

/3600=120’500

16,74 MWhr/h

120’500 MWhr/year

Palm

Bio

mass

output

13% of FFB (37%

humidity)

55,900 ton @ RM 25

RM 1.4 mio / $ 0.3 mio

20’156 KJ//Kg

430’000x13%

X0.63x20’156

/3600= 197’200

27,38 MWhr/h

197’200 MWhr/year

Palm ShellRevenue

RM 3.1 mio

USD 0.8 mio

Palm FiberRevenue

RM 1.4 mio

USD 0.3 mio

Palm

Empty

Fruit

Bunch(RM 8.1 mio)

(USD 2 mio)Production

steam or

DLF/Pellets

22% of FFB (67%

humidity)

94,600 ton

Partly dry for mill

production steam or

press/de-humidify for

DLF/pellets processing

DLF/Pellets value

RM 8.1 mio (NKEA-EPP5

RM 11.3 mio)

18’883 KJ/Kg

430’000x22%

X0.33x18’883

/3600=163’700

22,73 MWhr/h

163’700 MWh/year

To sell as biomass for

incremental revenue

Energy/Heat Value

potential matches a 60

ton/h mill energy need for

steam, if upgrading boiler

to at least 28% Thermal

efficiency. Alternative:

Dry and process to Dry

Long Fiber (DLF) or

pellets / briquette and use

Palm Fiber as boiler fuelBoiler Ash

Palm Oil Mill Effluent POMEGrid FiT or diesel off set up to RM 11.7 mio

67% POME of 60 ton/h FFB => 40 ton POME/h

Three main technologies

- Low CapEx: Covered lagoon

- Med/high CapEx: CSTR

- High CapEx: Combined HCSR/CSTR+UASB

Low Capex: Covered lagoon with gas trapping

(Thailand Cat cases and NKEA-EPP5)

• 25m3 Biogas/m3 POME @ CH4 55%

• COD @ 60’000 mg/L ≈19,000 KJ//m3

• 40 ton POME x 25 m3 = 1’000 m2 Biogas/hour

• 7.2 million m3 bio gas per year

• 19’000 MJ/h or 5.3 MWhr/hour (heat value)

• 38’000 MWhr/year (heat value)

A B Med/high Capex: CSTR Only

(Source: NKEA-EPP5)

• 30 m3 Biogas/ m3 POME @ CH4 60%

• COD 70’000 mg/l ≈ 21,000 KJ/m3

• 40 ton POME x 30 m3 = 1’200 m3 Biogas/hour




CHCR (Combined HCSR and CSTR) + UASB

( Source:Jeng Huat Palm Oil Mill Presentation)

• 33 m3 Biogas/m3 POME @ CH4 65%

Cleaned Biogas (69% before BioGasClean)

• COD 80’000 mg/l ≈ 22,500 KJ/m3

• 40 ton POME/h x 33 m3 = 1’320 m3 Biogas/hour




C

Palm Oil Mill Steam Requirements (30 ton/h) and biomass and diesel

consumption: “Life cycle inventory of the production of Crude Palm Oil Case -

12 mills (2008)”

7.5 ton Biomass/hour: 20% shell/80% Fiber

Biomass boiler 24h/300days/Diesel gen sets 600KVA.

Power from Steam Turbine 1.1MWhr @17% efficiency

(2008). Utilization 70% of 300 days

6 ton fiber/hour ( 43,200 ton/year)

1.5 ton shell/hour ( 10,800 ton/year)

54L of diesel/hour ( 390m3 /year)

%

12%

37%

0.745 kg/l

KJ/Kg Dry

19,114

20,156

45,100

Boiler Efficiency according to

NKEA-EPP5 2014Humidity

1.5 x 88% x 19,114 / 3600

7.0 MW@21% 1.5 eMWhr

6 x 0.63 x 20,156 / 3600

21 MW@21% 4.5 eMWhr

0.054 x 0.745 x 45100 / 3600

0.5 MW @~40% 0.2 eMWhr

Total Heat Value per hour: 28.5 MWhr

2

Sime Darby

2014/2015

Energy

1 2

3

6

Next:Financial comparison with and without Grid Feed-in Tariff and

optimizing usage of EFB in mill steam production: Low / Med / High

Capex

7

Anaerobic digestion produces Chemical Oxygen

Demand (COD) ~44,300 => ~ 102,000 mg/l

33% of CO2

67% of CH4 (Lagoon 55% CH4 10% losses

A B

Sludge – Discharge water

and fertilizers

(CH4 = 55,500 KJ//Kg)

Palm Kernel Mill Crusher Power Requirements about 1.0 MW

5

4 Sell as biomass for

incremental revenue or

use as boiler fuel if EFB

pressed /de-humidified

to DLF and/or pellets

Total Boiler Steam Power (Heat Value) 6.2 MWhr/hour

Discharge

Water

7

Financial Summary Palm Oil Mill Biogas Trapping with Electricity Production3

Covered Lagoon

Closed tank

Technology

Closed Tank Technology

Lowest CapExCovered lagoon

7.2 mio m3

biogas/year

Lower CapEx

Medium CapEx

High CapEx

Technology

Base line: “Minimum to stay in business - Flaring

the biogas”

Covered lagoon and current boiler modified for

biogas and complemented with shell and fiber

biomass to fuel the boiler

Covered lagoon and effective/ modified boiler

complemented with EFB and 20% of baseline shell

and fiber biomass to fuel the boiler

“less effective” gas engines using “dirty gas”

and consequently higher engine maintenance

Partly dried EFB to fuel the boiler

CapEx

- 7.0

- 2.0

- 5.0

- 4.5

- 7.5

- 10.5

- 13.5

- 13.5

- 16.5

OpEx

- 0.2

- 0.10

- 0.15

- 0.15

- 0.20

- 1.60

- 1.90

- 0.85

- 0.95

Biomass

Revenue

2.1

+ 0.6

+ 0.6

+ 1.8

+ 1.8

+ 2.4

+ 2.4

+ 2.4

+ 2.4

Electricity

Revenue

FiT

…

N/a

+ 0.5

N/a

+ 1.2

N/a

+ 10.1

N/a

+ 11.7

Straight

pay back

“Sunk cost”

1.3 years

2.8 years

1.4 years

2.1 years

1.3 years

1.2 years

1.4 years

1.2 years

80%

35%

70%

48%

76%

84%

70%

85%

1

2 FiT

1

2 FiT

16 years

ROI

1

2 FiT

1

2 FiT

Covered Lagoon Technology

RM

mio

High Efficiency Gas Engines using

cleaned/chemically scrubbed gas and consequently

less engine maintenance

Partly dried EFB to fuel the boiler

Diesel

Offset

N/A

+ 0.8

+ 0.8

+ 0.8

+ 0.8

+ 0.8

+ 0.8

+ 0.8

+ 0.8

Theoretical value

of “available”

electricity (IND-E1)

…

+ 0.3

N/a

+ 0.7

N/a

+ 6.4

N/a

+ 7.1

N/a

Net Sum

Cash-

Flow

+ 1.90

+ 1.60

+ 1.75

+ 3.60

+ 8.00

+ 11.40

+ 9.45

+ 13.95

“Addition/Delta to Baseline” – Baseline is “sunk cost” to stay compliant

Cash Flow for 16 years ROI calculation (Same as used in emission certificate applications)

N/a

+ 3.15

Summary Value Map Palm Oil Biogas Trapping &

Financial Analysis

5

• Basic technology to stay compliant a “sunk-cost” that must be made to remain in business

• Biogas trapping and usage for FiT is highly profitable and diversifies the Palm Oil Mill’s revenue base.

• 80% ROI and very low risk to only make the next step beyond flaring:• Covered lagoon, collect and burn the biogas in the current boiler rebuild for biogas usage and sell the additional

biomass with an 80% ROI!

• Feed-in-Tariff to the grid is only very profitable when investing in the highest possible capacity of gas

production/collection and high efficiency reciprocating gas gen sets• Boiler based gas combustion range from 35% - 50% ROI

• Recip Engine based gas combustion provides up to 85% (!) ROI

• When FiT available:• …Always profitable to consider to also use FiT for an efficient (+20%) biomass powered boiler. RM 0.4667 KWh

compare to 0.4866KWh using gas technology in the boiler is still attractive! At least RM 1.2 mio in additional revenue

after mill power (0.9 MWh) has been consumed. With additional mill efficiency improvements the revenue can

significantly increase!

• CHP is needed to dry the EFB to acceptable humidity level to either burn (with lower emissions) and/or process the

EFB to DFL/Pellets

• Exhaust heat to dry EFB

• Jacket water to pre-heat water for steam boiler (to drive additional Biomass sales – not included in

calculations but should be in the range of an additional 15-20% bio mass to sell…

• Additional investments in down stream activities need to be evaluated separately, but is a requirement for all

alternatives where FiT is not an option.• Palm Kernel Mill can drive a value add of RM 5.2 mio with a 1MWh/h electrical power need

• Dry Long Fiber and Pellets/Briquette from EFB can drive a value add of RM 8.1 mio with a 1.25 MWh/h electrical power

need.

• Palm Oil Refinery…

• ..in this financial analysis “available gas” has only been valued at the equivalent of TNB Industrial Tariff RM 0.285 per

KWh as “cost avoidance” if a down stream process facility could be co-located with the Palm Oil Mill

Baseline – minimum to comply to reactions

▪ Covered lagoon and only collection to flare on site

▪ Flaring of biogas

▪ With approx. 10% methane leakage and deteriorating

over time to might still be questionable to be long term

compliant

1 Mill steam/heat/electricity

▪ Mill stem/heat/electricity (boiler)

▪ Sell excess biomass

▪ Use EFB in boiler

▪ Use gas in gas engines for CHP

18.5-22.5 mio 20.5 mio

+ 13.5 mio

0.75 mio -1.35 mio 1.05 mio

+ 0.85 mio

Palm shell: -100% -

Palm fiber -100% -

EFB: 31,200 ton dry/year

Biogas: 9.5 mio m3

25,920 ton x 120 = RM 3.1 mio

56,160 ton x 25 = RM 1.4 mio

Total - baseline: RM 2.4 mio

15.5-19.5 mio 17.5 mio

+ 10.5 mio

1.25 mio -2.35 mio 1.80 mio

+ 1.60 mio

Mill steam/heat/electricity


▪ Use EFB in boiler +20% efficiency

▪ Use gas in gas engines for CHP

▪ High maintenance due to CH4

▪ Excess electricity available/no value

1 Palm shell: -100% -

Palm fiber: -100% -


Biogas: 9.5 mio m3

25,920 ton x 120 = RM 3.1 mio

56,160 ton x 25 = RM 1.4 mio


SOURCEES: Multiple CDM applications with detailed Capex and OpEx analysis -

https.//cdm.unfccc.int search criteria: Malaysia & Biogas

Feed-in-Tariff

Baseline cost to comply with minimum legal requirement

Biomass revenue

Anaerobic technology and full heat value potential

Bio mass left to sell Electricity for FiT or “available”Grid connection assumes RM 3 mio in

CapEx

CapEx

range Min 2% Max 4% Biomass used in palm mill (see slide 2)

15’120 ton x 120 = RM 1.8mio

12’960 ton x 25 = RM 0.3mio

Baseline: 0

RM 0.8mio cost in base line

Baseline revenue for excess biomass

available to sell without any additional

investments in gas production or boiler

efficiency and baseline cost of current

usage of diesel gen sets for mill

operations

1 6-8 mio 7 mio 0.1 mio - 0.2 mio 0.2 mio Palm shell: 41% of 25’960 10,800 ton/year

Palm fiber: 77% of 56’160 43,200 ton/year

EFB: -

Biogas: -

Diesel: 390 m3/year x 2,000

OpEx Range %of CapExRM mio

Min 8% Max 12%

Min 4% Max 6%

Min 4% Max 6%

Excess Electricity – “available”

3.1 MWh x 90% x 7200

= 20’100 MWhr/year Recip Engine

1.4 – 0.9 = 0.5 MWh x 70% x 7200

= 2,500 MWhr Steam turbine

(@0.285 (E1-industrial) = RM 6.4 mio

Excess Electricity – “available” Engine

3.45 MWh x 90% x 7200

= 22’400 MWhr/year (Recip Gas Engine)

1.4 – 0.9 = 0.5 MWh x 70% x 7200

= 2,500 MWhr(steam Turbine)

(@0.285 (E1-industrial) = RM 7.1 mio

25,920 ton x 120 = RM 3.1 mio

56,160 ton x 25 = RM 1.4 mio


18.5-22.5 mio 20.5 mio

+ 13.5 mio

1.50 mio - 2.70 mio 2.10 mio

+ 1.90 mio

Grid connection

▪ Mill stem/heat/electricity (boiler

▪ Sell excess electricity

▪ Use EFB in the boiler +20% efficiency


▪ Use biogas in gas engines for CHP

▪ High maintenance due to CH4


Palm fiber: -100% -


Biogas: 9.5 mio m3

Gas Engine Electricity for FiT

3.1 MWh x 90% x 7200

= 20’100 MWhr/year FiT of 0.4470

= RM 8.9 mio

Steam Turbine Electricity for FiT

1.4 – 0.9 = 0.5 MWh x 70% x 7200

= 2,500 MWhr x FiT of 0.4667

= RM 1.2mio

21.5-25.5 mio 23.5 mio

+ 16.5 mio

0.85 mio -1.50 mio 1.15mio

+ 0.95mio

Grid connection

▪ Mill stem/heat/electricity (boiler)

▪ Sell excess electricity FiT

▪ Use EFB in the boiler


▪ Use biogas in gas engine for CHP


Palm fiber: -100% -


Biogas: 9.5 mio m3

25,920 ton x 120 = RM 3.1 mio

56,160 ton x 25 = RM 1.4 mio


Biogas Trapping and Revenue from biomass/FiT – Detailed CapEx & OpExAlternatives: Baseline (flaring), Lowest CapEx – Lagoon/current boiler, Lower CapEx Lagoon/efficient boiler, Medium CapEx Closed tank/recip engine “dirty gas”, High CapEx

Closed Tank/recip engine and cleaned gasAll alternatives with two options: Feed-in-Tariff (FiT) or without FiT. All business cases with no FiT availability should review alternative revenue from additional electricity. This analysis only include revenue to sell

off maximum of Palm Shell and Palm Fiber – commodities with limited process cost - other alternatives requires detailed financial analysis

High CapEx Closed Tank / Gas engine / Cleaned gas

▪ CHCR + UASB. 8.3 Mwhr heat value of gas.

▪ Complete gas cleaning and drying process. Chemical

scrubbing, de-humidification resulting in CH4 <100

▪ High efficiency gas engine/Turbine No FiT penalty. Tariff

RM 0.4669 per KWh / RM 0.4667 KWh Steam Turbine

▪ Exhaust CHP used to partly dry EFB and jacket water to

pre-heat water to boiler and export more biomass

▪ Excessive electricity sold at FiT or “available for use”

▪ Theoretical 90% utilization engine / 70% of steam turbine

▪ CG170-12 with 42.1% electrical / 43.8% thermal efficiency

▪ Max 3.45 MWhr: 3xCG170-12 (3600= +150kwh)

▪ Biomass Boiler/Turbine 1.4 MWh at 22% of thermal eff.

Medium CapEx Closed Tank / Gas engine/”Dirty gas”

▪ CHCR + UASB. 8.3 Mwhr heat value of gas.

▪ No gas scrubbing, only humidity reduction limited HC4

reduction due to drying the gas

▪ Gas engines for dirty gas <40% efficiency. FiT 0.0199 RM

penalty. Tariff RM 0.447/KWh. Steam turbine 0.4667/KWh

▪ Exhaust CHP used to partly dry EFB and jacket water to

pre-heat water to the boiler and export more biomass


▪ Theoretical 90% utilization engine / 70% of steam turbine

▪ G3516A+ with 36.8% electrical / 41.5% thermal efficiency

▪ Max 3.1 MWhr: 3x3516A+ @ 1105kw (3’315= +215KWh)

▪ Biomass Boiler/Turbine 1.4 MWh at 22% of thermal eff.

▪ Palm mill consumes in average 0.9 MWh/h of electricity.

Gas Engine Electricity for FiT

3.45 MWh x 90% x 7200

= 22’400 MWhr/year FiT of 0.4669

= RM 10.5 mio


1.4 – 0.9 = 0.5 MWh x 70% x 7200

= 2,500 MWhr x FiT of 0.4667

= RM 1.2mio

CapEx / Add. to

Base lineOpEx / Add. to

Base line

3


1.4 – 0.9 = 0.5 MWh 70% x 7,200

= 2’500 MWh / year x FiT of 0.4866

RM 1.2 mio

‘23’220 ton x 120 = RM 2.8 mio

45’360 ton x 25 = RM 1.1 mio


Mill steam/heat/electricity



▪ Use gas in boiler 24% efficiency

▪ Excess electricity available/no value

1 9-12 mio 10.5 mio

+ 4.5 mio

0.20 mio -0.50 mio 0.35 mio

+ 0.15 mio

Palm shell: -75% 2’700 ton/year

Palm fiber: -75% 10’800 ton/year


Biogas: 7.2 mio m3

12-15 mio 13.5 mio

+ 7.5 mio

0.25 mio -0.60 mio 0.4 mio

+ 0.2 mio

Grid connection

▪ Mill steam/heat/electricity





2 Palm shell: -75% 2’700 ton/year


EFB: 31’200 ton dry/year

Biogas: 7.2 mio m3


1.1 - 0.9 = 0.2 MWh x 70% x 7200

= 1’000 MWh / year @0.285=RM0.3mio


1.4 – 0.9 = 0.5 MWh 70% x 7,200

= 2’500 MWh / year

(@0.285 (E1-industrial) = RM 0.7 mio in

theoretical/potential cost avoidance)

23’220 ton x 120 = RM 2.8 mio

45’360 ton x 25 = RM 1.1 mio


Lowest CapEx lagoon/boiler

▪ Covered lagoon (5.3 Mwhr/h heat value of bio gas)

▪ No gas scrubbing, only humidity reduction and limited HC4


▪ Only gas modification to current boiler. 17% efficiency.

▪ 1.1 MW/hr boiler/Turbine to produce electricity for mill

▪ Steam based <20% efficiency. FiT 0.01 RM penalty. FiT

RM 0.4766 per KWh

▪ 70% utilization of steam turbine (NKEA-EPP5-2014)

▪ Palm mill consumes in average 0.9 MWh/h of electricity


1.1 – 0.9 = 0.2 MWh x 70% x 7,200

= 1’000 MWh / year x FiT of 0.4766

RM 0.5 mio

17’820 ton x 120 = RM 2.1 mio

23’760 ton x 25 = RM 0.6 mio

Total – baseline RM 0.6 mio

Grid connection

▪ Mill steam/heat/electricity



▪ Use Shell/fiber in boiler


2 11-13 mio 12 mio

+ 5 mio

0.25 mio - 0.45 mio 0.35 mio

+ 0.15 mio

Palm shell: -25% 8’100 ton/year


Biogas: 7.2 mio m3

Lower CapEx lagoon/efficient boiler

▪ Covered lagoon (5.3 Mwhr/h heat value of gas)

▪ No gas scrubbing, only humidity reduction limited HC4


▪ Improved co-fired boiler/turbine with (22%) efficiency

▪ 1.4 MW/hr Boiler/Turbine of to produce electricity for mill.


▪ High efficiency steam based 22% efficiency (>20%). No

FiT penalty. Tariff RM 0.4866 per KWh

▪ CHP from boiler used to partly dry EFB as boiler fuel

▪ 70% utilization of steam turbine (NKEA-EPP5-2014)

▪ Palm mill consumes in average 0.9 MWh/h of electricity

17’820 ton x 120 = RM 2.1 mio

23’760 ton x 25 = RM 0.6 mio


Mill steam/electricity


▪ Shell/fiber/gas in boiler 18% eff.

1 8-10 mio 9 mio

+ 2 mio

0.20 mio - 0.40 mio 0.3 mio

+ 0.1 mio

Palm shell: -25% (base) 8’100 ton/year


Biogas: 7.2 mio m3

2016-05-malaysia palm oil mill value map public

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