nkea - epp5 jan 2013.pdf
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NKEA: EPP 5
NATIONAL KEY ECONOMIC AREAS(NKEA)
NATIONAL BIOGAS IMPLEMENTATION
(EPP5)
BIOGAS CAPTURE AND CDM PROJECTIMPLEMENTATION FOR PALM OIL MILLS
Updated:1 January 2013
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CONTENTS
Page
1.0 Introduction
1.1 Purpose 1
1.2 National Key Economic Area (NKEA) 1
1.3 NKEA: Palm Oil 2
2.0 EPP 5: Build Biogas Facilities At Mills Across Malaysia
2.1 Biogas as Potential Renewable Energy (RE): Why Embark on
Biogas Capture?3
2.2 Benefits of Biogas Capture 3
2.3 How to Capture Biogas? 4
2.4 Comparison of Biogas Capture Technologies 5
2.5 Total Potential of Biogas from POME 6
2.6 Utilization of Biogas Capture 7
2.7 Technical Configurations of Biogas Utilization in Palm Oil
Mills7
2.8 Option for Utilization 7
2.8.1 Combined Heat and Power (CHP) 7
2.8.2 Steam Generation 9
2.8.3 Electricity Generation 11
2.8.4 Downstream Business Activities 13
2.8.4 Other Potential Applications 18
2.9 Incentives for Renewable Energy (RE) 21
2.10 Technology Providers for Biogas Implementation 23
2.11 List of Sustainable Palm Oil Mills 25
3.0 Clean Development Mechanisms (CDM) 27
3.1 Benefits of CDM projects 27
3.2 Estimated CER from Biogas CDM Project 28
3.3 National project CDM criteria 28
3.4 List of CDM Consultants in Malaysia 30
Disclaimer:Information contained herein is given in good faith to assist the oil palm industry in considering and evaluatingbiogas projects. Readers are advised to check to confirm facts, figures and other information contained herein
and seek independent professional advice. We welcome any feedback to constantly improve this booklet.
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1.0 INTRODUCTION
1.1 PurposeThe purpose of this document is:
To encourage palm oil mills in Malaysia to implement biogas trapping and
utilisation; and
To inform palm oil millers on the benefits of biogas trapping and provide the
relevant information to facilitate planning and implementation.
The importance of biogas trapping is evident from its inclusion as one of the eight Entry
Point Projects (EPPs) of the palm oil National Key Economic Area (NKEA).
1.2 National Key Economic Areas (NKEA)Malaysia is to focus on 12 NKEAs to boost the economy and achieve a high income
status by 2020. These 12 NKEAs are the core of the Economic Transformation
Programme (ETP) and will receive prioritised government support including funding,
top talent and Prime Ministerial attention. In addition, policy reforms such as the
removal of barriers to competition and market liberalisation will be carried out if
required. There will be dedicated attention from the Prime Minister and fast-track
mechanisms to resolve disputes or bottlenecks in implementing the NKEAs.
1.3 NKEA: Palm Oil
National Key Economic Area
(NKEA)
Economic SectorsOil, gas and energy
Palm oil
Financial services
Wholesale and retail
Tourism
Information and communication
technology
Education
Electrical and electronics
Business services
Private healthcare
Agriculture
Greater Kuala Lumpur
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1.3 NKEA: Palm Oil
Malaysias palm oil industry is one of the largest contributors to the national economy.
In 2009, it accounted for RM53 billion in Gross National Income (GNI). This GNI istargeted to increase by RM125 billion to reach RM178 billion by 2020. As a major
contributor to economic growth, the Palm Oil NKEA programme plans to implement
eight core Entry Point Projects (EPPs) spanning the palm oil value chain. The palm oil
EPPs are as follows;
Palm Oil NKEA Programme
Upstream
productivity
and
sustainability
EPP 1 Accelerated replanting to clear backlog of old,
low yielding palms
EPP 2 Increase the national fresh fruit bunch (FFB)
yield
EPP 3 Improve workers productivity through the
introduction of innovative techniques in
harvesting
EPP 4 Increase national average oil extraction rate
(OER)
EPP 5 Build biogas facilities at mills across
Malaysia
Downstream
expansion
and
sustainability
EPP 6 Shift Malaysias focus towards high value oleo
derivatives
EPP 7 Emphasise early commercialisation of second
generation biofuels
EPP 8 Expedite growth in food & health-based
downstream segment
EPPs No. 5aims to achieve the installation of biogas facilities in all palm oil mills in Malaysia by
2020.
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2.0 EPP 5: BUILD BIOGAS FACILITIES
AT MILLS ACROSS MALAYSIA
2.1 Biogas as Potential Renewable Energy (RE): Why embark
on biogas capture?
It is important for the palm oil industry to capture biogas from palm oil mill effluent
(POME). The reasons and benefits of biogas capture are many. These include additional
revenues from sale of surplus energy and carbon credits. Furthermore, reducing the
carbon footprint through biogas capture enables competitive market access of palmproducts particularly palm biodiesel to environmentally-sensitive markets such as the
European Union and the United States.
2.1.1 Objectives of Biogas Capture
To reduce greenhouse gases (GHG) emissions to the atmosphere from POME
To convert POME to renewable energy (biogas) for in-house or peripheral use
(e.g. for gas engine, boiler, etc)
To produce electricity for grid connection
2.1.2 Benefits of Biogas Capture
Reduces GHG emissions i.e methane and CO2 which cause global warming
Reduces land use for POME treatment
Generates additional revenue in the palm oil milling process
Eligible for Clean Development Mechanism (CDM) application
The CDM project transforms GHG emission reduction into cash through sale of
carbon credits
Reduces global and local environmental pollution impacts
Reduces dependence on fossil fuel, and enhances fuel diversity and security of
energy supply
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2.3 How to Capture Biogas?
The capturing of biogas from POME has attracted keen interest in the palm oil industry.
This is because of the vast potential of biogas as a clean renewable fuel as well as for the
mitigation of GHG emissions. Biogas projects are eligible for the Clean Development
Mechanism (CDM) scheme under the Kyoto Protocol, United Nation Framework
Convention on Climate Change. Registered projects will qualify for certified emission
reductions (CER) or carbon credits.
Capturing of biogas from POME can be carried out using a number of various local or
foreign technologies. The closed-tank anaerobic digester system with continuous
stirred-tank reactor (CSTR), the methane fermentation system employing specialmicroorganisms and the reversible flow anaerobic baffled reactor (RABR) system are
among the technologies offered by the technology providers.
Ponding system for palm oil mill effluent (POME) treatment and covered lagoon technology
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2.4 Comparison of Biogas Capture Technologies
Several systems to generate biogas from POME have been developed using both local
and foreign technology. The technologies are summarised as follows:
Name of
technology
provider
System Life term
(years)
HRT
(days)
Effluent from the
digester tank
Volume of
biogas
generated
BOD
(mg/L)
COD
(mg/L)
Keck Seng Continuous
stirred tank
reactor (CSTR)
20 18 250-500 8000-12,000 ~0.35
Nm3/kg of
COD
Majurutera Complete
stirred tank
reactor (CSTR)
10 - - - 20 m3/tonne
of POME
Biogas
Environment
Engineering (BEE)
High efficiency
methane
fermentation
system
20-25 9 50-270 1400-2500 >26-30 m3/
tonne of
POME
SIRIM (pilot scale) Reversible flow
anaerobic
baffled reactor
(RABR)
20 10-15 - 6000 0.23 Nm3/kg
of COD
UPM-FELDA-
Kyushu Institute
of Technology
Semi-
commercial
closed
anaerobic
digester
25 10 - 2000 20 m3/tonne
of POME
Ronser Bio-Tech
and Shanghai-
Jiaotong
University zero-
discharge
treatment
technology
AnaEG
(Combination
of UASB and
EGSB
technologies)
20 9 800-
1000
2000-2800 > 0.5 Nm3/kg
of COD
Biotec Asia
International Sdn
Bhd
Covered lagoon
biodigester
- 22 - - 23 m3/tonne
of POME
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2.5 Total Potential of Biogas from POME
The estimated potential energy generated from biogas in Malaysia is 1.88 million MWhrof electricity which is equivalent to 261 MW of the potential power based on 21%
efficiency in a steam plant (based on yield of FFB in 2009).
Material Production Rate Quantity
FFB (mil. tonnes) 85.71
Effluent 67% of EFB 57.42 million tonne
= 57.42 million m3
Biogas 28 m3m-3 1607.76 million m3
Biogas CV at 35C
Total heat value
20 MJ m-3
1607.76 x 20 million MJ
= 32155.2 million MJ
32155.2 million MJ
8.93 million MWhr
*1MWhr = 1 MJ/3600
Power Output 21% of heat output 8.93 million MWhr x21%
= 1.88 million MWhr
Power plant size Plant operates 300 days year-1
= 7200 hr year-1
1 880 000 / 7200
= 261.11 MW
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2.6 Utilization of Biogas
Biogas can be used for various applications in place of natural gas. Since most boilers do
not require high quality gas specifications, the use of biogas in boilers is mostencouraged and has been increasing rapidly. Stationary engines of pumps, generators
and power tools are also a popular option for the utilization biogas. In vehicle fuel,
upgrading of the biogas quality is necessary. Upgrading the biogas includes the
reduction of H2S and CO2. Connecting the electricity generated to the national electricity
grid is another profitable way of utilizing the biogas, which is in tune with the target set
in the Malaysian Fifth Fuel Policy of achieving 5% of national grid-connected electricity
generation from renewable sources.
2.7 Technical Configurations of Biogas Utilization in Palm OilMills
There are various ways of utilizing POME biogas in palm oil mills. With the proper
technical configuration and system, biogas generated from the POME can be converted
into useful energy either for heat, electricity or both. The setting up of biogas plants in
palm oil mills would be useful to mills that require additional power for other plants in
the palm oil mill such as the EFB fibre plant or kernel crushing plant, as well as for grid-
connection under the Small Renewable Energy Power (SREP) Programme.
The biogas can be also upgraded and stored as a natural gas for utilization in vehicles
used in the palm oil mills. Options of biogas utilization in palm oil mills are briefly
described in the following section.
2.8 Options for Utilization
2.8.1 For Combined Heat and Power (CHP) for production of steam
and electricity (direct thermal and electricity generation)
Palm biogas can be co-fired with oil palm biomass in the existing palm oil mill boiler.
Steam produced from this co-firing process is used to generate electricity using the
steam turbine and low pressure steam that leaves the turbine will be used for the
milling process. The boiler will require some modifications especially the feeding part of
the biogas into the boiler chamber. The use of biogas which is an efficient fuel with high
CV will significantly reduce or eliminate the usage of palm shell. The use of mesocarp
fibre may also be reduced. The excess palm biomass, particularly palm shell may be
sold to other industries that require solid fuel for their CHP plant. An example of a CHP
plant is the plant in Ulu Kanchong Palm Oil Mill.
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ULU KANCHONG PALM OIL MILL BIOGAS PLANT FOR CO-FIRING IN
BIOMASS BOILER
Table 1: Economic Analysis of UKPOM Biogas Plant( based at 250,000 t FFB/ year)
Item Cost
Investment cost (including biogasplant and boiler adaptation)
RM 7,000,000
O& M Cost (including CDM monitoringand verification)
RM 475,000 /year
Revenues
(based on the selling of shell @RM130/t, fibre @ RM30/and CER @Euro 10/t)
RM 2,100,000 /
year
Payback Period 4.3 yearsInternal Rate of Return, IRR % (withCDM)
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The biogas plant of Ulu Kanchong Palm Oil Mill (UKPOM) is acollaboration project between the owner Gan Teng Siew Realty Sdn
Bhd (GSTR) and Biotec International Asia Sdn Bhd (807700-A)-(BIA) as a technology provider. Biotec International, the parentcompany of BIA was founded in 1984 in Belgium. The Ulu
Kanchong biogas project is BIAs first biogas plant in South East
Asia. Biotec is an established technology provider with activities inintegrated organic matter management and environmental solutions
for tropical agro-industrial effluent. The scope of business and R&D
activities include effluent treatment, biogas capture, energy use andconsultation for Clean Development Mechanism based projects.
Biotec started construction of the biogas plant for UKPOM in 2009.The plant was built using covered lagoon technology (Figure 1)
commissioned in February 2010 and started its commercial
operation since June 2010. The plant consists of three main systems,palm oil mill effluent (POME) cooling system; biodigester system
which is based on Biotec Covered Lagoon technology and biogas
utilization system. The plant was designed to cater for POME
produced from the processing of 350,000 tonnes fresh fruit bunches
(FFB) or equivalent to 280,000 tonnes of POME/year. The general
technical description of the plant is illustrated and summarized inFigure 2.
Technical Configuration and Performance of the System
Bio-digester system
A covered lagoon type of anaerobic biodigester was installed at the
mill with the objectives to reduce the investment cost and ease the
operation procedure. The lagoons are sealed at their bottom with awaterproof liner (geomembrane). The plant is also equipped with
mixing and sludge purging systems to ensure that the POME is
evenly distributed, mixed and discharged. The top geomembranecaptures and stores the biogas generated during the anaerobic
digestion of POME.
The system offers an efficient operation, a larger gas storage and
less maintenance and operation costs. The COD removal of thesystem is approximately at 90% efficiency and treated effluent of the
biogas plant is sent to the existing open lagoon system for furtherdegradation and polishing, with the final discharge registering BOD
of 40 to 80 ppm. Average biogas production from the system is 25
Nm3 (or 15 Nm3of methane) for every tonne FFB processed. Fivepercent purged sludge from the anaerobic digester can be transferred
and used as fertiliser after a sufficient retention time.
Biogas Utilization System Co firing and Flaring
Biogas produced is channelled and co-fired with palm biomass inthe boiler using three units of burners. This direct and low cost
investment of biogas utilization reduces the use of oil palm biomass
in particular palm shell. Shell displacement is about 2.9% of totalFFB processed. Additional income is made via the selling of the
palm shell and fibre.
In terms of environmental impact, the utilization of biogas hasimproved the boilers smoke opacity to less than 20% consistently as
compared to about 40%. In addition, more than 50% reduction of the
dust and particulate concentration in the flue gas emitted from theboiler is achieved. A unit of stainless steel flare was also installed in
order to combust excess biogas especially during the maintenance
period of the boiler and mill.
General Description of the UKPOM Biogas Plant
A joint venture project between GTSR & BIA
Designed capacity for 350,000 TFFB/year withmethane production of 5.25 mil Nm3/ year
Capacity of covered lagoon bio-digester : 32,000m3
Could cater flowrate of POME 1200 m3/day withmin. 27 days of hydraulic retention time
90% of methane produced is combusted in thebiomass boiler while 10% is flared
3 units of burner with capacity 1000 Nm3/hrinstalled at the boiler
Max. flow rate of biogas to boiler is 1.800
Nm3/hr
Max. flow rate of biogas to flare is 1.800 Nm3/hr
Average biogas yield : 25 Nm3/tonne FFB
Figure 3: 3 x 1000 m3/hr biogas burner and flaring unit
installed at the mill
Figure 1: Covered lagoon biodigester installed at the mill
Figure 2: Process flow diagram of biogas plant
KEY INDIC TORS FOR ULU K NCHONG
FFB
350 000 TFF/y
MILL
60 TFF/h
OIL
POME
BIOGAS
BIOLOGICAL ANAEROBIC SLUDGE
TREATED
EFLLUENT
BOILER
Existing lagoons
LAND APPLICATION
280 000 m3/y
22 400 T COD/y 266 000 m3/y
2 240 Ton
COD/y
266 000 m3/y
14 000 m3/y
5 250 000 Nm3 CH4/y
8 750 000 Nm3 biogas /y
35 000 CERs/y
0.80 m3/TFFB
80 kg COD/m3
BIODIGESTOR
21.38 m3 CH4/TFFB
0.12 CERs/TFFB
Approx. 5.0 millions
Nm3 of CH4
Approx. 5 % of
biogas production
per yearFLARE
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2.8.2 Steam generation only (thermal energy generation)
Production of steam using biogas as fuel can be carried out either by firing the biogas
(with or without other fuels) using either high or low pressure boiler. One of efficient
ways to produce heat or steam from biogas is by using a package boiler. As the package
boiler is designed to use natural gas and fuel oil, the utilization of biogas in a package
boiler is considered as a direct and simplest method to produce energy from biogas
without major modifications required. Biogas can also be co-fired with natural gas and
fuel oil and as such would reduce the consumption of these much more expensive fuels.
The existing boiler at palm oil mills may also be used to generate steam with co-firingapproach but again some modifications are required. An example of the use of biogas in
package boilers is Keck Seng (M) Sdn. Bhd.
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BIOGAS PLANT OF KECK SENGSINTEGRATED PALM OIL COMPLEX FOR
STEAM PRODUCTION & UTILIZATIONKeck Seng (Malaysia) Berhad, (KS) operates an integrated palm oil mill complex located in Masai, Johor. The complex consists of a palm
oil mill, kernel crushing plant, palm oil refinery and other plants for downstream activities (Figure 1). Due to highly energy demand mainly
from refinery processing and a vision to maximize the use of in-house renewable energy sources, KS has installed and operates a biogasplant to cater for the energy requirement of the whole complex.
An anaerobic digester system was designed, built and commissioned in 1984 for the treatment of high-strength palm oil mill effluent
(POME). The total tank capacity of the biogas plant is 10, 400 m3with 2 floating and 2 fixed roof tanks (Figure 2 and 3). The flowrate of
each plant is 500 m3/day. The biogas generated is used as fuel for boilers and chillers for the refinery. After years of successful operation,
KS licensed its unique anaerobic digester system for biogas generation and capture to Novaviro Technology Sdn Bhd, to commercialise the
system.
Technical Configuration & Economic Analysis of Biogas Utilization
Average yield of biogas generated from the system is 28 m3/tonne
POME
Biogas generated is used as fuel for boilers and vapour absorption
chillers of the refinery.
Diesel displacement of high pressure boiler (Figure 4) about 4000
l/day and MFO saving for package steam boiler (Figure 5) of 2500l/day.
Displacement of electrically powered chillers by biogasoperated
vapour absorption chillers. Significant saving in electricityconsumption from 700 kW to 23.50kW only.
Saving made from diesel and MFO.
Saving made from the displacement of electrical powered chillers
(annual consumption of 3, 850, 000Wh / year )
GHG saving
Figure 2: Floating top closed anaerobic digester at KSFigure 1: Keck Seng (M) Bhdintegrated palm oil complex
Figure 5: Mechmar boiler-steaming capacity 20 000 lb/hr at 150psiFigure 3: Design specification of anaerobic digestion of Keck Seng
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Figure 4: High pressure boiler
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2.8.3 Electricity generation
An internal combustion engine such as a gas engine or a diesel engine can be coupled to
an alternator to use biogas for electricity generation. Generating electricity using a gas
engine is proven with thermal efficiency ranging from 35 to 42%. The electricity may be
for internal uses or grid connection. The biogas can also be used in a diesel genset and
this may reduce the diesel consumption up to 70%. However, this approach requires
some engine modification including to the feeding parts, air intake device and fuel
setting. An example of power generation for internal use is the Tee Teh Palm Oil Mill,
Rompin, Pahang.
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Biogas Environmental Engineering Sdn. Bhd. (BEE) High Efficient
Methane Fermentation System for Electricity Generation
ParameterPerformance
characteristics
Raw effluent
COD (ppm)
BOD (ppm)
Discharge after digester tank
COD (ppm)
BOD (ppm)
44 000 - 83 000
14 000 - 34 000
1400 - 2500
50 - 270
Composition of biogas
Methane (%)
Carbon dioxide (%)
Hydrogen sulphide (ppm)
56 - 64
35 - 41
217 - 1418
Volume of biogas (m3m-3
POME)
26.6 30.0
Biogas Environmental Engineering Sdn. Bhd. (BEE) is a company engaged and specialized in research, engineering design,construction and management of methane renewable energy development and environmental protection. The companyscore
business is utilization of anaerobic digestion technology to process industrial organic waste water from food and beverageindustries, concentrated animal farm operations and palm oil mills.
A biogas harnessing system developed in collaboration between Biogas Environmental Engineering Sdn. Bhd. (BEE) and
Malaysian Palm Oil Board (MPOB) has been installed, and is currently in operation at Tee Teh Palm Oil Mill, Rompin,Pahang (Figure 1). The biogas harnessing system is a highly efficient methane fermentation system using the USR employingspecialty microorganisms. The biogas system consists of a cooling pond, two acidification ponds, a concrete-steel digester tankor an enameled assembly tank, a biogas floating storage tank and a discharging pond (Scheme 1). Evaluation/monitoring of the
biogas system performance over a year with sampling of 42 sets of wastewater showed that the system is technically mature,
and is highly efficient, with a COD/BOD removal rate of 90-95% and a biogas production rate of 27-30 m 3per m3 of POME(Table 1).
Biogas Utilization-Electricity Generation
The biogas captured is led through the biogas piping system fromthe top of the anaerobic digester tank to the biogas storage tank.
The gas is first run through the splitter of gas and water to
remove the condensate water, and then directed to the gas enginefor electricity generation after desulfurization. The combustion
chamber of the gas generator installed at Tee Teh Palm Oil Mill(Figure 2) showed evidence of having been in operation for >
10000 h without any damage. The gas generator is in 24 h
operation and the electricity generated is supplied to the workersquarters of the mill.
Economic Analysis
The investment cost for the installation of the biogas trapping
facility is estimated to be RM 4-6 million, depending on the
capacity of the palm oil mill. A payback period of 2-4 years can be
achieved with revenues from on-grid electricity generationamounting to 1-1.5 MW, sale of saved palm fibre and shell,
biofertilizer production, and savings from reduced diesel
consumption.
Figure 2:Condition of the combustion chamber of a gas
generator using biogas for > 10000 h
Figure 1:Biogas storage tank and high efficient methane
fermentation system
Scheme 1:Biogas system for POME
Technical Characteristics
Table 1:Performance characteristic of the biogas system
1) Life span of materials used i.e. steel concrete or enamel tank is morethan 30 years;
2) High loading factor 6~8 kg COD/m3d, thus implies:
a. Shorter HRT compared to other systems (CSTR system, CODloading factor 3~4 kg COD/m3d);
b. Smaller volume of digester tank is required to treat POME,and hence a lower construction cost.
3) COD, BOD reduction rate of 90%~95% (assessment by MPOB)4) The quality of biogas produced is good:
H2S content: 217 - 1418 ppm - Other systems has higher H2SCH4content > 60% Water content is low
5) The system, with less moving parts, is easier to operate at a stablelevel; reinforced concrete steel or enamel sheet are better erosion-resisting materials, thus very much lowers the maintenance cost.
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2.8.4 Downstream Business Activities
Electricity generated from the biogas based power plant can be utilized internally,
especially for the downstream business activities in a palm oil mill. Among the
downstream activities that could utilize the electricity from the biogas plant include
empty fruit bunch (EFB) treatment plant for the production of boiler fuel and dry long
fibre, kernel crushing plant, briquette and pellet plants. These downstream business
activities are summarized below.
a) EFB Treatment Plant for the Production of Boiler Fuel and Dry Long Fibre
EFB is the biggest underutilized solid biomass generated from the palm oil mills. Owing
to its physical characteristics and high moisture content of 65-70%, the EFB has to bepre-treated to reduce its bulkiness and moisture content, for it to be utilized either as
fuel or as a feedstock for value added products. This pretreatment requires energy.
Electricity generated from the palm biogas would be a green source of energy which can
be tapped to exploit this business opportunity.
The pretreatment system of EFB involves a series of machineries and processes
(Figure 1). Depending on the technology providers and usage, the typical, basic
pretreatment system for EFB comprises a screw press or shredder (or combination of
both) followed by hammer mill. This produces EFB fibre with moisture content andlength about 40 to 50% and 4 inches respectively which is ready to be used as boiler
fuel (Figure 2). This process requires about 150200 kWh of electricity to produce 1
tonne of EFB fibre. In some palm oil mills, EFB fibre is mixed with mesocarp fibre and
burned in the boiler. This approach will displace some of the palm shells (which has
better price) which can be sold as solid fuel to other nearby industries. EFB fibre with
these specifications can also be sold as boiler fuel for palm biomass based power plants
and for biocomposting application.
Figure 1: Process flow of the production of boiler fuel and dry long fibre from empty fruit bunch
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Raw EFB
Processed EFB Fibre
Hammer millPress cum shredder
Dryer & ScreenerBaling Machine
Bailed Dry Long
FibreBoiler Fuel
EFB Juice
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Additional equipment such as dryer and baling machine are required to produce
dry long fibre (DLF) (Figure 2). DLF is sold in the baled form and its commercial
specifications are summarized in Table 1. Most of the local produced DLF are for
overseas markets, especially for China market. DLF is mainly used as raw materials for
the production of mattress, cushion and soil erosion mat. The trading price of DFL
varies from RM500600/ tonne. Due to extensive process, the electricity requirement of
DLF is estimated at 250-300 kWh per tonne.
Table 1: Typical specification of EFB dry long fibre
Parameter Specification
Fibre length 310 (average : 4)
Moisture content (%) 15-18
Baled fibre 90100 kg / bale, size : 20 H x 20W x 33L
Figure 2: Baled dry long fibre and strand fibre of processed EFB
b) Production of Palm biomass Briquette and Pellet
Processed fibre produced from the EFB treatment plant can be further treated and used
as feedstocks to produce high quality solid fuels such as briquette and pellet. With the
excess electricity generated from the biogas plant, the EFB treatment plant could be
integrated with a briquette or pellet plant in a palm oil mill. The EFB pretreatment plant
needs to be equipped with the additional equipment such as a dryer, pulverizer and
screener in order to produce EFB fibre with moisture and size of less than 20% and 1
cm respectively (Figure 3).
Briquettes and pellets (Figure 5) are made via a densification process.
Densification is the process of compacting the biomass residue into a uniform solid fuel.
Both products have higher density and energy content as well as less moisture
compared to its raw materials. Briquetting or pelletizing of palm biomass, especially
EFB can be done using various techniques, either with or without addition of a binder.
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These processes are among ways to improve the behaviour of fuel because it increases
the homogenity and facilitate the logistics and storage of the fuel.
Depending of technology used, a briquette or pellet plant requires about 200-
300 kWh for every one tonne of briquette or pellet produced from EFB. Higher
electricity consumption is required for pretreatment of the EFB to produce the
feedstock for the briquetting and pelletizing process. A comparison of the potential
annual production of DLF and palm solid biofuel in a palm oil mill is summarized in
Table 2. Both DLF and palm solid biofuel production can be combined in a single
production line as shown in Figure 4. The mass ratio of DLF to solid fuel from this
approach is 70:30.
Figure 3: Process flow diagram for the production of palm biomass briquettes or pellets
Figure 4: Integrated production of DLF and solid fuel in a palm oil mill
In general, both briquettes and pellets are in the form of cylindrical logs. The
main differences between these products are their size and specific density. Palm
pellets and briquettes are potential alternatives to fossil fuels especially for combined
heat and power plants (CHP). Since the objective of densification is to ease the
transportation and handling of palm biomass, palm briquettes and pellets will be
suitable for export.
EFB pre-treatment
plant
Briquetting /
pelletizingRAW EFB
Palm-based
briquettes / pellet
EFB juice
Size
screening
Packaging
EFBfibreTreatedEFB
EFB pre-treatment
plant + DryerBaling
machineRAW EFB
Palm-based
briquettes / pellet
EFB juice
Size
screening
Pulverizer
Long fibre > 2TreatedEFB
Short fibre < 1
Briquette / pellet
machine
Dry Long fibre
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Besides that, because of the superior quality of these biomass fuels compared to
the raw material, they are also potential feedstocks for the production of second-
generation biofuel, especially for thermochemical based energy conversion technologies
such as pyrolysis, gasification and biomass-to-liquid (BTL) processes.
Table 2: Estimated annual production of DLF and palm biomass solid fuel in a 60 t/hr palm
oil mill
Raw material Dry Long Fibre Pellet/ Briquette Combined
Plant
Fresh fruit bunches (FFB)
processed annually (tonnes)
288,000 288,000 288,000
Annual raw EFB produced (at
23% of FFB, 65% moisture
content, MC) (tonnes)
66,240 66,240 66,240
Treated EFB (TEFB)
(tonnes)
33,120
(at 15% MC)
29,808
(at 10% MC)
33,120
Potential annual production
(tonnes)
23,184
(70% of TEFB)
26,827
(90% of TEFB)
23,184 (DLF)
6,624 (solid fuel)
Annual Sale, RM (million) 9.27
(at
RM400/tonne)
8.0
(at RM300/
tonne)
11.26
Proposed plant capacity(tonnes/hr)
5 5 5 (DLF) + 1
Electrical requirement for the
proposed plant, MW
1.25
(at 250
kWh/tonne)
1.25
(at 250
kWh/tonne)
1.25
Potential biogas from 60
tonnes /hr mill, MW
1.85 1.85 1.85
Figure 5: Oil palm biomass briquettes and pellets as solid fuels
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c) Palm Kernel Crushing Plant (KCP)
Palm kernel crushing plants are normally located at locations away from the palm oil
mills. If this can be shifted to the palm oil mill itself, then the energy from biogas may be
used to operate the kernel crushing plant. Palm kernel (Figure 6) produced from the
palm oil mill can be processed in-situ to produce crude palm kernel oil (CPKO) and palm
kernel cake (PKC). There are three types of CPKO extraction process in the country, via
mechanical extraction (screw press), direct solvent extraction, and pre-pressing
followed by solvent extraction. Mechanical extraction (Figure 7) using a screw press is
the most common approach in the country and can be integrated into palm oil mills.
The typical KCP consists of the kernel reception, kernel storage, press station,
CPKO station and PKC storage. The process of CPKO extraction requires about 90100
kWh of electricity/tonne palm kernel. Electricity consumption is a main contributor to
the operation cost of a commercial KCP. Therefore, setting up the KCP in the palm oil
mill utilizing the electricity from the biogas plant will save a lot on its operational cost.
On average, the kernel is 6% of the FFB processed. For a 60 t/hr palm oil mill, 3.6
tonnes of palm kernel is produced hourly. Based on 24 hours of processing time, a 100
t/day capacity KCP can be installed in the palm oil mill to process their internal palm
kernels from the mill.
Figure 6: Palm kernel Figure 7: Mechanical pressing at kernel
crushing plant
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2.8.5 Other potential applications
Biogas generated from POME can also be upgraded and used for other potential
applications especially for external usages include the following:
Use as a compressed natural gas (CNG) which can be an alternative for natural
gas vehicles (NGV). This CNG can be used as alternative fuel for vehicles used in
palm oil mills such as forklift, lorry etc
Feeding into natural gas (NG) pipeline or bottling and transporting for industrial
use For other operational units that require energy such as vapour absorption
chiller, hot water and hot air production; biodiesel plant, EFB fibre plant and
kernel crushing plant
For future 2nd generation biofuel projects such as production of hydrogen,
biomethane etc
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Economic Analysis of Biogas Utilization (based on 60 t/hr palm oil mill)
Type of biogas utilization : Co firing Technology
Digester Tank Covered Lagoon
Investment cost + Burner (CAPEX), RM
(million)
8.0 7.0
Shell displacement, tonne / yr (at 80%
of total shell produced)
13,824
@ RM150/tonne of shell, RM
(million/yr)
2.07
OPEX @ 2% of CAPEX RM (million/yr) 0.2 0.14
Net profit, RM (million/yr) 1.87 1.93
Payback period, yrs 4.3 3.6
IRR % 23.34 27.57
Type of biogas utilization : on-grid electricity
Potential power output, MW 1.8 1.8
Annual potential electricity, kWh/ yr
(70% utilization rate for 7200 hrs/ yr)
9,072,000
Annual potential of electricity sales, RM
(million /year)
2.90 (@ RM0.32/kWh)
3.16 (@ RM0.35/kWh)
Total investment, CAPEX : (at RM10
million/ MW for digester tank, RM8
million/ MW for covered lagoon)
18.0 14.4
OPEX @ 4% of CAPEX, RM (million /
year)
0.72 0.58
Annual profit, RM (million/ year) 2.18 (@ RM0.32/kWh)
2.44 (@ RM0.35/kWh)
2.32 (@
RM0.32/kWh)
2.58 (@
RM0.35/kWh)
Payback period, years 8.3 (@ RM0.32/kWh)7.4 (@ RM0.35/kWh)
6.2 (@RM0.32/kWh)
5.6(@ RM0.35/kWh)
IRR, % 12.1 (@ RM0.32/kWh)
13.6 (@ RM0.35/kWh)
16.1 (@
RM0.32/kWh)
18.0 (@
RM0.35/kWh)
*The investment cost or payback period of the project will be reduced if any tax exemption or
rebate incentive is applied in the project cost or annual business revenue and expenditure.
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Flow Chart for Applying Connection to Utilitys Distribution System
21
20
RE Developer to providecommitment fee* for Utility
System Study
RE Developer negotiates and
signs REPA with utility
RE Developer commits to design and
construct the interconnection Facilities
& System Reinforcement (if any) in
accordance to Utility System Study
Commitment fee refundable to REDeveloper upon off-take of power
RM 15,000 for capacity < 3 MW
RM 25,000 for capacity from 3 10 MW
Developer & Utility to submit monthly
report on progress of negotiation to SREP
Centre
RE Developer to present finalized
plant design & approval from
Utility for Interconnection Facilitiesdesign
RE Developer to remit payments
to Utility for all necessary SystemReinforcement Work
RE Developer to start construction
of proposed plant and
Interconnection Facilities
RE Developer/utility to perform
necessary work to reinforce
system
RE Developer to submit protection
coordination studies/setting,
testing & commissioning schedule
Final verification of design,
testing and commissioning,
O & M procedure
Connection to distribution Grid
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2.9 Incentives for Renewable Energy (RE)Commercial and industrial business entities which are involved in the energy business
using renewable energy (RE) resources for generation of electric power eligible to apply
for fiscal incentives.
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2.9.1 The Green Technology Financing Scheme (GTFS) he Green
Technology Fin
In the budget speech for 2010, the Prime Minister of Malaysia announced the
establishment of Green Technology Financing Scheme (GTFS) amounting to RM1.5
billion as an effort to improve the supply and utilization of Green Technology. The
scheme could benefit companies who are producers and users of green technology. As a
sign of commitment, the Government will bear 2% of the total interest/profit rate. In
addition, the Government will provide a guarantee of 60% on the financing amount via
Credit Guarantee Corporation Malaysia Berhad (CGC), with the remaining 40%
financing risk to be borne by participating financial institutions (PFIs). The Prime
Minister also appointed GreenTech Malaysia as the conduit for the GTFS application.
The GTFS exists to help incorporating green technology elements in specific
project related to the identified sectors.These projects must be located within Malaysia,
utilising local and/or imported technology. Private companies that could benefit from
this financing scheme are produceror userof green technology products or systems.
GTFS for produceror usercategory shall be as follows:
Features Producer of Green Technology User of Green Technology
Financing sizeMaximum: RM50 million per
company
Maximum: RM10 million per
company
Financing tenure Up to 15 years Up to 10 years
Eligibility criteria
Legally registered Malaysian -
owned companies (at least 51%)
in all economic sectors
Legally registered Malaysian -
owned companies (at least 70%) in
all economic sectors
Participating
financial
institutions (PFIs)
All commercial and Islamic banks.
GFIs: Bank Pembangunan, SME bank, Agrobank, Bank Rakyat, EXIM
bank and Bank Simpanan Nasional
(Listing of commercial banks and Islamic banks from Bank Negara
Malaysia website.)
This scheme is only applicable for new project and retrofitting or expansion thatincorporates Green Technology elements which have not been funded and partly
funded. The GTFS is not for projects that already started or completed.
Source:http://www.gtfs.my/
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2.10 Technology Providers for Biogas Implementation
Company Address Contact
Biogas Environmental
Engineering Sdn. Bhd.
28-3, Jalan 1/116B
Sri Desa Entrepreneurs Park Odd
Kuchai Lama, 58200 Kuala
Lumpur
Tel : +603-7984 2422
Fax : +603-7984 2896
Ronser Bio-Tech Sdn. Bhd. C708, Metropolitan Square,
Jalan PJU 8/1, Bandar Damansara
Perdana, 47820 Petaling Jaya,
Selangor
Tel : +603-7728 8999
Fax : +603-7725 3300
Sirim Bhd.
(Environment and
Bioprocess Technology
Centre)
1, Persiaran Dato Menteri
Section 2, P.O. Box 7035
40911 Shah Alam, Selangor
Tel : +603-5544
6552/6556
Fax : +603-5544 6590
Custom-Craft Sdn. Bhd. No.5, Jln Kipas 34/9 Bukit
Kemuning,
Light Ind. Park, Seksyen 34,
Shah Alam, 40000 Selangor
Tel : +603-5880 7611
Fax : +603-5880 7616
Varec Biogas 29-A, Jalan Kenari 1/7E,
Bandar Puchong Jaya, Puchong,
47100 Selangor
Tel : +603-8076 5778
Fax : +603-8076 5773
Q2 Engineering Sdn. Bhd. Unit 8-01, Block E, Phileo
Damansara 1,No. 9, Jalan 16/11, Off Jalan
Damansara,
46350, Petaling Jaya, Selangor
Tel : +603-7665 3788
Fax : +603-7665 3799
CST Engineering Sdn. Bhd. 8 Jalan Pendidik U/31,
Hicom Glenmarie Industrial Park,
40000 Shah Alam, Selangor
Tel : +603-5569 5514
Fax : +603-5569 5529
Kim Loong Resources
Berhad
Unit No. 203, 2nd Floor, Block C,
Damansara Intan,
No. 1, Jalan SS 20/27,
47400 Petaling Jaya, Selangor
Tel : +603-7118 2688
Fax : +603-7118 2693
BELL Group of Companies No. 125, Jalan SS15/5A,47500 Subang Jaya, Selangor
Tel : +603-5634 3888Fax : +603-5634 0723
Biodome Asia Sdn. Bhd. No. 123, Jalan SS 15/5A,
47500 Subang Jaya, Selangor
Tel : +603-5880 6704
Choon Hin Environmental
Sdn. Bhd.
No. 6-10, Jalan Jati,
86000 Kluang, Johor
Tel :+6012-602999
Fax : +607-773 7626
Global Strategic Sdn. Bhd No. 5-2 Second Floor,
Jalan 3/76D, Desa Pandan,
55100 Pandan, Selangor
Tel : +603-92842030
Fax : +603-92852030
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Green & Smart Sdn. Bhd. No. 40-2, Jalan Tun Sambanthan 3,
Brickfields,
50470 Kuala Lumpur
Tel : +603- 2260 1477
Fax : +603-2260 1478
Konzen Clean Energy Sdn
Bhd
Unit D2-5-1, Block D2 Dana 1
Commercial Centre, Jalan PJU 1A/46,47301, Petaling Jaya, Selangor Darul
Ehsan
Tel : +603 - 7845 8987
Fax : +603 - 7845 8387
Majurutera Engineering &
Management Sdn Bhd
C1-11 1st Floor Dataran Ara
Damansara, Jalan PJU 1A/20B,
47301, Petaling Jaya, Selangor
Tel : +603-7846 8509
Fax : +603-7842 2376
Weidasar Engineering (M)
Sdn Bhd
Lot 3.05, Level 3,1, First Avenue,
Bandar Utama, 4780 Petaling Jaya,
Selangor Darul Ehsan
Tel: +603-7950 9688
Fax: +603-7842 2376
Anaerobic Digester Biogas
Technology Sdn Bhd
No. 123 Jalan SS15/5A, 47500
Subang Jaya, Selangor Darul Ehsan,
Malaysia
Tel: +603-5634 8832
Fax: +603-56373679
Biopower Climate Care Sdn.
Bhd.
Level 41, Vista Tower, The
Intermark
182 Jalan Tun Razak
50400 Kuala Lumpur
Tel:+6 03-2690 1506
Fax:+603-2690 1301
Airofluid Sdn. Bhd. 9, Jalan Sg. Besi Indah 5/2,
Taman Sg. Besi Indah,
43300 Seri Kembangan, Selangor
Tel: +603 8942 6688
Fax: +603 8942 119
Green Energy Resources
Sdn. Bhd.
3, Sri Wangi 1/5 Taman Sri
Perindustrian,
15, Lintang Beringin,
11960 Pulau Pinang
Tel: +607-335 4399
IPalm (Malaysia) Sdn. Bhd. No. 36, Jalan 12/152,Taman Perindustrian OUG,
Batu 6, Jalan Puchong,
58200 Kuala Lumpur
Tel: +603-7785 5811Fax: +603-7784 4822
Kubota Corporation
Sime Kubota Sdn. Bhd.
1, Jalan Puchong, Taman
Perindustrian
Puchong Utama,
47100 Puchong, Selangor
Tel: +603-8068 8558
Fax: +603-8068 8555
Tenaga Tiub Sdn. Bhd. B-8-8, Block B, 8thFloor, Unit 8,
Megan Avenue II,
12 Jalan Yap Kwan Seng,
50450 Kuala Lumpur
Tel: +603-2711 0888
Fax: +603-2711 3688
Sime Darby Plantation Sdn
Bhd.
14th Floor, Wisma Consplant I,
No. 2, Jalan SS 16/4,
47500 Subang Jaya, Selangor
Tel : +603-5631 7133
Fax : +603-5636 7588
Biotech International Asia
Sdn. Bhd
SVP-5, Jalan Cinta Kasih,
Country Heights,
43000 Kajang, Selangor
Tel : +603-8737 3700
Fax : +603-8737 3720
Oiltek Novaviro Bioenergy
Sdn Bhd
Lot 6, Jalan Pasaran 23/5
Kawasan Miel Phase 10
40300 Shal Alam
Selangor D.E., Malaysia
H/P: (+60) 12-2911
022 (Dr. Tong Soo
Long)
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2.11 List of Sustainable Palm Oil Mills with Biogas Capturing Facilities
Palm Oil Mill Address Contact
1.
Masai Palm Oil Mill Kong Kong Road, P.O.Box 1,
81757 Masai, Johor
Tel : 07-2551111
Fax: 07-2555117
2. Kim Loong Palm
Oils Mills
Peti Surat 21, 81900 Kota Tinggi,
Johor
Tel : 07-8822388
Fax: 07-8822788
3. Kilang Sawit Maokil Peti Surat 14, 85300 Labis, Johor Tel: 07-9191840
4. Kilang Sawit Serting FELDA Palm Industries SB, 72120
Bandar Baru Jempol, Negeri
Sembilan
Tel : 06-4582734
Fax: 06-4581909
5. Kilang Sawit Serting
Hilir
Peti Surat 3, 72120 Bandar Baru
Jempol, Negeri Sembilan
Tel : 06-4683132
Fax: 06-4684424
6.
Foong LeeSawiminyak Sdn
Bhd
179, Main Road, 31100 SungaiSiput (U), Perak
Tel : 05-5982033Fax: 05-5981862
7. Kilang Kelapa Sawit
Jenderata
Jenderata Estate, Div. III, 36009
Teluk Intan, Perak
Tel : 05-6366261
Fax: 05-6366280
8. United
InternationalEnterprises (M) Sdn
Bhd
Locked Mail Bag No. 1, 34900
Pantai Remis, Perak
Tel : 05-8501500
Fax: 05-8501507
9. Rinwood Pelita
(Mukah) PlantationSdn Bhd
18A, Jalan Lanang, 96000 Sibu,
Sarawak
Tel : 084-875922
Fax: 084-334604
10. Desa Kim Loong
Palm Oil Sdn Bhd
P.O.Box 156, 89007 Keningau,
Sabah
Tel : 019-8825158
Fax: 087-336848
11. Apas Balung Palm
Oil Mill
Jalan Kelapa Sawit off Km 4, Jalan
Tuaran, 88300 Kota Kinabalu,
Sabah
Tel : 089-922314
Fax: 089-951043
12. Arah Kawasan Sdn
Bhd
Lot 713, Mukim Sungai Batu,
Bandar Baharu, Kedah
Tel : 019-4157711
Fax: 04-5887137
13. Setia Kawan Kilang
Kelapa Sawit Sdn
Bhd
98A, Jalan Batu Putih, Mukim
Padang Cina, 09700 Kulim, Kedah
Tel : 04-4037315
Fax: 04-4036120
14. Sungai Kerang
Development Sdn
Bhd
Locked Mail Bag 23, 32000
Sitiawan, Perak
Tel : 05-3765541
Fax: 05-3765540
15. Syarikat Cahaya
Muda Perak (Oil
Mill) Sdn Bhd
Batu 3, Jalan Bidor,
P.O.Box 12, 35007 Tapah, Perak
Tel : 05-4011123
Fax: 05-4013608
16. Kilang Kelapa Sawit
Saremas 1
P.O.Box 730, 97008 Bintulu,
Sarawak
Tel : 085-739014
Fax: 085-740733
17. Kilang Kelapa Sawit
Sapi
Locked Bag 34, 90009 Sandakan,
Sabah
Tel : 089-670225
Fax: 089-67026018. Ladang Ulu Basir 35600 Ulu Bernam, Perak Tel : 05-4213151
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Fax: 05-4216552
19. Kilang Sawit PPNJKahang
Peti Surat No. 26, 86700 Kahang,Kluang, Johor
Tel : 07-7778202Fax: 07-7778200
20. Tian Siang Oil Mill
(Perak) Sdn Bhd
Lot 2161 & 2162,
Jalan Taiping/BeruasMukim Sg. Tinggi, Larut Matang,
34800, Trong, Perak
Tel : 05-8411512
Fax: 05-8411513
21. TSH Lahad Datu
Palm Oil Mill
TB 9, Km 7, Jalan Apas, TSH
Industrial Estate, 91000 Tawau,
Sabah
Tel : 089-843110
Fax: 089-843111
22. TSH Sabahan PalmOil Mill
Bangunan TSH, TB 9, Km 7, JalanApas, TSH Industrial Estate,
91000 Tawau, Sabah
Tel : 019-8331292Fax: 089-843121
23. FPISB Kilang Sawit
Jengka 8
26400 Bandar Jengka, Pahang Tel : 09-4662559
Fax: 09-466298724. Tee Teh Palm Oil
Mill
P.O.Box 71, 85007 Segamat, Johor Tel: 07-9370828
Fax: 07-9325243
25. Rompin Palm Oil
Mill Sdn Bhd
P.O.Box 58, 26700 Muadzam
Shah, Pahang
Tel : 09-4530272
Fax: 09-4526266
26. Ulu Kanchong Palm
Oil Mill
Ulu Kanchong Estate, 71209
Rantau, Negeri Sembilan
Tel : 06-6941233
Fax: 06-6942108
27. Rex Palm Oil Mill No. 38, Teck Guan Regency, Jalan
St. Patrick Off Jalan Belunu,91007 Tawau, Sabah
Tel : 089-772277
Fax: 089-769955
28. KKS Sungai Burong P.O.Box 33, 91007 Tawau, Sabah Tel : 089-919832
29. Sungei Kahang Palm
Oil Sdn Bhd
P.O.Box No. 10, 98700, Kahang,
Johor
Tel : 07-7881512
Fax: 07-7881650
30. RH Plantation Palm
Oil Mill
P.O.Box 454, 96007 Sibu,
Sarawak
Tel : 084-216155
Fax: 084-215217
31. Johore Labis Palm
Oil Mill
Lot 677, Jalan Kilang, 85400
Chaah, Johor
Tel : 07-9261204
Fax: 07-9263048
32. Bell Palm Industries
Sdn Bhd
P.O.Box 64, 83000 Batu Pahat,
Johor
Tel : 07-4186300
017-7995388
33. Kilang Kelapa Sawit
Bell Sri Lingga
125, Jalan Ss 15/5A, Subang Jaya,
47500 Selangor
Tel : 06-3876117
34. Wujud Wawasan
Sdn Bhd
1101, Block C, Kelana Business
Centre, No. 97, Jalan SS 2/7,
47301 Kelana Jaya, Selangor
Tel : 09-4530206
Fax: 09-4530397
35. Kilang Sawit
Kemahang
Peti Surat 35, 17507 Tanah
Merah, Kelantan
Tel : 09-9771734
Fax: 09-9774001
36. Kilang Sawit Umas Peti Surat 60996, 91019 Tawau,
Sabah
Tel: 019-8929610
Fax: 019-8831708
* 36 out of 57 mills with completed biogas plant have responded so far.
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3.0 CLEAN DEVELOPMENT MECHANISM (CDM)
The Clean Development Mechanism (CDM) is a scheme under the Kyoto Protocol,
United Nations Framework Convention on Climate Change (UNFCCC) which helps
developing countries achieve sustainable development through the sale of certified
emission reductions (CER), or carbon credits, to developed and industrialized countries.
The CDM scheme was introduced by Kyoto Protocol;
To stream fund and technology to developing countries so they can meet
sustainable development targets,
To encourage the developed country to invest in carbon emission reduction
projects that meet the Protocols target
3.1 Benefits of CDM project in Malaysia
For Malaysia, the CDM is facilitated by Conservation and Environmental Management
Division (CEMD) of the Ministry of Natural Resources and Environment (NRE) as
Designated National Authority (DNA). MalaysiasDNA and CEMD serve as a secretariat
for evaluation of CDM projects via the establishment of a National Committee on CDM
(NCCDM) and two Technical Committees i.e The Technical Committee on Energy and
The Technical Committee on Forestry. The CDM project activities bring the following
benefits;
Helps developed countries meet their emission reduction targets under the
Kyoto Protocol
Helps the palm oil industry meet increasingly stringent sustainability
requirements.
The CDM project transforms reduction of emission of CO2and methane into
cash flow
The CDM approval mechanisms are able to create new commodity in the
form of CERs
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3.2 Estimated CER from Biogas CDM Projects
Reduction of 1 tonne of CO2equivalent generates 1 tonne CER.
Estimated CERs generated for a 60 t/hr mill = 30,000 40,000 tonnes CO2 eq
Estimated revenue generated for each mill = RM1.5 million per year
(based on 10/tCO2e) (for 21 years)
Mills are advised to consult an established and reliable CDM consultant to assist in CDM
applications.
3.3 National project CDM criteria
Criterion 1 Project must support the sustainable development policies of
Malaysia and bring direct benefits towards achieving sustainable
development
Criterion 2 Project implementation must involve participation of Annex I
party/Parties as CER buyer. In addition they are encouraged to
participate as equity or technology provider
Criterion 3 Project must provide technology transfer benefits and/or
improvement of technology, including enhancement of local
technology
Criterion 4 Project must fulfil all conditions underlined by the CDM Executive
Board as follow;-
i. Voluntary participant
ii. Real, measurable and long-term benefits related to
mitigation of climate change; and
iii. Reductions in emissions that are additional to any that
would occur in the absence of the certified project activity
Criterion 5 Project proponent should justify the ability to implement the
proposed CDM project activity
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CDM PROJECT CYCLE
Develop a project activity
Approval by the Host and
Investing Party
Validation and
registration of the CDM
project activity
Monitoring of the CDMproject
Verification, certification
and issuance of CERs
Distribution of CERS
CDM project participants (PPs) develop a CDM project activity.
Consider various conditions associated with developing a CDM project
activity from the project planning stage.
Draft a Pro ect Desi n Document CDM-PDD with all re uired elements.
Project participants obtain written approval of voluntary participation from
the Designated National Authority (DNA) of each Party involved regardingthe project activity that project participants wish to implement as a CDM
project activity.
Validation is the process of independent evaluation of a project activity
carried out by designated operational entity (DOE).
Registration is the formal acceptance of a validated project as CDM project
activity. Registration process is done by the CDM executive board (EB).
PPs collect and archive all relevant data necessary for calculating GHG
emission reductions by the CDM project activity, in accordance with themonitoring plan written in PDD.
Project participant report to the DOE the results of monitoring of the CDMproject activity and calculated emission reductions based on the results of
monitoring activity.
DOE verifies the results of monitoring and the resulting emission
reductions.
DOE certifies the emission reductions based on the results of verification
The EB issues CERs equal to the verified amount of GHG emissionreductions.
CERs can be issued for emission reductions by a project activity. The
issues of CERs in accordance to with the distribution agreement.
2% of the CERs will be deducted as the share of proceeds to assist developingcountry Parties that are particularly vulnerable to the adverse effects of
climate change.
CERs will be distributed among PPs.
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3.4 List of CDM Consultants in Malaysia
CDM Consultant Company Contact
1 Ilango S. Bharathi. YTL SV Carbon Sdn Bhd
Level 4 Annex BlockLot 10 Shopping Centre
50, Jalan Sultan Ismail
50250 Kuala Lumpur
Tel : 03-21447200
Fax: 03-21447573H/P: 017-2026456
2 Dr. B.G. Yeoh EcoSecurities Malaysia Sdn Bhd
Mid Valley City
No. 1, Medan Syed Putra Utara
59200 Kuala Lumpur
Tel : 03-22820612/32
Fax: 03-22820652
H/P:012-3112289
3 Bhavna Khandhar Perenia Carbon
Unit 509 Block BPhileo Damansara II
Jalan Section 16
46350 Petaling Jaya
Selangor
Tel : 03-79505521
Fax: 03-79552110H/P: 0122039240
bhavna.khandhar@pereniacarbon
.com
4 Mr. Arthur Wayne
House @Ibrahim
Everest Agriculture & Farming
Sdn Bhd
Suite 1.07, 1stFloor, Wisma
AMGM, #57, Jalan Hang Lekiu,
50100 Kuala Lumpur
Tel : 03-42706312
H/P: 017-3102363
5 Mr. Soon Hun Yang Eco-Ideal Consulting Sdn Bhd
Suite C-7-2, Wisma Gosen,Plaza Pantai 5 Jalan 4/83A
Off Jln Pantai Baru
59200 Kuala Lumpur, Malaysia
Tel : 603-78768102 / 22848102
Fax: 603-22848103H/P: 019-8188102
6 Ms. Rose Ariffin Environmental Resources
Management
Unit 19-06-01, 6th FloorPNB Damansara,
19 Lorong Dungun Damansara
Heights50490 Kuala Lumpur
Tel: 019 - 330 9192
7 Dai Yong Sunshine Kaidi New EnergyKaidi Mansion, T1 Jiangxia
Avenue, Wuhan, 430223, Hubei,
China
Tel : +8627-87992685H/P: +8613554130425
8 Mr. Henrik Rytter
Jensen
Danish Energy Management
36th Floor, Menara Maxis
Kuala Lumpur City Centre
50088 Kuala Lumpur
Tel : 603 - 2615 0014
H/P: 012 - 302 3914
9 Ms. Sheila Sharma ENVIRON Consulting Services
(M) Sdn. Bhd.
A307, Phileo Damansara 2
15, Jalan 16/11
46350 Petaling Jaya
Tel : 603 - 76652986
H/P: 012 - 206 8654
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10 Mr. Kim Kean Hong KYOTO Energy Sdn Bhd
(Malaysia Representative Office)
Unit SVP4, Jalan Cinta Kasih
Country Heights,
43000 Kajang, Selangor
Tel : 603 - 8739 0240
Fax: 603 - 8739 0235
H/P: 6012 - 499 1896
11 Ms. Tee Hui Yong
Senior Consultant
GHD Perunding Sdn Bhd
22ndFloor The Mall Putra Place
100 Jln. Putra
50350 Kuala Lumpur
Tel: 603-2332 3886
Fax: 603-2332 3990
12 Mr. Leong Kwok
Yan
Leong Partnership Advocates &
Solicitors
Suite 501, Block E
Phileo Damansara 19, Jalan 16/11
46350 Petaling Jaya, Selangor
Tel: 03-79554030
Fax: 03-79559681
13 Ms. Michelle Chan Mercuria Welstar Enterprise
Co. Ltd88 Soi Bangna-Trad 30
Bangna-Trade Road
Bangna, Bangkok, Thailand
Tel : 00662-770-3993
668-5642-39936012-3161900
Fax: 00662-398-9339
14 Mr. Mohamad
Irwan Aman
Mitsubishi UFJ Morgan Stanley
Securities,
P.O. Box 92,
Pejabat Pos Bandar Baru Bangi,
43650 Bandar Baru Bangi,
Selangor
Tel: 03-88731235
Fax: 03-88903911
H/P: 019-2577189
irwan-aman@cefc-
consulting.com.my
15 Gerald Hamaliuk GenPower Carbon Solution
Services
(Malaysia) Sdn. Bhd.Level 22, Unit A-22-13,
Menara UOA, Bangsar, No.5, Jalan
Bangsar Utama 1
Tel: 603-22826841
H/P: 60172472917
16 Rober C Y Cheong TUV NORD (Malaysia) Sdn. Bhd.
No.20 Jalan Tiara 3, Tiara Square
Taman Perindustrian UEP
47600 Subang JayaSelangor, Malaysia
Tel : 603-8023 2124
Fax: 603-80234410
H/P: 6012-5010066
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For more information
www.mpob.gov.my
General Enquiry
Director-General
Malaysian Palm Oil Board (MPOB)
Tel: +603-87694400
Fax: +603-89259446
Technical Enquiry
Engineering and Processing Division
Malaysian Palm Oil Board (MPOB)
Dr. Lim Weng Soon
Dr. Loh Soh Kheang
Nasrin Abu Bakar
Mohamad Azri Sukiran
Muzzammil Ngatiman
Nurul Adela Bukhari
Tel: +603-89259592
Fax: +603-89252971
http://www.mpob.gov.my/http://www.mpob.gov.my/http://www.mpob.gov.my/