INTEGRATED RECOVERY AND REGENERATION SYSTEM (REGEN SYSTEM)

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INTEGRATED RECOVERY AND REGENERATION SYSTEM (REGEN SYSTEM) THE FUTURE OF PALM INDUSTRY WENDY NG, PhD Eureka Synergy Sdn. Bhd.

Introduction of Eureka Synergy o Eureka Synergy is founded in 2011. o o Our team has o o o continuous research & development activities on palm biomass processing technology since 2005 continuous research & development activities with renown institutions own operating palm oil mill, plantation and biomass processing plants Integrated Waste Recovery and Regeneration System (REGEN System) for palm industry REGEN - 2

3 Research Partners / Collaborators Eureka Synergy Sdn Bhd www.eureka-synergy.com PT Bio Plantmate Indonesia www.bioplanmate.com The University of Nottingham Malaysia Campus www.nottingham.edu.my Crops for the Future Research Centre www.cropsforthefuture.org REGEN - 3

Outline of Presentation o o o o Introduction of Palm Oil Industry Palm-based Biomass Integrated Waste Recovery and Regeneration System (REGEN System). Development of Palm Industry REGEN - 4

Palm Industry REGEN - 5

TYPICAL PALM OIL MILLING PROCESS Palm fresh fruit bunch from plantation Fresh fruit bunch RECEIVING UNIT Blue wording - Intermediate product Red wording - Waste / Biomass STERILISATION PROCESS Sterilised fruit bunch TRESHING PROCESS Empty fruit bunch Sterilised fruit EXTRACTION PROCESS Sludge and oil PURIFICATION PROCESS Crude palm oil Crude palm oil to market STORAGE UNIT Mesocarp fiber Palm kernel Sludge CRUSHING PROCESS EXTRACTION PROCESS Palm kernel oil Palm kernel oil to market STORAGE UNIT Palm kernel shell Palm kernel cake + POME (wastewater) REGEN - 6

Agricultural Residues o o Abundant > 10 million tonnes (dry) annually palm biomass Main contributor of biomass in palm oil industry Palm oil mill - Empty fruit bunch (EFB) - Palm oil mill effluent (POME) - Mesocarp fibre - Palm kernel shell - Palm kernel cake Ligno-cellulosic materials REGEN - 7

Potential Availability Palm Biomass Oil palm plantation area 675,000 million hectares Thailand palm haversted area 675,000 ha (in 2014) Source: USDA Foreign Agricultural Services (June 2015) Estimated biomass 11.12 million tonnes (dry) Estimated oil palm fronds 6.45 million tonnes (dry) Estimated empty fruit bunch 1.00 million tonnes (dry) Estimated oil palm trunks 2.01 million tonnes (dry) Estimated oil palm fiber and oil palm shell 1.66 million tonnes (dry) Calculation: Based on 2009 data derived from MPOB s Malaysian Oil Palm Statistics 2009 and MPOB calculation methodologies REGEN - 8

Palm Oil Mill Generates high amount of palm biomass Empty Fruit Bunches (EFB) Palm Kernel Shells (PKS) Decanter Cake (DC) Palm Mesocarp Fibers (PMF) Palm Oil Mill Effluent (POME) REGEN - 9

Current Scenario Waste Management System o Empty Fruit Bunches (EFB) Too many and not able to process all of them Trade with low price o Palm Kernel Shells (PKS) Most of them consumed by biomass boiler for power generation Trade to local and oversea market REGEN - 10

Current Scenario Waste Management System o Palm Mesocarp Fibers (PMF) Use for power generation in biomass boiler o Palm Oil Mill Effluent (POME) Generate high amount of POME Not able to meet the safe discharge standard steadily Not able to recover/recycle Use for biogas generation REGEN - 11

Remarks o Huge amount of palm-based biomass Potential source of energy and value added products Untapped energy sources o Single technology (anaerobic digestion, compositing plant, pelleting system, etc.) does not solve all problems REGEN - 12

The Evolution of Palm Industry REGEN - 13

General Perception from Public REGEN - 14

Evolution of Palm Industry REGEN - 15

REGEN System Integrated Recovery and Regeneration System REGEN - 16

Integration Process of Flow Technologies Diagram o Waste reduction POME Biogas System Water Polishing System Clear Water o Resource sustainability Biogas Power Power Power Generation System Power to Grid Power o Optimal processes EFB Fiberizing System Dried Long Fibre Fibre Mat System o Energy conservation Short fibre Pellet Production Pellet Fibre Mat o Additional income Boiler Ash Decanter Cake Composting System Organic Fertilizer Fortified Fertilizer Animal Feed Plant Animal Feed REGEN - 17

Eureka Synergy Sdn Bhd Shortlisted by Institution of Chemical Engineers 1. Sustainable Technology Award 2015 2. Palm Oil Industry Award 2015 REGEN - 18

REGEN System Integrated Recovery and Regeneration System REGEN - 19

Selection of technology is important... EFFICIENCY ECONOMIC SUSTAINABILITY REGEN - 20

Biogas & Water Recycling System o Palm oil mill capacity 45 ton/h = 2 MW o Palm oil mill capacity 60 ton/h = 3 MW o Biogas -> power generation o Clear water -> process / daily consumption REGEN - 21

Power Generation System o Biogas -> power generation o Feed-in tariff / Own consumption REGEN - 22

POME Treatment POME to Clear Water Quality Wastewater before treatment Water quality during treatment After treatment REGEN - 23

Fiberizing System REGEN - 24

Fiberizing System Commercial usage - Mattress manufacturing - Eco-mat manufacturing Prevent soil erosion Moisture retention and slow release of nutrient Fiber specification - Moisture content 11-15 % - Length 5-15 cm - Container 19-21 mt / 40 HQ REGEN - 25

Fiber-Mat System Chemical Free Permeable Surface Biodegradable 100 % Natural Fibre Adjustable Density / Thickness CONTROL WEED RETAIN MOISTURE REDUCE LABOUR OPTIMAL WATER AND NUTRIENT ABSORPTION PROTECTIVE LAYER STABILIZE SOIL REGEN - 26

Pelletizing System Pellet as Bio-Fuel REGEN - 27

Pelletizing System Eco-culture Technology Fish Pellet as Fish Feed REGEN - 28

Composting System Living Organic Fertilizer Fortified Fertilizer (Organic Based Fertilizer) Total NPK > 5.5 % 5-5-10-2-TE 12-10-17-2-TE customised Organic matter > 35 % > 20 % Moisture content < 25 % < 20 % ph 8-9 REGEN - 29

Composting System REGEN - 30

Composting System Chemical Fertilizer ᐯ Organic Fertilizer ᐯ Fortified Fertilizer ᐯ Fertilizer with Medication Effect Prevent / Cure Palm Ganoderma Disease REGEN - 31

Fortified Fertilizer A comparison with chemical fertilizer Cost Effective 10 % N + 10 % P + 10 % K + Trace Elements + Biochar + Organic Matter Prevent nutrient deficiency Improve nutrient uphold Soil conditioner Expensive as Compared to Organic Based Fertilizer 10 % N + 10 % P + 10 % K + Clay Deteriorate soil structure Imported Less Sustainable ~70 % Fluctuate Pricing Fortified Fertilizer Chemical Fertilizer REGEN - 32

Eureka Fertilizer Fertilizer that is able to prevent / cure Palm Ganoderma disease o Our Research and Development Team - Industry Practitioner - Researchers (renown university) o R&D Progress - Fertilizer Formulation - Field trial REGEN - 33

Other Uses of Palm Waste Fertilizer from palm biomass Fertilizer to be returned to palm plantation o (close cycle) Fertilizer to use in other industry REGEN - 34

35 Organic Fertilizer Trial Chemical Fertilizer Organic Fertilizer Observation: Difference in growth rate number of leaves REGEN - 35

36 Organic Fertilizer Application on Melon Plant Control Organic Fertilizer REGEN - 36

37 Organic Fertilizer Application on Other Plants Organic fertilizer utilisation on banana and date palm crop in Kesultanan Oman REGEN - 37

38 Organic Fertilizer Application in Paddy Cultivation MR 219 rice variety in Malaysia which yielded 10 ton/ha The CHRV, RC 174H or Mestiso 12 at maturity stage. The yield hits 7-8 ton and 9-10 ton during wet and dry seasons, respectively A rice plant in its reproductive (flowering) stage fertilized with organic fertilizer

39 Organic Fertilizer Application on Tobacco Plant Other Fertilizer Organic Fertilizer REGEN - 39

When we have technology, here it comes quality control REGEN - 40

Incentives and Fines Quality & Quantity o National & International Standards o RSPO o BioNexus / BioEconomy Transformation Programme o Etc. REGEN - 41

The promotion of the industry... REGEN - 42

Incentives and Fines Governmental Initiative o Feed-in tariff o Fines o Environmental regulations o Incentives REGEN - 43

Incentives and Fines Joint-Venture Initiative o Investor funds the investment o Capital-free with BOT and buy-back policy SAMPLE JV MODEL Composting System Palm Oil Mill Investor Capital cost Operation cost Raw material (biomass) Management Product buy-back Revenue Facility ownership Year c onwards Year a Year b REGEN - 44

Conclusions Huge potential of palm biomass available for production of high value products - Capture RM 30 billion business opportunity REGEN System one 60 t/h mill - Covert all biomasses into value added products - Save > 13,000 ton of coal per year - Reduce > 1,500 ton CO 2 emission per year REGEN - 45

For continuous sustainability and improved technology efficiency, we need technologies REGEN - 46

Development of Palm Industry Research and Developments & Trends Industry In-house research and development team Institution (Academic) Industry + Institution Research institution / Academician Mostly funded by government / ministry Practitioner + Academician Funded by government / ministry / industrial fund REGEN - 47

Development of Palm Industry Recent research on palm oil-based biomass utilisation Category Technology Value Added Product Physical Densification Palm briquette Palm pellet Hybrid plywood MDF Biological Anaerobic Digestion Biogas Fermentation Bioethanol Biopolymer Compost Thermochemical Gasification Syngas Pyrolysis Bio-oil Torrefaction Torrecfied biomass Liquefaction Bio-oil REGEN - 48

Other Uses of Palm Waste Research and Developments & Trends Pot and Container Mushroom Cultivation Paper Product REGEN - 49

Thank You Contact 1: Contact 2: Dr. Wendy Ng Dr. David Lim Tel. +6 016 821 8012 Tel. +6 019 217 7798 Email <wendy.ng@eureka-synergy.com> Email <david.lim@eureka-synergy.com> Website <www.eureka-synergy.com> Website <www.eureka-synergy.com> REGEN - 50