1 NATIONAL KEY ECONOMIC AREAS (NKEA) NATIONAL BIOGAS implementation (EPP5) BIOGAS CAPTURE AND CDM PROJECT implementation FOR PALM OIL MILLS Updated: 9 October 2014 CONTENTS Page Introduction Purpose 1 National Key Economic Area (NKEA) 1 NKEA: Palm Oil 2 EPP 5: Build BIOGAS Facilities At Mills Across Malaysia BIOGAS as Potential Renewable Energy (RE): Why Embark on 3 BIOGAS CAPTURE ? Benefits of BIOGAS CAPTURE 3 How to CAPTURE BIOGAS ? 4 Comparison of BIOGAS CAPTURE Technologies 5 Total Potential of BIOGAS from POME 6 Utilization of BIOGAS CAPTURE 7 Technical Configurations of BIOGAS Utilization in Palm Oil 7 Mills Option for Utilization 7 Combined Heat and Power (CHP) 7 Steam Generation 9 Electricity Generation 11 Downstream Business Activities 13 Other Potential Applications 18 Incentives for Renewable Energy (RE) 21 Technology Providers for BIOGAS implementation 23 List of Sustainable Palm Oil Mills 25 Clean Development Mechanisms (CDM) 27 Benefits of CDM projects 27 Estimated CER from BIOGAS CDM PROJECT 28 National PROJECT CDM criteria 28 List of CDM Consultants in Malaysia 30 Disclaimer.
2 Information contained herein is given in good faith to assist the oil palm industry in considering and evaluating BIOGAS projects. Readers are advised to check to confirm facts, figures and other information contained herein and seek independent professional advice. We welcome any feedback to constantly improve this booklet. 1 | P a g e NKEA: EPP 5 INTRODUCTION Purpose The purpose of this document is: To encourage palm oil mills in Malaysia to implement BIOGAS trapping and utilisation; and To inform palm oil millers on the benefits of BIOGAS trapping and provide the relevant information to facilitate planning and implementation . The importance of BIOGAS trapping is evident from its inclusion as one of the eight Entry Point Projects (EPPs) of the palm oil National Key Economic Area (NKEA). National Key Economic Areas (NKEA) Malaysia is to focus on 12 NKEAs to boost the economy and achieve a high income status by 2020.
3 These 12 NKEAs are the core of the Economic Transformation Programme (ETP) and will receive prioritised government support including funding, top talent and Prime Ministerial attention. In addition, policy reforms such as the removal of barriers to competition and market liberalisation will be carried out if required. There will be dedicated attention from the Prime Minister and fast-track mechanisms to resolve disputes or bottlenecks in implementing the NKEAs. National Key Economic Area (NKEA) Economic Sectors Oil, gas and energy Palm oil Financial services Wholesale and retail Tourism Information and communication technology Education Electrical and electronics Business services Private healthcare Agriculture Greater Kuala Lumpur 2 | P a g e NKEA: EPP 5 NKEA: Palm Oil Malaysia s palm oil industry is one of the largest contributors to the national economy.
4 In 2009, it accounted for RM53 billion in Gross National Income (GNI). This GNI is targeted to increase by RM125 billion to reach RM178 billion by 2020. As a major contributor to economic growth, the Palm Oil NKEA programme plans to implement eight core Entry Point Projects (EPPs) spanning the palm oil value chain. The palm oil EPPs are as follows; Palm Oil NKEA Programme EPP 1 Accelerated replanting to clear backlog of old, low yielding palms Upstream EPP 2 Increase the national fresh fruit bunch (FFB) yield productivity and EPP 3 Improve workers productivity through the sustainability introduction of innovative techniques in harvesting EPP 4 Increase national average oil extraction rate (OER) EPP 5 Build BIOGAS facilities at mills across Malaysia EPP 6 Shift Malaysia s focus towards high value oleo Downstream derivatives expansion EPP 7 Emphasise early commercialisation of second and generation biofuels sustainability EPP 8 Expedite growth in food & health-based downstream segment EPPs No.
5 5 aims to achieve the installation of BIOGAS facilities in all palm oil mills in Malaysia by 2020. 3 | P a g e NKEA: EPP 5 EPP 5: BUILD BIOGAS FACILITIES AT MILLS ACROSS MALAYSIA BIOGAS as Potential Renewable Energy (RE): Why embark on BIOGAS CAPTURE ? It is important for the palm oil industry to CAPTURE BIOGAS from palm oil mill effluent (POME). The reasons and benefits of BIOGAS CAPTURE are many. These include additional revenues from sale of surplus energy and carbon credits. Furthermore, reducing the carbon footprint through BIOGAS CAPTURE enables competitive market access of palm products particularly palm biodiesel to environmentally-sensitive markets such as the European Union and the United States. Objectives of BIOGAS CAPTURE To reduce greenhouse gases (GHG) emissions to the atmosphere from POME To convert POME to renewable energy ( BIOGAS ) for in-house or peripheral use ( for gas engine, boiler, etc) To produce electricity for grid connection Benefits of BIOGAS CAPTURE Reduces GHG emissions methane and CO2 which cause global warming Reduces land use for POME treatment Generates additional revenue in the palm oil milling process Eligible for Clean Development Mechanism (CDM) application The CDM PROJECT transforms GHG emission reduction into cash through sale of carbon credits Reduces global and local environmental pollution impacts Reduces dependence on fossil fuel, and enhances fuel diversity and security of energy supply 4 | P a g e NKEA: EPP 5 How to CAPTURE BIOGAS ?
6 The capturing of BIOGAS from POME has attracted keen interest in the palm oil industry. This is because of the vast potential of BIOGAS as a clean renewable fuel as well as for the mitigation of GHG emissions. BIOGAS projects are eligible for the Clean Development Mechanism (CDM) scheme under the Kyoto Protocol, United Nation Framework Convention on Climate Change. Registered projects will qualify for certified emission reductions (CER) or carbon credits. Capturing of BIOGAS from POME can be carried out using a number of various local or foreign technologies. The closed-tank anaerobic digester system with continuous stirred-tank reactor (CSTR), the methane fermentation system employing special microorganisms and the reversible flow anaerobic baffled reactor (RABR) system are among the technologies offered by the technology providers.
7 Ponding system for palm oil mill effluent (POME) treatment and covered lagoon technology 5 | P a g e NKEA: EPP 5 Comparison of BIOGAS CAPTURE Technologies Several systems to generate BIOGAS from POME have been developed using both local and foreign technology. The technologies are summarised as follows: Name of System Life term HRT Effluent from the Volume of technology (years) (days) digester tank BIOGAS provider generated BOD COD (mg/L) (mg/L) Keck Seng Continuous 20 18 250-500 8000-12,000 ~ stirred tank Nm3/kg of reactor (CSTR) COD Majurutera Complete 10 - - - 20 m3/tonne stirred tank of POME reactor (CSTR) BIOGAS High efficiency 20-25 9 50-270 1400-2500 >26-30 m3/ Environment methane tonne of Engineering (BEE) fermentation POME system SIRIM (pilot scale)
8 Reversible flow 20 10-15 - 6000 Nm3/kg anaerobic of COD baffled reactor (RABR) UPM-FELDA- Semi- 25 10 - 2000 20 m3/tonne Kyushu Institute commercial of POME of Technology closed anaerobic digester Ronser Bio-Tech AnaEG 20 9 800- 2000-2800 > Nm3 /kg and Shanghai- (Combination 1000 of COD Jiaotong of UASB and University zero- EGSB discharge technologies) treatment technology Biotec Asia Covered lagoon - 22 - - 23 m3/tonne International Sdn biodigester of POME Bhd 6 | P a g e NKEA: EPP 5 Total Potential of BIOGAS from POME The estimated potential energy generated from BIOGAS in Malaysia is million MWhr of electricity which is equivalent to 261 MW of the potential power based on 21% efficiency in a steam plant (based on yield of FFB in 2009).
9 Material Production Rate Quantity FFB (mil. tonnes) Effluent 67% of EFB million tonne = million m3 BIOGAS 28 m3 m-3 million m3 BIOGAS CV at 35 C 20 MJ m-3 million MJ Total heat value x 20 million MJ million MWhr = million MJ *1 MWhr = 1 MJ/3600 Power Output 21% of heat output million MWhr x 21% = million MWhr Power plant size Plant operates 300 days year-1 1 880 000 / 7200 = 7200 hr year-1 = MW 7 | P a g e NKEA: EPP 5 Utilization of BIOGAS BIOGAS can be used for various applications in place of natural gas. Since most boilers do not require high quality gas specifications, the use of BIOGAS in boilers is most encouraged and has been increasing rapidly. Stationary engines of pumps, generators and power tools are also a popular option for the utilization BIOGAS .
10 In vehicle fuel, upgrading of the BIOGAS quality is necessary. Upgrading the BIOGAS includes the reduction of H2S and CO2. Connecting the electricity generated to the national electricity grid is another profitable way of utilizing the BIOGAS , which is in tune with the target set in the Malaysian Fifth Fuel Policy of achieving 5% of national grid-connected electricity generation from renewable sources. Technical Configurations of BIOGAS Utilization in Palm Oil Mills There are various ways of utilizing POME BIOGAS in palm oil mills. With the proper technical configuration and system, BIOGAS generated from the POME can be converted into useful energy either for heat, electricity or both. The setting up of BIOGAS plants in palm oil mills would be useful to mills that require additional power for other plants in the palm oil mill such as the EFB fibre plant or kernel crushing plant, as well as for grid-connection under the Small Renewable Energy Power (SREP) Programme.