Plantation Based Sustainable Resources & Green Initiatives Towards Bio-Economic Potentials

1. AHMAD NOR AZMAN JAMIN BIOMASS DEPT FELDA PALM INDUSTRIES SDN BHD INTERNATIONAL PLANTATION INDUSTRY CONFERENCE & EXIBITION (IPiCEX 2012) 5 TO 7 November 2012 Plantation Based Sustainable Resources & Green Initiatives Towards Bio-Economic Potentials

2. The Resources & Bio-Based Industries

3. 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 Geographical spread of the palm oil industry in Malaysia Source: Economic Transformation Programme Handbook Palm Based Biomass:Main RE Source

4. Current Practices & Initiatives

5. Waste (By-product) Management Recycling of Biomass - Zero burning Empty Fruit Bunch + Mill Effluent = Compost Field grasses as feed for cattle 3rd International Plantation Industry Conference & Exhibition

6. Waste Utilisation: Composting Projects EFB Shredding POME Spraying Windrow Formation 6 Compost Plants Microbial Inoculation & Pile Turning Empty Fruit Bunches (EFB) After 10 weeks Field Application of Compost POME Spraying & Pile Turning: Every 3 Days Windrow cover 3rd International Plantation Industry Conference & Exhibition

7. Compost Production Facilities 3rd International Plantation Industry Conference & Exhibition

8. BIO-ENERGY Biomass:1. Co-gen, Sahabat, Sabah2. Grid-connected, Jengka, Pahang Biogas:1. Trapping2. Electricity Generation3. Heat source 3rd International Plantation Industry Conference & Exhibition

9. CO-GEN PLANT:ABOUT THE PLANT & DESIGN • 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 SUPPLY OUTPUT: Maximum Output -7.2 MW Current Output (80%) - 6.0 MW CONSUMERSMW Kernel Crushing Plant - 2.0 Sahabat Oil Product - 1.5 Domestic - 1.0 Parasitic - 1.5 6.0 3rd International Plantation Industry Conference & Exhibition

10. 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. Grid-Connected: Biomass Based Power Plants 3rd International Plantation Industry Conference & Exhibition

11. POME from Palm Oil Mill Gas flare (safety/ excess) or to boilers Holding tank Electricity to national grid or own use Gas purifier Heat exchanger Gas dewatering well Floating cover AD will also acts as gas storage. Storage capacity up to 3 hrs. Engine room Anaerobic digester (AD) tanks (primary and secondary treatment) Biogas Trapping and Applications 12 In-operation 5 Construction stage 12 Plan for 2012/13 Target: All biogas to be captured & used by 2016

12. Biogas Capturing Facility (Completed)

13. Biogas Capturing Facility (Completed/Under Construction)

14. Challenges & Potentials

15. 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 Global Energy Crisis

16. 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. RE: Emerging Energy Source Renewables increasing its share in world energy consumption Source: International Energy Outlook 2011

17. 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. The European Union: Encouraging Energy Production from Waste

18. 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

19. The Technology

20. Pyrolysis & Gasification Technology: The facilities: Able to produce Bio-oil and generating electricity using gas turbine. Possibility to produce bio-Ethanol. Feedstock materials & BtL sample

21. Palm Oil Mills Pyrolysis Technology Kembara Sakti Water requirement for cooling system Bio-Oil Plant Jeragan Bestari Hamparan Badai • 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) Nilam Permata Bio Oil Production Concept

22. 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 Biochemicals: Industrial Sugar Site of attack by enzymes or acid Feedstock requirement: 400,000 BDt annually or about 1.2 million green tonne

23. 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 BioChemicals in Malaysia:BioEconomy Transformation Programme, BTP The Framework Source: Agensi Inovasi Malaysia, AIM

24. Progress to date: Audited (17), Certified (11), Awaiting (6) Progress in Certification 2011 – 8 Mill certified 2012 – 15 Mill certified (8 +7) VISION & PROGRESS IN CERTIFICATION: RSPO & ISCC

25. 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 CO2 and CH4 – 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”. CONCLUSION 3rd International Plantation Industry Conference & Exhibition

26. Mistakes are painful when they happen. But year's later collection of mistakes is called experience, which leads to success. Thank You TerimaKasih AHMAD NOR AZMAN JAMIN Ahmad.naj@felda.net.my 3rd International Plantation Industry Conference & Exhibition