Carl Bro Group HAMDAN MOKHTAR ENVIRONMENT AND BIOPROCESS TECHNOLOGY CENTRE SIRIM BERHAD

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1 BIOMASS COGENERATION POTENTIAL IN MALAYSIA Budapest, Hungary September 27, 2004 Bratislava, Slovakia September 30, 2004 Carl Bro Group HAMDAN MOKHTAR ENVIRONMENT AND BIOPROCESS TECHNOLOGY CENTRE SIRIM BERHAD EC-ASEAN Cogeneration Programme 1

2 RENEWABLE ENERGY POLICY RENEWABLE ENERGY AS FIFTH FUEL AFTER NATURAL GAS, FUEL OIL, HYDRO AND COAL. RENEWABLE ENERGY INCLUDE BIOMASS, SOLAR, MINI HYDRO,WIND AND LANDFILL THE TARGET OF THE RE CONTRIBUTION IS ABOUT 400 MW OF THE TOTAL ELECTRICITY SUPPLY INTRODUCED SMALL RENEWABLE ENERGY PROGRAMME (SREP) 2

3 SREP PROJECT DEVELOPERS WILL HAVE TO NEGOTIATE THE RENEWABLE ELECTRICITY PURCHASE AGREEMENT INCLUDING THE SELLING PRICE ON SELLING SELLER- WILLING BUYER BASIS BASED ON THE TAKE AND PAY. THE RE PRODUCER SHALL BE GIVEN A LICENCE TO OPERATE FOR A PERIOD OF 21 YEARS, EFFECTIVELY FROM THE DATE OF THE COMMISSIONING OF THE PLANT MAXIMUM CAPACITY FOR GRID CONNECTED IS 10 MW 3

4 BIOMASS POTENTIAL SOURCES OIL PALM INDUSTRY MILLION TONNES RICE HUSK MILLION TOONES SUGAR MILLION TONNES WOOD WASTE 4 MILLION CUBIC METER MUNICIPAL SOILD WASTE 12,000 TONNES PER DAY 4

5 BIOMASS POWER POTENTIAL OIL PALM INDUSTRY EMPTY FRUIT BUNCHES MESOCARP FIBRE PALM KERNEL SHELL 545 MWe 1032 MWe 521 MWe PADDY RICE HUSK PADDY STRAW 72 MWe 84 MWe 5

6 6 Environment & Bioprocess Technology Centre... A Friend and Partner of Industry

7 Environment & Bioprocess Technology Centre... A Friend and Partner of Industry

8 Environment & Bioprocess Technology Centre... A Friend and Partner of Industry

9 9 Environment & Bioprocess Technology Centre... A Friend and Partner of Industry

10 10 Environment & Bioprocess Technology Centre... A Friend and Partner of Industry

11 11 Environment & Bioprocess Technology Centre... A Friend and Partner of Industry

12 12 Environment & Bioprocess Technology Centre... A Friend and Partner of Industry

13 13

14 WOOD BIOMASS POWER POTENTIAL SAWN TIMBER PLYWOOD AND VENEER MOULDING PLANT 50 MWe 4 MWe 2.2 MWe SUGAR BAGGASE 0 MWe 14

15 SREP STATUS APPROVED 59 APPLICANTS LICENCED APPROVED 6 DEVELOPERS REPPA SIGNED 7 WOOD WASTE 1 / 6.6 MW PALM OIL WASTE 24 / 168 MW OTHER BIOMASS 6 / 36 MW MINIHYDRO 22 / 83 MW 15 LANDFILL GAS 6 /14 MW

16 STRATEGIES FOR RE DEVELOPMENT PROMOTION OF RE RESOURCES MAINLY BIOMASS AND SOLAR IN-HOUSE BIOMASS BASED COGENERATION DEMONSTRATION PROJECTS ( TSH, SUNGAI DINGIN AND TITI SERONG) ASSISTANCE FROM FOREIGN ENTITIES SUCH AS COGEN 3 16

17 CHALLENGES IN RE UNATTRACTIVE RE TARIFF AND FINANCIAL RETURN RE PRICE BETWEEN USD PER kwh NO ECONOMIC SCALE OF BIOMASS POWER PERCEIVED AS UNATTRACTIVE 17

18 CHALLENGES IN RE BIOMASS SUPPLY FUEL PURCHASE AGREEMENT SECURITY SUPPLY OTHER COMPETETIVE USAGE 18

19 CONCLUSION GOVERNMENT FULLY SUPPORTS RE BIOMASS BASED POWER GENERATION THROUGH VARIOUS INITIATIVE AND PROMOTION PROGRAMME SUCH AS BIOGEN BIOMASS RESOURCES IS BIG POTENTIAL FOR BIOMASS POWER COGENERATION TO DEVELOP AND EXPAND THE MARKET PROFITABILITY THROUGH NEW TECHNOLOGY AND LOWER PRODUCTION COST. 19

20 For more information mail to: or visit COGEN 3 website at Thank You! 20

Market potential and identified export opportunities. Carl Bro Group. Budapest, Hungary September 27, 2004 Bratislava, Slovakia September 30, 2004

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