FELDA PALM INDUSTRIES SDN. BHD

Transcription

1 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

2 PRESENTATION CONTENT : INTRODUCTION TO FGV & FPI HIGHLIGHTS OF BIOGAS PROJECTS CHALLENGES & WAY FORWARD

3 INTRODUCTION

4 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

5 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 - +/ 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

6 Felda Palm Industries Biomass Department 1) 1998 : R&D Collaboration with MPOB 2) 1999: Designed, built & patented EFB processing equipment 1) 2002 : BOD approved 1 st EFB based power plant in Sahabat Complex in ) Continuous operation from 2005 till now 3) IPP Sahabat recognised as 1 st 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

7 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

8 BIOGAS UTILIZATION : PALM OIL MILLING CONTEXT Fresh Fruit Bunches Power Palm Oil Mill Processing BioCNG NGV Boiler Flaring POME : 60 70% of FFB Anaerobic Digestion & Gas Capturing Facility *BioCNG main application as industrial heating

9 BIOGAS UTILIZATION : CONSIDERATIONS Basic Biogas Facilities Flaring Mill Use Boiler or Engine 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 ) Options for Biogas Capture Connection to Grid National Grid through FiT Direct Sale of Energy and Rural Electrification Requires FiT quota for National Grid Revenue generation High CAPEX Other Options Source: MPOB, Pemandu Biogas Workstream NKEA Lab February March 2015 Bio-Compressed Natural Gas (CNG) 1 st commercial pilot plant in Sg. Tengi POM Natural gas & revenue generation High CAPEX Compressed gas sold to industrial customer

10 HIGHLIGHTS OF FPISB BIOGAS PROJECTS Rural Electrification Bio-Compressed Natural Gas

11 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)

12 PERCENTAGE OF ELECTRICAL SUPPLY ( KWH ) BEFORE & AFTER IMPACT OF USAGE OF BIOGAS ENGINE TO FELDA UMAS SETTLERS SCHEME* REDUCTION OF ELECTRIC SUPPLY FROM DIESEL ENGINE 100% 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

13 BIO-COMPRESSED NATURAL GAS : SG TENGI PALM OIL MILL, SELANGOR Back in 2013, MPOB, FPISB & SDOE agreed to jointly collaborate on development of biocompressed 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

14 GENERAL PROJECT FLOW DIAGRAM BIOGAS PLANT > 40,000 M3 BIOGAS POND REACTOR 1 UNIT BIOGAS ENGINE 600 kw + Scrubber System M3 biogas at 65% CH4 Status : Operating 100% Gas produced currently at m3/hour. 600 M3 biogas at 65% CH kw electric power for BioCNG Plant BioCNG Plant 600 m3/hr capacity 79,760 MMBTU/year targeted output

15 BioCNG PROJECT MACHINERY DESCRIPTION & TECHNICAL DATA* Chiller & Heat Exchanger 2 nd Stage H 2 S Scrubber Air Water Cooling System Dispenser Gas Odorizing System & 2 nd Compressor (>70 kw) 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

16 BIO-CNG AS RENEWABLE ENERGY - QUALITY Raw Biogas - POME Natural Gas Specification Potential Customers 60 65% Methane 30-35% CO ppm H2S Pre-treatment to gas compression > 94 % Methane 4% CO2 < 10 ppm H2S 250 barg Transport

17 CHALLENGES AND WAY FORWARD

18 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) Grid Connection (FiT) Digester Tank Co-Firing Covered Lagoon Grid Connection (FiT) Digester Tank Co-Firing Covered Lagoon Source: MPOB, Pemandu Biogas Workstream NKEA Lab February March 2015

19 BIOGAS UTILIZATION MATRIX : POINTS TO REFLECT Utilization Biogas to Grid Bio - CNG Project Feasibility Mill location, load availability (PSS), FiT quota pre requisite to project Economic Returns Depends on CAPEX, Technology Selection, FiT tariff rate Fixed rate up to 16 years ( stable ) Operational Aspect Trained personnel i.e Electrical Chargeman competent person Green Initiative 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 Mill location ( near to customer ) Volume of biogas Depends on CAPEX, Technology Selection, CNG market price Exposure to market fluctuations Trained personnel no competent person needed ( yet ) Reduction of carbon footprint Support to company s green agenda More than 45 mt/hr capacity mill Scale is from 70, ,000 MMBTU/year

20 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

21 THANK YOU