BIOGAS OPPORTUNITIES IN MALAYSIA SIVAPALAN KATHIRAVALE

Copyright of MIGHT 2014 2 What is Biomass? Biomass is defined as non-fossilised and originating from indigenous plants animals and micro-organisms including but not limited to products biodegradable organic material by-products residues and waste from agriculture, industrial and municipal solid waste Various Use of Biomass Biochemicals Pellets Animal Feed Energy Bio-fibre Papers Compost Not limited to the list above

Copyright of MIGHT 2014 3 Biomass Availability in Malaysia Palm Oil 10% oil 18 million tonnes 90% biomass 120 million tonnes (dry weight in 2011) Fruit Waste 240,000 hectare 20,000 tonnes per day 17.25 m 3 hectare area of plantation Municipal Solid Waste Wood Waste, include Rubber 0.7 million hectare area 343 hectare 15,000 hectare Paddy Kenaf Sago

Copyright of MIGHT 2014 What Can Become of the Biomass Feedstock Products Applications Palm Biomass Rice Husk & Straw Municipal Solid Waste Kenaf Bio-Energy Green Chemicals & Bio- Polymers Bio-Fertilisers Steam Electricity Heat Transport Fuel Packaging Livestock Wood Biomass Bio-Composites Agriculture Green Building Materials

Palm EFB Fuel Pellets Biofuels Biogas Biochemical s EFB Bioalcohols Industrial pellets Syngas Biosugars Biofertilizers Organic compost Biochar Biocomposites Others Carbon fibers Fiberboard Eng. wood Paper pulp Erosion mat Palm Kernel Shell Coke substitute Activated Carbon Oil Palm Trunk OPT pellets Bioalcohols Syngas Industrial Biosugars Organic compost Biochar Eng. lumber Eng. wood Oil Palm Fronds OPF pellets Bioalcohols Syngas Biosugars Organic compost Biochar Phytochemicals Animal feed Palm Kernel Cake PKC pellets Biopolymers Animal feed Palm Oil Mill Effluent Bioalcohols Methane Biopolymers Organic compost Wood Sawdust Wood pellets Bioalcohols Syngas Industrial Biosugars Mushroom cultivation Biochar Fiberboard Eng. wood Rice husk & straw Straw pellets Eng. wood Silica aerogel Kenaf Fiber Composite panels Sago Waste Municipal Solid Waste Fuel pellets RDF Pellets Bioalcohols Methane Methane Biopolymers Organic compost Organic compost LEGEND Commercialised Development Stage Animal & fish feed Sewage Waste Methane Potential Phosphat e recovery

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Palm EFB Palm Kernel Shell Oil Palm Trunk Oil Palm Fronds Abundance Supply concentrated in mills Multiple potential uses Uncertain pricing & availability High moisture for transport Rapid degradation Biosugars/chemicals production Diversify palm oil mills revenue Spur downstream activities Supply concentrated in mills Uncertain pricing & availability Activated carbon production Manufacturing of act. carbonbased consumer products Abundance; replanting scheme MPOB/FRIM know-how available Abundance; pruning works Currently left in field to mulch Value too low for collection Supply not consistent Currently left in field to mulch Value too low for collection Engineered lumber Phytochemicals extraction High minerals content Low-value utilization Disrupt mulching practices Sustainability of palm sector Low value export as commodity Disrupt mulching practices Disrupt mulching practices Palm Kernel Cake Concentrated in kernel crushing plants Aggregation of feedstock uneconomical Animal feed production Low value export as commodity Palm Oil Mill Effluent Abundance Supply concentrated in mills Multiple potential uses Must be in-situ conversion Solve POME pollution problem Diversify palm oil mills revenue Mill owners not responsive to new ventures Wood Sawdust Supply concentrated in sawmills Well established conversion technologies Decreasing availability locally Sustainable foresties Wood substitute for furniture industry Sustainability of timber sector Rice husk & straw Husks; supply concentrated in rice mills Meet sustainability criteria Straws; currently left in field Husks; uncertain pricing & availability Source of silica for engineered products e.g. aerogel Green certified biocomposites Disrupt mulching practices Husks used as fuel in rice mills Kenaf Fiber High quality fibers Fast growing 3-4 harvests/yr High-value engineered products & biocomposites Low uptake for large-scale planting Competing use of land Sago Waste Abundance in Sarawak Sago industry still traditional Scattered supply sources Spur downstream activities in rural areas Conversion to biopolymers Availability of sago trees Competing use of land for oil palm cultivation Municipal Solid Waste High organic component Supply chain established Federalized management Waste not segregated Heavy metals contamination Recovery of valuable materials Wasteful incineration Sewage Waste Supply concentrated in sewage plants Heavy metals contamination Recovery of valuable minerals Halal issue as a resource

Copyright of MIGHT 2014 8 Global Biogas Demand Global biogas plant market to hit nearly USD9 billion in 2017; the market is seeing an explosive growth in municipalities, industry & agriculture Europe and the United States account for the majority of the global biogas plants market Major countries in EU include Germany, UK, Italy and Spain derived from their agriculture waste

Malaysia Biogas is only from the Palm Oil Industry Copyright of MIGHT 2014 9

Copyright of MIGHT 2014 10 What and Where are the Opportunities Raw Material Conversion Technology Products What are the Problems and issues Financing How to resolve

Copyright of MIGHT 2014 14 Benefits of Integrated Approach Eliminate Waste from landfills GHG emissions Land costs Reduce Waste transportation costs Waste disposal costs Waste treatment costs Need for landfills Raise Sustainability Asset utilisation (STP) Recycling Create Biogas, Fertilisers Renewable Energy Revenue Streams Exportable Technology

Copyright of MIGHT 2014 15 Financials 1. Financial knowledge and maneuvering 2. Feedstock and offtake agreements 3. Technically sound GHG

Copyright of MIGHT 2014 16 Conclusion 1. Knowing where is the demand and supply 2. Choosing the appropriate products 3. BATNEEC 4. Integration 5. Good financial analysis and backing

Copyright of MIGHT 2014 17 Thank You SIVAPALAN KATHIRAVALE Emerging Technology, Malaysian Industry Government Group (MIGHT) MIGHT Building, 3517, Jalan Teknokrat 5, 63000, Cyberjaya, Selangor, Malaysia E-mail: sivapalan@might.org.my Tel : 603-83157915 Fax : 603-83120300