INTERNATIONAL PLANTATION INDUSTRY CONFERENCE & EXIBITION (IPiCEX 2012)

5 TO 7 November 2012

AHMAD NOR AZMAN JAMIN BIOMASS DEPT FELDA PALM INDUSTRIES SDN BHD

Geographical spread of the palm oil industry in Malaysia

Source: Economic Transformation Programme Handbook

   Availability: Perceive to be in abundance Aggregation remain the major issue  Existing policy: should remain on field  Collection procedure & technique  Transportation method  Pretreatment (based on specific technology) Certification requirements: Major barriers

Recycling of Biomass - Zero burning Empty Fruit Bunch + Mill Effluent = Compost Field grasses as feed for cattle Conference & Exhibition

EFB Shredding POME Spraying Windrow Formation Empty Fruit Bunches (EFB)

6 Compost Plants

Microbial Inoculation & Pile Turning After 10 weeks Field Application of Compost POME Spraying & Pile Turning: Every 3 Days 3rd International Plantation Industry Conference & Exhibition Windrow cover

Compost Plant 1. Maokil 2. Sampadi 3. Trolak 4. Jerangau 5. Jengka 21 6. Kalabakan Photo Capacity (MT/Month) 1,800 1,600 1,200 1,200 1,800 1,800 Application Remarks Internal plantation use.

Not CDM Project Internal plantation use Internal plantation use Internal plantation use Internal plantation use Internal plantation use CDM Project (Reg. Date; 04 Jun 09, PDD Bundled with KS Trolak) CDM Project (Reg. Date; 04 Jun 09, PDD Bundled with KS Sampadi)

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(Reg. Date; 25 July 11, PDD Bundled with KS Kalabakan)

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Not CDM Project (Reg. Date; 25 July 11, PDD Bundled with KS Jerangau)

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BIO-ENERGY

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      Consume 100 % EFB: Requirement 245,000 mt per year.

Generating maximum 7.2 MW electricity and 16 mt steam.

Operating 24 hours a day and targeted 8,000 hours per annum.

Treated EFB at design moisture content of 50% . In accordance to government aspiration: Fifth fuel policy on Renewable Energy.

CDM: Emission Reduction about

50k per annum

3rd International Plantation Industry Conference & Exhibition

SUPPLY OUTPUT:

Maximum Output -7.2 MW Current Output (80%) - 6.0 MW

CONSUMERS

Kernel Crushing Plant Sahabat Oil Product

Domestic

Parasitic

MW

- 2.0

- 1.5

- 1.0

- 1.5

6.0

•

Background :

• • • • • • FTJ Bio Power S B: JV-co between Felda

Palm Industries (60%) and TNB (40%)

Supporting the government’s Small Renewable Energy Projects (SREP) To manage 12.5MW(gross) empty fruit

bunch (EFB) based power generation plant.

EFB from 7 adjacent mills (320,000 mt/year) To be registered as CDM project:

Emission Reduction 100k/annum

Getting GTIF and full Financial Support from financial institution.

3rd International Plantation Industry Conference & Exhibition

POME from Palm Oil Mill Holding tank

12 In-operation 5 Construction stage 12 Plan for 2012/13 Target: All biogas to be captured & used by 2016

Heat exchanger Gas purifier Gas dewatering well Anaerobic digester (AD) tanks (primary and secondary treatment) Floating cover AD will also acts as gas storage. Storage capacity up to 3 hrs.

Gas flare (safety/ excess) or to boilers

Electricity to national grid or own use Engine room

Project/Application

BESOUT • Electricity Generation for POM usage.

• Installed capacity 600kW.

UMAS • Electricity generated for rural electrification ranging from 600kW to 1000kW PASOH • Biogas flaring for Carbon Credit.

• Plan for boiler fuel MOAKIL • mill usage.

• Gas engine capacity 500kW.

Photo Project/Application

KEMAHANG • Biogas flaring for Carbon Credit.

• Plan for boiler fuel JERANGAU BARAT • Biogas flaring for Carbon Credit • Plan for boiler fuel PANCHING • Biogas flaring for Carbon Credit.

• Biogas compression SERTING HILIR • Electricity generated sell to TNB & mill’s use

Photo

Project/Application SERTING (BOOT)

• Biogas flaring for Carbon Credit.

• 2013: Use as boiler fuel

TENGGAROH

• Planning to install gas engine for mill’s usage.

SUNGAI TENGI

• Proposed biogas for bottling (CBG).

MERCU PUSPITA

• Potential (1.2MWe) rural electrification

TRIANG

• Biogas for electricity generation.

Photo Project/Application JENGKA 8 (BOOT)

• Biogas flaring for Carbon Credit.

• Used as boiler fuel

CHALOK

• Biogas flaring for Carbon Credit.

• Plan for boiler fuel

NITAR

• Pending for DOE Approval.

• Proposed biogas for co fired in the boiler.

KERATONG 9

• Biogas for electricity generation.

Photo

Projected worldwide fossil fuel production

Source: Management Information Services, Inc. 2008.

» » » » » » Global fossil fuel production will plateau by 2020.

Reserve additions have been dwindling since the1960s.

Earth’s rapidly growing and energy hungry population.

Exponential increase in fuel prices.

The trend is expected to continue well into the future.

The concerns: ˃ ˃ about the security of energy supplies the environmental consequences of greenhouse gas emissions ˃ possible food shortages & crisis

Renewables increasing its share in world energy consumption

Source: International Energy Outlook 2011

» » » » » » Renewable Energy (RE) as a viable solution to the escalating global demand for energy.

Predicts a yearly increase of 3.1% per year.

By 2020, RE will provide 5-10% of the world’s electrical energy.

(Shell, 1999), RE share will have increased to 50% of global supply in 50 years. Alternative energy sector has immense potential for growth in the coming years.

Key players will be those with access to sources of RE.

» » » » » Biofuel (from raw plant crops) expected to have a significant global impact on road transportation.

International Energy Agency: biofuels have the potential to meet more than a quarter of world demand for transportation fuels by 2050.

The European Commission: use of biofuel has some undesired side effects. ˃ Clearing land in order to plant crops can cancel out some of the environmental benefits of the biofuel. ˃ The demand for food-based biofuel has raised questions about the possibility of food price hikes or even food shortages.

The Commission will change the 2009 Renewable Energy Directive and the 1998 Fuel Quality Directive. ˃ New biofuel installations will have to meet a minimum 60% threshold in terms of efficiency in reducing greenhouse gas emissions.

˃ Putting a cap of 5% on the food-based biofuel allowed in the renewable energy used in transport. Trying to shift biofuel production from food crops to farm waste, algae and straw. Hence, palm based biofuel has the advantages.

Global Biofuel Production Forecast 2015-2020

 » Compound annual growth rate (CAGR) of 10% over the forecast period 2015 – 2020 ˃ It’s about 6% of the world’s estimated liquid fuel production in 2020; ˃ It’s about half of the current Saudi oil production; ˃ It’s about half of the current U.S. oil imports; ˃ It’s a game changer in geopolitical and economic sense Cleantech market intelligence firm forecasts: Global market for biofuels

will increase from $82.7 billion in 2011 to $185.3 billion by 2021

Pike Research estimates: Global demand 2021 (billion gallons per year (BGPY)):  Gasoline 375 BGPY  Diesel  Ground 427 BGPY  aviation and marine 200 BGPY

The facilities: Able to produce Bio-oil and generating electricity using gas turbine. Possibility to produce bio-Ethanol.

Feedstock materials & BtL sample

Palm Oil Mills

Kembara Sakti Jeragan Bestari Pyrolysis Technology Water requirement for cooling system

Bio-Oil Plant

Hamparan Badai Nilam Permata  4 Palm oil mills to installed

biogas facility

with electricity generation (4  x 2 MW) Feedstock (EFB) requirement:

500,000 mt/yr

 Palm oil mills to supply

pressed EFB

and excess

electricity

(≈6MW) to Bio Oil Plant

Bio-Oil Product potential off-take:

 fuel for stationary engine ( Engine Warranty !!)  market as green fuel (substitute for heavy fuel oil)  specialty chemicals extraction (require in-depth research)



Enzymatic Hydrolysis - uses enzymes to cleave the “carbon-oxygen-carbon” link in cellulose molecule



Acid Hydrolysis - uses acidic protons (H+) to cleave the “carbon-oxygen-carbon” link in cellulose molecule

 Strong, or Weak acid (i.e., concentrated, or dilute)  Sulfuric, Hydrochloric, Nitric, Hydrofluoric, and so on.



Combination of acid/enzymatic hydrolysis

Feedstock requirement:

400,000 BDt

annually or about 1.2 million green tonne

Site of attack by enzymes or acid

BioChemicals in Malaysia:

BioEconomy Transformation Programme, BTP

» » » » Focus is to coordinate and intensify the nation’s efforts to capitalise on the potential economic benefits of the entire biotechnology ecosystem and related value chains Novozyme: Biochemicals will be up to 17% of the global chemical market by 2025 Industrial biochemicals start with renewable materials such as starch, plant sugars and biomass The obstacles: microorganisms or enzymes to convert sugar into biochemicals

The Framework Source: Agensi Inovasi Malaysia, AIM

Progress to date:

Audited ( 17 ), Certified ( 11 ), Awaiting (6)

4,0

Projected Annual RSPO Audit

3,0 2,0 1,0 0,0

2009 2010 2011 2012 2013 2014 2015 2016 2017 Progress in Certification

2011 – 8 Mill certified 2012 – 15 Mill certified (8 +7) 0

ISCC Certified Palm Oil 2011 (Monthly production in mt)

22 200 18 600 15 700 11 400 3400 3400 3400 3400 3400 3400 5 200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

     Support the Government Initiatives.

“Environmentally friendly” – palm biomass (especially efb) is used as fuel. Avoid discriminate dumping & saving on disposal cost. Reduce cost of steam and power generation as compared to petroleum fuel.

Free from petroleum price fluctuations: optimise the utilisation of renewable & sustainable resources.

   

Reduce emission

of CO 2 and CH 4 – Kyoto Protocol on environmental protection. CDM projects.

Jobs and economic opportunities to the locals.

More efficient and reliable power supply to local communities and industries.

Positive image to the organisation, industry and country: “THE WORLD

SUSTAINABLE BIO-ENERGY SOURCE

”.

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Mistakes are painful when they happen.

But year's later collection of mistakes is called experience, which leads to success.

Thank You Terima Kasih

AHMAD NOR AZMAN JAMIN [email protected]

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