Palm oil residue waste potential and waste utilization in Thailand

Palm oil residue waste potential and waste utilization in Thailand Mr.Krisada Chavananand Chairman of Palm Oil Industry Club, Federation of Thai Industry (FTI) & President, Thai Palm Oil Crushing Mill Association, Thailand Clean Power Asia Conference & Expo 2013 29-30 April 2013 1

Contents Background and General situation of Palm oil Industry Palm oil Production, Residue wastes, and existing energy production Type and chemical characterization of palm oil residues Palm oil Residue waste potential and Waste Utilization Existing POME & Biomass utilization: Power plant RE potential: accruing amounts, utilization, cost/value, and distribution New challenging potential: Biomass to liquid? 2

Background of Palm Oil Industry in Thailand Palm Oil Plantation and Production in Thailand, year 2006-2012 Year Plantation area (Ha) Mature area (Ha) FFB Production (Ton FFB) Production yield (ton-ffb/ha) 2006 472,628 379,872 6,715,036 17.68 2007 512,044 426,120 6,389,983 14.99 2008 588,175 461,555 9,270,510 20.09 2009 622,145 509,920 8,162,379 16.01 2010 652,320 568,480 8,223,000 14.47 2011 685,600 600,758 9,880,000 16.44 2012 1/ 718,400 1/ 638,400 1/ 10,940,000 1/ 17.14 1/ 3 Remark: 1/ is an estimation value of year 2012 source: Ministry of Agriculture and Cooperative (MoAC), October 2012 *** 80% of plantations in Thailand are small farmer. ***

Palm Oil Crushing Mills, Year 2012 Total 82 Crushing Mills Nongkhai 1 Crushing Mill Total Production Capacity 2,801 Tons/hr ** From Year 2007 to 2012,Total palm oil mill increased 36%** Chonburi 2 Crushing Mills, 135 Tons/hr. Prachuapkirikhan 4 Crushing Mills, 62.5 Tons/hr. Ranong 1 Crushing Mill, 20 Tons/hr. Phang-nga 1 Crushing Mills, 30 Tons/hr. Krabi 20 Crushing Mills, 740 Tons/hr. Chumphon 21 Crushing Mills, 685 Tons/hr. Surathani 19 Crushing Mills, 810 Tons/hr. NakornSrithamarah 2 Crushing Mills, 60 Tons/hr. Trang 4 Crushing Mills, 180 Tons/hr. 4 4 Satun 5 Crushing Mills, 61.5 Tons/hr. Songkha 3 Crushing Mills, 17 Tons/hr.

Material Flow of Palm Oil Mill Production Electricity Steam Water Diesel Raw Material FFB Palm Oil mill 17-18% CPO Product 5-6% Kernel Oil loss Kernel loss EFB Fiber d.cake Shell Waste water Losses 5

Palm Oil Residues Waste Palm Oil Mills WASTE Shell 5-6% 6

Palm oil industrial process and waste Source of data: Clean Technology for the Crude Palm oil Industry in Thailand, Orathai Chavalparit, 2006 7

Existing Energy Production in palm oil mill!! Efficiency Elec. of existing system 10% Palm oil mill capacity 60 t-ffb/hr Palm Oil Processes Biomass from palm oil processes Fiber Stack BOILER Feed Water Pump Steam Turbine 1.2 MW Generator Steam to Palm oil mill 8 POME Exceed Biomass Residues

Palm Oil Residue Waste Potential Based on FFB production ~ 12.0 Million ton per year D. cake 432, 000 ton POME Waste water Characteristic Fiber 1, 680, 000 ton COD %CH 4 ~ 60,000 80,000 mg/l 55-65% Waste water EFB 2, 640, 000 ton LHV 21-23 MJ/m 3 (depend on %CH 4 ) Biomass Characteristic 7, 200, 000 m 3 EFB LHV = 7,240 kj/kg @ 58.6%MC Fiber LHV = 10,730 kj/kg @ ~37.2%MC Shell 720, 000 ton Shell LHV = 15,250 kj/kg @ ~24%MC 9

Biomass Characteristic (EFB, Shell, Fiber) 10 Biomass Analysis Proximate analysis Palm fibre Palm shell Palm bunch EFB Moisture, % 31.84 12.00 37.7 Ash, % 6.35 3.50 4.4 Volatile Matter, % 48.61 68.20 45.8 Fixed Carbon, % 13.2 16.30 12.1 Ultimate Analysis Carbon, % 31.35 44.44 22.74 Hydrogen, % 4.57 5.01 2.27 Oxygen, % 25.63 34.70 28.78 Nitrogen, % 0.02 0.28 3.86 Sulfur, % 0.06 0.02 0.06 Chlorine, % 0.15 0.02 0.19 Ash, % 6.35 3.52 4.4 Moisture, % 31.84 12.00 37.7 Other Characteristics Bulk Density, kg/m 3 na na na Higher heating value, kj/kg 13,548 18,267 11,192 Lower heating value, kj/kg 11,800 16,900 9,800 Source of data EFE Gulf Songkla Biomass Ash analysis Palm fibre Palm shell Palm bunch EFB SiO 2, Silica Dioxide, % 73.6 67.8 34.7 Al 2 O 3, Aluminum Trioxide, % 2.43 14.6 1.2 Fe 2 O 3, Iron Trioxide, % 2.72 1.6 1.8 CaO, Calcium Oxide, % 7.13 0.42 3.3 TiO 2, Titanium Dioxide, % na na 0.1 MgO, Magnesium Oxide, % 3.24 2.9 2.9 SO 3, Sulfur Trioxide, % 3.29 na 8 P 2 O 5, Phosphate Pentoxide, % 2.26 1.8 2.5 Na 2 O, Sodium Oxide, % 0.93 0.26 0.8 Mn 3 O 4, Manganese Oxide, % na na na K 2 O, Potassium Oxide, % 3.86 9.6 40.1 Deformation Temperature, C 1170 1310 1080 Source of data EFE Gulf Kinoshita na = not available ND = not detect

Decanter cake sludge: Chemical composition Decanter Cake Nutrient analysis: compare with Malaysia data and Standard animal manufacturer feed 11 Source of data: Clean Technology for the Crude Palm oil Industry in Thailand, Orathai Chavalparit, 2006 Decanter cake Standard animal manufacturer feed Substance (VCB' lab) Cow (avg.age) Pig (avg. age) %Moisture 79.17% < 13% < 13% Nutrient (%dry weight) % Protein 15.27% > 14-18% > 12-18% % Oil 2.44% > 2-4% > 2-4% % Total P 0.29% - - % K 1.80% - - % Ca 1.32% - - % Mg 0.47% - - % Chaff N/A < 9-14% < 8-10% Source of data: Vichitbhan s Own Laboratory

Existing Waste Utilization Turn Waste into Renewable Energy Power Biogas Power plant Biogas Potential Biogas plant (Based on estimation of 12.0 million ton of FFB) Source Amount Biogas (m 3 ) MW Thermal / yr GWh Elect /a POME 7,200,000 m 3 181,440,000 1,058,400 402.2 * MW electricity calculated at 38% Efficiency biogas yield 0.45 m3/kg-cod degradable @ 60% CH 4, op. 24hr and 300 days Biomass Power plant 12 Biomass power plant

VSPP Biogas plants - Power Producer from POMs Prachup, 2 Chuonburi, 1 Trang, 4 Satun, 1 PhangNga, 1 Krabi, 11 Chumporn, 6 Suratthani, 17 Biogas Power Plant No.of mill in Status (Under PPA contract) Operating On going <1 MW 4 4 1-2 MW 12 2 2-5 MW 10 8 > 5 MW - 2 Total 26 16 Source: VSPP_status_ March 2012, www.eppo.go.th 13

Currently VSPP_Palm Oil Biogas plant -Status VSPP Status Province Total No. Individual Total Capacitiy Individual PPA contract Biomass from POMs of Plant Province Installation (MW) PPA sale (MW) Krabi 9 20.0 14.0 COD and in Operation Suratthani 10 17.5 15.0 55.0 Chumporn 3 10.9 9.4 44.3 Trang 4 6.7 6.0 Suratthani 6 17.3 16.4 Krabi 2 4.0 4.0 Signed PPA & waiting for COD Chumporn 1 1.1 30.5 1.0 27.8 Prachuapkhirikhan 2 4.7 4.0 Chonburi 1 3.4 2.4 Suratthani 1 2.0 2.0 Signed PPA & waiting for COD Chumporn 2 12.9 15.8 10.0 13.0 Satoon 1 1.0 1.0 Applied for register to PEA PhangNga 1 1.0 1.0 1.0 1.0 Total Plant 42 101.3 85.0 Source: VSPP_status_March2012, EPPO s information 14 ~ 50% of POMs in Thailand, are invested in biogas power plant

Biomass SPP & VSPP power plant: status by Commercial Operation Date (COD) V S P P P o w e r P l a n t : C O D a n d O p e r a t i o n S P P P o w e r P l a n t : C O D a n d O p e r a t i o n Fuel Type No. of plant Install Capacity (MW) PPA selling capacity (MW) No. of plant Install Capacity (MW) PPA selling capacity (MW) P a l m r e s i d u e w a s t e 4 2 4. 0 1 9. 7 0 - - Bagasse 36 663.4 210.3 9 245.4 109.8 Bagasse + Rice husk 0 0.0 0.0 2 37.5 26.5 Rice husk 16 101.0 82.9 4 48.3 41.8 Rice husk+ Wood chip 0 - - 2 57.8 49 Bagass+ Wood chip+rice husk 0 - - 2 104.9 56 Rice husk+ Corncob 0 - - 0 - - Saw dust 1 0.6 0.6 0 - - Coconut Bristle Fiber 1 6.0 5.0 0 - - Corncorb 1 0.2 0.1 0 - - E F B + S h e l l + P a l m r e s i d u e 0 - - 1 9. 9 8. 8 Wood bark 0 - - 1 87.2 50 Scraps of wood / wood chip 7 56.5 43.7 1 23 20.2 12 38.9 37.3 22 614.0 362.1 15 Source of data: EPPO, SPP & VSPP status, data update until March 2012

Look at Biomass palm residue Potential From Palm Oil Mill Abundant of EFB solid waste Shell ~ 720,000 ton/yr EFB Solid waste disposal site EFB ~ 2,640,000 ton/yr Biomass Potential (Based on ~ 12.0 million ton of FFB per annum) Biomass type Amount (tons) MW Thermal / yr GWh Elect /a EFB 2,640,000 5,309,333 1,061.9 16 Shell 720,000 2,988,000 597.6 * MW electricity calculated at 20% efficiency of power plant, op. 24hr and 300 days

General Existing Concept of POMs biomass PP Stack Feed Water Pump Biomass Power Plant ~ 5 MW Fuel feed boiler BOILER Transformer Eff Elec < 24% Condensing Turbine TURBINE Generator M Residue Biomass Existing Eff. Elec 10% Palm Oil Mill Stack Feed Water Pump BOILER Steam Turbine 17 Fiber / EFB / Shell From processes Steam to Palm oil mill Generator POME Biogas Plant

VSPP-Biomass plants from Palm Oil Residue Prachup, 1 Ratchaburi, 1 Trang, 3 Krabi, 5 Chumporn, 3 Suratthani, 4 Biomass Power Plant No.of mill in Status (Under PPA contract) Operating On going 1-2 MW 1 1 2-5 MW 2 2 > 5 MW 2 9 Total 5 12 18 Source: VSPP_status_March 2012, EPPO+PEA s information

Currently VSPP_Palm Oil Biomass plant -Status VSPP Status Province Total No. Individual Total Capacitiy Individual PPA contract Biomass from POMs of Plant Province Installation (MW) PPA sale (MW) Krabi 2 12.4 11.4 COD and in Operation Suratthani 1 10.0 8.1 33.9 Chumporn 1 10.0 8.0 28.5 Prachuapkhirikhan 1 1.5 1.0 Suratthani 3 27.0 18.2 Krabi 2 10.0 10.0 Signed PPA & waiting for COD Chumporn 2 24.6 86.6 18.0 66.5 Trang 2 19.0 15.5 Ratchaburi 1 6 4.8 Signed PPA & waiting for COD Krabi 1 7.5 7.5 12.7 Trang 1 5.2 5.2 12.7 Total Plant 17 133.2 107.7 19 Source: VSPP_status_March 2012, EPPO+PEA s information

Shell Market Price (THB/kg, avg) Accruing amounts, Cost/value, and distribution Biomass cost: Shell Market Price 2.80 2.70 2.60 2.50 2.40 2.30 2.20 2.10 2.00 1.90 1.80 Current Price, Jan 2013 = 2.30 THB/kt ** Shell selling to be use as replace fuel of bunker oil or diesel oil in some factories in perimeter area around Bangkok and Central district ** 1.70 1.60 1.50 Jan Feb March April May June July Aug Sept Oct Nov Dec Month ** For Empty Fruit Bunches (EFB), average price ~ 0.12-0.15 THB/kg 20

Accruing amounts & Distribution Biomass Distribution (cal. From FFB forecast, Sept 2012) Nongkhai 1 Mill Total Biomass Generation in Palm oil industry Plantation Year 2012 (B.Era 2555) Year 2011 (B.Era 2554) Zone Shell (ton) EFB (ton) Fiber (ton) Shell (ton) EFB (ton) Fiber (ton) Total 679,600 2,491,865 1,359,199 646,611 2,370,907 1,293,222 South 604,227 2,215,499 1,208,454 578,971 2,122,893 1,157,942 Central 68,687 251,854 137,375 63,480 232,762 126,961 NorthEast 6,052 22,189 12,103 3,860 14,152 7,719 North 634 2,323 1,267 300 1,099 600 Source: Forecast Agricultural Goods of year 2012/2013, Agricultural Information center, Department of Agricultural Economics, Ministry of Agriculture, Sept 2012 Prachuapkirikhan Krabi -20 Mills 4 Mills Ranong 1 Mill Phang-Nga 1 Mill Chumphon 21 Mills Surathani 19 Mills NakornSrithamarah 2 Mills Trang 4 Mills Chonburi 2 Mills Central: EFB 0.25 M.ton, Shell 0.07 M.ton 21 Satun 5 Mills South: EFB 2.22 M.ton, Shell 0.60 M.ton Songkha 3 Mills

Estimation Biomass consumption by Existing Power Plants Operation Chumporn, 1 mill 10.0 MWe Prachup, 1 mill 1.5 MWe Suratthani, 1 mill 10.0 MWe Krabi, 2 mill 12.4 MWe ** Currently Biomass EFB still available, enough for power plant consumption *** Power Plant EFB available (ton), based on FFB in Y2012 Zone Biomass avai. Existing PP requires Diff EFB Krabi 651,512 221,179 430,333 Suratthani 651,292 179,006 472,287 Chumporn 493,599 179,006 314,593 Prachup 116,371 26,851 89,520 Total Biomass 1,912,775 606,041 1,306,733 22 ** Biomass requires calculated from MW electricity Capacity installation at 20% efficiency of power plant, op. 24hr and 300 days

Future Biomass consumption by Power Plant establishing But in future, some province area may be have limited of EFB-biomass supply from local area Prachup, 1 mills 1.5 MWe Trang, 3 mills 24.2 MWe Chumporn, 3 mills 34.6 MWe Ratchaburi, 1 mill 6 MWe Krabi, 5 mills 29.9 MWe Suratthani, 4 mills 37 MWe Power Plant EFB available (ton), based on FFB in Y2012 Zone Biomass avai. All PP requires Diff EFB Krabi 651,512 534,439 117,074 Suratthani 651,292 662,320-11,028 ** Chumporn 493,599 619,359-125,761 ** Trang 75,447 433,695-358,248 Prachup 116,371 26,851 89,520 Ratchaburi 0 107,403-107,403 ** Other Province 503,644 - Total Biomass 2,491,865 2,384,067 107,798 23 Source: VSPP_status_March 2012, EPPO+PEA s information ** Biomass requires calculated from MW electricity Capacity installation at 20% efficiency of power plant, op. 24hr and 300 days

Conclusion and Q & A For more information: Contact: Tel. 02 314-4101- 4 Ext 612 Email: Krisada@vcbgroup.com 24