Astimar Abdul Aziz, Loh Soh Kheang, Lim Weng Soon a nd Choo Yuen May

Outline of Presentation:

� Introduction� Current status of biomass utilization

� Commercialization status� Potential high value added products� Opportunities for SMEs� Issues and Challenges� Conclusion

DISTRIBUTION OF OIL PALM BIOMASS

Oil Palm Biomass:

Empty Fruit

Bunch

Oil Palm

FrondsOil Palm Trunks

Palm Shells

Mesocarp

fibers

OIL PALM BIOMASS IN 2010:No. Biomass Amount (dry weight)

1. OPF (from pruning activity)OPF (from replanting activity)

43.63 million tonnes 3.39 million tonnes

2. OPT (~207,754 hectares) 29.5 million trunks 15.48 million tonnes

3. From the 418 palm oil mills operating at total capacity of 83.09 million tonnes of FFB,~ Estimated EFB = 22% x 83.09 million tonnes

18.28 million tonnes

4. Mesocarp fibers 6.13 million tonnes

5. Palm kernel shells 3.38 million tonnes

6. POME generated from per tone of FFB is about 67%.

55.67 million tonnes **** (million M3)

Normal composting and

application in the oil palm

plantation(Source: Sime Darby Plantation)

Current applications:

The mills own by big plantations will basicallyreturn the EFB to the plantation field to act as Mulching and bio-fertilizers.

Adding with treated POME, the process becomesZero emission.

OPT being shredded and use for land

application, act as natural fertilizer to

the soil

Continued……Current applications:

Commercialization of Biomass:

� Eco-fibers – for mattresses filler, bio-energy, bio-fertilizer, mushroom cultivation, planting medium, eco-mat

� Bio-composite – medium density fiberboard, particleboard, chipboard, plywood, wood plastic composite, agro lumber

� Bio-products – charcoal, activated carbon, food, fine chemicals (cellulose, lignin, hemicellulose)

(i) Shredded EFB fibers (~40% mc), suitable for bio-energy and

bio-composite

(i) Cleaned EBF fibers (~10% mc), suitable for exports, mattresses filler

and wood plastic composite.

(Source: Synn Palm Oil Mill)

Eco-fibers

Category: SME

Utilization of oil palm biomass as briquettes

Category: SME

Vermicomposting

Huge capacity and basically to be recycle back to the plantation Cater the waste management issue of the mill, no problem on raw material

Category: Big Scale Industry

Vermicompost Category: SME

Mushroom cultivation:

Mushroom cultivation (Oyster)

Mushroom cultivation (Button)

Category: SME

Automotive Component

Bio-composite

Dampening sheet : Up to 25% blending of biomass, comply with the international standards (ES-X 62223/6 Mitsubishi Motor Corporation Test Standard) for automotive industry

Industry: Base Components Sdn. Bhd.

Category: SME

Commercialization R&D on theproduction of particleboard and

Eco-pallet from oil palm Biomass

Industry : Isotop Sdn. Bhd.

Category: Big Scale Industry

Pulp and Paper from Oil

Palm Biomass

STATUS:•Commercialized.• Huge capital investment• Issues on competitiveness• Issues waste water

Kraft Pulping Process Category: Big Scale Industry

Frames, speaker box Frames, speaker box & etc (MDF)& etc (MDF)

School Furniture (Oil School Furniture (Oil Palm Lumber)Palm Lumber)Oil Palm PlywoodOil Palm Plywood

Potential products from OPT:• Palm plywood has been commercialized.• Palm lumber for furniture, with specific drying and chemical treatment has

been commercialized• MDF from OPT has shown great interest from the industry player.

Category: Big Scale Industry

Medium Density Fiberboard

Category: Big Scale Industry

Plywood

Category: Big Scale Industry

Lists of machinery1. Log charger 2. Overhead electric hoist3. Log core conveyor4. Rotary lathe5. Spindle-less rotary lathe6. Out-feed conveyor7. Belt conveyor for waste veneer8. Auto air clipper9. Knife grinder

Bio-products:

Fine chemicals: cellulose, xylan, lignin

Category: SME

Charcoal and Activated Carbon from oil palm biomass :

Carbonization for charcoal Activation for activated carbon

Products and potential products:

Activated carbon Carboncloth

Charcoal soap

Charcoal toiletries

Charcoal tablets

Woodvinegar

Category: SME

Category: Big Scale Industry

Fractionation of biomass

Category: SME

Oil Palm Heart- During

replanting- canned, pickles,

as salad, candy

ISSUES ON OIL PALM BIOMASS

UTILIZATION

� Inherent properties; comparison with wood. Therefore needs investment on additional or modification of the conventional machine.

� Low acceptance – mentality as low quality products (especially for wood-based and furniture)

� Supply chain – huge capacity; have to outsource biomass. Cost of raw material and transportation.

The constraint of EFB :

� Inherent properties (high moisture content, high fibrous and containing soluble alkali). Cost of pretreatment and new design of system.

� Quality of supplied EFB (effect of period of storage, deteriorate of fibers due to its accessibility)

� Economical aspect (new boiler, high maintenance of boiler)

� Uncertainties of supply; seasonal, competition with other usage, reluctant of mills on long term supply contract.

� Setting price and supply security for EFB is difficult

� Collection of OPF from pruning and OPT during replanting is not encouraged by the agronomist

� Collection of OPF will incurred cost of transportation and labor cost

� Collection of OPT during replanting is scattered and will incurred cost of transportation.

The constraint of OPT / OPF :

SUGGESTION ON BIOMASS MANAGEMENT

� Survey and mapping of the supply chain� Biomass Collection Center – processing of the

biomass into different categories and standard (cater not only the power supply plant, but also for other value added products).

� Discussion and negotiation with the stakeholder (palm oil millers) for investment on the BCC. In this regards the status or the demand of the biomass market should be well established. Maturity of the technologies is very important.

� Government to facilitate the implementation of Biomass Policy.

BIOMASS COLLECTION CENTER

� Processing the EFB into various categories or standard; shredded, baled, palletized (demonstration plant) – to cater many industries such as for pulp, composite, energy or others

BIOMASS COLLECTION CENTER … continued

� Standardization of EFB categories and specifications, to cater specific application.� Database of EFB supply and providers;

provide networking

� Standardization of the EFB price; application of CDM can reduce the production and processing cost

� Pricing of raw materials� Long Term Supply security� Logistics, cost of transportation� Manufacturers Warranty on the quality� Maturity of technology on oil palm biomass

commercialization� Promotion and marketing

KEY ISSUES TO ENSURE SUCCESSFUL

COMMERCIALISATION

Fiscal

Incentives

(may refer MIDA)

Fiscal incentives to promote RE initiatives: �Pioneer Status�Investment Tax Allowance �Import Duty Exemption, Sales Tax

Exemption

Malaysian SMEs can be defined according to size, turnover and activity and falls into two broad cate gories:

1. Manufacturing, manufacturing-related services and agro-based industries, which have either:• fewer than 150 full-time employees ; or• an annual sales turnover of less than RM25 million .

2. Services, primary agriculture and information and communication technology (ICT), which haveeither:• fewer than 50 full-time employees ; or• an annual sales turnover of less than RM5 million .

Small Medium Entrepreneurs

Definitions of SMEs in Malaysia:

CONCLUSIONS:

• There is an opportunity for the SMEs in the biomass sector; form cooperation or consortium

• Supply chain security is one of the bottlenecks for thecommercialization of oil palm biomass

• Issues on ownership of biomass; OPT/OPF for the planters, EFB/mesocarp/shells for the millers

• Appropriate policy; to leverage the oil palm industry players demands and at the same time to accommodatethe end players requirement

• Incentive is sufficient • Oil palm biomass would be the next economic sector

MPOB invites everybody to attend the PIPOC Conferen ce….