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
Introduction 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. Global Coverage
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
1990 - 2000 2000 - 2007 2008 - 2011 2011 - 2012 2012 - 2015 Felda Palm Industries Biomass Department 1) 2015 : 17 biogas capture plant successfully operated 1) 2012 : SEDA was created & Feed-in-Tariff established – selling 2) First foray into bio-CNG, electricity to National Grid is strategic collaboration with potentially revenue generating MPOB & Sime Darby Offshore 1) 2006 : CDM strongly Engineering as EPCC endeavour without depending on promoted for biogas capture contractor CDM 2) EFB compost facilities 2) 2013 : FNI Biofuel ( EFB Pelleting 3) MPOB directive : all mills to installed targeted for internal be fitted with biogas capture Plant ) successfully operated consumption, utilising POME facilities by 2020 3) FPI continue to build more thus eligible for CDM projects 1) 2002 : BOD biogas projects in mills approved 1 st EFB 3) Unfortunately, CER market 4) Reactor design for Biogas Plant collapsed due to low interest to based power plant in i.e Maokil, Sg Tengi & Tenggaroh Sahabat Complex in CDM from developed countries increased to > 45,000 cubic meter, 2002 potential gas generation of 1500 2) Continuous m3/hour, displaying confidence in operation from 2005 design scale up till now 5) Serting Hilir Biogas Plant 1) 1998 : R&D 3) IPP Sahabat successfully connected to the grid Collaboration with recognised as 1 st Clean MPOB Development 2) 1999: Designed, built Mechanism Project in & patented EFB Malaysia processing equipment
FPISB BIOGAS PROJECT LOCATION - MALAYSIA Biogas to boiler – Kemahang POM Rural Electrification – Umas POM Biogas to Grid – Nitar POM Biogas to Grid – Tenggaroh POM Biogas Project Biogas with Power Generation Biogas with Gas Compression
BIOGAS UTILIZATION : PALM OIL MILLING CONTEXT Fresh Fruit Bunches Power BioCNG Palm Oil Mill Processing NGV Boiler Flaring Anaerobic Digestion & POME : 60 – Gas Capturing 70% of FFB Facility *BioCNG main application as industrial heating
BIOGAS UTILIZATION : CONSIDERATIONS • Basic facility • Flaring has no revenue generation • Energy cost savings for mills using Flaring boiler • No load at the area based on Basic Biogas Power System Study by TNB Facilities • Interconnection Point, too far from Mill Use – mill (>5 km) • Biogas Engine for internal use Boiler or ( diesel fuel displacement ) Engine National Grid • Requires FiT quota for National Grid through FiT • Revenue generation • High CAPEX Options for Connection to Biogas Capture Grid Direct Sale of Energy and Rural Electrification • 1 st commercial pilot plant in Sg. Tengi POM Bio-Compressed • Natural gas & revenue Other Options Natural Gas (CNG) generation • High CAPEX • Compressed gas sold to industrial customer Source: MPOB, Pemandu Biogas Workstream NKEA Lab February – March 2015
HIGHLIGHTS OF FPISB BIOGAS PROJECTS Rural Electrification Bio-Compressed Natural Gas
RURAL ELECTRIFICATION : BIOGAS POWER PLANT UMAS PALM OIL MILL, TAWAU, SABAH 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 : 46,000m 3 ( Palm Oil Mill Effluent ) at 1,000 m 3 / 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)
BEFORE & AFTER IMPACT OF USAGE OF BIOGAS ENGINE TO FELDA UMAS SETTLERS SCHEME* REDUCTION OF ELECTRIC SUPPLY FROM DIESEL ENGINE 100% PERCENTAGE OF ELECTRICAL SUPPLY ( KWH ) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 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 M alaysia’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 1 UNIT BIOGAS ENGINE > 40,000 M3 BIOGAS POND REACTOR 600 kW + Scrubber System 200-300 M3 biogas at 65% CH4 250 - 400 kW electric Status : power for BioCNG • Operating 100% 600 M3 Plant • Gas produced currently at biogas at 65% 900 – 1000 m3/hour. CH4 BioCNG Plant 600 m3/hr capacity 79,760 MMBTU/year targeted output
BioCNG PROJECT – MACHINERY DESCRIPTION & TECHNICAL DATA* Air Water Dispenser Cooling System 2 nd Stage H 2 S Scrubber Gas Odorizing System & 2 nd Compressor (>70 kW) Chiller & Heat Exchanger 1 st Compressor (>120 kW) & Membrane Separation System Water Scrubber 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 ) *Prepared by M. Kamahl - FPISB
BIO-CNG AS RENEWABLE ENERGY - QUALITY Potential Natural Gas Raw Biogas - Customers Specification POME > 94 % Methane 60 – 65% Pre-treatment 4% CO2 Methane Transport to gas < 10 ppm H2S 30-35% CO2 compression 2500 ppm H2S 250 barG
CHALLENGES AND WAY FORWARD
CHALLENGES FACING PALM OIL INDUSTRIES TO DEVELOP MORE BIOGAS PLANT 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 Capex (RM mil) Opex (RM ‘000) 15 - 18 400 - 600 200 - 400 12 - 15 8 7 300 200 Source: MPOB, Pemandu Biogas Workstream NKEA Grid Connection (FiT) Co-Firing Grid Connection (FiT) Co-Firing Lab February – March Digester Tank Covered Lagoon Digester Tank Covered Lagoon 2015
BIOGAS UTILIZATION MATRIX : POINTS TO REFLECT Utilization Biogas to Grid Bio - CNG • • Project Feasibility Mill location, load availability (PSS), Mill location ( near to customer ) • FiT quota pre requisite to project Volume of biogas • • Depends on CAPEX, Technology Depends on CAPEX, Technology Economic Returns Selection, FiT tariff rate Selection, CNG market price • • Fixed rate up to 16 years Exposure to market fluctuations ( stable ) Operational Aspect • • Trained personnel i.e Electrical Trained personnel – no competent Chargeman – competent person person needed ( yet ) • • Green Initiative Reduction of carbon footprint Reduction of carbon footprint • • Support to company’s green Support to company’s green agenda agenda • • More than 45 mt/hr capacity mill More than 45 mt/hr capacity mill Scale / Volume • • Options of 1.0, 1.2, 1.6 up to 2 MW Scale is from 70,000 – 110,000 MMBTU/year
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