2016-05-Malaysia Palm Oil Mill Value Map public

Palm Oil
Revenue
RM 221 mio
USD 53.9 mio
Boiler AshFertilizer
RM 1.5 mio
Summary Value Map for Malaysian Palm Oil Mill – Total Mill Revenue Potential of RM 242 – 250 mio
(USD 59 - 61mio) of which FiT Electricity up to RM 11.7 mio (USD 2.9 mio) or ~5% of revenue potential
1
Palm Plantation
– Fresh Fruit Bunch(FFB) Input for Palm Oil
– Other: Biomass potential from Oil Palm Fond and Oil Palm
Trunk in addition to Palm Shell, Palm Fiber and Empty Fruit Bunch
(EFB)
– Fertilizer substitution:
- Palm Frond RM 35 / ton (2/3 of basal frond with 1/3 nutrition)
- Palm Trunk RM 78 / ton
- Empty Fruit Bunch RM 93 / ton
Palm Plantation
“Most often integrated
plantation/ oil mill
complex Palm Oil Mill Effluent
(POME)
Discharged
water
Biogas
Electricity
Grid FiT or diesel off set
up to RM 11.7 mio with high
CapEx alternative
To waste water lagoons
and then to rivers and if gas
not collected, then methane
to the atmosphere
Typical Malaysian Mill Size
60 ton FFB/Hour or
430 ton FFB/year)
Crude Palm
Oil (CPO)
RM 189 mio / USD 46.1 mio
Palm
Kernel (PK)
RM 32.2 mio / USD 7.8 mio
1 2
Palm Oil Distillate
▪ RBD Crude Palm Oil - Refined,
Bleached and Deodorized
▪ Palm Fatty Acid Distillate
• Crude palm
Kernel Oil
(CPKO)
• Palm Kernel Cake (PKC)
• Palm Kernel Expeller (PKE)
Palm Mill Process Steam and Electricity
• Steam for FFB Sterilization
• Steam for FFB pre-processing
• Steam also used to generate mill electricity
▪ Palm biomass as fuel in boiler/steam turbine:
– Pam Fiber
– Palm Shell
– EFB (only if dried with excess heat)
▪ Diesel – Boiler maintenance and start up
Palm oil mill revenue – Seven potential revenue outputs$
Palm oil refinery/palm kernel mill revenue$
Palm Oil Mill Input – Palm FFB
POME – Palm Oil Mill Effluent (methane rich waste)
Palm Oil Mill Process
Next:
Detailed Revenue
value map for a 60
ton/hour Palm Oil Mill
Palm Kernel
Mill Output
$$
Animal Feed
“Medium grade
protein feed”
6
CHP
steam/pre-heat water or drying EFB
Palm Output Potential
Revenue
% of
Total
1 – CPO RM 189.0 mio
USD 46.1 mio
77.5%
2 – PK RM 32.2 mio
USD 7.8 mio
13.2%
3 – Palm Shell RM 3.1 mio
USD 0.8 mio
1.3%
4 – Palm Fiber RM 1.4 mio
USD 0.3 mio
0.5%
(5 – EFB –Pressed and
de-humidified to DLF
and/or Pellets)
NKEA-EPP5 Oct 2014 – Probably
better used to produce steam…
(RM 8.1 mio)
(USD 2.0 mio)
(NKEA-EPP Oct 2014 RM
11.3 mio)
(3.2%)
for process
steam or
DLF/Pellets
– Not both
6 – FiT Electricity RM 11.7 mio
USD 2.9 mio
(CHCR+UASB)
4.8%
7 - Fertilizer RM 4.8 mio
USD 1.2 mio
2.0%
Grand Total
Grand Total excl EFB
RM 250.3 mio
USD 61.0 mio
RM 242.2 mio
USD 59.1 mio
Na
100%
Palm Kernel Mill - Value Add RM 5.2 mio / USD 1.3 mio
1 MW gen set power requirements as off-grid solution
7
~22,500 ha
(~55,500 acre)
Palm Plantation
~ 430,000 ton/year
Palm FFB
(24hr/300 days)
Fertilizer
RM 3.3 mio
(Wu et al 2009)
Palm Oil Output
Palm
Bio
mass
output
Palm Shell
3
Palm Fiber
4
Palm Empty Fruit
Bunch (EFB)
RM 8.1 mio in DLF/Pellets
(according to NKEA-EPP5 Oct 2015)
250 KWh power need (plus drying…)
5
Palm Refinery
Output $
$
FFB 60 ton/h
~ 430,000 ton/year at
24h/300days /
7200h/year
7
1
2
3
4
5
6
7

Fertilizer
RM 3.3 mio
(Wu et al 2009)
Fertilizer
RM 1.5 mio
Palm Oil Mill
FFB 60 ton/h
430,000 ton/year at
24h/300days / 7200h/year
Detailed Value Map - Revenue Potential of up to RM 242-250 mio (USD 59 - 61
mio) of which FiT Electricity up to RM 13.3 mio (USD 3.2 mio) ~5% of revenue
SOURCES: multiple official and public web-sites with specific
references in each text box
Local
ExMill
Local
www.bepi.mpob.com.my
Palm oil prices
RM/ton and 4.1 RM per USD
CPO – Crude Palm Oil
PK – Palm Kernel
CPKO – Crude Palm Kernel Oil
PKE – Palm Kernel Expeller
Source: NKEA-EPP5-Update Oct 2015
Palm Shell
Palm Fiber
Dry Long Fiber – from EFB
Pellet/Briquette – from EFB
December
2013
December
2014
December
2015
Sime Darby
2014/2015
December
2014
December
2015
Palm biomass prices
RM/ton December
2013
Used in
calculations
2,570
1,800
3,560
511
-
-
-
-
2,300
1,670
2,500
345
130
30
400
300
2,150
1,520
3,350
390
-
-
-
-
2,222
1,474
-
-
-
-
-
-
Used in
calculations
2,200
1,500
3,350
390
CER – Certified emission reduction
EUR/ton (only limited after 2011…)
0.33 0.02 0.58 - 0.50
120
25
350
250
Diesel off-set with Bio gas at Palm
mill operations (excl. vehicles)
- - - - -
Diesel RM/ton - - 1,916 - 2,000
Palm plantation – Palm Fresh Fruit Bunch (FFB) Input
Malaysia Yield
~19 ton FFB/ha
FFB = Fresh Fruit Bunch
Sime Darby Plantation
2014/15 22 ~ton/ha
Palm Kernel Mill - Value Add RM 5.2 mio/ USD 1.3 mio
Palm Kernel Mill Power
consumption
CPKO Value
100k ton / day crusher
90-100 KWh/ton=> 0.9-1.0
MW
- CPKO 46% extraction rate
- CPKO 9,900 ton/year
- RM 3,350 per ton
PKE Value
• PKE 50% extraction rate
• PKE 10,700 ton/year
• RM 390 pe rton
Palm Oil Refinery
RBD Crude Palm Oil
Palm Fatty Acid
Distillate
Revenue RM 189 mio
USD 46 milo
Palm Oil
Revenue
RM 221 mio
USD 51.4 mio
CPO 86,000 ton/year
@ RM 2,200
CPO extraction
20% of FFB
Palm Oil Output
Revenue RM 32.2 mio
USD 7.9 mio
PK 21,500 ton/year
@ RM 1,500
PK extraction
5% of FFB
Source: Sarawak Energy
NKEA–EPP5/www.bepi.com.my
~22,500 ha
(~55,500 acre)
Palm Plantation
430,000 ton/year
Palm FFB
(24hr/300 days)
% of FFB / annual supply
Heat Value
Dry (KJ/Kg
Energy/Heat Value Potential
Mwhr
6% of FFB (12%
humidity)
Annual:
25,800 ton @ RM 120
RM 3.1 mio / $ 0.7 mio
19’114 KJ//Kg
430’000x6%
x0.88x19’114
/3600=120’500
16,74 MWhr/h
120’500 MWhr/year
Palm
Bio
mass
output
13% of FFB (37%
humidity)
55,900 ton @ RM 25
RM 1.4 mio / $ 0.3 mio
20’156 KJ//Kg
430’000x13%
X0.63x20’156
/3600= 197’200
27,38 MWhr/h
197’200 MWhr/year
Palm Shell
Revenue
RM 3.1 mio
USD 0.8 mio
Palm Fiber
Revenue
RM 1.4 mio
USD 0.3 mio
Palm
Empty
Fruit
Bunch
(RM 8.1 mio)
(USD 2 mio)
Production
steam or
DLF/Pellets
22% of FFB (67%
humidity)
94,600 ton
Partly dry for mill
production steam or
press/de-humidify for
DLF/pellets processing
DLF/Pellets value
RM 8.1 mio (NKEA-EPP5
RM 11.3 mio)
18’883 KJ/Kg
430’000x22%
X0.33x18’883
/3600=163’700
22,73 MWhr/h
163’700 MWh/year
To sell as biomass for
incremental revenue
Energy/Heat Value
potential matches a 60
ton/h mill energy need for
steam, if upgrading boiler
to at least 28% Thermal
efficiency. Alternative:
Dry and process to Dry
Long Fiber (DLF) or
pellets / briquette and use
Palm Fiber as boiler fuel
Boiler Ash
Palm Oil Mill Effluent POME
Grid FiT or diesel off set up to RM 11.7 mio
67% POME of 60 ton/h FFB => 40 ton POME/h
Three main technologies
- Low CapEx: Covered lagoon
- Med/high CapEx: CSTR
- High CapEx: Combined HCSR/CSTR+UASB
Low Capex: Covered lagoon with gas trapping
(Thailand Cat cases and NKEA-EPP5)
• 25m3 Biogas/m3 POME @ CH4 55%
• COD @ 60’000 mg/L ≈19,000 KJ//m3
• 40 ton POME x 25 m3 = 1’000 m2 Biogas/hour
• 7.2 million m3 bio gas per year
• 19’000 MJ/h or 5.3 MWhr/hour (heat value)
• 38’000 MWhr/year (heat value)
A B Med/high Capex: CSTR Only
(Source: NKEA-EPP5)
• 30 m3 Biogas/ m3 POME @ CH4 60%
• COD 70’000 mg/l ≈ 21,000 KJ/m3
• 40 ton POME x 30 m3 = 1’200 m3 Biogas/hour
CHCR (Combined HCSR and CSTR) + UASB
( Source:Jeng Huat Palm Oil Mill Presentation)
• 33 m3 Biogas/m3 POME @ CH4 65%
Cleaned Biogas (69% before BioGasClean)
• COD 80’000 mg/l ≈ 22,500 KJ/m3
• 40 ton POME/h x 33 m3 = 1’320 m3 Biogas/hour
C
Palm Oil Mill Steam Requirements (30 ton/h) and biomass and diesel
consumption: “Life cycle inventory of the production of Crude Palm Oil Case -
12 mills (2008)”
7.5 ton Biomass/hour: 20% shell/80% Fiber
Biomass boiler 24h/300days/Diesel gen sets 600KVA.
Power from Steam Turbine 1.1MWhr @17% efficiency
(2008). Utilization 70% of 300 days
6 ton fiber/hour ( 43,200 ton/year)
1.5 ton shell/hour ( 10,800 ton/year)
54L of diesel/hour ( 390m3 /year)
%
12%
37%
0.745 kg/l
KJ/Kg Dry
19,114
20,156
45,100
Boiler Efficiency according to
NKEA-EPP5 2014Humidity
1.5 x 88% x 19,114 / 3600
7.0 MW@21%  1.5 eMWhr
6 x 0.63 x 20,156 / 3600
21 MW@21%  4.5 eMWhr
0.054 x 0.745 x 45100 / 3600
0.5 MW @~40% 0.2 eMWhr
Total Heat Value per hour: 28.5 MWhr
2
Sime Darby
2014/2015
Energy
1 2
3
6
Next:
Financial comparison with and without Grid Feed-in Tariff and
optimizing usage of EFB in mill steam production: Low / Med / High
Capex
7
Anaerobic digestion produces Chemical Oxygen
Demand (COD) ~44,300 => ~ 102,000 mg/l
33% of CO2
67% of CH4 (Lagoon 55% CH4 10% losses
A B
Sludge – Discharge water
and fertilizers
(CH4 = 55,500 KJ//Kg)
Palm Kernel Mill Crusher Power Requirements about 1.0 MW
5
4 Sell as biomass for
incremental revenue or
use as boiler fuel if EFB
pressed /de-humidified
to DLF and/or pellets
Total Boiler Steam Power (Heat Value) 6.2 MWhr/hour
Discharge
Water
7

Financial Summary Palm Oil Mill Biogas Trapping with Electricity Production3
Covered Lagoon
Closed tank
Technology
Closed Tank Technology
Lowest CapEx
Covered lagoon
7.2 mio m3
biogas/year
Lower CapEx
Medium CapEx
High CapEx
Technology
Base line: “Minimum to stay in business - Flaring
the biogas”
Covered lagoon and current boiler modified for
biogas and complemented with shell and fiber
biomass to fuel the boiler
Covered lagoon and effective/ modified boiler
complemented with EFB and 20% of baseline shell
and fiber biomass to fuel the boiler
“less effective” gas engines using “dirty gas”
and consequently higher engine maintenance
Partly dried EFB to fuel the boiler
CapEx
- 7.0
- 2.0
- 5.0
- 4.5
- 7.5
- 10.5
- 13.5
- 13.5
- 16.5
OpEx
- 0.2
- 0.10
- 0.15
- 0.15
- 0.20
- 1.60
- 1.90
- 0.85
- 0.95
Biomass
Revenue
2.1
+ 0.6
+ 0.6
+ 1.8
+ 1.8
+ 2.4
+ 2.4
+ 2.4
+ 2.4
Electricity
Revenue
FiT
…
N/a
+ 0.5
N/a
+ 1.2
N/a
+ 10.1
N/a
+ 11.7
Straight
pay back
“Sunk cost”
1.3 years
2.8 years
1.4 years
2.1 years
1.3 years
1.2 years
1.4 years
1.2 years
80%
35%
70%
48%
76%
84%
70%
85%
1
2 FiT
1
2 FiT
16 years
ROI
1
2 FiT
1
2 FiT
Covered Lagoon Technology
RM
mio
High Efficiency Gas Engines using
cleaned/chemically scrubbed gas and consequently
less engine maintenance
Partly dried EFB to fuel the boiler
Diesel
Offset
N/A
+ 0.8
+ 0.8
+ 0.8
+ 0.8
+ 0.8
+ 0.8
+ 0.8
+ 0.8
Theoretical value
of “available”
electricity (IND-E1)
…
+ 0.3
N/a
+ 0.7
N/a
+ 6.4
N/a
+ 7.1
N/a
Net Sum
Cash-
Flow
+ 1.90
+ 1.60
+ 1.75
+ 3.60
+ 8.00
+ 11.40
+ 9.45
+ 13.95
“Addition/Delta to Baseline” – Baseline is “sunk cost” to stay compliant
Cash Flow for 16 years ROI calculation
(Same as used in emission certificate applications)
N/a
+ 3.15

Summary Value Map Palm Oil Biogas Trapping &
Financial Analysis
5
• Basic technology to stay compliant a “sunk-cost” that must be made to remain in business
• Biogas trapping and usage for FiT is highly profitable and diversifies the Palm Oil Mill’s revenue base.
• 80% ROI and very low risk to only make the next step beyond flaring:
• Covered lagoon, collect and burn the biogas in the current boiler rebuild for biogas usage and sell the additional
biomass with an 80% ROI!
• Feed-in-Tariff to the grid is only very profitable when investing in the highest possible capacity of gas
production/collection and high efficiency reciprocating gas gen sets
• Boiler based gas combustion range from 35% - 50% ROI
• Recip Engine based gas combustion provides up to 85% (!) ROI
• When FiT available:
• …Always profitable to consider to also use FiT for an efficient (+20%) biomass powered boiler. RM 0.4667 KWh
compare to 0.4866KWh using gas technology in the boiler is still attractive! At least RM 1.2 mio in additional revenue
after mill power (0.9 MWh) has been consumed. With additional mill efficiency improvements the revenue can
significantly increase!
• CHP is needed to dry the EFB to acceptable humidity level to either burn (with lower emissions) and/or process the
EFB to DFL/Pellets
• Exhaust heat to dry EFB
• Jacket water to pre-heat water for steam boiler (to drive additional Biomass sales – not included in
calculations but should be in the range of an additional 15-20% bio mass to sell…
• Additional investments in down stream activities need to be evaluated separately, but is a requirement for all
alternatives where FiT is not an option.
• Palm Kernel Mill can drive a value add of RM 5.2 mio with a 1MWh/h electrical power need
• Dry Long Fiber and Pellets/Briquette from EFB can drive a value add of RM 8.1 mio with a 1.25 MWh/h electrical power
need.
• Palm Oil Refinery…
• ..in this financial analysis “available gas” has only been valued at the equivalent of TNB Industrial Tariff RM 0.285 per
KWh as “cost avoidance” if a down stream process facility could be co-located with the Palm Oil Mill

Baseline – minimum to comply to reactions
▪ Covered lagoon and only collection to flare on site
▪ Flaring of biogas
▪ With approx. 10% methane leakage and deteriorating
over time to might still be questionable to be long term
compliant
1 Mill steam/heat/electricity
▪ Mill stem/heat/electricity (boiler)
▪ Sell excess biomass
▪ Use EFB in boiler
▪ Use gas in gas engines for CHP
18.5-22.5 mio 20.5 mio
+ 13.5 mio
0.75 mio -1.35 mio 1.05 mio
+ 0.85 mio
Palm shell: -100% -
Palm fiber -100% -
EFB: 31,200 ton dry/year
Biogas: 9.5 mio m3
25,920 ton x 120 = RM 3.1 mio
56,160 ton x 25 = RM 1.4 mio
Total - baseline: RM 2.4 mio
15.5-19.5 mio 17.5 mio
+ 10.5 mio
1.25 mio -2.35 mio 1.80 mio
+ 1.60 mio
Mill steam/heat/electricity
▪ Use EFB in boiler +20% efficiency
▪ Use gas in gas engines for CHP
▪ High maintenance due to CH4
▪ Excess electricity available/no value
1 Palm shell: -100% -
Palm fiber: -100% -
Biogas: 9.5 mio m3
25,920 ton x 120 = RM 3.1 mio
56,160 ton x 25 = RM 1.4 mio
SOURCEES: Multiple CDM applications with detailed Capex and OpEx analysis -
https.//cdm.unfccc.int search criteria: Malaysia & Biogas
Feed-in-Tariff
Baseline cost to comply with minimum legal requirement
Biomass revenue
Anaerobic technology and full heat value potential
Bio mass left to sell Electricity for FiT or “available”
Grid connection assumes RM 3 mio in
CapEx
CapEx
range Min 2% Max 4% Biomass used in palm mill (see slide 2)
15’120 ton x 120 = RM 1.8mio
12’960 ton x 25 = RM 0.3mio
Baseline: 0
RM 0.8mio cost in base line
Baseline revenue for excess biomass
available to sell without any additional
investments in gas production or boiler
efficiency and baseline cost of current
usage of diesel gen sets for mill
operations
1 6-8 mio 7 mio 0.1 mio - 0.2 mio 0.2 mio Palm shell: 41% of 25’960 10,800 ton/year
Palm fiber: 77% of 56’160 43,200 ton/year
EFB: -
Biogas: -
Diesel: 390 m3/year x 2,000
OpEx Range %of CapEx
RM mio
Min 8% Max 12%
Min 4% Max 6%
Min 4% Max 6%
Excess Electricity – “available”
3.1 MWh x 90% x 7200
= 20’100 MWhr/year Recip Engine
1.4 – 0.9 = 0.5 MWh x 70% x 7200
= 2,500 MWhr Steam turbine
(@0.285 (E1-industrial) = RM 6.4 mio
Excess Electricity – “available” Engine
3.45 MWh x 90% x 7200
= 22’400 MWhr/year (Recip Gas Engine)
1.4 – 0.9 = 0.5 MWh x 70% x 7200
= 2,500 MWhr(steam Turbine)
(@0.285 (E1-industrial) = RM 7.1 mio
25,920 ton x 120 = RM 3.1 mio
56,160 ton x 25 = RM 1.4 mio
18.5-22.5 mio 20.5 mio
+ 13.5 mio
1.50 mio - 2.70 mio 2.10 mio
+ 1.90 mio
Grid connection
▪ Mill stem/heat/electricity (boiler
▪ Sell excess electricity
▪ Use EFB in the boiler +20% efficiency
▪ Use biogas in gas engines for CHP
▪ High maintenance due to CH4
Palm fiber: -100% -
Biogas: 9.5 mio m3
Gas Engine Electricity for FiT
3.1 MWh x 90% x 7200
= 20’100 MWhr/year FiT of 0.4470
= RM 8.9 mio
Steam Turbine Electricity for FiT
1.4 – 0.9 = 0.5 MWh x 70% x 7200
= 2,500 MWhr x FiT of 0.4667
= RM 1.2mio
21.5-25.5 mio 23.5 mio
+ 16.5 mio
0.85 mio -1.50 mio 1.15mio
+ 0.95mio
Grid connection
▪ Mill stem/heat/electricity (boiler)
▪ Sell excess electricity FiT
▪ Use EFB in the boiler
▪ Use biogas in gas engine for CHP
Palm fiber: -100% -
Biogas: 9.5 mio m3
25,920 ton x 120 = RM 3.1 mio
56,160 ton x 25 = RM 1.4 mio
Biogas Trapping and Revenue from biomass/FiT – Detailed CapEx & OpEx
Alternatives: Baseline (flaring), Lowest CapEx – Lagoon/current boiler, Lower CapEx Lagoon/efficient boiler, Medium CapEx Closed tank/recip engine “dirty gas”, High CapEx
Closed Tank/recip engine and cleaned gas
All alternatives with two options: Feed-in-Tariff (FiT) or without FiT. All business cases with no FiT availability should review alternative revenue from additional electricity. This analysis only include revenue to sell
off maximum of Palm Shell and Palm Fiber – commodities with limited process cost - other alternatives requires detailed financial analysis
High CapEx Closed Tank / Gas engine / Cleaned gas
▪ CHCR + UASB. 8.3 Mwhr heat value of gas.
▪ Complete gas cleaning and drying process. Chemical
scrubbing, de-humidification resulting in CH4 <100
▪ High efficiency gas engine/Turbine No FiT penalty. Tariff
RM 0.4669 per KWh / RM 0.4667 KWh Steam Turbine
▪ Exhaust CHP used to partly dry EFB and jacket water to
pre-heat water to boiler and export more biomass
▪ Excessive electricity sold at FiT or “available for use”
▪ Theoretical 90% utilization engine / 70% of steam turbine
▪ CG170-12 with 42.1% electrical / 43.8% thermal efficiency
▪ Max 3.45 MWhr:3xCG170-12 (3600= +150kwh)
▪ Biomass Boiler/Turbine 1.4 MWh at 22% of thermal eff.
Medium CapEx Closed Tank / Gas engine/”Dirty gas”
▪ CHCR + UASB. 8.3 Mwhr heat value of gas.
▪ No gas scrubbing, only humidity reduction limited HC4
reduction due to drying the gas
▪ Gas engines for dirty gas <40% efficiency. FiT 0.0199 RM
penalty. Tariff RM 0.447/KWh. Steam turbine 0.4667/KWh
▪ Exhaust CHP used to partly dry EFB and jacket water to
pre-heat water to the boiler and export more biomass
▪ Theoretical 90% utilization engine / 70% of steam turbine
▪ G3516A+ with 36.8% electrical / 41.5% thermal efficiency
▪ Max 3.1 MWhr: 3x3516A+ @ 1105kw (3’315= +215KWh)
▪ Biomass Boiler/Turbine 1.4 MWh at 22% of thermal eff.
▪ Palm mill consumes in average 0.9 MWh/h of electricity.
Gas Engine Electricity for FiT
3.45 MWh x 90% x 7200
= 22’400 MWhr/year FiT of 0.4669
= RM 10.5 mio
1.4 – 0.9 = 0.5 MWh x 70% x 7200
= 2,500 MWhr x FiT of 0.4667
= RM 1.2mio
CapEx / Add. to
Base line
OpEx / Add. to
Base line
3
1.4 – 0.9 = 0.5 MWh 70% x 7,200
= 2’500 MWh / year x FiT of 0.4866
RM 1.2 mio
‘23’220 ton x 120 = RM 2.8 mio
45’360 ton x 25 = RM 1.1 mio
Mill steam/heat/electricity
▪ Use gas in boiler 24% efficiency
▪ Excess electricity available/no value
1 9-12 mio 10.5 mio
+ 4.5 mio
0.20 mio -0.50 mio 0.35 mio
+ 0.15 mio
Palm shell: -75% 2’700 ton/year
Palm fiber: -75% 10’800 ton/year
Biogas: 7.2 mio m3
12-15 mio 13.5 mio
+ 7.5 mio
0.25 mio -0.60 mio 0.4 mio
+ 0.2 mio
Grid connection
▪ Mill steam/heat/electricity
2 Palm shell: -75% 2’700 ton/year
EFB: 31’200 ton dry/year
Biogas: 7.2 mio m3
1.1 - 0.9 = 0.2 MWh x 70% x 7200
= 1’000 MWh / year @0.285=RM0.3mio
1.4 – 0.9 = 0.5 MWh 70% x 7,200
= 2’500 MWh / year
(@0.285 (E1-industrial) = RM 0.7 mio in
theoretical/potential cost avoidance)
23’220 ton x 120 = RM 2.8 mio
45’360 ton x 25 = RM 1.1 mio
Lowest CapEx lagoon/boiler
▪ Covered lagoon (5.3 Mwhr/h heat value of bio gas)
▪ No gas scrubbing, only humidity reduction and limited HC4
▪ Only gas modification to current boiler. 17% efficiency.
▪ 1.1 MW/hr boiler/Turbine to produce electricity for mill
▪ Steam based <20% efficiency. FiT 0.01 RM penalty. FiT
RM 0.4766 per KWh
▪ 70% utilization of steam turbine (NKEA-EPP5-2014)
▪ Palm mill consumes in average 0.9 MWh/h of electricity
1.1 – 0.9 = 0.2 MWh x 70% x 7,200
= 1’000 MWh / year x FiT of 0.4766
RM 0.5 mio
17’820 ton x 120 = RM 2.1 mio
23’760 ton x 25 = RM 0.6 mio
Total – baseline RM 0.6 mio
Grid connection
▪ Mill steam/heat/electricity
▪ Use Shell/fiber in boiler
2 11-13 mio 12 mio
+ 5 mio
0.25 mio - 0.45 mio 0.35 mio
+ 0.15 mio
Palm shell: -25% 8’100 ton/year
Biogas: 7.2 mio m3
Lower CapEx lagoon/efficient boiler
▪ Covered lagoon (5.3 Mwhr/h heat value of gas)
▪ No gas scrubbing, only humidity reduction limited HC4
▪ Improved co-fired boiler/turbine with (22%) efficiency
▪ 1.4 MW/hr Boiler/Turbine of to produce electricity for mill.
▪ High efficiency steam based 22% efficiency (>20%). No
FiT penalty. Tariff RM 0.4866 per KWh
▪ CHP from boiler used to partly dry EFB as boiler fuel
▪ 70% utilization of steam turbine (NKEA-EPP5-2014)
▪ Palm mill consumes in average 0.9 MWh/h of electricity
17’820 ton x 120 = RM 2.1 mio
23’760 ton x 25 = RM 0.6 mio
Mill steam/electricity
▪ Shell/fiber/gas in boiler 18% eff.
1 8-10 mio 9 mio
+ 2 mio
0.20 mio - 0.40 mio 0.3 mio
+ 0.1 mio
Palm shell: -25% (base) 8’100 ton/year
Biogas: 7.2 mio m3

2016-05-Malaysia Palm Oil Mill Value Map public

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