Biomass for Energy Generation

in Malaysia
4th Biomass-Asia Workshop
20 November 2007

Grand Blue Wave, Shah Alam

Anuar Abdul Rahman
Pusat Tenaga Malaysia

Crude Oil Prices

100

90

80

Nominal Dollars per Barrel

70

60

RE as 5th Fuel Policy 2001

50

40

Kick Start of SREP

National Depletion Policy 1980

National Energy Policy 1979

Four-fuel Diversification Policy 1981

30

20

National Petroleum Policy 1975

10

Petroleum Development Act 1974

0
1970

1972

1974

1976

1978

1980

Official Price of Saudi Light

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

Refiner Acquisition Cost of Imported Crude Oil (IRAC)

2004

2006

2008

Source: EIA

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

2033

Source: Energy, Vol 29; 2004

MALAYSIA ENERGY SCENARIO

9 Fossil fuels continue to be main fuels for electricity
generation

Mainly gas
Increasing use of coal and hydro

9 Based on current capacity and production

Oil : 19 years
Gas : 33 years

9 % of RE for grid-connected electricity negligible

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

RE Potential
Type of
Industry

Production
(Thousand Tonne)

Residue

Residue
product Ratio
(%)

Residue Generated
(Thousand Tonne)

Potential
Energy
PJ

Potential
Elec
MWe

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

74,272

Oil palm

Paddy
Sugar

Wood

Rice Husk

22

471

7.6

72

Paddy Straw

40

856

8.8

80

Bagasse

32

356

356

314

2,141
1,111
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

0.2-1.0

75,600 m3

0.232

147,813

Moulding

SREP
Type

Energy Resource

Approved
Application

Grid Connect
Capacity (MW)

Empty Fruit
Bunches

15

103.2

Wood Residues

6.6

Rice Husk

4.1

Municipal Solid
Waste

25

No.
1

Biomass

Landfill Gas

6.0

Mini-hydro

23

93.2

Total

47

244

Approved Application from Biomasss project = 21 projects

Total of Potential Grid Connected Capacity from Biomass = 138.9MW
Source: Energy Commission (July 2006)

Biomass Resource Map

Northern Region
Sabah

1000 MWe

900 MWe

Sarawak
Eastern Region

360 MWe

400 MWe

Southern Region
Central Region

700 MWe

300 MWe

Total biomass-based installed generation capacity 700 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.

Issues & Concern for Grid-Connect

Biomass-based
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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

Supporting Measures
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for
Grid-Connect
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
PROJECT OBJECTIVES
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 technoeconomic viability, design, development and

sustainable operation & maintenance of
biomass-based grid connected power
generation/CHP projects.

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

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 MWe
after 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
Master Control Panel
Cooling Tower

Due Dec.07

Due mid Nov.07

Early Dec.07

1st

Sept.07

Sept.07

Boiler
2nd Boiler

OFF-GRID
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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)

Total Electricity
Generation
(Gwh/yr) by RE

Peninsular
Malaysia

215.4

104.1

345.43

Sabah

127.2

9.9

89.44

Sarawak

360.0

7.3

1903.00

Total

702.6

121.3

2337.87

Off-Grid: Wood residues biomass based steam

production Plant at Heveaboard SB
1.

Biomass Fired Thermal Oil Heater for

Particleboard Production

The 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.
Year

MFO saved
(GJ/year)

Cost savings
(RM)

2005

37,775

471,296.22

2006

36,097

719,992.30

Burner with fuel feed and

ash removal

Heating coil section

Off-Grid: Biomass fired Rubber Wood

Processing at Heveaboard S.B.

Sawdust
conveyor
/inlet

Heater furnace

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

Biomass
a. Empty Fruit Bunches b.
Mesocarp Fibres
c. 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
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 million
with a payback period of 4 years.
*Savings:
Cost Factors

Annual Savings

Electricity supply

RM 240,000

Diesel oil for paddy

drying

RM 140,000

Rice husk disposal

RM 40,000

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

Diesel
consumption

7,450 litres/day

Diesel Cost

RM 1.40/litre

Annual
Working Day

330 days

Annual Diesel
Cost

RM 3.4 million

Diesel cost for

2 Gensets

RM 6.88
million /year

Total project cost : RM 19.5 million or

RM 3.2 million/MW
Payback period : 2.5 years
*Savings as per adjacent table

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Conclusion
z

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 You
Pusat Tenaga Malaysia
No 2, Jalan 9/10
Persiaran Usahawan, Seksyen 9
43650 Bandar Baru Bangi
Selangor
Website: www.ptm.org.my
E-mail: [email protected]