Case Study R&D Collaboration between Malaysia and Korea

On FAST PYROLYSIS BIO OIL for

RENEWABLE ENERGY By Mckinlee B Jin/ President of Palm Oligo

Disclaimer: This document contains Company

Confidential Information. The Company is not guarantee

the accuracy of the information in this presentation nor do

we take any responsibility for any consequences as a

result of the usage of this information by anybody.

Background

Malaysia Renewable Energy Development

National Renewable Energy Act 2010 passed in April 2011

Feed-in tariff (FiT) for renewable energies implemented.

RE act targeted 1.27GW of Renewable Energy (RE) generated by biomass power by 2015

Malaysia targeted commitment to reduce up to 40% of carbon emissions and reach the developed country status in 2025

Incentives for Renewable Energy development

BRIEF SUMMARYBRIEF SUMMARY

Background

EPP Bio Oil - Malaysia ETP 9

Renewable Energy Project

Promoted activity under the Economic Transformation Programme

(Palm Oil NKEA)

A 2nd Generation

Biofuel Project

• Additional gross national income (GNI) of RM3.3bil and create 1,000 local jobs by 2020.

• Bio-fuels EPP Chapter 9

• Lipochem BTL International Fast-Pyrolysis Bio Oil Projects

They are private sector companies in Malaysia that are close to commercialising an efficient second generation bio oil production technology. In their business model, the companies will set up 29 bio oil plants across Malaysia by 2020, which will have the potential of producing 3.8 million tonnes of bio oil. The bio oil will then be supplied for power generation as well as for export to countries showing rising demand.

BRIEF SUMMARY C’TNBRIEF SUMMARY C’TN

Converting palm biomass into sustainable biofuel and profitable business venture with long term growth

Palm Biomass

Sustainable Bio Oil

Mission

MISSIONMISSION

Sustainable Growth Sustainable Growth

Lipochem BTL International, a strategic Korean-Malaysia JV company locally incorporated between Korean Owned Palm Oligo Sdn Bhd (POSB) and Lipochem (M) Sdn Bhd

POSB basically an Investment & Project Management company with its cores activities involves oil palm related business in green energy and clean development business venture while Lipochem (M) Sdn Bhd is the process engineering and technology provider specialized in oils & fats engineering industries

Since 2006, R&D collaboration from preliminary feasibility to lab-scale and finally pilot plant involves Korean PoongBaek Industries together with major research Partner; Kangwon National University, Korea Institute of Science and Technology, Hallym University, and Seoul National University, in pyrolysis bio oil renewable technology

1st large scale (5TPD) Fast Pyrolysis Bio Oil Pilot Plant installed at Jalan Kapar, Klang Malaysia. Total investment cost – RM3.5 mil

Overview

COMPANY BACKGROUND COMPANY BACKGROUND

Lipochem BTL International milestones accomplishment in Lipochem BTL International milestones accomplishment in

sustainable growth in Renewable Energy sustainable growth in Renewable Energy

Post Position Name Career

Kangwon

National

University Professor

Dr. Seung

Soo, Kim

Virginia Tech(Major in Chemical Engineering)/Korea

University, Research of Using pyrolysis bio-oil

manufacturing process

Kyung Hee Univ. Professor Dr. Jin Su,

Kim

Yonsei Univ./ University of Cincinnati (Major in Chemical

Engineering)

Research of Using pyrolysis bio-oil manufacturing process

Chungbuk

National Univ. Professor

Dr. Chae

Ho, Shin

Yonsei Univ./ Pierre et Marie Curie (Major in Chemical

Engineering)

Research of FCC catalysts for pyrolysis

Dankuk Univ. Professor Dr. Kyung

Keun, Oh

Korea Univ.(Major in Chemical Engineering)

Research of Biomass pretreatment system

Yeungnam Univ. Professor

Dr. Jin

Young,

Jung

Korea Advanced Institute of Science and Technology.

(Major in Environmental Engineering)

Research of Environmental Devices & Anaerobic digestion

unit

R&D Team R&D Team

BIO OIL PILOT PLANT OVERVIEW BIO OIL PILOT PLANT OVERVIEW

Pyrolysis of biomass dates back to ancient Egyptian times

Since 1980’s, scientists found that the liquid yield of pyrolysis could be increased in fast pyrolysis, where the biomass is indirectly heated and condensed rapidly.

Several fast pyrolysis reactor technologies exist today (Bubbling Fludised Beds/Circulating Fludised Bed/Rotating Cone etc..).

Proven technologies from Canada and USA converting agriculture to wood waste biomass

May 2012 Lipochem BTL International investment in 1st Fast Pyrolysis Bio Oil Pilot Plant installed in Jalan Kapar, Klang Malaysia using palm biomass

Background

TECHNOLOGY OVERVIEW TECHNOLOGY OVERVIEW

• Rapid thermal decomposition of biomass and organic compound in the

absence of oxygen to produce liquids, char, and syngas

Dry feedstock: <wt10% moisture

Small particles: <3 mm

Short gas residence times: 2 - 25sec

Moderate temperatures (400-500oC)

Fast quenching at the end of the process

• Typical product yields

Oil : 60 -70%

Char : 12 -15%

Gas : 13 -25%

BIOMASS

What is Fast Pyrolysis!?

TECHNOLOGY OVERVIEW C’TN TECHNOLOGY OVERVIEW C’TN

Oil Palm biomass,

PKC, PKS, EFB

Char:

10% - 20% by weight

No condensable gases

(re-used in heating process)

Bio Oil : 60 – 70% by wt

Crude Bio-Oil has an energy density of

80,000 Btu/gal; much higher than raw

biomass material.

Char has an energy content of 12,000 Btu/lb

Fast Pyrolysis Bio Oil Overview

TECHNOLOGY OVERVIEW C’TN TECHNOLOGY OVERVIEW C’TN

FAST PYROLYSIS PROCESS FLOW FAST PYROLYSIS PROCESS FLOW

District Heating

Renewable Power

Plant

Combined Heat

and Power plant

Hydrocarbon fuel

BUSINESS OVERVIEWBUSINESS OVERVIEW

Biopower

Generator

Chemical

Bio Oil Applications and Multiple Business Opportunity

CharChar

Solid Fuel Solid Fuel

CoCo--firing Power firing Power Generating PlantGenerating Plant

Enhance Enhance Poultry Poultry

productionproduction

Carbon Carbon SequestrationSequestration

Soil Soil AmendmentAmendment

BUSINESS OVERVIEW BUSINESS OVERVIEW C’TNC’TN

Char Applications and Value-Added Business Opportunity

Fast Pyrolysis PlantFast Pyrolysis Plant

Strategic Partnership

BUSINESS PLANBUSINESS PLAN P

lan

tati

on

C

om

pan

y

Palm Biomass

Solution Provider

Crude Bio Oil Crude Bio Oil

1. To form a Strategic JV partnership with Malaysian plantation to implement the “Fast-Pyrolysis plant” in their mills.

2. To convert all types of palm biomass to produce 2nd generation of Crude Bio Oil as replacement of fossil fuel for sustainable growth in renewable energy

3. To enhance stakeholders value with corporate social responsibility

4. To provides and pursues alternative clean and renewable energy solutions through fast pyrolysis to meet the growing demand in world market

5. To forge and dominate an industry segment that transforms biomass waste management concerns into an energy generating solutions

Objective

PROJECT GOAL’SPROJECT GOAL’S

1. Lipochem BTL International will Guarantee the off-take of the Crude Bio Oil products, hence reduce investment risks

2. Mitigate stakeholder burden transforming palm waste management concerns into energy generating solutions with long term growth

3. Environmental friendly project and complement to Government commitments in renewable energy act

4. Applicable for Government Grant in green energy development

5. Reduce carbon footprint in Malaysia and helps the economy grow

6. Competitive advantage from Lipochem BTL International ’s Korean-Malaysia technology with PROVEN large scale of pilot plant in Klang.

Benefits

PROJECT GOAL’S C’TNPROJECT GOAL’S C’TN

U.S. Energy Policy Energy Independence & Security Act (2007) and renewable Fuel Standard 2

(2010) - Total starch (food) based biofuel production capped at 57B L/yr - Cellulosic & other advanced biofuel planned production of 23B L/yr by 2015,

140B L/yr by 2022

European Union Energy Policy Reduce total domestic greenhouse gas emission by 80%, relative to 1990, by

2050 90% of aviation fuel to be biofuel blends by 2050

The Government of Japan and Korea committed to Min.2% replacement with bio-mass based resources for power generation in all power plants which run by fossil fuel.

Market Demand

GLOBAL OUTLOOKGLOBAL OUTLOOK

Proven Technology in the field

Bankability – Green Energy Development

Sustainable Feedstock’s 1

2

4

5

3 Global Market Demand and Government Commitments in Renewable Energy Act

Strategic Partnership – A Win-Win Business Venture

6

7

8

Commitment to a Safe and Clean Environment

Project is Economical Viable

Sustainable Growth for Renewable Energy

COMPETITIVE ADVANTAGESCOMPETITIVE ADVANTAGES

Factors driven by oil price hikes; the need for increase energy

security; concern over greenhouse gas emission and global

support on green development policy

Global Demand from EU, North America, Asia (Japan & Korea etc)

biofuel commitments

Malaysia commitment to reduce up to 40% of carbon emissions

and reach the developed country status in 2025

Based on sustainable feedstock’s, positive global market demand

and technological progresses, production of crude bio oil as

replacement fossil fuel using Fast Pyrolysis Technology is one of the

best possible high-values utilization of biomass generated at oil

palm plantation and the project is economically viable hence is ready

for immediate commercialization

Conclusion

CONCLUSIONCONCLUSION

Ultimate GoalUltimate GoalUltimate GoalUltimate Goal

Deliver Successful Technology Deliver Successful Technology Deliver Successful Technology Deliver Successful Technology

Solution to Convert Sustainable Solution to Convert Sustainable Solution to Convert Sustainable Solution to Convert Sustainable

Palm Biomass into Values Products Palm Biomass into Values Products Palm Biomass into Values Products Palm Biomass into Values Products

for Sustainable Growth in for Sustainable Growth in for Sustainable Growth in for Sustainable Growth in

Renewable Energy Renewable Energy Renewable Energy Renewable Energy

Biomass Feed Typical pyrolysis bio oil yield, wt% of Dry Feedstock

Hardwood Softwood Hardwood Bark Softwood Bark Corn Fiber Bagasse Waste paper Palm Kernel Cake Empty Fruit Bunch

70-75 70-80 60-65 55-65 65-75 70-75 60-80 60-70 60-70

Yields For Various Feeds

Fuel MJ/ Liter

BTU/ US Gallon

Methanol 17.5 62,500

Pyrolysis bio oil

19.9 71,500

Ethanol 23.5 84,000

Heavy Fuel Oil (#2)

42.1 151,300

Comparison of Heating Value of

Pyrolysis Bio oil and Typical Fuels

Typical Production Yields – Bio Oil

TYPICAL REFERENCESTYPICAL REFERENCES

Property Value Test Method

Gross Heat of combustion, MJ/kg Point, ̊C

15 min ASTM D240

Pyrolysis Solid Content, wt%

2.5 max ASTM D7544, Annex I

Water content wt% 30 Max ASTM E 203

PH Report ASTM E70

Kinematic Viscosity, cSt @ 40 ̊C

125max ASTM D445

Density, kg/dmᶾ @

20 ̊C 1.1-1.3 ASTM D4052

Sulfur content wt% 0.05 ASTM 4294

Ash content wt% 0.25 ASTM 482

Flash point, ̊C 45 min ASTM D93, Procedure B

Pour Point, ̊C -9max ASTM D97

• Pourable, storable and

transportable liquid fuel

• Energy densification relative

to biomass

• Energy content is equivalent

to approximately 50-55% of

fossil fuel

• Consistent quantity. ASTM

D7544, standard specification

for pyrolysis liquid biofuel,

established since 2009

TYPICAL BIO OIL PROPERTIESTYPICAL BIO OIL PROPERTIES

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