NATIONAL KEY ECONOMIC AREAS

(NKEA)

NATIONAL BIOGAS IMPLEMENTATION

(EPP5)

BIOGAS CAPTURE AND CDM PROJECT

IMPLEMENTATION FOR PALM OIL MILLS

Updated: 9 October 2014

CONTENTS
Page

1.0

2.0

Introduction
1.1 Purpose
1.2 National Key Economic Area (NKEA)

1
1

1.3 NKEA: Palm Oil

EPP 5: Build Biogas Facilities At Mills Across Malaysia

2.1 Biogas as Potential Renewable Energy (RE): Why Embark on
Biogas Capture?
2.2 Benefits of Biogas Capture

2.3 How to Capture Biogas?

2.4 Comparison of Biogas Capture Technologies

2.5 Total Potential of Biogas from POME

2.6 Utilization of Biogas Capture

2.7 Technical Configurations of Biogas Utilization in Palm Oil

Mills

2.8 Option for Utilization

2.8.1 Combined Heat and Power (CHP)

2.8.2 Steam Generation

2.8.3 Electricity Generation

11

2.8.4 Downstream Business Activities

13

2.8.5 Other Potential Applications

18

2.9 Incentives for Renewable Energy (RE)

2.10 Technology Providers for Biogas Implementation

21
23

2.11 List of Sustainable Palm Oil Mills

25

3.0 Clean Development Mechanisms (CDM)

3.1 Benefits of CDM projects

27
27

3.2 Estimated CER from Biogas CDM Project

28

3.3 National project CDM criteria

28

3.4 List of CDM Consultants in Malaysia

30

Disclaimer:
Information contained herein is given in good faith to assist the oil palm industry in considering and evaluating
biogas projects. Readers are advised to check to confirm facts, figures and other information contained herein and
seek independent professional advice. We welcome any feedback to constantly improve this booklet.

NKEA: EPP 5

1.0 INTRODUCTION
1.1 Purpose
The purpose of this document is:

To encourage palm oil mills in Malaysia to implement biogas trapping and

utilisation; and

To inform palm oil millers on the benefits of biogas trapping and provide the
relevant information to facilitate planning and implementation.

The importance of biogas trapping is evident from its inclusion as one of the eight Entry
Point Projects (EPPs) of the palm oil National Key Economic Area (NKEA).

1.2 National Key Economic Areas (NKEA)

Malaysia is to focus on 12 NKEAs to boost the economy and achieve a high income
status by 2020. These 12 NKEAs are the core of the Economic Transformation
Programme (ETP) and will receive prioritised government support including funding,
top talent and Prime Ministerial attention. In addition, policy reforms such as the
removal of barriers to competition and market liberalisation will be carried out if
required. There will be dedicated attention from the Prime Minister and fast-track
mechanisms to resolve disputes or bottlenecks in implementing the NKEAs.

Economic Sectors
Oil, gas and energy

Palm oil
Financial services

National Key Economic Area

(NKEA)

Wholesale and retail

Tourism
Information and communication
technology
Education
Electrical and electronics
Business services
Private healthcare
Agriculture
Greater Kuala Lumpur

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1.3 NKEA: Palm Oil
Malaysias palm oil industry is one of the largest contributors to the national economy.
In 2009, it accounted for RM53 billion in Gross National Income (GNI). This GNI is
targeted to increase by RM125 billion to reach RM178 billion by 2020. As a major
contributor to economic growth, the Palm Oil NKEA programme plans to implement
eight core Entry Point Projects (EPPs) spanning the palm oil value chain. The palm oil
EPPs are as follows;

Palm Oil NKEA Programme

Upstream
productivity
and
sustainability

Downstream
expansion
and
sustainability

EPP 1

Accelerated replanting to clear backlog of old,

low yielding palms

EPP 2

Increase the national fresh fruit bunch (FFB)

yield

EPP 3

Improve workers productivity through the

introduction of innovative techniques in
harvesting

EPP 4

Increase national average oil extraction rate

(OER)

EPP 5

Build biogas facilities at mills across

Malaysia

EPP 6

Shift Malaysias focus towards high value oleo

derivatives

EPP 7

Emphasise early commercialisation of second

generation biofuels

EPP 8

Expedite growth in food & health-based

downstream segment

EPPs No. 5 aims to achieve the installation of biogas facilities in all palm oil mills in Malaysia by
2020.

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NKEA: EPP 5

2.0 EPP 5: BUILD BIOGAS FACILITIES

AT MILLS ACROSS MALAYSIA
2.1 Biogas as Potential Renewable Energy (RE): Why embark
on biogas capture?
It is important for the palm oil industry to capture biogas from palm oil mill effluent
(POME). The reasons and benefits of biogas capture are many. These include additional
revenues from sale of surplus energy and carbon credits. Furthermore, reducing the
carbon footprint through biogas capture enables competitive market access of palm
products particularly palm biodiesel to environmentally-sensitive markets such as the
European Union and the United States.

2.1.1 Objectives of Biogas Capture

To reduce greenhouse gases (GHG) emissions to the atmosphere from POME
To convert POME to renewable energy (biogas) for in-house or peripheral use
(e.g. for gas engine, boiler, etc)
To produce electricity for grid connection

2.1.2 Benefits of Biogas Capture

Reduces GHG emissions i.e methane and CO2 which cause global warming
Reduces land use for POME treatment
Generates additional revenue in the palm oil milling process
Eligible for Clean Development Mechanism (CDM) application

The CDM project transforms GHG emission reduction into cash through sale of
carbon credits
Reduces global and local environmental pollution impacts

Reduces dependence on fossil fuel, and enhances fuel diversity and security of
energy supply

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2.3

How to Capture Biogas?

The capturing of biogas from POME has attracted keen interest in the palm oil industry.
This is because of the vast potential of biogas as a clean renewable fuel as well as for the
mitigation of GHG emissions. Biogas projects are eligible for the Clean Development
Mechanism (CDM) scheme under the Kyoto Protocol, United Nation Framework
Convention on Climate Change. Registered projects will qualify for certified emission
reductions (CER) or carbon credits.
Capturing of biogas from POME can be carried out using a number of various local or
foreign technologies. The closed-tank anaerobic digester system with continuous stirredtank reactor (CSTR), the methane fermentation system employing special
microorganisms and the reversible flow anaerobic baffled reactor (RABR) system are
among the technologies offered by the technology providers.

Ponding system for palm oil mill effluent (POME) treatment and covered lagoon technology

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2.4 Comparison of Biogas Capture Technologies
Several systems to generate biogas from POME have been developed using both local
and foreign technology. The technologies are summarised as follows:

Name of
technology
provider

System

Life term
(years)

HRT
(days)

Effluent from the

digester tank
BOD
(mg/L)

Keck Seng

Continuous
stirred tank
reactor (CSTR)

Majurutera

Complete
stirred tank
reactor (CSTR)

Biogas
Environment
Engineering (BEE)

High efficiency
methane
fermentation
system

SIRIM (pilot scale)

Reversible flow
anaerobic
baffled reactor
(RABR)

UPM-FELDAKyushu Institute
of Technology

Semicommercial
closed
anaerobic
digester

Ronser Bio-Tech
and ShanghaiJiaotong
University zerodischarge
treatment
technology

AnaEG
(Combination
of UASB and
EGSB
technologies)

Biotec Asia
International Sdn
Bhd

Covered lagoon
biodigester

COD
(mg/L)

18

250-500

8000-12,000

10

20-25

20

20

25

20

50-270

Volume of
biogas
generated

1400-2500

~0.35
Nm3/kg of
COD
20 m3/tonne
of POME

>26-30 m3/
tonne of
POME

10-15

6000

0.23 Nm3/kg
of COD

10

2000

20 m3/tonne
of POME

8001000

2000-2800

> 0.5 Nm3 /kg

of COD

22

23 m3/tonne
of POME

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2.5 Total Potential of Biogas from POME
The estimated potential energy generated from biogas in Malaysia is 1.88 million MWhr
of electricity which is equivalent to 261 MW of the potential power based on 21%
efficiency in a steam plant (based on yield of FFB in 2009).
Material

Production Rate

FFB (mil. tonnes)

Effluent

Quantity
85.71

67% of EFB

57.42 million tonne

= 57.42 million m3

Biogas

28 m3 m-3

1607.76 million m3

Biogas CV at 35C
Total heat value

20 MJ m-3
1607.76 x 20 million MJ
= 32155.2 million MJ

32155.2 million MJ
8.93 million MWhr
*1MWhr = 1 MJ/3600

Power Output

21% of heat output

8.93 million MWhr x

21%
= 1.88 million MWhr

Power plant size

Plant operates 300 days year-1

= 7200 hr year-1

1 880 000 / 7200

= 261.11 MW

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2.6 Utilization of Biogas
Biogas can be used for various applications in place of natural gas. Since most boilers
do not require high quality gas specifications, the use of biogas in boilers is most
encouraged and has been increasing rapidly. Stationary engines of pumps, generators
and power tools are also a popular option for the utilization biogas. In vehicle fuel,
upgrading of the biogas quality is necessary. Upgrading the biogas includes the
reduction of H2S and CO2. Connecting the electricity generated to the national
electricity grid is another profitable way of utilizing the biogas, which is in tune with
the target set in the Malaysian Fifth Fuel Policy of achieving 5% of national gridconnected electricity generation from renewable sources.

2.7 Technical Configurations of Biogas Utilization in Palm

Oil Mills
There are various ways of utilizing POME biogas in palm oil mills. With the proper
technical configuration and system, biogas generated from the POME can be
converted into useful energy either for heat, electricity or both. The setting up of
biogas plants in palm oil mills would be useful to mills that require additional power
for other plants in the palm oil mill such as the EFB fibre plant or kernel crushing
plant, as well as for grid-connection under the Small Renewable Energy Power (SREP)
Programme.
The biogas can be also upgraded and stored as a natural gas for utilization in vehicles
used in the palm oil mills. Options of biogas utilization in palm oil mills are briefly
described in the following section.

2.8 Options for Utilization

2.8.1 For Combined Heat and Power (CHP) for production of steam
and electricity (direct thermal and electricity generation)
Palm biogas can be co-fired with oil palm biomass in the existing palm oil mill boiler.
Steam produced from this co-firing process is used to generate electricity using the
steam turbine and low pressure steam that leaves the turbine will be used for the
milling process. The boiler will require some modifications especially the feeding part
of the biogas into the boiler chamber. The use of biogas which is an efficient fuel with
high CV will significantly reduce or eliminate the usage of palm shell. The use of
mesocarp fibre may also be reduced. The excess palm biomass, particularly palm shell
may be sold to other industries that require solid fuel for their CHP plant. An example
of a CHP plant is the plant in Ulu Kanchong Palm Oil Mill.
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NKEA: EPP 5
ULU KANCHONG PALM OIL MILL BIOGAS PLANT FOR CO-FIRING IN
BIOMASS BOILER
The biogas plant of Ulu Kanchong Palm Oil Mill (UKPOM) is a
collaboration project between the owner Gan Teng Siew Realty Sdn Bhd
(GSTR) and Biotec International Asia Sdn Bhd (807700-A)-(BIA) as a
technology provider. Biotec International, the parent company of BIA was
founded in 1984 in Belgium. The Ulu
Kanchong biogas project is BIAs first biogas plant in South East
Asia. Biotec is an established technology provider with activities in
integrated organic matter management and environmental solutions for
tropical agro-industrial effluent. The scope of business and R&D activities
include effluent treatment, biogas capture, energy use and consultation
for Clean Development Mechanism based projects.
Biotec started construction of the biogas plant for UKPOM in 2009. The
plant was built using covered lagoon technology (Figure 1) commissioned
in February 2010 and started its commercial operation since June 2010.
The plant consists of three main systems, palm oil mill effluent (POME)
cooling system; biodigester system which is based on Biotec Covered
Lagoon technology and biogas utilization system. The plant was designed
to cater for POME produced from the processing of 350,000 tonnes fresh
fruit bunches (FFB) or equivalent to 280,000 tonnes of POME/year. The
general technical description of the plant is illustrated and summarized in
Figure 2.

General Description of the UKPOM Biogas Plant

A joint venture project between GTSR & BIA

Designed capacity for 350,000 TFFB/year with
methane production of 5.25 mil Nm3/ year
Capacity of covered lagoon bio-digester : 32,000 m3
Could cater flowrate of POME 1200 m3/day with min.
27 days of hydraulic retention time
90% of methane produced is combusted in the
biomass boiler while 10% is flared
3 units of burner with capacity 1000 Nm 3/hr installed
at the boiler
Max. flow rate of biogas to boiler is 1.800 Nm3/hr
Max. flow rate of biogas to flare is 1.800 Nm3/hr
Average biogas yield : 25 Nm3/tonne FFB

EY INDICATORS FOR UU KANCHONG

OIL

FFB
350 000 TFF/y

0.80 m3/TFFB
80 kg COD/m3

MILL
60 TFF/h

POME

Approx. 5.0 millions

Nm3 of CH4

BOILER

BIOGAS
5 250 000 Nm3 CH4/y
8 750 000 Nm3 biogas /y
35 000 CERs/y

21.38 m3 CH4/TFFB
0.12 CERs/TFFB

Approx. 5 % of
biogas production
per year

FLARE

Existing lagoons
280 000 m3/y
22 400 T COD/y

Figure 1: Covered lagoon biodigester installed at the mill

TREATED
EFLLUENT

BIODIGESTOR
266 000 m3/y
2 240 Ton
COD/y

266 000 m3/y

BIOLOGICAL ANAEROBIC SLUDGE

14 000 m3/y

Technical Configuration and Performance of the System

LAND APPLICATION

Bio-digester system
Figure 2: Process flow diagram of biogas plant
A covered lagoon type of anaerobic biodigester was installed at the mill
with the objectives to reduce the investment cost and ease the operation
procedure. The lagoons are sealed at their bottom with a waterproof liner
(geomembrane). The plant is also equipped with mixing and sludge
purging systems to ensure that the POME is evenly distributed, mixed and
discharged. The top geomembrane captures and stores the biogas
generated during the anaerobic digestion of POME.
The system offers an efficient operation, a larger gas storage and less
maintenance and operation costs. The COD removal of the system is
approximately at 90% efficiency and treated effluent of the biogas plant is
sent to the existing open lagoon system for further degradation and
polishing, with the final discharge registering BOD of 40 to 80 ppm.
Average biogas production from the system is 25 Nm3 (or 15 Nm3 of
methane) for every tonne FFB processed. Five percent purged sludge
from the anaerobic digester can be transferred and used as fertiliser after
a sufficient retention time.

Biogas Utilization System Co firing and Flaring

Biogas produced is channelled and co-fired with palm biomass in the
boiler using three units of burners. This direct and low cost investment of
biogas utilization reduces the use of oil palm biomass in particular palm
shell. Shell displacement is about 2.9% of total FFB processed. Additional
income is made via the selling of the palm shell and fibre. In terms of
environmental impact, the utilization of biogas has improved the boilers
smoke opacity to less than 20% consistently as compared to about 40%.
In addition, more than 50% reduction of the dust and particulate
concentration in the flue gas emitted from the boiler is achieved. A unit of
stainless steel flare was also installed in order to combust excess biogas
especially during the maintenance period of the boiler and mill.

Figure 3: 3 x 1000 m3/hr biogas burner and flaring unit

installed at the mill

Table 1: Economic Analysis of UKPOM Biogas Plant

( based at 250,000 t FFB/ year)
Item
Cost
Investment cost (including biogas
plant and boiler adaptation)
O& M Cost (including CDM monitoring
and verification)
Revenues
(based on the selling of shell @
RM130/t, fibre @ RM30/and CER @
Euro 10/t)
Payback Period
Internal Rate of Return, IRR % (with
CDM)

RM 7,000,000
RM 475,000 /
year
RM 2,100,000 /
year
4.3 years
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2.8.2 Steam generation only (thermal energy generation)

Production of steam using biogas as fuel can be carried out either by firing the biogas
(with or without other fuels) using either high or low pressure boiler. One of efficient
ways to produce heat or steam from biogas is by using a package boiler. As the package
boiler is designed to use natural gas and fuel oil, the utilization of biogas in a package
boiler is considered as a direct and simplest method to produce energy from biogas
without major modifications required. Biogas can also be co-fired with natural gas and
fuel oil and as such would reduce the consumption of these much more expensive fuels.
The existing boiler at palm oil mills may also be used to generate steam with co-firing
approach but again some modifications are required. An example of the use of biogas in
package boilers is Keck Seng (M) Sdn. Bhd.

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BIOGAS PLANT OF KECK SENGS INTEGRATED PALM OIL COMPLEX
FOR
STEAM PRODUCTION & UTILIZATION
Keck Seng (Malaysia) Berhad, (KS) operates an integrated palm oil mill complex located in Masai, Johor. The complex consists of a
palm oil mill, kernel crushing plant, palm oil refinery and other plants for downstream activities (Figure 1). Due to highly energy
demand mainly from refinery processing and a vision to maximize the use of in-house renewable energy sources, KS has installed
and operates a biogas plant to cater for the energy requirement of the whole complex.
An anaerobic digester system was designed, built and commissioned in 1984 for the treatment of high-strength palm oil mill effluent
(POME). The total tank capacity of the biogas plant is 10, 400 m 3 with 2 floating and 2 fixed roof tanks (Figure 2 and 3). The
flowrate of each plant is 500 m3/day. The biogas generated is used as fuel for boilers and chillers for the refinery. After years of
successful operation, KS licensed its unique anaerobic digester system for biogas generation and capture to Novaviro Technology
Sdn Bhd, to commercialise the system.

Figure 1: Keck Seng (M) Bhd integrated palm oil complex

Figure 2: Floating top closed anaerobic digester at KS

Technical Configuration & Economic Analysis of Biogas Utilization

Average yield of biogas generated from the system is 28

m3/tonne POME
Biogas generated is used as fuel for boilers and vapour
absorption chillers of the refinery.
Diesel displacement of high pressure boiler (Figure 4)
about 4000 l/day and MFO saving for package steam boiler
(Figure 5) of 2500 l/day.
Displacement of electrically powered chillers by biogas
operated vapour absorption chillers. Significant saving in
electricity consumption from 700 kW to 23.50kW only.
Saving made from diesel and MFO.
Saving made from the displacement of electrical powered
chillers (annual consumption of 3, 850, 000Wh / year )
GHG saving
Figure 4: High pressure boiler

Figure 3: Design specification of anaerobic digestion of Keck Seng

150psi

Figure 5: Mechmar boiler-steaming capacity 20 000 lb/hr at

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2.8.3 Electricity generation

An internal combustion engine such as a gas engine or a diesel engine can be coupled to
an alternator to use biogas for electricity generation. Generating electricity using a gas
engine is proven with thermal efficiency ranging from 35 to 42%. The electricity may be
for internal uses or grid connection. The biogas can also be used in a diesel genset and
this may reduce the diesel consumption up to 70%. However, this approach requires
some engine modification including to the feeding parts, air intake device and fuel
setting. An example of power generation for internal use is the Tee Teh Palm Oil Mill,
Rompin, Pahang.

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Biogas Environmental Engineering Sdn. Bhd. (BEE) High Efficient
Methane Fermentation System for Electricity Generation
Biogas Environmental Engineering Sdn. Bhd. (BEE) is a company engaged and specialized in research, engineering design,
construction and management of methane renewable energy development and environmental protection. The companys core
business is utilization of anaerobic digestion technology to process industrial organic waste water from food and beverage
industries, concentrated animal farm operations and palm oil mills.
A biogas harnessing system developed in collaboration between Biogas Environmental Engineering Sdn. Bhd. (BEE) and
Malaysian Palm Oil Board (MPOB) has been installed, and is currently in operation at Tee Teh Palm Oil Mill, Rompin,
Pahang (Figure 1). The biogas harnessing system is a highly efficient methane fermentation system using the USR employing
specialty microorganisms. The biogas system consists of a cooling pond, two acidification ponds, a concrete-steel digester tank
or an enameled assembly tank, a biogas floating storage tank and a discharging pond (Scheme 1). Evaluation/monitoring of the
biogas system performance over a year with sampling of 42 sets of wastewater showed that the system is technically mature,
3
3
and is highly efficient, with a COD/BOD removal rate of 90-95% and a biogas production rate of 27-30 m per m of POME
(Table 1).
Table 1: Performance characteristic of the biogas system
Parameter

Figure 1: Biogas storage tank and high efficient methane fermentation

system

Raw effluent
COD (ppm)
BOD (ppm)
Discharge after digester tank
COD (ppm)
BOD (ppm)
Composition of biogas
Methane (%)
Carbon dioxide (%)
Hydrogen sulphide (ppm)
Volume of biogas (m3 m-3
POME)

Performance
characteristics
44 000 - 83 000
14 000 - 34 000
1400 - 2500
50 - 270
56 - 64
35 - 41
217 - 1418
26.6 30.0

Biogas Utilization-Electricity Generation

The biogas captured is led through the biogas piping system from
the top of the anaerobic digester tank to the biogas storage tank. The
gas is first run through the splitter of gas and water to remove the
condensate water, and then directed to the gas engine for electricity
generation after desulfurization. The combustion chamber of the gas
generator installed at Tee Teh Palm Oil Mill (Figure 2) showed
evidence of having been in operation for > 10000 h without any
damage. The gas generator is in 24 h operation and the electricity
generated is supplied to the workers quarters of the mill.
Scheme 1: Biogas system for POME
1) Life span of materials used i.e. steel concrete or enamel tank is more
than 30 years;
2) High loading factor 6~8 kg COD/m3d, thus implies:
a.
Shorter HRT compared to other systems (CSTR system, COD
loading factor 3~4 kg COD/m3d);
b. Smaller volume of digester tank is required to treat POME,
and hence a lower construction cost.
3) COD, BOD reduction rate of 90%~95% (assessment by MPOB)
4) The quality of biogas produced is good:
H2S content: 217 - 1418 ppm - Other systems has higher H2S
CH4 content > 60%
Water content is low
5) The system, with less moving parts, is easier to operate at a stable
level; reinforced concrete steel or enamel sheet are better erosionresisting materials, thus very much lowers the maintenance cost.

Figure 2: Condition of the combustion chamber of a gas

generator using biogas for > 10000 h

Economic Analysis
The investment cost for the installation of the biogas trapping
facility is estimated to be RM 4-6 million, depending on the
capacity of the palm oil mill. A payback period of 2-4 years can be
achieved with revenues from on-grid electricity generation
amounting to 1-1.5 MW, sale of saved palm fibre and shell,
biofertilizer production, and savings from reduced diesel
consumption.
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2.8.4 Downstream Business Activities

Electricity generated from the biogas based power plant can be utilized internally,
especially for the downstream business activities in a palm oil mill. Among the
downstream activities that could utilize the electricity from the biogas plant include
empty fruit bunch (EFB) treatment plant for the production of boiler fuel and dry long
fibre, kernel crushing plant, briquette and pellet plants. These downstream business
activities are summarized below.
a)

EFB Treatment Plant for the Production of Boiler Fuel and Dry Long Fibre

EFB is the biggest underutilized solid biomass generated from the palm oil mills. Owing
to its physical characteristics and high moisture content of 65-70%, the EFB has to be
pre-treated to reduce its bulkiness and moisture content, for it to be utilized either as
fuel or as a feedstock for value added products. This pretreatment requires energy.
Electricity generated from the palm biogas would be a green source of energy which can
be tapped to exploit this business opportunity.
The pretreatment system of EFB involves a series of machineries and processes
(Figure 1). Depending on the technology providers and usage, the typical, basic
pretreatment system for EFB comprises a screw press or shredder (or combination of
both) followed by hammer mill. This produces EFB fibre with moisture content and
length about 40 to 50% and 4 inches respectively which is ready to be used as boiler
fuel (Figure 2). This process requires about 150200 kWh of electricity to produce 1
tonne of EFB fibre. In some palm oil mills, EFB fibre is mixed with mesocarp fibre and
burned in the boiler. This approach will displace some of the palm shells (which has
better price) which can be sold as solid fuel to other nearby industries. EFB fibre with
these specifications can also be sold as boiler fuel for palm biomass based power plants
and for biocomposting application.

EFB Juice

Raw EFB

Press cum shredder

Hammer mill

Baling Machine

Dryer & Screener

Processed EFB Fibre

Bailed Dry Long

Fibre

Boiler Fuel

Figure 1: Process flow of the production of boiler fuel and dry long fibre from empty fruit bunch
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Additional equipment such as dryer and baling machine are required to

produce dry long fibre (DLF) (Figure 2). DLF is sold in the baled form and its
commercial specifications are summarized in Table 1. Most of the local produced DLF
are for overseas markets, especially for China market. DLF is mainly used as raw
materials for the production of mattress, cushion and soil erosion mat. The trading
price of DFL varies from RM500600/ tonne. Due to extensive process, the electricity
requirement of DLF is estimated at 250-300 kWh per tonne.
Table 1: Typical specification of EFB dry long fibre
Parameter
Specification
Fibre length
310 (average : 4)
Moisture content (%)
15-18
Baled fibre
90100 kg / bale, size : 20 H x 20W x 33L

Figure 2: Baled dry long fibre and strand fibre of processed EFB

b)

Production of Palm biomass Briquette and Pellet

Processed fibre produced from the EFB treatment plant can be further treated and
used as feedstocks to produce high quality solid fuels such as briquette and pellet.
With the excess electricity generated from the biogas plant, the EFB treatment plant
could be integrated with a briquette or pellet plant in a palm oil mill. The EFB
pretreatment plant needs to be equipped with the additional equipment such as a
dryer, pulverizer and screener in order to produce EFB fibre with moisture and size
of less than 20% and 1 cm respectively (Figure 3).
Briquettes and pellets (Figure 5) are made via a densification process.
Densification is the process of compacting the biomass residue into a uniform solid
fuel. Both products have higher density and energy content as well as less moisture
compared to its raw materials. Briquetting or pelletizing of palm biomass, especially
EFB can be done using various techniques, either with or without addition of a
binder.
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These processes are among ways to improve the behaviour of fuel because it increases
the homogenity and facilitate the logistics and storage of the fuel.
Depending of technology used, a briquette or pellet plant requires about 200300 kWh for every one tonne of briquette or pellet produced from EFB. Higher
electricity consumption is required for pretreatment of the EFB to produce the
feedstock for the briquetting and pelletizing process. A comparison of the potential
annual production of DLF and palm solid biofuel in a palm oil mill is summarized in
Table 2. Both DLF and palm solid biofuel production can be combined in a single
production line as shown in Figure 4. The mass ratio of DLF to solid fuel from this
approach is 70:30.

Treated
EFB

RAW EFB

EFB
fibre

EFB pre-treatment
plant

Size
screening

Briquetting /
pelletizing

EFB juice

Packaging
Palm-based
briquettes / pellet

Figure 3: Process flow diagram for the production of palm biomass briquettes or pellets

Long fibre > 2

Treated
EFB

RAW EFB

EFB pre-treatment
plant + Dryer

Size
screening

Baling
machine

Pulverizer

Dry Long fibre

Short fibre < 1

EFB juice
Palm-based
briquettes / pellet

Briquette / pellet
machine

Figure 4: Integrated production of DLF and solid fuel in a palm oil mill

In general, both briquettes and pellets are in the form of cylindrical logs. The
main differences between these products are their size and specific density. Palm
pellets and briquettes are potential alternatives to fossil fuels especially for combined
heat and power plants (CHP). Since the objective of densification is to ease the
transportation and handling of palm biomass, palm briquettes and pellets will be
suitable for export.
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Besides that, because of the superior quality of these biomass fuels compared
to the raw material, they are also potential feedstocks for the production of secondgeneration biofuel, especially for thermochemical based energy conversion
technologies such as pyrolysis, gasification and biomass-to-liquid (BTL) processes.
Table 2: Estimated annual production of DLF and palm biomass solid fuel in a 60 t/hr
palm oil mill
Raw material
Dry Long Fibre Pellet/ Briquette Combined
Plant
Fresh fruit bunches (FFB)
288,000
288,000
288,000
processed annually (tonnes)
Annual raw EFB produced (at
66,240
66,240
66,240
23% of FFB, 65% moisture
content, MC) (tonnes)
Treated EFB (TEFB)
(tonnes)

33,120
(at 15% MC)

29,808
(at 10% MC)

Potential annual production

(tonnes)
Annual Sale, RM (million)

23,184
(70% of TEFB)
9.27
(at
RM400/tonne)

26,827
(90% of TEFB)
8.0
(at RM300/
tonne)

Proposed plant capacity

(tonnes/hr)
Electrical requirement for the
proposed plant, MW

5 (DLF) + 1

1.25
(at 250
kWh/tonne)
1.85

1.25
(at 250
kWh/tonne)
1.85

1.25

Potential biogas from 60

tonnes /hr mill, MW

33,120

23,184 (DLF)
6,624 (solid fuel)
11.26

1.85

Figure 5: Oil palm biomass briquettes and pellets as solid fuels

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c)

Palm Kernel Crushing Plant (KCP)

Palm kernel crushing plants are normally located at locations away from the palm oil
mills. If this can be shifted to the palm oil mill itself, then the energy from biogas may be
used to operate the kernel crushing plant. Palm kernel (Figure 6) produced from the
palm oil mill can be processed in-situ to produce crude palm kernel oil (CPKO) and palm
kernel cake (PKC). There are three types of CPKO extraction process in the country, via
mechanical extraction (screw press), direct solvent extraction, and pre-pressing
followed by solvent extraction. Mechanical extraction (Figure 7) using a screw press is
the most common approach in the country and can be integrated into palm oil mills.
The typical KCP consists of the kernel reception, kernel storage, press station,
CPKO station and PKC storage. The process of CPKO extraction requires about 90100
kWh of electricity/tonne palm kernel. Electricity consumption is a main contributor to
the operation cost of a commercial KCP. Therefore, setting up the KCP in the palm oil
mill utilizing the electricity from the biogas plant will save a lot on its operational cost.
On average, the kernel is 6% of the FFB processed. For a 60 t/hr palm oil mill, 3.6
tonnes of palm kernel is produced hourly. Based on 24 hours of processing time, a 100
t/day capacity KCP can be installed in the palm oil mill to process their internal palm
kernels from the mill.

Figure 6: Palm kernel Figure 7: Mechanical pressing at kernel crushing plant

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2.8.5 Other potential applications

Biogas generated from POME can also be upgraded and used for other potential
applications especially for external usages include the following:

Use as a compressed natural gas (CNG) which can be an alternative for natural
gas vehicles (NGV). This CNG can be used as alternative fuel for vehicles used in
palm oil mills such as forklift, lorry etc

Feeding into natural gas (NG) pipeline or bottling and transporting for industrial
use

For other operational units that require energy such as vapour absorption
chiller, hot water and hot air production; biodiesel plant, EFB fibre plant and
kernel crushing plant

For future 2nd generation biofuel projects such as production of hydrogen,

biomethane etc

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Economic Analysis of Biogas Utilization (based on 60 t/hr palm oil mill)
Type of biogas utilization : Co firing

Technology
Digester Tank
Covered Lagoon
8.0
7.0

Investment cost + Burner (CAPEX), RM

(million)
Shell displacement, tonne / yr (at 80%
of total shell produced)
@ RM150/tonne of shell, RM
(million/yr)
OPEX @ 2% of CAPEX RM (million/yr)
Net profit, RM (million/yr)
Payback period, yrs

13,824
2.07

IRR %

0.2
1.87
4.3

0.14
1.93
3.6

23.34

27.57

1.8

1.8

Type of biogas utilization : on-grid electricity

Potential power output, MW
Annual potential electricity, kWh/ yr
(70% utilization rate for 7200 hrs/ yr)
Annual potential of electricity sales, RM
(million /year)
Total investment, CAPEX : (at RM10
million/ MW for digester tank, RM8
million/ MW for covered lagoon)
OPEX @ 4% of CAPEX, RM (million /
year)
Annual profit, RM (million/ year)

9,072,000
2.90 (@ RM0.32/kWh)
3.16 (@ RM0.35/kWh)
18.0
14.4

0.72
2.18 (@ RM0.32/kWh)
2.44 (@ RM0.35/kWh)

Payback period, years

8.3 (@ RM0.32/kWh)
7.4 (@ RM0.35/kWh)

IRR, %

12.1 (@ RM0.32/kWh)
13.6 (@ RM0.35/kWh)

0.58
2.32 (@
RM0.32/kWh)
2.58 (@
RM0.35/kWh)
6.2 (@
RM0.32/kWh)
5.6(@ RM0.35/kWh)
16.1 (@
RM0.32/kWh)
18.0 (@
RM0.35/kWh)

*The investment cost or payback period of the project will be reduced if any tax exemption or
rebate incentive is applied in the project cost or annual business revenue and expenditure.

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Flow Chart for Applying Connection to Utilitys Distribution System

RE Developer to provide
commitment fee* for
Utility System Study

Commitment fee refundable to RE

Developer upon off-take of power
RM 15,000 for capacity < 3 MW
RM 25,000 for capacity from 3 10 MW

RE Developer negotiates and

signs REPA with utility

Developer & Utility to submit monthly

report on progress of negotiation to
SREP Centre

RE Developer commits to design and

construct the interconnection Facilities
& System Reinforcement (if any) in
accordance to Utility System Study

RE Developer to present finalized

plant design & approval from
Utility for Interconnection
Facilities design

RE Developer to remit payments

to Utility for all necessary
System Reinforcement Work

RE Developer to start
construction of proposed plant
and Interconnection Facilities

RE Developer/utility to
perform necessary work to
reinforce system

RE Developer to submit protection

coordination studies/setting,
testing & commissioning schedule

Final verification of design,

testing and commissioning,
O & M procedure

Connection to distribution Grid

20

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2.9 Incentives for Renewable Energy (RE)
Commercial and industrial business entities which are involved in the energy business
using renewable energy (RE) resources for generation of electric power eligible to apply
for fiscal incentives.

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2.9.1 The Green Technology Financing Scheme (GTFS) he Green
Technology Fin
In the budget speech for 2010, the Prime Minister of Malaysia announced the
establishment of Green Technology Financing Scheme (GTFS) amounting to RM1.5 billion
as an effort to improve the supply and utilization of Green Technology. The scheme could
benefit companies who are producers and users of green technology. As a sign of
commitment, the Government will bear 2% of the total interest/profit rate. In addition,
the Government will provide a guarantee of 60% on the financing amount via Credit
Guarantee Corporation Malaysia Berhad (CGC), with the remaining 40% financing risk to
be borne by participating financial institutions (PFIs). The Prime Minister also appointed
GreenTech Malaysia as the conduit for the GTFS application.
The GTFS exists to help incorporating green technology elements in specific
project related to the identified sectors. These projects must be located within Malaysia,
utilising local and/or imported technology. Private companies that could benefit from
this financing scheme are producer or user of green technology products or systems.
GTFS for producer or user category shall be as follows:
Features
Financing size

Producer of Green Technology

User of Green Technology
Maximum: RM50 million per Maximum: RM10
million
per
company
company

Financing tenure

Up to 15 years

Up to 10 years

Eligibility criteria

Legally registered Malaysian - Legally registered

Malaysian owned companies (at least 51%) owned companies (at least 70%) in
in all economic sectors
all economic sectors

Participating
financial
institutions (PFIs)

All commercial and Islamic banks.

GFIs: Bank Pembangunan, SME bank, Agrobank, Bank Rakyat, EXIM
bank and Bank Simpanan Nasional
(Listing of commercial banks and Islamic banks from Bank Negara
Malaysia website.)

This scheme is only applicable for new project and retrofitting or expansion that
incorporates Green Technology elements which have not been funded and partly funded.
The GTFS is not for projects that already started or completed.
Source: http://www.gtfs.my/

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2.10 Technology Providers for Biogas Implementation
Company
Biogas Environmental
Engineering Sdn Bhd
Ronser Bio-Tech Sdn
Bhd
Choon Hin
Environmental
Sdn Bhd
Green & Smart Sdn
Bhd
Konzen Clean Energy
Sdn
Bhd
Majurutera
Engineering
&Management Sdn
Bhd
Weidasar Engineering
(M)
Sdn Bhd
Anaerobic Digester
Biogas
Technology Sdn Bhd
Kubota Corporation
Sime Kubota Sdn Bhd
Tenaga Tiub Sdn Bhd/
TT Rematech
Biotec International
Asia
Sdn Bhd

Address/Email
28-3, Jalan 1/116B, Sri Desa Entrepreneurs
Park Odd
Kuchai Lama, 58200 Kuala Lumpur
C708, Metropolitan Square, Jalan PJU 8/1,
Bandar Damansara Perdana, 47820 Petaling
Jaya,
Selangor
No. 6-10, Jalan Jati, 86000 Kluang, Johor
Email: cheng@choonhin.com.my

Contact
Tel : +603-7984 2422
Fax : +603-7984 2896

71-2, Plaza Damansara, Medan Setia 1, Bukit

Damansara,50490 Kuala Lumpur, Malaysia
Email: greensmart@gmail.com
Unit D2-5-1, Block D2 Dana 1, Commercial
Centre, Jalan PJU 1A/46, 47301, Petaling
Jaya, Selangor
Email: info@konzencleanenergy.com
C1-11 1st Floor Dataran Ara
Damansara, Jalan PJU 1A/20B,
47301, Petaling Jaya, Selangor

Tel : +603- 2095 0024

Fax : +603-2095 0185

Lot 3.05, Level 3,1, First Avenue, Bandar

Utama, 4780 Petaling Jaya,Selangor Darul
Ehsan
Email: corporate.affairs@weida.com.my
No. 123 Jalan SS15/5A, 47500
Subang Jaya, Selangor Darul Ehsan,
Email: adbtsb@gmail.com
1, Jalan Puchong, Taman
Perindustrian Puchong Utama,
47100 Puchong, Selangor
B-8-8, Block B, 8th Floor, Unit 8,
Megan Avenue II, 12 Jalan Yap Kwan Seng,
50450 Kuala Lumpur
SVP-5, Jalan Cinta Kasih,
Country Heights, 43000 Kajang, Selangor

Tel: +603-7950 9688

Fax: +603-7842 2376

Tel : +603-7728 8999

Fax : +603-7725 3300
Tel :+6012-7602999
Fax : +607-772 1084

Tel : +603 - 7845

8987
Fax : +603 - 7845
8387
Tel : +603-7846 8509
Fax : +603-7842 2376

Tel: +603-5634 8832

Fax: +603-56373679
Tel: +603-8068 8558
Fax: +603-8068 8555
Tel: +603-2711 0888
Fax: +603-2711 3688
Tel : +603-8737 3700
Fax : +603-8737 3720

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Biotec International
Asia
Sdn Bhd
Oiltek Novaviro
Bioenergy
Sdn Bhd
Alternative Energy
Corporation [ALT
Energy (M) Sdn Bhd]
Swing Water Sdn Bhd
Watermech
Engineering Sdn Bhd
KPSR Construction

ADI System Asia

Pacific (VATA
Synergy)
Veolia Water
Solutions &
Technologies Sdn Bhd
Biopower Climate
Care (Cenergi SEA)
Green Energy
Resources (M) Sdn
Bhd
GT Enviro
Engineering Sdn Bhd
Knowledge
Integration Services
(Malaysia) Sdn Bhd
(KIS Group)
Kim Loong Power Sdn
Bhd
SP Multitech
Corporation Berhad

SVP-5, Jalan Cinta Kasih,

Country Heights, 43000 Kajang, Selangor

Tel : +603-8737 3700

Fax : +603-8737 3720

Lot 6, Jalan Pasaran 23/5

Kawasan Miel Phase 10
40300 Shah Alam, Selangor
Penthouse (Level 27), Centrepoint South,
MidValley City, Lingkaran Syed Putra, 59200
Kuala Lumpur
Email: vichitra@altencos.com
20, Jalan Astaka U8/83, Seksyen U8, Bukit
Jelutong, 40150, Shah Alam, Selangor
Email: andy@swing-water.com.my
No. 11, Jalan TSB 8, Taman Industri Sg.
Buloh
47000 Sg. Buloh, Selangor Darul Ehsan
Email: watermech@watermech.com
172/17 Moo 15 Mittapharb Modern Home,
Tambon Phalap Ampur Muang,Khon Kaen
40000 Thailand Email:
biogas.kpsr@gmail.com
No. 67, Jalan Dato Dollah 2, 41100 Klang,
Selangor
Email: enquiry@vata-vm.com
asiapacific@adi.ca
No. 24, Jln. PJS 11/16, Bandar Sunway, Light
Industrial Area, 46150 Petaling Jaya,
Selangor, Malaysia
Unit 33-11, Level 11, The Boulevard,
Mid Valley City, Lingkaran Syed Putra,
59200 Kuala Lumpur, Malaysia
Email: info@cenergi-sea.com
12 Jln Bayu 6, Bandar Seri Alam, 81750,
Masai, Johor, Malaysia.
Email: info@greenenergyresources.com.my
No. 18A, Lorong 37, Jalan Ding Lik Kwong,
98000 Sibu, Sarawak, Malaysia
36th Floor, Menara Maxis,
Kuala Lumpur City Center, 50088 Kuala
Lumpur, Malaysia

H/P: +6012-2911 022

Lot 17.01, 17th Floor, Public Bank Tower

19, Jalan Wong Ah Fook,
80000 Johor Bahru, Malaysia.
11, Jalan BPU 5, Bandar Puchong Utama,
47100 Puchong, Selangor, Malaysia.
Email: info@spmultitech.com

Tel: +607-224 8316

Fax: +607-223 2562

Tel: +603 2096 9646

Fax: +603 2096 9746
Tel : +603-7846 6280
Fax : +603-7846 6182
Tel: +603-61571688
Fax: +603-61571633
Tel: -+60 12 230 0820

Tel: +603 5161 4701

Fax: +603 5161 8504
Tel : +603 5634 3200
Fax : +603 5636 5200
Tel: +603 2283 2302
Fax: +603-2283 3302
Tel: +6073877880
Fax: +6073864918
Tel: +6082-461966
Fax: +6082-455433
Tel:+603 2615 7237
Fax:+603 2615 0088

Tel:+603-58825595
Fax:+603-58827795
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2.11 List of Sustainable Palm Oil Mills with Biogas Capturing
Facilities
1.
2.

Palm Oil Mill

Masai Palm Oil Mill

Address
Kong Kong Road, P.O.Box 1,
81757 Masai, Johor
Peti Surat 21, 81900 Kota Tinggi,
Johor
Peti Surat 14, 85300 Labis, Johor

Contact
Tel : 07-2551111
Fax: 07-2555117
Tel : 07-8822388
Fax: 07-8822788
Tel: 07-9191840
Tel : 06-4582734
Fax: 06-4581909

3.

Kim Loong Palm

Oils Mills
Kilang Sawit Maokil

4.

Kilang Sawit Serting

5.

Kilang Sawit Serting

Hilir
Foong Lee
Sawiminyak Sdn Bhd

FELDA Palm Industries SB, 72120

Bandar Baru Jempol, Negeri
Sembilan
Peti Surat 3, 72120 Bandar Baru
Jempol, Negeri Sembilan
179, Main Road, 31100 Sungai
Siput (U), Perak

Kilang Kelapa Sawit

Jenderata

Jenderata Estate, Div. III, 36009

Teluk Intan, Perak

Tel : 05-6366261
Fax: 05-6366280

Locked Mail Bag No. 1, 34900

Pantai Remis, Perak

Tel : 05-8501500
Fax: 05-8501507

18A, Jalan Lanang, 96000 Sibu,

Sarawak

Tel : 084-875922
Fax: 084-334604

P.O.Box 156, 89007 Keningau,

Sabah
Jalan Kelapa Sawit off Km 4, Jalan
Tuaran, 88300 Kota Kinabalu,
Sabah
Lot 713, Mukim Sungai Batu,
Bandar Baharu, Kedah
98A, Jalan Batu Putih, Mukim
Padang Cina, 09700 Kulim, Kedah

Tel : 019-8825158
Fax: 087-336848
Tel : 089-922314
Fax: 089-951043

Locked Mail Bag 23, 32000

Sitiawan, Perak

Tel : 05-3765541
Fax: 05-3765540

Batu 3, Jalan Bidor,

P.O.Box 12, 35007 Tapah, Perak

Tel : 05-4011123
Fax: 05-4013608

P.O.Box 730, 97008 Bintulu,

Sarawak
Locked Bag 34, 90009 Sandakan,
Sabah
35600 Ulu Bernam, Perak

Tel : 085-739014
Fax: 085-740733
Tel : 089-670225
Fax: 089-670260
Tel : 05-4213151

6.
7.
8.

United
International
Enterprises (M) Sdn
9.
Rinwood Pelita
(Mukah) Plantation
Sdn Bhd
10. Desa Kim Loong
Palm Oil Sdn Bhd
11. Apas Balung Palm
Oil Mill
12. Arah Kawasan Sdn
Bhd
13. Setia Kawan Kilang
Kelapa Sawit Sdn
Bhd
14. Sungai Kerang
Development Sdn
Bhd
15. Syarikat Cahaya
Muda Perak (Oil
Mill) Sdn Bhd
16. Kilang Kelapa Sawit
Saremas 1
17. Kilang Kelapa Sawit
Sapi
18. Ladang Ulu Basir

Tel : 06-4683132
Fax: 06-4684424
Tel : 05-5982033
Fax: 05-5981862

Tel : 019-4157711
Fax: 04-5887137
Tel : 04-4037315
Fax: 04-4036120

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NKEA: EPP 5
Tel:05-4213151
Fax: 05-4216552
Tel : 07-7778202
Fax: 07-7778200
Tel : 05-8411512
Fax: 05-8411513

18.

Ladang Ulu Basir

35600 Ulu Bernam, Perak

19.

Kilang Sawit PPNJ

Kahang
Tian Siang Oil Mill
(Perak) Sdn Bhd

Peti Surat No. 26, 86700 Kahang,

Kluang, Johor
Lot 2161 & 2162,
Jalan Taiping/Beruas
Mukim Sg. Tinggi, Larut Matang,
34800, Trong, Perak

21.

TSH Lahad Datu

Palm Oil Mill

22.

TSH Sabahan Palm

Oil Mill

23.

27.

FPISB Kilang Sawit

Jengka 8
Tee Teh Palm Oil
Mill
Rompin Palm Oil
Mill Sdn Bhd
Ulu Kanchong Palm
Oil Mill
Rex Palm Oil Mill

TB 9, Km 7, Jalan Apas, TSH

Industrial Estate, 91000 Tawau,
Sabah
Bangunan TSH, TB 9, Km 7, Jalan
Apas, TSH Industrial Estate,
91000 Tawau, Sabah
26400 Bandar Jengka, Pahang

28.

KKS Sungai Burong

P.O.Box 58, 26700 Muadzam

Shah, Pahang
Ulu Kanchong Estate, 71209
Rantau, Negeri Sembilan
No. 38, Teck Guan Regency, Jalan
St. Patrick Off Jalan Belunu,
91007 Tawau, Sabah
P.O.Box 33, 91007 Tawau, Sabah

29.

Sungei Kahang Palm

Oil Sdn Bhd
RH Plantation Palm
Oil Mill
Johore Labis Palm
Oil Mill

P.O.Box No. 10, 98700, Kahang,

Johor
P.O.Box 454, 96007 Sibu,
Sarawak
Lot 677, Jalan Kilang, 85400
Chaah, Johor

Tel : 07-7881512
Fax: 07-7881650
Tel : 084-216155
Fax: 084-215217
Tel : 07-9261204
Fax: 07-9263048

Bell Palm Industries

Sdn Bhd
Kilang Kelapa Sawit
Bell Sri Lingga
Wujud Wawasan
Sdn Bhd

P.O.Box 64, 83000 Batu Pahat,

Johor
125, Jalan Ss 15/5A, Subang Jaya,
47500 Selangor
1101, Block C, Kelana Business
Centre, No. 97, Jalan SS 2/7,
47301 Kelana Jaya, Selangor

Tel : 07-4186300
017-7995388
Tel : 06-3876117

20.

24.
25.
26.

30.
31.
32.
33.
34.

35.

Kilang Sawit
Kemahang
Kilang Sawit Umas

P.O.Box 71, 85007 Segamat, Johor

Peti Surat 35, 17507 Tanah

Merah, Kelantan
36.
Peti Surat 60996, 91019 Tawau,
Sabah
* 36 out of 57 mills with completed biogas plant have responded so far.

Tel : 089-843110
Fax: 089-843111
Tel : 019-8331292
Fax: 089-843121
Tel : 09-4662559
Fax: 09-4662987
Tel: 07-9370828
Fax: 07-9325243
Tel : 09-4530272
Fax: 09-4526266
Tel : 06-6941233
Fax: 06-6942108
Tel : 089-772277
Fax: 089-769955
Tel : 089-919832

Tel : 09-4530206
Fax: 09-4530397
Tel : 09-9771734
Fax: 09-9774001
Tel: 019-8929610
Fax: 019-8831708

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3.0 CLEAN DEVELOPMENT MECHANISM (CDM)

The Clean Development Mechanism (CDM) is a scheme under the Kyoto Protocol,
United Nations Framework Convention on Climate Change (UNFCCC) which helps
developing countries achieve sustainable development through the sale of certified
emission reductions (CER), or carbon credits, to developed and industrialized countries.
The CDM scheme was introduced by Kyoto Protocol;

To stream fund and technology

to developing countries so they can meet sustainable

development targets,
To encourage the developed country
to invest in carbon emission reduction projects

that meet the Protocols target

3.1 Benefits of CDM project in Malaysia

For Malaysia, the CDM is facilitated by Conservation and Environmental Management
Division (CEMD) of the Ministry of Natural Resources and Environment (NRE) as
Designated National Authority (DNA). Malaysias DNA and CEMD serve as a secretariat
for evaluation of CDM projects via the establishment of a National Committee on CDM
(NCCDM) and two Technical Committees i.e The Technical Committee on Energy and
The Technical Committee on Forestry. The CDM project activities bring the following
benefits;

Helps developed
countries meet their emission reduction targets under the Kyoto

Protocol
Helps the palm oil industry meet increasingly stringent sustainability requirements.

The CDM
project transforms reduction of emission of CO2 and methane into cash
flow
The CDMapproval mechanisms are able to create new commodity in the form
of CERs

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3.2 Estimated CER from Biogas CDM Projects

Reduction of 1 tonne of CO2 equivalent generates 1 tonne CER.
Estimated CERs generated for a 60 t/hr mill
Estimated revenue generated for each mill
(based on 10/tCO2e)

= 30,000 40,000 tonnes CO2 eq

= RM1.5 million per year
(for 21 years)

Mills are advised to consult an established and reliable CDM consultant to assist in CDM
applications.

3.3 National project CDM criteria

Criterion 1

Project must support the sustainable development policies of

Malaysia and bring direct benefits towards achieving sustainable
development

Criterion 2

Project implementation must involve participation of Annex I

party/Parties as CER buyer. In addition they are encouraged to
participate as equity or technology provider

Criterion 3

Project must provide technology transfer benefits and/or

improvement of technology, including enhancement of local
technology

Criterion 4

Project must fulfil all conditions underlined by the CDM Executive

Board as follow;i. Voluntary participant
ii. Real, measurable and long-term benefits related to
mitigation of climate change; and
iii. Reductions in emissions that are additional to any that
would occur in the absence of the certified project activity

Criterion 5

Project proponent should justify the ability to implement the

proposed CDM project activity
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NKEA: EPP 5

CDM PROJECT CYCLE

Develop a project activity

CDM project participants (PPs) develop a CDM project activity.

Consider various conditions associated with developing a CDM
project activity from the project planning stage.
Draft a Project Design Document (CDM-PDD) with all required elements.

Approval by the Host and

Investing Party

Project participants obtain written approval of voluntary participation from

the Designated National Authority (DNA) of each Party involved
regarding the project activity that project participants wish to implement as
a CDM project activity.

Validation is the process of independent evaluation of a project activity

carried out by designated operational entity (DOE).
Validation and
registration of the
CDM project activity

Registration is the formal acceptance of a validated project as CDM project

activity. Registration process is done by the CDM executive board (EB).

Monitoring of the CDM

project

PPs collect and archive all relevant data necessary for calculating GHG
emission reductions by the CDM project activity, in accordance with
the monitoring plan written in PDD.

Verification, certification
and issuance of CERs

Distribution of CERS

Project participant report to the DOE the results of monitoring of the

CDM project activity and calculated emission reductions based on the
results of monitoring activity.
DOE verifies the results of monitoring and the resulting
emission reductions.
DOE certifies the emission reductions based on the results of verification
The EB issues CERs equal to the verified amount of GHG emission
reductions.
CERs can be issued for emission reductions by a project activity.
The issues of CERs in accordance to with the distribution agreement.

2% of the CERs will be deducted as the share of proceeds to assist developing

country Parties that are particularly vulnerable to the adverse effects of
climate change.
CERs will be distributed among PPs.

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3.4

List of CDM Consultants in Malaysia

CDM Consultant

Company

Contact

Ilango S. Bharathi.

YTL SV Carbon Sdn Bhd

Level 4 Annex Block
Lot 10 Shopping Centre
50, Jalan Sultan Ismail
50250 Kuala Lumpur

Tel : 03-21447200
Fax: 03-21447573
H/P: 017-2026456
ilango@ytl.com.my

Dr. B.G. Yeoh

EcoSecurities Malaysia Sdn Bhd

Mid Valley City
No. 1, Medan Syed Putra Utara
59200 Kuala Lumpur

Tel : 03-22820612/32
Fax: 03-22820652
H/P:012-3112289
bgyeoh@ecosecurities.com

Bhavna Khandhar

Perenia Carbon
Unit 509 Block B
Phileo Damansara II
Jalan Section 16
46350 Petaling Jaya
Selangor

Tel : 03-79505521
Fax: 03-79552110
H/P: 0122039240
bhavna.khandhar@pereniacarbon
.com

Mr. Arthur Wayne

House @Ibrahim

Everest Agriculture & Farming

Sdn Bhd
Suite 1.07, 1st Floor, Wisma
AMGM, #57, Jalan Hang Lekiu,
50100 Kuala Lumpur

Tel : 03-42706312
H/P: 017-3102363
wayne@fiurthgeneration.ca
house.wayne@gmail.com

Mr. Soon Hun Yang

Eco-Ideal Consulting Sdn Bhd

Suite C-7-2, Wisma Gosen,
Plaza Pantai 5 Jalan 4/83A
Off Jln Pantai Baru
59200 Kuala Lumpur, Malaysia

Tel : 603-78768102 / 22848102

Fax: 603-22848103
H/P: 019-8188102

Ms. Rose Ariffin

Environmental Resources
Management
Unit 19-06-01, 6th Floor
PNB Damansara,
19 Lorong Dungun Damansara
Heights
50490 Kuala Lumpur

Tel: 019 - 330 9192

Dai Yong

Tel : +8627-87992685
H/P: +8613554130425
cdm_kyle@yahoo.com

Mr. Henrik Rytter

Jensen

Sunshine Kaidi New Energy

Kaidi Mansion, T1 Jiangxia
Avenue, Wuhan, 430223, Hubei,
China
Danish Energy Management
36th Floor, Menara Maxis
Kuala Lumpur City Centre
50088 Kuala Lumpur

Ms. Sheila Sharma

ENVIRON Consulting Services

(M) Sdn. Bhd.
A307, Phileo Damansara 2
15, Jalan 16/11
46350 Petaling Jaya

Tel : 603 - 76652986

H/P: 012 - 206 8654

Tel : 603 - 2615 0014

H/P: 012 - 302 3914
hr@dem.dk

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10

Mr. Kim Kean Hong

KYOTO Energy Sdn Bhd

(Malaysia Representative Office)
Unit SVP4, Jalan Cinta Kasih
Country Heights,
43000 Kajang, Selangor
GHD Perunding Sdn Bhd
22nd Floor The Mall Putra Place
100 Jln. Putra
50350 Kuala Lumpur
Leong Partnership Advocates &
Solicitors
Suite 501, Block E
Phileo Damansara 1
9, Jalan 16/11
46350 Petaling Jaya, Selangor

Tel : 603 - 8739 0240

Fax: 603 - 8739 0235
H/P: 6012 - 499 1896

11

Ms. Tee Hui Yong

Senior Consultant

12

Mr. Leong Kwok

Yan

13

Ms. Michelle Chan

Mercuria Welstar Enterprise

Co. Ltd
88 Soi Bangna-Trad 30
Bangna-Trade Road
Bangna, Bangkok, Thailand
Mitsubishi UFJ Morgan Stanley
Securities,
P.O. Box 92,
Pejabat Pos Bandar Baru Bangi,
43650 Bandar Baru Bangi,
Selangor

Tel : 00662-770-3993
668-5642-3993
6012-3161900
Fax: 00662-398-9339

14

Mr. Mohamad
Irwan Aman

15

Gerald Hamaliuk

GenPower Carbon Solution

Services
(Malaysia) Sdn. Bhd.
Level 22, Unit A-22-13,
Menara UOA, Bangsar, No.5, Jalan
Bangsar Utama 1

Tel: 603-22826841
H/P: 60172472917
ghamaliuk@gpcarbonsolutions.co
m

16

Rober C Y Cheong

TUV NORD (Malaysia) Sdn. Bhd.

No.20 Jalan Tiara 3, Tiara Square
Taman Perindustrian UEP
47600 Subang Jaya
Selangor, Malaysia

Tel : 603-8023 2124

Fax: 603-80234410
H/P: 6012-5010066
rober.cheong@tuv-nord.com

Tel: 603-2332 3886

Fax: 603-2332 3990
huiyong.tee@ghd.com
Tel: 03-79554030
Fax: 03-79559681
leongky@leongpartnership.com

Tel: 03-88731235
Fax: 03-88903911
H/P: 019-2577189
irwan-aman@cefcconsulting.com.my

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For more information

www.mpob.gov.my

General Enquiry
Director-General
Malaysian Palm Oil Board (MPOB)
Tel: +603-87694400
Fax: +603-89259446

Technical Enquiry
Engineering and Processing Division

Malaysian Palm Oil Board (MPOB)

Dr. Lim Weng Soon
Dr. Loh Soh Kheang
Nasrin Abu Bakar
Mohamad Azri Sukiran
Muzzammil Ngatiman
Nurul Adela Bukhari
Tel: +603-89259592
Fax: +603-89252971

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