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GREEN TECHNOLOGY. FINANCING SCHEME. FOR . BIOMASS PROJECTS. Syed Ahmad Syed Mustafa Head, GTFS Strategic Planning, Alliance & Business Development Division. May 2012. TABLE OF CONTENTS. BIOMASS IN MALAYSIA. Source: UPM. Source: JPSPN. MUNICIPAL SOLID WASTES .
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GREEN TECHNOLOGY FINANCING SCHEME FOR BIOMASS PROJECTS Syed Ahmad Syed Mustafa Head, GTFS Strategic Planning, Alliance & Business Development Division May 2012
BIOMASS IN MALAYSIA Source: UPM Source: JPSPN
MUNICIPAL SOLID WASTES Current state of affairs • Reduce dependence on landfills • lack of areas for new landfills especially within major conurbation and corridors • landfills increase methane and GHG emissions causing climate change • negative public perception on landfills • 25,000 tons/day waste generated in Peninsular Malaysia in 2012 • Only an estimated of 5% recycled. • Landfills are the only means of disposal. • Life span of landfill 5-10 years New sustainable SWM technologies are required to address environmental issues. Emerging technologies are available and looks promising but viability needs to be verified. Source: JPSPN
Oil Palm Biomass • Palm oil industry is 4th largest contributor to GNI (8% or RM50 million of GNI) • Malaysia is the 2nd largest producer in the world and largest exporter for CPO • Produce 80 mil tonnes solid biomass/ yr and 60 mil tonnes of POME in 2010 • In 2020 solid biomass and POME volume expected to increase to 85-110 mil tonnes/ yr and 70-110 mil tonnes / yr respectively
OIL PALM BIOMASS 21% CPO 22%-24% EFB Biomass Fronds 1 MT of FFB 12%-13% MesocarpFibre 5%-6% Shell Trunks 65%-70% POME 6%CPKO
WHAT IS GTFS? 3-YEAR PERIOD (2010-2012) Soft loan scheme initiated by the government to facilitate the improvement of supply and utilization of Green Technology by providing easier access to financing. RM1.5b ALLOCATION
LET IT BE GREEN! THE GREEN PROJECTS CRITERIA Minimize degradation of environment; Zero or low green house gas emission; Safe for use and promotes healthy and improved environment for inhabitants Conserve the use of energy and natural resources; and Promote the use of renewable energy resources.
GTFSTERMS i) CRITERIA
GTFSTERMS ii) OTHERS Financing will be provided by all commercial & Islamic banks, Development Finance Institutions (DFIs) 2% p.a. of government’s subsidy 60% government guarantee of financing approved 0.5% p.a. guarantee fee to the government Projects are to be located in Malaysia Refinancing is not allowed.
GTFS STATUS
201 APPLICATION PROCESSED AMOUNTING TO RM3.4BILLION IN GREEN COSTS
178 PROJECTS CERTIFIED AMOUNTING TO RM3.3BILLION IN GREEN COSTS
43 PROJECTS SECURED FINANCING AMOUNTING TO RM659.1 MILLION AND RM188.2 MILLION DISBURSED
37 GTFS CERTIFIED BIOMASS PROJECTS AMOUNTING TO RM855 MILLION IN GREEN COST
CRITICAL SUCCESS FACTORS CAPITAL OFFTAKE MANAGEMENT PROVEN TECHNOLOGY FEEDSTOCK SUPPLY BUSINESS SENSE
Biogas Plant Criteria: Biogas power plant (RE ) Category: Producer CER-53,000tCO2/yr 28
Paper FromWaste (Oil Palm EFB) Criteria: EFB based paper Category: Producer CER-109,165tCO2/yr 29
Pellet Production Criteria: Green pellets & flakes Category: Producer CER-60,054tCO2/yr 30
Composting Criteria: Bio-compost Category: Producer CER-28,594tCO2/yr 31
Dry Fiber Criteria: EFB dry fiber Category: Producer CER-3,910tCO2/yr 32
ABOUT GREENTECHMALAYSIA Transformation INCEPTION: 12 MAY 1998 FOCUS Technology and Research Centre in the Energy Sector focussing on EE and RE. CHANGED NAME: 7 APRIL 2010 MANDATE Implementation Agency for development of Green Technology
Activities… 34
Thank You Malaysian Green Technology Corporation (462237-T) No. 2, Jalan 9/10, PersiaranUsahawan, Seksyen 943650 Bandar BaruBangi, Selangor DarulEhsan Website: www.gtfs.my Hotline: 1-800-88-4837