Zero Discharge System in Palm Oil Mills & Strategy for Creating Business Opportunities. Professor Mohd Ali Hassan Universiti Putra Malaysia
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1 Zero Discharge System in Palm Oil Mills & Strategy for Creating Business Opportunities Professor Mohd Ali Hassan Universiti Putra Malaysia Professor Yoshihito Shirai Kyushu Institute of Technology Presentation Outline 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 2
2 ETP, NKEA Palm Oil and EPPs 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 Sustainability & Green Technology Merging the 3Ps Towards sustainability >>> win-win-win strategy Consider the bigger picture Develop green technology Profit Sustainable Development Problem Biomass Profit People Planet
3 Waste Management and Utilisation 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 $$$ b2b.. from biomass to business! $$$ Recycle Reuse Reduce Biomass Resources in Malaysia Wastes? >>> Biomass = renewable organic matter includes forest and mill residues, wood wastes, agricultural crops and wastes, animal wastes and MSW MSW 9.5% Wood industry 3.7% Rice 0.7% Sugarcane 0.5% Abundant in Malaysia ~ 70 million tonnes collected / year Available throughout the year due to high sunlight intensity/time and high rainfall Palm Oil 85.5% Main contributor of biomass is the palm oil industry (ligno-cellulosics)
4 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 haplantation/mill) 30,000 tones CPO/(mill year) Malaysian Palm Oil Industry Fresh Fruit Bunch 70 million tonnes Palm Kernel Oil 2 million tonnes Oil Extraction Renewable Resources Crude Palm Oil 15 million tonnes Fronds 83MT! Trunks 15MT! Fiber 8 million tonnes Shell 4 million tonnes Palm Oil Mill Effluent 50 million tonnes Empty Fruit Bunch 17 million tonnes
5 Methane Emission Mitigation Methane from POME Mitigation Methods (e.g. CDM Projects) Anaerobic Ponds 360,000 t/yr Open Digesters 40,000 t/yr Greenhouse Gases Emission (15%) Biogas Plant Biomass Industries Global Warming Climate Change Bio-energy Bio-products Serting Hilir Mill Biogas CDM Project 380,000 tones CO 2 reduced for 10 years Approved by UN CDM 9 th March 2009
6 JICA Bornean Biodiversity and Ecosystems Conservation Programme - Phase Ⅱ - Sabah The Kinabatangan Ramsar Wetland 20 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 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 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 10 per tonne CO 2 ~ RM 1 million/yr 12 (Assumption: mill capacity of 60t FFB/hr and 320 days of operation)
7 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 chain fuel fiber feed fertilizer fine chemicals food furniture 13 Palm Biomass Refinery Compost Standardised biomass available business as usual Bioplastic (PLA) or Bioethanol zero emission waste-to to-wealth + water recycling Empty Fruit Bunch 16 million t/yr Pre-treatment and Saccharification Palm Oil Mill Effluent 50 million t/yr Bio-acids Sugars Fermentation in bioreactors Biomass Energy Biogas, CH 4 (+ Biohydrogen) Bioplastic (PHA) 14
8 Current Issues Carbon footprint (~1tCO 2 e/tcpo) Water footprint Energy efficiency Low-carbon economy Roundtable for Sustainable Palm Oil (RSPO) ETP, Palm Oil NKEA, EPP#5 15
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