Zero Discharge System in Palm Oil Mills Zero Discharge System in Palm Oil Mills & Strategy for Creating Business Opportunities& Strategy for Creating Business Opportunities

Professor Mohd Ali HassanUniversiti Putra Malaysia

Professor Yoshihito ShiraiKyushu Institute of Technology

2

• ETP, NKEA Palm Oil

• Sustainability and Green Technology

• Palm Oil Industry and Malaysian Socio-Economy

• Value Addition, Wealth Creation and Zero Emission

• Sustainable Palm Biorefinery… win-win-win

• New Business Opportunities

• Current Issues

Presentation Outline

• Biofuel, B5 Programme

• ETP, NKEA Palm Oil and 8 EPPs (low hanging fruits)

• Focus on ↑GNI, ↑Jobs, ↓Carbon

• EPP#5 on Biogas Capture (400 mills by 2020)

• EPP#4 on OER (20.5% to 23% by 2020)

• 20mg/L POME discharge

ETP, NKEA Palm Oil and EPPs

• Merging the 3Ps

• Towards sustainability

>>> win-win-win strategy

• Consider the bigger picture

• Develop green technology

Biomass

Problem Profit

Sustainability & Green Technology

People

Profit

Planet

Sustainable

Development

• The 3 stages of waste management→→→→ 1. treatment to meet discharge standards

2. incorporate 3R strategies

3. zero-emission

• 3Rs – reduce, reuse, recycle

• Concept of zero-emission

• w2w.. from waste to wealth $$$$$$

• b2b.. from biomass to business! $$$$$$

Waste Management and Utilisation

RecycleRecycleReuse Reuse

ReduceReduce

Biomass Resources in Malaysia

•• Wastes? >>>Wastes? >>> Biomass = renewable organic matter

– includes forest and mill residues, wood wastes, agricultural crops and wastes, animal wastes and MSW

• Abundant in Malaysia ~ 70 million tonnes collected / year

• Available throughout the year– due to high sunlight intensity/time

and high rainfall

• Main contributor of biomass is the palm oil industry (ligno-cellulosics)

MSW9.5%

Palm Oil 85.5%

Rice 0.7%

Sugarcane 0.5%

Wood industry

3.7%

Oil Palm Tree and Fresh Fruit Bunch

Oil Palm Plantation Area in Malaysia 4 million ha Oil yield：3 – 5 tones/（ha・year）

Number of Palm Oil Mills: 400 (10,000 ha-

plantation/mill)

30,000 tones CPO/(mill・year)

Malaysian Palm Oil IndustryMalaysian Palm Oil Industry

Palm Oil Mill Effluent50 million tonnes

Fresh Fruit Bunch70 million tonnes

Oil ExtractionCrude Palm Oil15 million tonnes

Palm Kernel Oil2 million tonnes

Empty Fruit Bunch 17 million tonnes

Fiber 8 million tonnes

Shell4 million tonnes

Renewable ResourcesFronds 83MT!Fronds 83MT!Trunks 15MT!Trunks 15MT!

Methane Emission Mitigation Methane Emission Mitigation

Methane from POME

Anaerobic Ponds360,000 t/yr

Open Digesters40,000 t/yr

Greenhouse GasesEmission (15%)

Global WarmingClimate Change

Mitigation Methods (e.g. CDM Projects)

Biogas PlantBiomassIndustries

Bio-energy Bio-products

Serting Hilir MillSerting Hilir MillBiogas CDM ProjectBiogas CDM Project

380,000 tones380,000 tones380,000 tones380,000 tones380,000 tones380,000 tones380,000 tones380,000 tones

COCOCOCOCOCOCOCO22222222

reducedreducedreducedreducedreducedreducedreducedreduced

for 10 yearsfor 10 yearsfor 10 yearsfor 10 yearsfor 10 yearsfor 10 yearsfor 10 yearsfor 10 years

Approved by UN CDM

9th March 2009

Bornean Biodiversity and Ecosystems Conservation Programme Bornean Biodiversity and Ecosystems Conservation Programme Bornean Biodiversity and Ecosystems Conservation Programme Bornean Biodiversity and Ecosystems Conservation Programme Bornean Biodiversity and Ecosystems Conservation Programme Bornean Biodiversity and Ecosystems Conservation Programme Bornean Biodiversity and Ecosystems Conservation Programme Bornean Biodiversity and Ecosystems Conservation Programme -------- Phase Phase Phase Phase Phase Phase Phase Phase ⅡⅡⅡⅡⅡⅡⅡⅡ --------JICA Sabah

The Kinabatangan Ramsar Wetland

２０

12

Renewable Energy (1 MW) to Grid

Estimated Costs, RM (million)

Biogas capture (ponds or tanks) 1.8

Downstream processing (gas scrubber & gas storage) 2.0

Gas engine @ 1000 kW 1.2

Total plant cost 5.0

Yearly maintenance and operation cost 0.5

Benefits and revenues generated :

• Internal office use and external lighting (“24/7”)

>>> reduce diesel cost/usage during mill’s non-operating hours

• Sale of green electricity to TNB @ RM0.25/kWh ~ RM 1 million/yr

• Aeration system to remove remaining BOD

increased POME treatment efficiency >>> water re-use >>> zero emission!

+ reduced land requirement (~70% of total mill area)

• Estimated sale of CER @ € 10 per tonne CO2 ~ RM 1 million/yr(Assumption: mill capacity of 60t FFB/hr and 320 days of operation)

13

Adding Value to Palm Biomass

• Paradigm shift towards biomass– Not waste– Renewable– Sustainable Resource

• Uncertainties of biomass– Technological proven ?– Economically feasible ?– Quality, quantity, availability ?

� value chainfine chemicals

foodfiber

feedfuel

fertilizer

furniture

14

Palm Biomass Refinery

Empty Fruit Bunch 16 million t/yr

Palm Oil Mill Effluent50 million t/yr

Standardised biomass available “business as usual”

Sugars

Bioplastic (PLA) or Bioethanol

Pre-treatment and Saccharification

Fermentation in bioreactors

Biomass Energy

Bio-acids

Bioplastic (PHA) Biogas, CH4 (+ Biohydrogen)

“zero emissionzero emission”

wastewaste--toto--wealthwealth

++ water recyclingwater recyclingCompost

15

• Carbon footprint (~1tCO2e/tCPO)

• Water footprint

• Energy efficiency

• Low-carbon economy

• Roundtable for Sustainable Palm Oil (RSPO)

• ETP, Palm Oil NKEA, EPP#5

Current Issues