Building An Integrated Biogas Value Chain From Feedstock to Biogas Offtaker DR LIM DAW YUEN TSD - SIME DARBY OFFSHORE ENGINEERING SDN. BHD.

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1 Building An Integrated Biogas Value Chain From Feedstock to Biogas Offtaker DR LIM DAW YUEN TSD - SIME DARBY OFFSHORE ENGINEERING SDN. BHD. 1

2 Current Issues 500 mega tons of CO2 will be released in Malaysia by 2020, a 43.3% increase compared to CO2 emitted in 2005, if without any mitigation (source: Ang et. Al., 2013) Limited FIT quota Present RE-Biogas Installation at about 13MW (source:seda) Lack of strategic Location Lack of feasibility, available options & technology Not attractive economic return Lack of funding support High risk Lack of maintenance routines for equipment Lack of safety practice 2

3 Questions What new opportunities come to stimulate new projects and increase existing business value? Who are the key stakeholders today that need to reach out to partner, going forward? What are some existing and new business models that will make these opportunities a success? What are the technology & options available going forward? 3

4 Agri- Trucks Overall Biogas Process Landfill Organic Industrial Waste Municipal Household waste POME Residue/ Manure Sewage Sludge Waste Water Biogas Waste THE BIOGAS PROCESS Agricultural Products Digestate Energy crops Biomasses Clean Bio fertilizer Pre-treated biogas (Compressed natural gas CNG) Contaminated Bio fertilizer 4

5 Biogas Value Chain End-Use Consumption (FiT, CHP, Boiler, Flare) Generation of POME, waste, sew. Sludge, manure, energy crops Collection & Transport* Anaerobic Digester Biogas Upgrade & Compressed Distribution (Trailers, Natural gas grid) Consumption (Industry, Vehicles, Remote Power) Consumption (Vehicles Bifuel, Dual fuel) BioLNG Distribution (Trucks) Consumption (Industry, Vehicles, Remote Power, Export) * Subject to type of substrate 5

6 Biogas Value Chain Stakeholders and Supporting Activities Generation of POME, waste, sew. Sludge, manure, energy crops Collection & Transport* Anaerobic Digester Biogas Upgrade & Compressed Distribution (Trailers, Natural gas grid) End-Use Stakeholders Feedstock Production Collection & Transport (supply of substrate) Pretreatment and Anaerobic Digestion Biogas Upgrading Distribution of Upgrade Biogas End-Use of upgraded Biogas Plantation Co. Plantation Co. Plantation Co. Plantation Co. Logistic Co. Technology Providers Landfill Co. Landfill Co. Energy Co. Energy Co. Energy Co. Industrial Co. Municipal Council Daily Processing Co. Municipal Council Waste water treatment Co. Public buses Private vehicle Food Processing Co. Supporting Activities Energy Co. Mill s Process/ Equipment Plant Engineering Co Plant Engineering Co. Trailer Storage OEM Pressure Regulating System (PRS), Dual Fuel Burner Waste collection equipment Road Carriers, Waste collection vehicles Pre-treatment equipment Biogas Upgrade Equipment/System Filling stations Anaerobic Digester System Compressor Equipment/System Bi-Fuel Vehicle/ Buses Consultant Consultant Consultant Gas Engine / Gas Turbine Note: Excluding segment for FiT, CHP, Boiler, Flare 6

7 Making the Biogas Value Chain Work Generation of POME, waste, sew. Sludge, manure, energy crops Collection & Transport* Anaerobic Digester Biogas Upgrade & Compressed Distribution (Trailers, Natural gas grid) End-Use Process Logistic Engineering/ Technology/Application Technology & Application Selection & Logistic Technology & Application O&M O&M R&D Capability First Level Core Competence Second Level Core Competence Integration Capability Outcome 1 All players across the value chain be able to make profit RM3-5/MMBTU RM3-8/MMBTU RM8-18/MMBTU RM 9 16/MMBTU RM 3 10MMBTU 2 Innovative Partnerships to catalyze biogas project 3 Network & Policy Establishment 7

8 An Integrated Network Biogas Upgrade to Off-taker Potential > 400,000mmbtu - Tangjung Malim - Kulim - Ipoh - Behrang Industrial Demand Industrial Demand > 500,000mmbtu - Rawang - Bukit Beruntung - Sg. Buluh/Subang - Serendah Mills Northern Region > 12 mills Mills > 8 mills Mills Eastern Region > 15 mills Industrial Demand > 500,000mmbtu - Bentong - Raub - Pengkalan Chepa Potential of 80 Palm Oil Mills across Malaysia* Potential 25MMSCFD* > 15 mills Mills Industrial Demand Sabah > 900,000mmbtu - Lahat Datu - Sandakan - others Central Region Mills > 15 mills Southern Region Industrial Demand > 900,000mmbtu - Simpang Renggam - Sri Gading - Batu Pahat - Muar - Gemas - Ulu Tiram * source: SDOE, Gas Malaysia, SDP & other plantation co s (over 7 years) 8

9 An Integrated Network Biogas Upgrade to Off-taker Potential Key Projection of Biogas Activities until FIT Biogas Upgrade Biogas - Others Composition of Biogas Activities until % 34% 28% FIT Biogas Upgrade Biogas - Others * source: SDOE & others (over 10 years) 9

10 What SDOE - TSD Can Offer * Case to Case basis 10

11 Technical Services Division - Snapshot Founded in 1992 Distinctive Capability to design, install, construct, commissioning and after sales services for our core products NGV Equipments, Cogeneration Equipments, Absorption Chillers Total 4 EPCC Projects value RM150million completed. Total 55 NGV Compressors, 83 NGV Dispensers, 51 NGV Trailers, 8 Gas Turbines, 11 Gas Chillers supplied to Malaysia industrial companies and government. TSD is now expanding to BioCNG projects & BioCNG Trading Prai Lumut Port Klang Connaught Brudge Songkhla Kuala Lumpura Port Dickson THAILAND Melaka Serdang TSD Paka Malaysia Thailand Joint Development Area Lawit Kertih Segamat Senoko Jernih Kuantan Resak Angsi Pasir Gudang Duyong PM-3 Bekok Singapore 11

12 Natural Gas Vehicle Sole Dealer in Malaysia & Fully capitalizing Intermech Brand for:- Gas Compressor Gas Dispenser Gas Storage Cascade Gas Priority Panel Integrated Solution Provider for:- Equipment supply, install and commissioning Full Service Maintenance at 98% station availability Design, engineering and system optimization 12

13 Bio-Compressed Natural Gas (BioCNG) Pioneer in Malaysia for Full Commercial & Capitalization of Biogas Upgrade to BioCNG Project Integrated Solution Provider for:- Equipment supply, install and commissioning Operation & Maintenance Build, Own & Operate (BOO) Industrial Customer integration Authority liaison 13

14 Composites Cylinders High Pressure Sole Dealer in Malaysia for Hexagon Lincoln Composites:- Type 4 CNG Cylinders Type 4 Tuffshell Bus Cylinders Value Add Solution for:- Install, Testing and Commissioning Cylinders assembly, testing, and trouble shooting locally Storage sizing and optimization Value Proposition study 14

15 Gas Driven Cogeneration Dealer in Malaysia for:- Kawasaki Gas Turbine Capability in Malaysia for:- Gas Turbine Cogeneration Gas Engine Cogeneration Gas District Cooling Distinctive Capability for:- Install, Testing and Commissioning After sales services Engineering capability for sizing, energy balance and optimization Feasibility study System/Process Tie-In Built, Own, Operate & Transfer 15

16 Absorption Chillers Sole Dealer in Malaysia for:- Kawasaki Gas Absorption Chillers Gas Fired Absorption Steam Fired Absorption Solar Fired Absorption Equipment specialist for:- Install, commissioning & after sales services Engineering capability for sizing, energy balance and optimization System/Process Tie-In 16

17 17

18 Thank you 18

19 Correspondence Address Sime Darby Offshore Engineering Sdn Bhd ( V) GST Registration: General Line : General Fax : No.16, Jalan TP-5A, Taman Perindustrian UEP Subang Jaya, Selangor, Malaysia 19