Biomass for Energy Generation in Malaysia

4th Biomass-Asia Workshop20 November 2007

Grand Blue Wave, Shah Alam

Anuar Abdul Rahman

Pusat Tenaga Malaysia

Crude Oil Prices

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1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

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Official Price of Saudi Light Refiner Acquisition Cost of Imported Crude Oil (IRAC) Source: EIA

Petroleum Development Act 1974

National Petroleum Policy 1975

National Energy Policy 1979

National Depletion Policy 1980

Four-fuel Diversification Policy 1981

RE as 5th Fuel Policy 2001

Kick Start of SREP

2008

WORLD PRIMARY ENERGY SUPPLY

Oil resource Year of Global Year of Global

estimate Production Decline Demand unmet

Low 2012 2007

Mid 2030 2023

High 2041 2033Source: Energy, Vol 29; 2004

MALAYSIA ENERGY SCENARIO

Fossil fuels continue to be main fuels for electricity generation

Mainly gasIncreasing use of coal and hydro

Based on current capacity and productionOil : 19 yearsGas : 33 years

% of RE for grid-connected electricity negligible against target of 5% of grid-connected electricity by year 2005Energy efficiency initiatives constrained by subsidised energy price

RE PotentialType ofIndustry

Production (Thousand Tonne)

Residue Residue product Ratio

(%)

Residue Generated(Thousand Tonne)

PotentialEnergy

PJ

PotentialElecMWe

EFB 21.14 15,701 74 714

Fiber 12.72 9,447 140 1,353

Shell 5.67 4,211 71 683

Total 29,360 285 2,750

Others(POME) 51,990 30 428

Rice Husk 22 471 7.6 72

Paddy Straw 40 856 8.8 80

Sugar 1,111 Bagasse 32 356 356 314

2,937,679 m3 Sawn timber 0.5-0.6 1,692,718 m3 5.2 50

523,336 Plywood and veneer

0.18-0.65 121,000m3 0.374 4

147,813 Moulding 0.2-1.0 75,600 m3 0.232 2

Wood

Paddy 2,141

74,272

Oil palm

No.Type Energy Resource Approved

ApplicationGrid Connect Capacity (MW)

1 Biomass Empty Fruit Bunches

15 103.2

Wood Residues 1 6.6

Rice Husk 1 4.1

Municipal Solid Waste

4 25

2 Landfill Gas 3 6.0

3 Mini-hydro 23 93.2

Total 47 244

SREP

Approved Application from Biomass’s project = 21 projects

Total of Potential Grid Connected Capacity from Biomass = 138.9MW

Source: Energy Commission (July 2006)

Northern Region

1000 MWe

Eastern Region

400 MWe

Sabah

900 MWe

Central Region

300 MWe

Southern Region

700 MWe

Biomass Resource Map

Total biomass-based installed generation capacity – 700 MWe

Sarawak

360 MWe

Total potential biomass-based generation capacity – 3700 MWe

SREP Fully Commissioned Projects

TSH Bioenergy Sdn Bhd

Located in Kunak, Sabah

Generation Capacity of 14 MW (10 MW to be sold to SESB)

Fuel use – oil palm residues (EFB, shells and fibres)Expected 40,000 to 50,000 tonnes CO2 mitigation annually.

Jana Landfill Sdn Bhd

Located at Air Hitam Sanitary Landfill, Puchong, Selangor.

2 MW installed capacity.

Fuel by biogas that capture from the landfill area.

Commission in April 2004.

Click to edit Master title style

Absence of a clear mechanism on renewable energy development

Lack of accessible and favourable financing schemes

Uncertain financial viability

Lack of successful models to demonstrate viability

Reliability of biomass feedstock fuel supply

Lack of proven biomass based energy technology

Issues & Concern for Grid-Connect Biomass-based Project

Click to edit Master title styleSupporting Measures for Grid-Connect Projects in Malaysia

Electricity feed-in tariff at 21 cents/kWh for biogas and biomass based power generation

SREP, REPPA, Interconnection support and Local Authorities Facilitation.

Technical and Financial Consultancy

CDM Application Facilitation

Facilitation of Tax Incentive or other available incentives.

Soft Loan facility – need to be set-up

.

The Biomass-based Power Generation and Cogeneration Project in the Palm Oil Industry

To remove barriers:

i) Lack of information services to promote biomass energy development and application

ii) REPPA terms and conditions

iii) Lack of accessible and favorable financing schemes

iv) Lack of successful models to demonstrate the viability of biomass-based grid connected power generation/CHP

v) Uncertainties in the implementation of biomass-based energy technology •To promote demonstration of techno-

economic viability, design, development and sustainable operation & maintenance of biomass-based grid connected power generation/CHP projects.

PROJECT OBJECTIVES

BioGen FSM Projects

MHES Asia Sdn Bhd, Jempol, Bahau Empty Fruit Bunch (EFB) biomass based power generation (10 MW).

FELDA Serting Hilir biogas based power generation from palm oil mill effluent (1.0 MWe).

MHES ASIA SB PROJECT PROGRESS(as at October 2007)

Schematic diagram of biomass based power generation for MHES Asia Sdn Bhd

1. Engineering 95.7%

2. Procurement 98.5%

3. Fabrication 85.0 %

4. Construction 19.48 %

5. Installation 3.5%

6. Commissioning 0%

Overall Progress 72.94%

Target mechanical completion Date : 31 Dec 2007

Target commercial operation Date : 31 April 2008

Biogas FSM Project• Project Location:

Kilang Sawit Serting Hilir, Daerah Jempol, Bahau, Negeri Sembilan.

• Power Plant Capacity:Installed capacity : 640 kWe initially and will increased up to 1.2 MWeafter plant stabilize.

Roof truss completed with partial plate mounted on a tank

Installation of steel plate and roof truss

Cutting of Top Plate at Tank 2

FELDA PALM INDUSTRIES Biogas Plant Project Progress (as at November 2007)

1. Engineering 90%

2. Procurement 70%

3. Fabrication 90 %

4. Construction 25 %

5. Installation 0%

6. Commissioning 0%

Overall Progress 42%

Schematic diagram of Felda Palm Industries biogas based power generation project

Project Development Status

Fuel Handling System Partially delivered. Complete delivery due Nov.07

Enviro-cycler Due mid Nov.07

Steam Turbine Generator Due Dec.07

Master Control Panel Due mid Nov.07

Cooling Tower Early Dec.07

1st Boiler Sept.07

2nd Boiler Sept.07

Click to edit Master title styleOFF-GRID RE Generating Capacity in Malaysia (2005)

Total Installed Capacity (MW) for RE (palm oil waste, paddy husk,

wood waste)

Total Installed Capacity (MW) for mini-hidro power station (<50MW)

215.4 104.1

9.9

7.3

121.3

127.2

Sarawak 360.0 1903.00

702.6

Total Electricity Generation

(Gwh/yr) by RE

Peninsular Malaysia

345.43

Sabah 89.44

Total 2337.87

Off-Grid: Wood residues biomass based steam production Plant at Heveaboard SB

1. Biomass Fired Thermal Oil Heater for Particleboard ProductionThe total project cost is RM 2.8 million giving the company a simple payback period of 4 years.The replacement of existing Medium fuel oil fired thermal oil heater, total annual fossil fuel savings of about 38,000 GJ were achieved. Burner with fuel feed and

ash removal

Year MFO saved (GJ/year)

Cost savings (RM)

2005 37,775 471,296.222006 36,097 719,992.30

Heating coil section

Off-Grid: Biomass fired Rubber Wood Processing at Heveaboard S.B.

Heater furnace

Sawdust conveyor

/inlet

OFF-GRID Oil Palm Residues Steam Production Plant, Sabah

Oil Fired Boiler(Previous)

Biomass Boiler(New)

Fuel Consumption 1 mil litre/month MFO 9,000 Mt/hour biomass

Steam Production 30 tonne/hour 30-35 tonne/hour

Type of Fuel MFO Biomassa. Empty Fruit Bunches b. Mesocarp Fibresc. Palm Kernel Shells

•Fuel Treatment : EFB (pressing, shredding and drying) mixed with mesocarp fibres and palm kernel shells

•Total Cost: RM 10.3 million (Equipment Cost: RM 6.8 million Installation Cost: RM 3.5 million)

Off-Grid:Rice Husk based Cogeneration Plant, Kedah

Cost Factors Annual Savings

Electricity supply RM 240,000Diesel oil for paddy drying

RM 140,000

Rice husk disposal RM 40,000

•The plant generates 470 kW of electricity used in the milling section

•The plant displaces 641 tonnes of fuel oil and 2,868,750 kWh of grid electricity per year.

• The investment cost is RM2.9 millionwith a payback period of 4 years.

*Savings:

Case 3 : Wood residues based Steam production Plant, Miri, Sarawak

•Installed capacity: 6 MW,

•4.5 MW will be supplied to adjacent factory, remaining 1.5 MW for internal used.

•Fuel type : wood wastes

•Current electricity source: 2 diesel generators

•Total project cost : RM 19.5 million or

RM 3.2 million/MW

•Payback period : 2.5 years

*Savings as per adjacent table

Diesel consumption

7,450 litres/day

Diesel Cost RM 1.40/litreAnnual Working Day

330 days

Annual Diesel Cost

RM 3.4 million

Diesel cost for 2 Gensets

RM 6.88 million /year

Click to edit Master title styleConclusion

There are abundance potential of biomass resources in Malaysia

Non-grid projects are widely replicated throughout the country using various biomass resources

Oil palm residues are the major potential for RE based power generation estimated at 2400 MW

Paddy residues potential for power generation estimated at 156 MW. Plant-up capacity can be further increase.

Bagasse is used in sugar mills to generate power and steam for own consumption

Wood waste residues is declining due to modern equipment used and recycled for other products

Thank YouPusat Tenaga Malaysia

No 2, Jalan 9/10

Persiaran Usahawan, Seksyen 9

43650 Bandar Baru Bangi

Selangor

Website: www.ptm.org.myE-mail: info@ptm.org.my