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FELDA PALM INDUSTRIES SDN. BHD
Development of Biogas Projects in Felda Global Ventures – Reflections & Way Forward and Opportunities for Value Creation in Palm Oil Based Biogas Biogas Asia Pacific Forum 2015, Kuala Lumpur Mohamed Fazil Mohamad Saad, Biomass Department, Felda Palm Industries Sdn. Bhd. Presentation Contributors : Ir. Mohd Rozali b. Ahmad, Mohd Redzuan Hassan, Abdul Latib Derassit, Mohd Kamahl Kamaruddin, Mohd Hazri Hanapi, Izzat Shaharuddin, Rahmat Dzulhairi Mohamed - FPISB
PRESENTATION CONTENT : INTRODUCTION TO FGV & FPI
HIGHLIGHTS OF BIOGAS PROJECTS CHALLENGES & WAY FORWARD
INTRODUCTION
Global Coverage
Felda Global Ventures Holdings Berhad (FGV) operates as a Malaysian based global agricultural and agri-commodities company. FGV produces oil palm and rubber plantation products, soybean and canola products, oleochemicals and sugar products. FGV was founded in 2007 and based in Kuala Lumpur, Malaysia. The company is listed on Bursa Malaysia under Main Market.
Introduction
Introduction to Felda Palm Industries Sdn. Bhd.
One of subsidiary of Felda Global Ventures ( FGV )
Felda Palm Industries Sdn Bhd - incorporated 1995
No of Mills - 70 ( as of 2015 )
No of Employees - +/- 6000
FPISB is currently the largest producer of CPO & PK globally
Palm oil industry is only second to oil & gas industry in terms of contribution to GNP in
Malaysia
FPISB had embarked on progressive, consistent biomass initiatives since 2000
1) 1998 : R&D Collaboration with MPOB
2) 1999: Designed, built & patented EFB processing equipment
1) 2002 : BOD approved 1st EFB based power plant in Sahabat Complex in 2002
2) Continuous operation from 2005 till now
3) IPP Sahabat recognised as 1st Clean Development Mechanism Project in Malaysia
1) 2006 : CDM strongly promoted for biogas capture
2) EFB compost facilities installed targeted for internal consumption, utilising POME thus eligible for CDM projects
3) Unfortunately, CER market collapsed due to low interest to CDM from developed countries
1) 2012 : SEDA was created & Feed-in-Tariff established – selling electricity to National Grid is potentially revenue generating endeavour without depending on CDM 2) 2013 : FNI Biofuel ( EFB Pelleting Plant ) successfully operated 3) FPI continue to build more biogas projects in mills 4) Reactor design for Biogas Plant i.e Maokil, Sg Tengi & Tenggaroh increased to > 45,000 cubic meter, potential gas generation of 1500 m3/hour, displaying confidence in design scale up 5) Serting Hilir Biogas Plant successfully connected to the grid
1) 2015 : 17 biogas capture plant successfully operated
2) First foray into bio-CNG, strategic collaboration with MPOB & Sime Darby Offshore Engineering as EPCC contractor
3) MPOB directive : all mills to be fitted with biogas capture facilities by 2020
1990 - 2000 2000 - 2007 2008 - 2011 2011 - 2012 2012 - 2015
Felda Palm Industries Biomass Department
FPISB BIOGAS PROJECT LOCATION - MALAYSIA
Biogas Project Biogas with Power Generation Biogas with Gas Compression
Biogas to Grid – Nitar POM
Biogas to Grid – Tenggaroh POM
Rural Electrification – Umas POM
Biogas to boiler – Kemahang POM
BIOGAS UTILIZATION : PALM OIL MILLING CONTEXT
Palm Oil Mill Processing
Fresh Fruit Bunches
POME : 60 – 70% of FFB
Anaerobic Digestion & Gas Capturing Facility
*BioCNG main application as industrial heating
Power
BioCNG
NGV
Boiler
Flaring
Options for Biogas Capture
Connection to Grid
Basic Biogas Facilities
Flaring
Mill Use – Boiler or Engine
National Grid through FiT
Direct Sale of Energy and Rural
Electrification
Other Options Bio-Compressed Natural Gas (CNG)
• Basic facility
• Flaring has no revenue generation
• Energy cost savings for mills using
boiler
• No load at the area based on
Power System Study by TNB
• Interconnection Point, too far from
mill (>5 km)
• Biogas Engine for internal use
( diesel fuel displacement )
• Requires FiT quota for National Grid
• Revenue generation
• High CAPEX
• 1st commercial pilot plant in Sg.
Tengi POM
• Natural gas & revenue
generation
• High CAPEX
• Compressed gas sold to
industrial customer
BIOGAS UTILIZATION : CONSIDERATIONS
Source: MPOB, Pemandu Biogas Workstream NKEA Lab February – March 2015
HIGHLIGHTS OF FPISB BIOGAS PROJECTS
Rural Electrification
Bio-Compressed Natural Gas
Project Background & Impact: Electricity Generation from gas engine (1,200 kW capacity ) using
biogas produced from biogas plant utilised as fuel source and diesel displacement in Felda cluster Umas , Tawau, Sabah.
Starting of Operation : 2013 ; officially launched by Minister of KETTHA
Biogas Pond Reactor Capacity : 46,000m3 ( Palm Oil Mill Effluent ) at 1,000 m3 / hour Electrical generation capacity from gas engine : 1,200kW ( 1 unit gas engine)
Electric Distribution Area : Felda Umas Cluster, Tawau, Sabah. (3,000 houses, estimated 15,000 settlers, Felda staff & family)
RURAL ELECTRIFICATION : BIOGAS POWER PLANT UMAS PALM OIL MILL, TAWAU, SABAH
BEFORE & AFTER IMPACT OF USAGE OF BIOGAS ENGINE TO FELDA UMAS SETTLERS
SCHEME*
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
PER
CEN
TAG
E O
F E
LEC
TRIC
AL
SU
PP
LY (
KW
H )
REDUCTION OF ELECTRIC SUPPLY FROM DIESEL ENGINE
Diesel Engine Supply Biogas Engine Supply
*Report & Monitoring by M. Hazri, Izzat S., Rahmat Z. M. Saufi - FPISB
BIO-COMPRESSED NATURAL GAS :
SG TENGI PALM OIL MILL, SELANGOR
Back in 2013, MPOB, FPISB & SDOE agreed to jointly collaborate on development of bio-
compressed natural gas (BioCNG) from palm oil mill effluent (POME).
OBJECTIVE : To be the pioneer project to demonstrate feasibility of biogas utilization as fossil fuel
replacement at industrial scale. Promoting BioCNG as viable alternative option other than grid connection project.
Project included in Malaysia’s NKEA - EPP 5 Project had successfully obtained conditional ‘Manufacturing License’ from MITI and also
approval on tax exemption & tax incentives from MIDA.
MPOB extensive support for project includes R&D, joint feasibility study & policy advisor
GENERAL PROJECT FLOW DIAGRAM
BIOGAS PLANT > 40,000 M3 BIOGAS POND REACTOR
1 UNIT BIOGAS ENGINE 600 kW + Scrubber System
BioCNG Plant 600 m3/hr capacity 79,760 MMBTU/year targeted output
600 M3 biogas at 65% CH4
200-300 M3 biogas at 65% CH4
250 - 400 kW electric power for BioCNG Plant
Status : • Operating 100% • Gas produced currently at
900 – 1000 m3/hour.
Chiller & Heat
Exchanger
Water Scrubber
2nd Stage H2S
Scrubber
Air Water Cooling System
Dispenser
1st Compressor (>120 kW) & Membrane
Separation System
Gas Odorizing System &
2nd Compressor (>70 kW)
BioCNG PROJECT – MACHINERY DESCRIPTION & TECHNICAL DATA*
*Prepared by M. Kamahl - FPISB
Inlet raw biogas – 660m3/hr ( 65% CH4 , 35% CO2 ,< 400 ppm H2S ex-first stage) Outlet biogas, BioCNG – 400m3/hr ( 97% CH4 , 3% CO2 , ≤ 10ppm H2S )
BIO-CNG AS RENEWABLE ENERGY - QUALITY
Raw Biogas -POME
60 – 65% Methane
30-35% CO2 2500 ppm H2S
Natural Gas Specification
> 94 % Methane
4% CO2 < 10 ppm H2S
250 barG
Pre-treatment to gas
compression
Transport
Potential Customers
CHALLENGES AND WAY FORWARD
Geographical location of mills suitable for connection to grid limited
Limited quota given by SEDA and this limits the number of mills to be connected to the grid
under the FiT Programme
High Capex and Opex for biogas capture facilities
Limited options for biogas facilities other than connection to grid and flaring/boiler
CHALLENGES FACING PALM OIL INDUSTRIES TO DEVELOP MORE BIOGAS PLANT
15 - 18
8
12 - 15
7
Grid Connection (FiT) Co-Firing
Capex (RM mil)
Digester Tank Covered Lagoon
400 - 600
300
200 - 400
200
Grid Connection (FiT) Co-Firing
Opex (RM ‘000)
Digester Tank Covered Lagoon
Source: MPOB, Pemandu Biogas
Workstream NKEA Lab
February – March 2015
Utilization Biogas to Grid Bio - CNG
Project Feasibility
• Mill location, load availability (PSS), FiT quota pre requisite to project
• Mill location ( near to customer ) • Volume of biogas
Economic Returns
• Depends on CAPEX, Technology Selection, FiT tariff rate
• Fixed rate up to 16 years ( stable )
• Depends on CAPEX, Technology Selection, CNG market price
• Exposure to market fluctuations
Operational Aspect • Trained personnel i.e Electrical Chargeman – competent person
• Trained personnel – no competent person needed ( yet )
Green Initiative • Reduction of carbon footprint • Support to company’s green
agenda
• Reduction of carbon footprint • Support to company’s green agenda
Scale / Volume • More than 45 mt/hr capacity mill • Options of 1.0, 1.2, 1.6 up to 2 MW
• More than 45 mt/hr capacity mill • Scale is from 70,000 – 110,000
MMBTU/year
BIOGAS UTILIZATION MATRIX : POINTS TO REFLECT
WAY FORWARD Biogas is indeed one of the potential revenue stream for mill Potential Lever to spur biogas development & further unlock its value in palm oil sector :
Good, reliable utilization technology with reasonable CAPEX ( consistent biogas production, robust engines, low waiting time for parts, low maintenance cost )
Government policy and support i.e tax exemptions, funds for new technology, increase in FiT quota
Regulation – Possibility of MPOB to mandate all mills equipped with biogas in future
THANK YOU