ISCC and SUSTAINABLE PALM OIL 1
Presenta(onContent FGV ISCC&RED FGVInvolvementin SustainabilityCer(fica(on FGVInvolvementinISCC FGVProgressUptodate 2
FeldaGlobalVentures IncorporatedinMalaysiaasaprivatelimitedcompany,a whollyownedsubsidiaryoffederallanddevelopment Authority(FELDA)on19December2007. FGVoperateasthecommercialarmofFELDAfor investmentsinupstreamanddownstreamofpalmoil businessesaswellasotheragribusinesses. 3
FGVcorebusinessisoilpalmplanta(ons,whereweproducecrude palmoil(cpo)forprocessingintodownstreamproducts Overviewofoilpalmindustrysupplychain Upstream Midstream Downstream Oilpalmestates Palmoilmills Refineries Oils&fats Olein/Stearin manufacturedintofrying fats,margarine, shortenings,cocoabutter substitutes,etc. Managementof estates HarvestingofFresh FruitBunches(FFB) FFBissenttothe millswheretheyare sterilizedandcrushed ThisproducesCrude PalmOil(CPO)and PalmKernel(PK), withemptyfruit Bunches(EFB)asthe by productand Biomassproduct CPOsenttoarefinerywhere itisprocessedintorefined, BleachedandDeodorized PalmOil(RBDPO) RBDPOisthenfractionated into: RBDOlein(liquid) RBDStearin(semi solid) Kernelcrushers Oleochemicals CPKO/Olein/Stearin madeintosurfactantsand otheringredientsfor personalcareand householdcareproducts Rubber:ToFRI PKiscrushedtoproduce CrudePalmKernelOil (CPKO),whichisalauric oil
FGVLandbankManagement(424,995ha) FGV Malaysia Total:355,864ha includestimber2,035ha Malaysia (FeldaAgriculturalServices) Indonesia Rubber OilPalm 314,910ha 10,259ha InPeninsularMalaysiaonly OilPalm 12,746ha OilPalm OilPalm PTCitraNiaga 14,385ha TrurichJV 42,000ha East&Central Kalimantan InMalaysia WestKalimantan 95% 50% Uncultivated 27,824ha Uncultivated 836ha InMalaysia Malaysia, 368,610, 87% PT CitraNiaga 26% Trurich 74% Palm (FGVPM) 93% Palm(FAS) 3% Rubber (FGVPM) 3% Timber (FGVPM) 1% LandbankinMalaysia TotalLandbank LandbankinIndonesia Indonesia, 56,385, 13%
FGVHLLA LandbankManagementbyState Kedah Sabah SahabatComplex Perak Kelantan Terengganu Pahang Negeri Sembilan ) Selangor Sarawak Johor SampadiComplex EstateLands(140estates) Mills(71mills) State Pahang Sabah Johor Kelantan Perak T ganu N.Sembilan Sarawak Kedah Slgor NoofEstate 54 42 12 9 6 5 6 5 1 Size(ha) 143,166 103,814 33,435 24,510 15,510 13,309 12,724 8,280 1,116 % 40.23 29.17 9.39 6.88 4.35 3.7 3.6 2.3 0.3 NoofMills 29 11 15 4 2 5 3 1 1 Capacity (3,312mt/hr) 1,328 627 638 218 81 178 148 40 54
FGV&SustainablePalmOil(SPO) CompliancetoInterna(onalandNa(onalSustainability Cer(fica(on RSPO RoundtableonSustainablePalmOil ISCC Interna4onalSustainabilityandCarbonCer4fica4on CoP CodeOfPrac4ce(MPOB) MSPO MalaysianSustainablePalmOil ISPO IndonesianSustainablePalmOil
Milestone FGVP(M)&SPO 2012:CoP, ChallengesAhead 2011:ISCC Certification 2009:FirstRSPO Certification 2003:RSPO 2000:Integrated System,QSHE 1980:QMS,Best Practices 1990:EMS, OSHAS,Food Safety(HACCP)
RSPO CERTIFICATE ISCC CERTIFICATE ISO CERTIFICATE C.O.P CERTIFICATE
Interna(onalSustainability&Carbon Cer(fica(on(ISCC) Tocomplywith2009/28/ECRenewableEnergy Direc(ve(RED) ApprovedbyGermanFederalAgencyforAgriculture andfood(ble) RecognizedbyEuropeanCommissionandthesystem appliesdirectlytoall27eumembersstates. 10
Objec(veofISCC Establishaninterna(onaloriented,prac(caland transparentsystemforthecer(fica(onofbiomass andbioenergy. ISCCisorientedtowards: Reduc(onofGreenhouseGasemissions, Sustainableuseofland Protec(onofnaturalbiospheresand Socialsustainability 11
RenewableEnergyDirec(ves(RED) TheREDisdealingwiththeproduc(onandpromo(onof energyfromtherenewablesources: TheREDisaframeworkandestablishestargets bindingthroughouttheeuropeanunionforthe na(onaltotalshareofenergyfromtherenewable resources. TheREDstatesthatbiomassforusageasbiofuelor bio electricitymustbeproducedsustainably.relevant minimumrequirementsareset. 12
FGVInvolvementinISCC General Date 2011 2011 2011 2012 2013 FELDA sinvolvement 17March2011 RenewableenergyfirmMissionBiotechnologiesMalaysia andfeldaglobalgroupenteredintolongtermsupplyagreementto establishthefirstfullyintegratediscccerxfiedpalmbiodieselsupplyand producxonchaininasia. 17March2011 Thefirst2FeldaGlobalGroupcomplexescerXfiedISCC (BukitSagu&LeparHilir) Bytheendof2011 6FeldaGlobalGroupcomplexescerXfiedISCC (Kemasul,Triang,SerXngHilir,TemenX,LeparUtara6&LeparUtara4) Bytheendof2012 7FeldaGlobalGroupcomplexescerXfiedISCC (Tenggaroh4,TenggarohTimur,Maokil,PalongTimur,Keratong9,Kechau A&KechauB) InprogresstobecerXfy 7FeldaGlobalGroupcomplexesinpreparaXon (EmbaraBudi,KembaraSakX,LanangKemudi,FajarHarapan,Mercu Puspita,SelancarA&SelancarB).
14 FGVISCC FirstProject2011 BukitSagu s Complex LeparHilir s Complex ProjectsinvolvedNumber Area(Ha) FPImills 2 Scheme FTP 2 3,592.38 FGVP(M) 7 9,442.60 Total 11 13,034.98
FGVProgressinISCC CerXficaXon Date FELDA s Involvement 2011 First ISCC Certification in Felda involving 2 mills in March. 2011 6 additional mills certified for ISCC 2012 8 mills certified for ISCC 2013 7 mills in progress for ISCC certification
CerXficaXon ISCCCerXfied ISCCAuditCompleted RSPOInternalAudit Process RSPOPlan2013 NoofMills 15complexes 2complexes 13complexes 7complexes
ImplementationofISCC Task Month 1 2 3 4 5 6 7 8 9 10 11 12 Identifying Training& Coaching& InternalAudit MainAudit Certification Continual Improvement 17
FGVP(M)onISCCStatus(Cer(fiedMills&ExpiryDates) No Complex Certification No. InternalProcess RenewedCer(ficatefor2013 Date of Certificate & Expiry Date GHG Value Monthly CPO Production(mt) 1 LU6 DE B BLE BM 10 105 82068202 10.09.2012 9.9.2013 0.793 1800 2 Keratong9 EU ISCC Cert DE105 82217801 11.09.2012 10.09.2013 0.672 2300 3 Kemasul EU ISCC Cert DE105 81873702 11.09.2012 10.9.2013 0.614 1800 4 TenggarohTimur EU ISCC Cert DE105 82220701 11.09.2012 10.9.2013 1.086 1500 5 Tenggaroh4 EU ISCC Cert DE105 82220601 11.09.2012 10.9.2013 0.865 1400 6 PalongTimur EU ISCC Cert DE105 82216301 11.09.2012 10.9.2013 0.675 2000 7 Maokil EU ISCC Cert DE105 82217201 11.09.2012 10.9.2013 0.299 1500 8 BukitSagu DE 119 60131080 20.03.2013 19.03.2014 0.736 1900 9 LeparHilir DE 119 60131080 20.03.2013 19.03.2014 0.825 1500 10 Temen( ISCC Cert DE119 60120894 20.12.2012 19.12.2013 0.652 2000 11 Ser(ngHilir ISCC Cert DE119 60120801 5.12.2012 4.12.2013 0.531 2000 12 LeparUtara4 ISCC Cert DE107 70070511 24.10.2012 23.10.2013 0.681 2000 13 Triang EU ISCC Cert DE105 81874302 11.09.2012 10.9.2013 0.798 2400 14 KechauA EU ISCC Cert DE119 60121711 15.09.2012 14.9.2013 0.550 1800 15 KechauB EU ISCC Cert DE119 60121710 15.09.2012 14.9.2013 0.681 1800
ISCCTimeBoundPlan Progress Bil MillComplexestobecertifiedintherespectiveyears 2011 2012 2013 2014 2015 2016 1 BukitSagu Tenggaroh EmbaraBudi 2 LeparHilir Tenggaroh Timur KembaraSakti 3 LeparUtara6 Keratong09 LancangKemudi 4 Kemasul Palong Timur FajarHarapan 5 Triang Maokil MercuPuspita 6 LeparUtara4 KechauA SelancarA 7 SertingHilir KechauB SelancarB 8 Tementi TotalMills 8 7 7 TotalProjects 8 15 22 15 7 Certified InProgress NoActivity
ISCCCer(fica(on
FRESH FRUIT BUNCH (FFB) SHELL MESOCARP FIBRE COMPOST EMPTY BUNCH / SHREDDED EFB 21
Open Ponds METHANEGAS TRAPPING OPERATION EnclosedcovertrapsandcollectsMethaneGas (CH4).CH4isthenflaredoff. Bydoingso,theeffectofGHGisgreatly reduced. Covered Ponds Flare Stack
EFFLUENTSTEELTANKS METHANEGASTRAPPING HDPEsheetcoverstheopen (top)tanktotrapthemethane gas,whichisthenflaredoff,or usedtorungasengineto generateelectricityeitherfor ownuseorselltothegrid. COVEREDEFFLUENTTANK POME from Palm Oil Mill Gas flare (safety/ excess) Holding tank Heat exchanger Bioscrubber Electricity to national grid Gas dewatering well Anaerobic digester (AD) tanks (primary and secondary treatment) Floating cover AD will also acts as gas storage. Storage capacity is up to 3 hrs. Engine room 23
GAS ENGINE DEVELOPED TO RUN ON BIOGAS 24 Deutzh Engine Is Being Used In Serting Hilir Biogas Plant Guascor Engine Is Being Used In Maokil Biogas Plant
CONVERSION OF BIOMASS INTO RENEWABLE ENERGY GASSIFICATION Aprocessthattransformsfromsolidphaseintoliquidphase.This incompletecombustionprocessproducescarbonmonoxide(co)or SynteticGasthatcanbeusedasfueltoGasTurbine. OilPalmShell(OPS)isusedinthegassificationprocess,andtheCO producedisjointlymixedwithdieseltorunadieselengine,thussaving fuelconsumptiondrastically. Gassifier WidelyusedinMyanmar, IndonesiaandfewofFeldaMills. 25
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