7/25/2019 NKEA - EPP5 Jan 2013.pdf

1/34

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

7/25/2019 NKEA - EPP5 Jan 2013.pdf

2/34

NKEA: EPP 5

1 | P a g e

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.

7/25/2019 NKEA - EPP5 Jan 2013.pdf

3/34

NKEA: EPP 5

1 | P a g e

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

1

7/25/2019 NKEA - EPP5 Jan 2013.pdf

4/34

NKEA: EPP 5

1 | P a g e

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.

2

7/25/2019 NKEA - EPP5 Jan 2013.pdf

5/34

NKEA: EPP 5

1 | P a g e

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

3

7/25/2019 NKEA - EPP5 Jan 2013.pdf

6/34

NKEA: EPP 5

1 | P a g e

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

4

7/25/2019 NKEA - EPP5 Jan 2013.pdf

7/34

NKEA: EPP 5

1 | P a g e

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

5

7/25/2019 NKEA - EPP5 Jan 2013.pdf

8/34

NKEA: EPP 5

1 | P a g e

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

6

7/25/2019 NKEA - EPP5 Jan 2013.pdf

9/34

NKEA: EPP 5

1 | P a g e

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.

7

7/25/2019 NKEA - EPP5 Jan 2013.pdf

10/34

NKEA: EPP 5

1 | P a g e

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)

23

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

8

7/25/2019 NKEA - EPP5 Jan 2013.pdf

11/34

NKEA: EPP 5

1 | P a g e

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.

9

7/25/2019 NKEA - EPP5 Jan 2013.pdf

12/34

NKEA: EPP 5

1 | P a g e

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

10

Figure 4: High pressure boiler

7/25/2019 NKEA - EPP5 Jan 2013.pdf

13/34

NKEA: EPP 5

1 | P a g e

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.

11

7/25/2019 NKEA - EPP5 Jan 2013.pdf

14/34

NKEA: EPP 5

1 | P a g e

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.

12

7/25/2019 NKEA - EPP5 Jan 2013.pdf

15/34

NKEA: EPP 5

1 | P a g e

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

13

Raw EFB

Processed EFB Fibre

Hammer millPress cum shredder

Dryer & ScreenerBaling Machine

Bailed Dry Long

FibreBoiler Fuel

EFB Juice

7/25/2019 NKEA - EPP5 Jan 2013.pdf

16/34

NKEA: EPP 5

1 | P a g e

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.

14

7/25/2019 NKEA - EPP5 Jan 2013.pdf

17/34

NKEA: EPP 5

1 | P a g e

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

15

7/25/2019 NKEA - EPP5 Jan 2013.pdf

18/34

NKEA: EPP 5

1 | P a g e

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

16

7/25/2019 NKEA - EPP5 Jan 2013.pdf

19/34

NKEA: EPP 5

1 | P a g e

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

17

7/25/2019 NKEA - EPP5 Jan 2013.pdf

20/34

NKEA: EPP 5

1 | P a g e

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

18

7/25/2019 NKEA - EPP5 Jan 2013.pdf

21/34

NKEA: EPP 5

1 | P a g e

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.

19

7/25/2019 NKEA - EPP5 Jan 2013.pdf

22/34

NKEA: EPP 5

1 | P a g e

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

7/25/2019 NKEA - EPP5 Jan 2013.pdf

23/34

NKEA: EPP 5

1 | P a g e

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.

21

7/25/2019 NKEA - EPP5 Jan 2013.pdf

24/34

NKEA: EPP 5

1 | P a g e

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/

22

http://www.gtfs.my/http://www.gtfs.my/http://www.gtfs.my/http://www.gtfs.my/

7/25/2019 NKEA - EPP5 Jan 2013.pdf

25/34

NKEA: EPP 5

1 | P a g e

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

23

7/25/2019 NKEA - EPP5 Jan 2013.pdf

26/34

NKEA: EPP 5

1 | P a g e

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)

24

7/25/2019 NKEA - EPP5 Jan 2013.pdf

27/34

NKEA: EPP 5

1 | P a g e

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

25

7/25/2019 NKEA - EPP5 Jan 2013.pdf

28/34

NKEA: EPP 5

1 | P a g e

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.

26

7/25/2019 NKEA - EPP5 Jan 2013.pdf

29/34

NKEA: EPP 5

1 | P a g e

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

27

7/25/2019 NKEA - EPP5 Jan 2013.pdf

30/34

NKEA: EPP 5

1 | P a g e

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

28

7/25/2019 NKEA - EPP5 Jan 2013.pdf

31/34

NKEA: EPP 5

1 | P a g e

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.

29

7/25/2019 NKEA - EPP5 Jan 2013.pdf

32/34

NKEA: EPP 5

1 | P a g e

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

ilango@ytl.com.my

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

bgyeoh@ecosecurities.com

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

wayne@fiurthgeneration.ca

house.wayne@gmail.com

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

cdm_kyle@yahoo.com

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

hr@dem.dk

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

30

mailto:ilango@ytl.com.mymailto:bgyeoh@ecosecurities.commailto:bhavna.khandhar@pereniacarbon.commailto:bhavna.khandhar@pereniacarbon.commailto:bhavna.khandhar@pereniacarbon.commailto:C.Lim@mitsui.commailto:C.Lim@mitsui.commailto:Tom.Fujii@mitsui.commailto:Tom.Fujii@mitsui.commailto:cdm_kyle@yahoo.commailto:cdm_kyle@yahoo.commailto:hr@dem.dkmailto:hr@dem.dkmailto:hr@dem.dkmailto:cdm_kyle@yahoo.commailto:Tom.Fujii@mitsui.commailto:C.Lim@mitsui.commailto:bhavna.khandhar@pereniacarbon.commailto:bhavna.khandhar@pereniacarbon.commailto:bgyeoh@ecosecurities.commailto:ilango@ytl.com.my

7/25/2019 NKEA - EPP5 Jan 2013.pdf

33/34

NKEA: EPP 5

1 | P a g e

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

huiyong.tee@ghd.com

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

leongky@leongpartnership.com

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

ghamaliuk@gpcarbonsolutions.com

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

rober.cheong@tuv-nord.com

31

mailto:huiyong.tee@ghd.commailto:huiyong.tee@ghd.commailto:leongky@leongpartnership.commailto:leongky@leongpartnership.commailto:irwan-aman@cefc-consulting.com.mymailto:irwan-aman@cefc-consulting.com.mymailto:irwan-aman@cefc-consulting.com.mymailto:ghamaliuk@gpcarbonsolutions.commailto:ghamaliuk@gpcarbonsolutions.commailto:ghamaliuk@gpcarbonsolutions.commailto:rober.cheong@tuv-nord.commailto:rober.cheong@tuv-nord.commailto:rober.cheong@tuv-nord.commailto:ghamaliuk@gpcarbonsolutions.commailto:ghamaliuk@gpcarbonsolutions.commailto:irwan-aman@cefc-consulting.com.mymailto:irwan-aman@cefc-consulting.com.mymailto:leongky@leongpartnership.commailto:huiyong.tee@ghd.com

7/25/2019 NKEA - EPP5 Jan 2013.pdf

34/34

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

http://www.mpob.gov.my/http://www.mpob.gov.my/http://www.mpob.gov.my/