Biomass Asia Conference, May G. Ilango Bharathi YTL SV Carbon Sdn. Bhd. Malaysia

Transcription

1 Biomass Asia Conference, May 2013 G. Ilango Bharathi YTL SV Carbon Sdn. Bhd. Malaysia

2 Contents 1. Introductory details 2. Challenges for utilisation of palm biomass 3. Some suggestions to increase clean energy share using biomass 4. YTL SV Carbon An Introduction

3 1. Introductory details

4 Biomass in Malaysia Mainly from: Palm biomass from oil palm industry Wastes from wood industry Rice husk Municipal solid waste Minor quantities from poultry industry, other plantations, etc.,

5 Biomass from oil palm industry Most important biomass (=abundantly available) in Malaysia is oil palm biomass. Oil palm industry is one of the major industries in Malaysia. Second largest palm oil producer in the world about million tons produced in Largest palm oil exporter in the world to more than 150 countries about million tons exported in Total export revenue was about RM billions for all palm products.

6 Malaysian oil palm industry Key data Region No. of mills & Cap (Mil. tons) Plantation* (Mil. Ha) FFB processed / year (Mil. tons) approx Peninsular 248 (54.85) Sabah 120 (29.89) Sarawak 47 (10.66) Total 415 (95.40) * Excluding immature plantation as of 31 Dec 2012

7 Types of palm biomass and production Palm Kernel Shell (PKS) : 6 6.5% of FFB processed Mesocarp Fibre (MF) : 12-13% of FFB processed Empty Fruit Bunch (EFB) : 22-23% of FFB processed Palm Oil Mill Effluent (POME): (liquid biomass) 60-70% of FFB processed Oil Palm Fronds (OPF) : tons/ha/year Oil Palm Trunks (OPT) : 3-5 tons/ha on an average (75.5 tons/ha during replanting)

8 Palm biomass Quantity & quality Biomass Quantity (Million tons / year - avg -wet weight) Moisture content % Calorific value (GJ / ton) PKS Mesocarp fibre EFB POME (liquid) MJ/ m 3 Oil palm fronds (OPF) Oil palm trunks (OPT) Total Mil. tons of solid wet weight and Mil. tons of liquid biomass/ year

9 Palm biomass current use % of PKS and most of mesocarp fibre currently consumed in-house in the mill itself for captive energy requirements. EFB, OPF and OPT all returned to soil mostly for soil conservation. POME disposed through mainly open lagoons; CDM had encouraged methane capture and energy generation to an extent in few mills but still largely unutilised.

10 Clean energy potential from palm solid biomass 3700 MW - electricity from palm solid biomass At least 1100 MW from excess solid biomass MW installed so far; MW approved under FiT till 2015 total MW only! Huge potential for electricity generation from excess palm biomass alone.

11 Clean energy potential from palm liquid biomass (POME) About 53.5 million m 3 of POME generated per year POME has high organic content can be harnessed for methane capture About 1300 million m 3 of biogas with % methane could be generated equivalent to 3 million MWh / year (about MW) 3.25 MW grid connected so far; MW approved under FiT till 2015 total 9.38MW only! More importantly, biogas could displace valuable PKS and other solid biomass to be used in other industries for energy use.

12 2. Challenges for utilisation of palm biomass

13 Challenges for utilisation of palm biomass Most of good solid biomass consumed in the present low efficient cogeneration system in POMs. Only difficult biomass such as EFB, etc., available Difficult biomass : bad combustion properties - high moisture content, high silica, highly abrasive, high operation and maintenance cost in the combustion equipment No local supply of higher pressure boilers and better efficiency turbines Expertise to run higher efficient systems not locally available high O&M cost

14 Challenges for utilisation of palm biomass for generation of clean energy - continued No long term fuel supply agreement biomass mostly sourced from traders. No agreement of biomass price on long term basis. Fluctuation in crop and therefore availability of fuel. Clean energy from biogas from liquid biomass Biogas technology and utilisation of biogas for energy generation yet to be mastered in SE Asia Not enough operational experience in POME!

15 Challenges for utilisation of palm biomass for generation of clean energy contd. Energy generation equipment like biogas engines not available locally have to be imported - Spare parts, O & M.. Fluctuation in production has impact on anaerobic reactions and biogas quality Collapse of carbon markets EU decision and current prices Remote location of palm oil mills to grid difficulties in execution of transmission line, high cost, higher transmission losses, etc., Off take capacity of local substations; need to take to higher voltage substations which are still further

16 Industrial utilisation of palm biomass in Malaysia Cement plants biomass displaces coal in clinker production Eg. Lafarge, Malaysia and several other cement plants Glove industries for heat generation Ceramic industries for heat generation Any other industries that require heat / steam Basic economics clearly show that it makes sense to have biomass based energy generation systems in industries still the implementation has been slow...

17 3. Some suggestions to increase clean energy share using biomass

18 Some suggestions to increase clean energy share Regulation of availability of biomass Long term supply to be ensured - easier said than done Efforts are being made by biomass organisations. Pricing mechanism to be standardised to minimise uncertainties Capital subsidy for clean energy generation, biogas based energy, etc., Financial incentives like increased depreciation benefits, tax reductions etc., for clean energy generation

19 Some suggestions to increase clean energy share RECs RENEWABLE ENERGY CERTIFICATES similar to carbon credits Collapse of carbon markets Introduction of RECs Renewable Energy Certificates Tradable certificates to be traded with major energy producers / GHG emitters / major energy consumers with voluntary or mandatory targets

20 Some suggestions to increase clean energy share Allow / mandate major consumers of energy to buy renewable energy directly at tariffs higher than FiT free wheeling by electric utility Phasing out subsidies for fossil fuels Phasing out subsidies for energy at least for industries probably one of the lowest in the region Work towards a domestic cap and trade scheme

21 Some suggestions to increase clean energy share

22 4. YTL SV Carbon Sdn. Bhd An introduction

23 Overview of YTL Group, Malaysia Financial Highlights RM million Revenue 16,505 18, Profit after taxation 1,619 1, Total Assets 46,060 48,266 51,623 Malaysia s leading infrastructure conglomerate with investments in power, utilities, cement manufacturing, property development, technology, transportation and hotels and leisure Combined market capitalisation of over RM40 billion Global recognition for management: Asian Wall Street Journal Top 5 Most Admired Companies 2006 Forbes Global 2000 in 2005 Far Eastern Economic Review Asia s Leading Companies in 2000

24 YTL SV Carbon Sdn. Bhd. Subsidiary of YTL Corporation Bhd. The largest Carbon consulting company in Malaysia About 50 ER projects in our portfolio out of which 22 are already registered by CDM EB. Has experience with CDM projects of : Palm biomass based cogeneration/power plants Palm waste based composting plants Palm waste based methane recovery plants Landfill Gas recovery projects Waste heat recovery based power plants Hydroelectric projects Energy Efficiency projects Fuel substitution for cement plants..and many more..

25 YTL SV Carbon - Services Advisory for CDM & VCS projects Monitoring and verification assistance for CDM and VCS projects Carbon footprint studies Commercialization assistance for CERs, VCS and VERs Assessment of potential CDM projects Due diligence for CDM & VCS projects

26 YTL SV CARBON EXPERIENCE 8 Registered for POME biogas plants 1 new methodology developed/ approved by CDM Executive Board & Registered for use of biomass waste (EFB) for pulp and paper production in Malaysia 11 Projects Registered for Co -composting POME and EFB 1 palm biomass based power plant Registered 1 hydro project Registered 1 palm biomass based power plant requesting registration 4 POME based biogas projects under validation 2 POME based biogas projects under development 5 Palm oil biomass composting projects under development 1 PD under development for Waste Heat Recovery project in Cement Industry in China 1 Landfill gas recovery project in China 1 Report for Assessment of all CDM projects in palm oil mills of a large oil palm group.

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