NATIONAL KEY ECONOMIC AREAS (NKEA)

NATIONAL BIOGAS IMPLEMENTATION (EPP5)

BIOGAS CAPTURE AND CDM PROJECT IMPLEMENTATION FOR PALM OIL MILLS

Updated: 9 October 2014

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 3

Biogas Capture?

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 7

Mills

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

2.8.5 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 evaluating

biogas 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 Purpose The 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.

National Key Economic Area

(NKEA)

Economic Sectors Oil, 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

Malaysia’s 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 is

targeted 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

EPP 1 Accelerated replanting to clear backlog of old,

low yielding palms

Upstream EPP 2 Increase the national fresh fruit bunch (FFB)

yield

productivity

and

EPP 3 Improve workers’ productivity through the

sustainability introduction of innovative techniques in

harvesting

EPP 4 Increase national average oil extraction rate

(OER)

EPP 5 Build biogas facilities at mills across

Malaysia

EPP 6 Shift Malaysia’s focus towards high value oleo

Downstream derivatives

expansion

EPP 7 Emphasise early commercialisation of second

and generation biofuels

sustainability

EPP 8 Expedite growth in food & health-based

downstream segment

EPPs No. 5 aims 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 palm

products 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 special

microorganisms 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

System

Life term

HRT

Effluent from the

Volume of

technology (years) (days) digester tank biogas

provider generated

BOD COD

(mg/L) (mg/L)

Keck Seng Continuous ⩾20 18 250-500 8000-12,000 ~0.35

stirred tank Nm3/kg of

reactor (CSTR) COD

Majurutera Complete 10 - - - 20 m3/tonne

stirred tank of POME

reactor (CSTR)

Biogas High efficiency 20-25 9 50-270 1400-2500 >26-30 m3/

Environment methane tonne of

Engineering (BEE) fermentation POME

system

SIRIM (pilot scale) Reversible flow ⩾20 10-15 - 6000 0.23 Nm3/kg

anaerobic of COD

baffled reactor

(RABR)

UPM-FELDA- Semi- 25 10 - 2000 20 m3/tonne

Kyushu Institute commercial of POME

of Technology closed

anaerobic

digester

Ronser Bio-Tech AnaEG ⩾20 9 800- 2000-2800 > 0.5 Nm3 /kg

and Shanghai- (Combination 1000 of COD

Jiaotong of UASB and

University zero- EGSB

discharge technologies)

treatment

technology

Biotec Asia Covered lagoon - 22 - - 23 m3/tonne

International Sdn biodigester of POME

Bhd

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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 MWhr

of 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 m3 m-3 1607.76 million m3

Biogas CV at 35°C 20 MJ m-3 32155.2 million MJ

Total heat value 1607.76 x 20 million MJ 8.93 million MWhr

= 32155.2 million MJ *1MWhr = 1 MJ/3600

Power Output 21% of heat output 8.93 million MWhr x

21%

= 1.88 million MWhr

Power plant size Plant operates 300 days year-1 1 880 000 / 7200

= 7200 hr year-1 = 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 most

encouraged 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 Oil Mills

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 The biogas plant of Ulu Kanchong Palm Oil Mill (UKPOM) is a collaboration 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 parent company of BIA was founded in 1984 in Belgium. The Ulu Kanchong biogas project is BIA’s first biogas plant in South East Asia. Biotec is an established technology provider with activities in integrated 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 and consultation 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 in Figure 2.

Figure 1: Covered lagoon biodigester installed at the mill

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 a waterproof 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 geomembrane captures 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 the system is approximately at 90% efficiency and treated effluent of the biogas plant is sent to the existing open lagoon system for further degradation and polishing, with the final discharge registering BOD of 40 to 80 ppm. Average biogas production from the system is 25 Nm3 (or 15 Nm3 of methane) for every tonne FFB processed. Five percent 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 in the 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 total FFB processed. Additional income is made via the selling of the palm shell and fibre. In terms of environmental impact, the utilization of biogas has improved the boiler’s 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 the boiler 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.

EY INDICATORS FOR UU KANCHONG

OIL

Approx. 5.0 millions

BOILER Nm3 of CH4

MILL BIOGAS

FFB 60 TFF/h 5 250 000 Nm3 CH4/y

350 000 TFF/y 8 750 000 Nm3 biogas /y

35 000 CERs/y

Approx. 5 % of

biogas production

0.80 m3/TFFB POME 21.38 m3 CH4/TFFB FLARE per year

80 kg COD/m3 0.12 CERs/TFFB

BIODIGESTOR Existing lagoons TREATED

280 000 m3/y EFLLUENT

22 400 T COD/y 266 000 m3/y

2 240 Ton 266 000 m3/y

COD/y

BIOLOGICAL ANAEROBIC SLUDGE

14 000 m3/y

LAND APPLICATION

Figure 2: Process flow diagram of biogas plant

Figure 3: 3 x 1000 m3/hr biogas burner and flaring unit installed at the mill

Table 1: Economic Analysis of UKPOM Biogas Plant

( based at 250,000 t FFB/ year) Item Cost

Investment cost (including biogas RM 7,000,000 plant and boiler adaptation)

O& M Cost (including CDM monitoring RM 475,000 / and verification) year Revenues RM 2,100,000 / (based on the selling of shell @ year RM130/t, fibre @ RM30/and CER @

Euro 10/t)

Payback Period 4.3 years

Internal Rate of Return, IRR % (with 23 CDM)

General Description of the UKPOM Biogas Plant

A joint venture project between GTSR & BIA Designed capacity for 350,000 TFFB/year with

methane production of 5.25 mil Nm3/ year Capacity of covered lagoon bio-digester : 32,000 m3 Could cater flowrate of POME 1200 m3/day with min.

27 days of hydraulic retention time 90% of methane produced is combusted in the

biomass boiler while 10% is flared 3 units of burner with capacity 1000 Nm3/hr installed

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

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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-firing

approach 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 SENG’S INTEGRATED PALM OIL COMPLEX FOR

STEAM PRODUCTION & UTILIZATION

Keck 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 biogas plant 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 m3 with 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.

Figure 1: Keck Seng (M) Bhd – integrated palm oil complex Figure 2: Floating top closed anaerobic digester at KS 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 2500 l/day.

Displacement of electrically powered chillers by biogas –

operated vapour absorption chillers. Significant saving in electricity consumption 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 4: High pressure boiler

Figure 3: Design specification of anaerobic digestion of Keck Seng Figure 5: Mechmar boiler-steaming capacity 20 000 lb/hr at 150psi

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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 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 company’s core business is utilization of anaerobic digestion technology to process industrial organic waste water from food and beverage industries, 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 employing specialty microorganisms. The biogas system consists of a cooling pond, two acidification ponds, a concrete-steel digester tank or 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 m3 per m

3 of POME

(Table 1). Table 1: Performance characteristic of the biogas system

Figure 1: Biogas storage tank and high efficient methane fermentation

system

Parameter

Performance

characteristics

Raw effluent

COD (ppm) 44 000 - 83 000

BOD (ppm) 14 000 - 34 000

Discharge after digester tank

COD (ppm) 1400 - 2500

BOD (ppm) 50 - 270

Composition of biogas

Methane (%) 56 - 64

Carbon dioxide (%) 35 - 41

Hydrogen sulphide (ppm) 217 - 1418

Volume of biogas (m3 m-3 26.6 – 30.0

POME)

Biogas Utilization-Electricity Generation The biogas captured is led through the biogas piping system from the 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 engine for 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 workers’ quarters of the mill.

Scheme 1: Biogas system for POME

1) Life span of materials used i.e. steel concrete or enamel tank is more than 30 years; 2) High loading factor 6~8 kg COD/m3d, thus implies:

a. Shorter HRT compared to other systems (CSTR system, COD loading 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 H2S CH4 content > 60% Water content is low

5) The system, with less moving parts, is easier to operate at a stable level; reinforced concrete steel or enamel sheet are better erosion-resisting materials, thus very much lowers the maintenance cost.

Figure 2: Condition of the combustion chamber of a gas generator using biogas for > 10000 h

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 generation amounting to 1-1.5 MW, sale of saved palm fibre and shell, biofertilizer production, and savings from reduced diesel consumption.

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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 be

pre-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 and

length about 40 to 50% and 4 inches respectively which is ready to be used as boiler

fuel (Figure 2). This process requires about 150–200 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.

EFB Juice

Raw EFB

Press cum shredder Hammer mill

Baling Machine Dryer & Screener Processed EFB Fibre

Bailed Dry Long

Boiler Fuel

Fibre

Figure 1: Process flow of the production of boiler fuel and dry long fibre from empty fruit bunch

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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 RM500–600/ 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 3”–10” (average : 4”)

Moisture content (%) 15-18

Baled fibre 90–100 kg / bale, size : 20” H x 20”W x 33”L

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.

Treated EFB

EFB fibre

RAW EFB EFB pre-treatment Size Briquetting /

plant screening pelletizing

EFB juice

Packaging

Palm-based

briquettes / pellet

Figure 3: Process flow diagram for the production of palm biomass briquettes or pellets

Treated Long fibre > 2’

EFB

EFB pre-treatment Size Baling

RAW EFB plant + Dryer

screening machine

Short fibre < 1’

Dry Long fibre

EFB juice Pulverizer

Palm-based Briquette / pellet

briquettes / pellet machine

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.

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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) 288,000 288,000 288,000

processed annually (tonnes)

Annual raw EFB produced (at 66,240 66,240 66,240

23% of FFB, 65% moisture

content, MC) (tonnes)

Treated EFB (TEFB) 33,120 29,808 33,120

(tonnes) (at 15% MC) (at 10% MC)

Potential annual production 23,184 26,827 23,184 (DLF)

(tonnes) (70% of TEFB) (90% of TEFB) 6,624 (solid fuel)

Annual Sale, RM (million) 9.27 8.0 11.26

(at (at RM300/

RM400/tonne) tonne)

Proposed plant capacity 5 5 5 (DLF) + 1

(tonnes/hr)

Electrical requirement for the 1.25 1.25 1.25

proposed plant, MW (at 250 (at 250

kWh/tonne) kWh/tonne)

Potential biogas from 60 1.85 1.85 1.85

tonnes /hr mill, MW

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 90–100

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 8.0 7.0

(million)

Shell displacement, tonne / yr (at 80% 13,824

of total shell produced)

@ RM150/tonne of shell, RM 2.07

(million/yr)

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 9,072,000

(70% utilization rate for 7200 hrs/ yr)

Annual potential of electricity sales, RM 2.90 (@ RM0.32/kWh)

(million /year) 3.16 (@ RM0.35/kWh)

Total investment, CAPEX : (at RM10 18.0 14.4

million/ MW for digester tank, RM8

million/ MW for covered lagoon)

OPEX @ 4% of CAPEX, RM (million / 0.72 0.58

year)

Annual profit, RM (million/ year) 2.18 (@ RM0.32/kWh) 2.32 (@

2.44 (@ RM0.35/kWh) RM0.32/kWh)

2.58 (@

RM0.35/kWh)

Payback period, years 8.3 (@ RM0.32/kWh) 6.2 (@

7.4 (@ RM0.35/kWh) RM0.32/kWh)

5.6(@ RM0.35/kWh)

IRR, % 12.1 (@ RM0.32/kWh) 16.1 (@

13.6 (@ RM0.35/kWh) 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 Utility’s Distribution System

RE Developer to provide commitment 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 RE

Developer 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 Facilities design

RE Developer to start

construction of proposed plant and Interconnection Facilities

RE Developer to submit protection

coordination studies/setting, testing & commissioning schedule

RE Developer to remit payments

to Utility for all necessary System Reinforcement Work

RE Developer/utility to

perform necessary work to reinforce system

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 producer or user of green technology products or systems. GTFS for producer or user category shall be as follows:

Features

Producer of Green Technology

User of Green Technology

Financing size Maximum: RM50 million per Maximum: RM10 million per

company company

Financing tenure Up to 15 years Up to 10 years

Legally registered Malaysian - Legally registered Malaysian -

Eligibility criteria owned companies (at least 51%) owned companies (at least 70%) in

in all economic sectors all economic sectors

All commercial and Islamic banks.

Participating GFIs: Bank Pembangunan, SME bank, Agrobank, Bank Rakyat, EXIM

financial bank and Bank Simpanan Nasional

institutions (PFIs) (Listing of commercial banks and Islamic banks from Bank Negara

Malaysia website.)

This scheme is only applicable for new project and retrofitting or expansion that incorporates 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/Email 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

Choon Hin Environmental Sdn Bhd

No. 6-10, Jalan Jati, 86000 Kluang, Johor Email: cheng@choonhin.com.my

Tel :+6012-7602999 Fax : +607-772 1084

Green & Smart Sdn Bhd

71-2, Plaza Damansara, Medan Setia 1, Bukit Damansara,50490 Kuala Lumpur, Malaysia Email: greensmart@gmail.com

Tel : +603- 2095 0024 Fax : +603-2095 0185

Konzen Clean Energy Sdn Bhd

Unit D2-5-1, Block D2 Dana 1, Commercial Centre, Jalan PJU 1A/46, 47301, Petaling Jaya, Selangor Email: info@konzencleanenergy.com

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 Email: corporate.affairs@weida.com.my

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, Email: adbtsb@gmail.com

Tel: +603-5634 8832 Fax: +603-56373679

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/ TT Rematech

B-8-8, Block B, 8th Floor, Unit 8, Megan Avenue II, 12 Jalan Yap Kwan Seng, 50450 Kuala Lumpur

Tel: +603-2711 0888 Fax: +603-2711 3688

Biotec International Asia Sdn Bhd

SVP-5, Jalan Cinta Kasih, Country Heights, 43000 Kajang, Selangor

Tel : +603-8737 3700 Fax : +603-8737 3720

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Biotec 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 Shah Alam, Selangor

H/P: +6012-2911 022

Alternative Energy Corporation [ALT Energy (M) Sdn Bhd]

Penthouse (Level 27), Centrepoint South, MidValley City, Lingkaran Syed Putra, 59200 Kuala Lumpur Email: vichitra@altencos.com

Tel: +603 2096 9646 Fax: +603 2096 9746

Swing Water Sdn Bhd 20, Jalan Astaka U8/83, Seksyen U8, Bukit Jelutong, 40150, Shah Alam, Selangor Email: andy@swing-water.com.my

Tel : +603-7846 6280 Fax : +603-7846 6182

Watermech Engineering Sdn Bhd

No. 11, Jalan TSB 8, Taman Industri Sg. Buloh 47000 Sg. Buloh, Selangor Darul Ehsan Email: watermech@watermech.com

Tel: +603-61571688 Fax: +603-61571633

KPSR Construction 172/17 Moo 15 Mittapharb Modern Home, Tambon Phalap Ampur Muang,Khon Kaen 40000 Thailand Email: biogas.kpsr@gmail.com

Tel: -+60 12 230 0820

ADI System Asia Pacific (VATA Synergy)

No. 67, Jalan Dato Dollah 2, 41100 Klang, Selangor Email: enquiry@vata-vm.com asiapacific@adi.ca

Tel: +603 5161 4701 Fax: +603 5161 8504

Veolia Water Solutions & Technologies Sdn Bhd

No. 24, Jln. PJS 11/16, Bandar Sunway, Light Industrial Area, 46150 Petaling Jaya, Selangor, Malaysia

Tel : +603 5634 3200 Fax : +603 5636 5200

Biopower Climate Care (Cenergi SEA)

Unit 33-11, Level 11, The Boulevard, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur, Malaysia Email: info@cenergi-sea.com

Tel: +603 2283 2302 Fax: +603-2283 3302

Green Energy Resources (M) Sdn Bhd

12 Jln Bayu 6, Bandar Seri Alam, 81750, Masai, Johor, Malaysia. Email: info@greenenergyresources.com.my

Tel: +607‐3877880 Fax: +607‐3864918

GT Enviro Engineering Sdn Bhd

No. 18A, Lorong 37, Jalan Ding Lik Kwong, 98000 Sibu, Sarawak, Malaysia

Tel: +6082-461966 Fax: +6082-455433

Knowledge Integration Services (Malaysia) Sdn Bhd (KIS Group)

36th Floor, Menara Maxis, Kuala Lumpur City Center, 50088 Kuala Lumpur, Malaysia

Tel:+603 2615 7237 Fax:+603 2615 0088

Kim Loong Power Sdn Bhd

Lot 17.01, 17th Floor, Public Bank Tower 19, Jalan Wong Ah Fook, 80000 Johor Bahru, Malaysia.

Tel: +607-224 8316 Fax: +607-223 2562

SP Multitech Corporation Berhad

11, Jalan BPU 5, Bandar Puchong Utama, 47100 Puchong, Selangor, Malaysia. Email: info@spmultitech.com

Tel:+603-58825595 Fax:+603-58827795

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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, Tel : 07-2551111

81757 Masai, Johor Fax: 07-2555117

2. Kim Loong Palm Peti Surat 21, 81900 Kota Tinggi, Tel : 07-8822388

Oils Mills Johor 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 Tel : 06-4582734

Bandar Baru Jempol, Negeri Fax: 06-4581909

Sembilan

5. Kilang Sawit Serting Peti Surat 3, 72120 Bandar Baru Tel : 06-4683132

Hilir Jempol, Negeri Sembilan Fax: 06-4684424

6. Foong Lee 179, Main Road, 31100 Sungai Tel : 05-5982033

Sawiminyak Sdn Bhd Siput (U), Perak Fax: 05-5981862

7. Kilang Kelapa Sawit Jenderata Estate, Div. III, 36009 Tel : 05-6366261

Jenderata Teluk Intan, Perak Fax: 05-6366280

8. United Locked Mail Bag No. 1, 34900 Tel : 05-8501500

International Pantai Remis, Perak Fax: 05-8501507

Enterprises (M) Sdn

9. Rinwood Pelita 18A, Jalan Lanang, 96000 Sibu, Tel : 084-875922

(Mukah) Plantation Sarawak Fax: 084-334604

Sdn Bhd

10. Desa Kim Loong P.O.Box 156, 89007 Keningau, Tel : 019-8825158

Palm Oil Sdn Bhd Sabah Fax: 087-336848

11. Apas Balung Palm Jalan Kelapa Sawit off Km 4, Jalan Tel : 089-922314

Oil Mill Tuaran, 88300 Kota Kinabalu, Fax: 089-951043

Sabah

12. Arah Kawasan Sdn Lot 713, Mukim Sungai Batu, Tel : 019-4157711

Bhd Bandar Baharu, Kedah Fax: 04-5887137

13. Setia Kawan Kilang 98A, Jalan Batu Putih, Mukim Tel : 04-4037315

Kelapa Sawit Sdn Padang Cina, 09700 Kulim, Kedah Fax: 04-4036120

Bhd

14. Sungai Kerang Locked Mail Bag 23, 32000 Tel : 05-3765541

Development Sdn Sitiawan, Perak Fax: 05-3765540

Bhd

15. Syarikat Cahaya Batu 3, Jalan Bidor, Tel : 05-4011123

Muda Perak (Oil P.O.Box 12, 35007 Tapah, Perak Fax: 05-4013608

Mill) Sdn Bhd

16. Kilang Kelapa Sawit P.O.Box 730, 97008 Bintulu, Tel : 085-739014

Saremas 1 Sarawak Fax: 085-740733

17. Kilang Kelapa Sawit Locked Bag 34, 90009 Sandakan, Tel : 089-670225

Sapi Sabah Fax: 089-670260

18. Ladang Ulu Basir 35600 Ulu Bernam, Perak Tel : 05-4213151

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18. Ladang Ulu Basir 35600 Ulu Bernam, Perak Tel:05-4213151 Fax: 05-4216552

19. Kilang Sawit PPNJ Peti Surat No. 26, 86700 Kahang, Tel : 07-7778202

Kahang Kluang, Johor Fax: 07-7778200

20. Tian Siang Oil Mill Lot 2161 & 2162, Tel : 05-8411512

(Perak) Sdn Bhd Jalan Taiping/Beruas Fax: 05-8411513

Mukim Sg. Tinggi, Larut Matang,

34800, Trong, Perak

21. TSH Lahad Datu TB 9, Km 7, Jalan Apas, TSH Tel : 089-843110

Palm Oil Mill Industrial Estate, 91000 Tawau, Fax: 089-843111

Sabah

22. TSH Sabahan Palm Bangunan TSH, TB 9, Km 7, Jalan Tel : 019-8331292

Oil Mill Apas, TSH Industrial Estate, Fax: 089-843121

91000 Tawau, Sabah

23. FPISB Kilang Sawit 26400 Bandar Jengka, Pahang Tel : 09-4662559

Jengka 8 Fax: 09-4662987

24. Tee Teh Palm Oil P.O.Box 71, 85007 Segamat, Johor Tel: 07-9370828

Mill Fax: 07-9325243

25. Rompin Palm Oil P.O.Box 58, 26700 Muadzam Tel : 09-4530272

Mill Sdn Bhd Shah, Pahang Fax: 09-4526266

26. Ulu Kanchong Palm Ulu Kanchong Estate, 71209 Tel : 06-6941233

Oil Mill Rantau, Negeri Sembilan Fax: 06-6942108

27. Rex Palm Oil Mill No. 38, Teck Guan Regency, Jalan Tel : 089-772277

St. Patrick Off Jalan Belunu, Fax: 089-769955

91007 Tawau, Sabah

28. KKS Sungai Burong P.O.Box 33, 91007 Tawau, Sabah Tel : 089-919832

29. Sungei Kahang Palm P.O.Box No. 10, 98700, Kahang, Tel : 07-7881512

Oil Sdn Bhd Johor Fax: 07-7881650

30. RH Plantation Palm P.O.Box 454, 96007 Sibu, Tel : 084-216155

Oil Mill Sarawak Fax: 084-215217

31. Johore Labis Palm Lot 677, Jalan Kilang, 85400 Tel : 07-9261204

Oil Mill Cha’ah, Johor Fax: 07-9263048

32. Bell Palm Industries P.O.Box 64, 83000 Batu Pahat, Tel : 07-4186300

Sdn Bhd Johor 017-7995388

33. Kilang Kelapa Sawit 125, Jalan Ss 15/5A, Subang Jaya, Tel : 06-3876117

Bell Sri Lingga 47500 Selangor

34. Wujud Wawasan 1101, Block C, Kelana Business Tel : 09-4530206

Sdn Bhd Centre, No. 97, Jalan SS 2/7, Fax: 09-4530397

47301 Kelana Jaya, Selangor

35. Kilang Sawit Peti Surat 35, 17507 Tanah Tel : 09-9771734

Kemahang Merah, Kelantan Fax: 09-9774001

36. Kilang Sawit Umas Peti Surat 60996, 91019 Tawau, Tel: 019-8929610

Sabah 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 Protocol’s 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). Malaysia’s DNA 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 CO2 and 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 CO2 equivalent 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 CDM project

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 Project Design Document (CDM-PDD) with all required elements.

Project participants obtain written approval of voluntary participation from the Designated National Authority (DNA) of each Party involved regarding the 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 the monitoring plan written in PDD.

Project participant report to the DOE the results of monitoring of the CDM project 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 emission reductions. 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 developing country 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 Tel : 03-21447200 Level 4 Annex Block Fax: 03-21447573

Lot 10 Shopping Centre H/P: 017-2026456

50, Jalan Sultan Ismail ilango@ytl.com.my

50250 Kuala Lumpur

2 Dr. B.G. Yeoh EcoSecurities Malaysia Sdn Bhd Tel : 03-22820612/32

Mid Valley City Fax: 03-22820652

No. 1, Medan Syed Putra Utara H/P:012-3112289

59200 Kuala Lumpur bgyeoh@ecosecurities.com

3 Bhavna Khandhar Perenia Carbon Tel : 03-79505521

Unit 509 Block B Fax: 03-79552110

Phileo Damansara II H/P: 0122039240

Jalan Section 16 bhavna.khandhar@pereniacarbon

46350 Petaling Jaya .com

Selangor

4 Mr. Arthur Wayne Everest Agriculture & Farming Tel : 03-42706312

House @Ibrahim Sdn Bhd H/P: 017-3102363

Suite 1.07, 1st Floor, Wisma wayne@fiurthgeneration.ca AMGM, #57, Jalan Hang Lekiu, house.wayne@gmail.com

50100 Kuala Lumpur

5 Mr. Soon Hun Yang Eco-Ideal Consulting Sdn Bhd Tel : 603-78768102 / 22848102

Suite C-7-2, Wisma Gosen, Fax: 603-22848103

Plaza Pantai 5 Jalan 4/83A H/P: 019-8188102

Off Jln Pantai Baru

59200 Kuala Lumpur, Malaysia

6 Ms. Rose Ariffin Environmental Resources Tel: 019 - 330 9192

Management

Unit 19-06-01, 6th Floor

PNB Damansara,

19 Lorong Dungun Damansara

Heights

50490 Kuala Lumpur

7 Dai Yong Sunshine Kaidi New Energy Tel : +8627-87992685

Kaidi Mansion, T1 Jiangxia H/P: +8613554130425

Avenue, Wuhan, 430223, Hubei, cdm_kyle@yahoo.com

China

8 Mr. Henrik Rytter Danish Energy Management Tel : 603 - 2615 0014

Jensen 36th Floor, Menara Maxis H/P: 012 - 302 3914

Kuala Lumpur City Centre hr@dem.dk

50088 Kuala Lumpur

9 Ms. Sheila Sharma ENVIRON Consulting Services Tel : 603 - 76652986

(M) Sdn. Bhd. H/P: 012 - 206 8654

A307, Phileo Damansara 2 15, Jalan 16/11 46350 Petaling Jaya

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10 Mr. Kim Kean Hong KYOTO Energy Sdn Bhd Tel : 603 - 8739 0240

(Malaysia Representative Office) Fax: 603 - 8739 0235

Unit SVP4, Jalan Cinta Kasih H/P: 6012 - 499 1896

Country Heights,

43000 Kajang, Selangor

11 Ms. Tee Hui Yong GHD Perunding Sdn Bhd Tel: 603-2332 3886

Senior Consultant 22nd Floor The Mall Putra Place Fax: 603-2332 3990 100 Jln. Putra huiyong.tee@ghd.com

50350 Kuala Lumpur

12 Mr. Leong Kwok Leong Partnership Advocates & Tel: 03-79554030

Yan Solicitors Fax: 03-79559681

Suite 501, Block E leongky@leongpartnership.com

Phileo Damansara 1

9, Jalan 16/11

46350 Petaling Jaya, Selangor

13 Ms. Michelle Chan Mercuria Welstar Enterprise Tel : 00662-770-3993

Co. Ltd 668-5642-3993

88 Soi Bangna-Trad 30 6012-3161900

Bangna-Trade Road Fax: 00662-398-9339

Bangna, Bangkok, Thailand

14 Mr. Mohamad Mitsubishi UFJ Morgan Stanley Tel: 03-88731235

Irwan Aman Securities, Fax: 03-88903911

P.O. Box 92, H/P: 019-2577189

Pejabat Pos Bandar Baru Bangi, irwan-aman@cefc-

43650 Bandar Baru Bangi, consulting.com.my

Selangor

15 Gerald Hamaliuk GenPower Carbon Solution Tel: 603-22826841

Services H/P: 60172472917

(Malaysia) Sdn. Bhd. ghamaliuk@gpcarbonsolutions.co

Level 22, Unit A-22-13, m

Menara UOA, Bangsar, No.5, Jalan

Bangsar Utama 1

16 Rober C Y Cheong TUV NORD (Malaysia) Sdn. Bhd. Tel : 603-8023 2124

No.20 Jalan Tiara 3, Tiara Square Fax: 603-80234410

Taman Perindustrian UEP H/P: 6012-5010066

47600 Subang Jaya rober.cheong@tuv-nord.com

Selangor, Malaysia

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NKEA: EPP 5

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