2018 Biogas Utilization Project

Review & Way Forward 2019

BIOMASS DEPARTMENT FPISB

 CHAPTER 1 :
OVERVIEW & BACKGROUND OF FGV PALM INDUSTRIES SDN. BHD.
RENEWABLE INITIATIVES
Overview on FPISB’s Biomass Initiative Main
Revenue
Objective Byproducts Drivers
• To capitalize on company’s existing
from
strengths in the oil palm industry 66 mills
• To explore and tap potential economic
gain and technology enhancement
through waste to wealth perspective By-Product
• To comply on existing environmental Segment Renewables
regulation and to promote company Key issues Segment
green initiatives
• Milling process capability
•Difficult to forecast long term project IPP Sahabat
• Bureaucratic procedure on project approval
hurdle for interested developer for fast 7.5 MW capacity
project execution.
• Economic feasibility of Palm
Key Driver Umas Rural
Biomass Based Products
•Demand for palm biomass based products Electrification 1.2
• Operationalisation of Biogas power
plant under FiT & Rural
•Willingness of end-users to higher price for MW
green products?
Electrification Programme •Competitiveness of the products
• Maokil,Tenggaroh,Nitar (FiT) • Priority 3 FiT Biogas Plant
• Umas (Rural Electrification) •Food or Fuel
• Environmental Sustainability.
( combined 3.6 MW
• Sg Tengi (BioCNG)
•Non-sustainable oil palm plantation )
• BOO Development – CGESB ( 4
•Deforestation
mills ) and Green & Smart ( 1 mill )
•Threat to biodiversity Sg Tengi BioCNG
• Shift of paradigm.
( 60,000 MMBTU )
Key Collaborators/ •Increase input : product ratio
•Increase energy efficiency
• Private sector – GnS, CGESB, Cenergi •New concept of palm oil mill
Sea, Gas Malaysia, TGSB, Sime Darby &
other potential developers
• Research Institution – MPOB 6 Compost Plant
• Government- MOF, EPU, MIDA, KeTTHA,
MOSTI, MOHE, AIM, Biotech Corp, MIGHT
& Academia
3
 1990 - 2000 2000 - 2007 2008 - 2011 2011 - 2012 2012 - 2015

BRIEF WALKTHROUGH

Felda Palm Industries

Biomass Department

1) 2016: 23 biogas capture

1) 2012 : SEDA was created & Feed- plant successfully operated
in-Tariff established – selling 2) First foray into bio-CNG,
electricity to National Grid is strategic collaboration with
potentially revenue generating MPOB & Sime Darby Offshore
1) 2006 : CDM strongly endeavour without depending on Engineering as EPCC
promoted for biogas capture CDM contractor
2) EFB compost facilities 2) 2013 : FNI Biofuel ( EFB Pelleting 3) MPOB directive : all mills to
installed targeted for internal Plant ) successfully operated be fitted with biogas capture
consumption, utilising POME 3) FPI continue to build more facilities by 2020
thus eligible for CDM projects biogas projects in mills
1) 2002 : BOD
approved 1 EFB based 3) Unfortunately, CER market
st
4) Reactor design for Biogas Plant
power plant in Sahabat collapsed due to low interest to i.e Maokil, Sg Tengi & Tenggaroh
Complex in 2002 CDM from developed countries increased to > 45,000 cubic meter,
2) Continuous potential gas generation of 1000
operation from 2005 m3/hour, displaying confidence in
till now design scale up
3) IPP Sahabat 5) Serting Hilir Biogas Plant
1) 1998 : R&D recognised as 1st Clean
Collaboration with successfully connected to the grid
Development 6) Latest design for Triang and
MPOB Mechanism Project in Keratong 9 mill ( > 60,000 mt
2) 1999: Designed, built Malaysia
& patented EFB POME ) up to 1500 m3/hour &
processing equipment COD reduction potential > 99%
 Relationship between Investment, Operation and Financial

IRR- Investment Rate of Return INVESTMENT

PAYBACK PERIOD

PLANT PERFORMANCE PLANT UTILISATION

OPERATION PLANT SAFETY
ASSET UTILISATION
PLANT EXPENSES
PLANT COMPLIANCE

Profitability Ratios
1. Gross Profit Rate = Gross Profit ÷ Net Sales
PROFIT: REVENUE - EXPENSES FINANCIAL 2. Return on Sales = Net Income ÷ Net Sales
3. Return on Assets = Net Income ÷ Average Total Assets
4. Return on Stockholders' Equity = Net Income ÷
Average Stockholders' Equity

PBT, PBZT, PAT,

EBITDA, PATAMI

5
 * Number indicates priority 1>x>4
Why do we build biogas plant ?
MPOB directives for
upgraded/new mill

Regulatory 1 *

Requirement

Utilization & Biogas reactor

2
Waste Water
4
reduces >95% COD
Monetization
Of Biogas Upgrading
Capacity
Additional revenue Byproduct
stream for mill

Carbon
Emission
Reduction 3
FGV achieves more than 90,000 mt CO2 eq
CER/year ( largest emission reduction by a
plantation company
MPOB Regulation
PALM OIL MILL EFFLUENT
CHARACTERISTICS
Mill operational issues will affect biogas plant :

Inadequate FFB
processed affect gas yield Inconsistent quality of incoming
– membrane stretch POME to biogas – oil, debris and
index < 4 contaminants

Oil loss accumulation in

mixing pond – possible
seepage to biogas
 CHAPTER 2 :

PERFORMANCE REVIEW 2018 ;

REVENUE AND COST ANALYSIS

10
 Renewables Increasing Revenue (RM) 2016 - 2018
Segment 2018 in a snapshot
9.29
10.00 • 2018 is a improvement year for renewables segment
RM Million

9.00
7.42 7.71
8.00
• Due to strong team effort and management support,
7.00
renewable segment recorded significant
6.00
improvement in revenue generation
5.00 3.94 2016
4.00 2017
• Renewables recorded 16.26 % (Y-o-Y) improvement
3.00 2019
2.00 1.09 1.17
( consistent kWh generation by Maokil,
0.58 Umas & Nitar, MMBTU bioCNG by Sg Tengi )
1.00 0.09
0.00
IPP Sa habat Bi ogas to El ectri ci ty Bi oCNG Sg Tengi • IPP has recorded downturn of revenue 19.70% in
2018 compared to 2017

Notable achievement in 2018

• Sg Tengi BioCNG Plant National Energy
Awards for Biofuels Category in October
2018 by MESTECC

• FGV recognised as the largest carbon

reduction emission ( mt CO2 eq ) in any
palm oil plantation company in the
world ( FGV Sustainability Report 2017 )

• 2019 objective is to further improve

revenue generation and to focus on
main revenue drivers
 Biogas Revenue & Cost 2018 – Consolidated ( to date December 2018 )

Revenue
Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Variance(%)
FiT Mills Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Todate
Sept vs Aug
TOTAL - Maokil 109,874 127,404 121,089 155,431 140,801 121,754 212,722 196,095 230,489 255,673 246,182 150,695 2,068,209 (37.35)
TOTAL - Nitar 181,313 117,699 158,172 187,496 169,808 180,436 189,587 271,883 221,233 260803 201,617 228,724 2,368,772 10.39
TOTAL - 117,933 49,659 47,222 65,127 56,047 119,769 118,153 - - - - - 573,912
Tenggaroh
TOTAL -Serting 7,581 43,324 32,003 13,879 60,130 50,550 59,077 44,175 15,346 27 - - 326,090
Hilir
TOTAL - Umas 109,299 121,189 183,625 228,481 256,590 235,730 117,448 206,508 204,639 257,956 143,331 310,126 2,374,921 64.66
525,999 459,275 542,110 650,415 683,376 708,239 696,988 718,660 671,708 774,459 591,130 689,545 7,711,904 14.30

Cost
Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Profit Before
FiT Mills Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18
Todate
Tax

TOTAL - Maokil 151,542 190,973 100,723 169,260 143,334 189,386 152,980 147,656 205,055 167,039 572,612 2,190,559 (122,350)

TOTAL - Nitar 171,731 105,176 321,854 186,018 104,822 120,633 301,728 140,236 142,986 147,503 157,635 1,900,322 468,450
TOTAL - 86,145 85,206 100,105 86,613 115,001 93,288 114,687 268,818 95,459 98,612 1,234,431 (660,520)
Tenggaroh 90,499
TOTAL -Serting 131,253 96,687 106,418 99,545 106,707 130,068 119,100 137,889 132,564 129,492 1,301,465 (975,374)
Hilir 111,741
TOTAL - Umas 176,682 70,799 118,078 138,230 50,534 145,491 130,930 147,281 170,012 119,328 196,396 1,463,761 911,160

717,352 548,841 747,178 679,666 520,399 678,865 668,958 924,760 661,893 1,154,748 8,090,538 (378,634)
787,878

BIOCNG Sg Tengi Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Profit Before
Todate
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Tax

113,557.6 95,352.6 107,753.5 95,119.2 102,495.1 73,658.2 96,912.7 76,742.5 91,674.0 110,111.6 106,214.4 101,006.7 1,170,598.1 483,387.47
Revenue
172,704.0 85,860.0 (32,768.0) 89,032.0 78,593.5 (5,752.9) 77,270.5 85,791.3 (40,790.0) 85,671.2 91,599.0 687,210.6
Cost

Land lease BOOT 4 mills ( todate December 2018 - 4 mills CGESB Greenfield Mills ) 775,753.00

Profit & Loss Year To Date December 2018 880,506.02

12
Biogas KWH generation (kwh) 2018 (Jan - Dec )
Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual
FPISB Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 TOTAL
Maokil 276,760 320,916 305,009 391,514 354,662 306,763 535,824 493,941 580,578 644,013 620,107 379,680 5,209,767
Nitar 456,708 296,471 398,417 472,283 427,729 454,498 477,550 684,844 557,262 656,935 507,852 576,276 5,966,825
Tenggaroh 297,060 125,086 118,948 164,049 141,177 301,686 297,615 - - - - - 1,445,621
Serting
hilir 23,929 136,756 101,018 43,809 189,803 159,564 186,481 139,441 48,441 84 - 1,029,326
Umas 156,141 173,127 262,321 326,402 366,557 290,614 167,783 295,011 292,342 368,508 204,758 443,037 3,346,601

1,210,598 1,052,356 1,185,713 1,398,057 1,479,928 1,513,125 1,665,253 1,613,237 1,478,623 1,669,540 1,332,717 1,398,993 16,998,140

Biogas KWH generation (kwh) 2017 (Jan - Dec )

Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual
FPISB
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 TOTAL
Maokil 455,294 359,741 393,350 458,154 257,727 77,605 193,118 522,400 587,682 442,217 270,064 248,334 4,265,686
Nitar 492,556 349,333 186,754 296,942 369,268 181,783 40,248 - - 274,850 524,398.00 747,133.00 3,463,265
Tenggaroh - - - - - - 284,065 60,871 380,852 3,480 - 153,208 882,476
Serting hilir - - 42,850 - 224,536 146,288 182,544 40,530 - - - - 636,748
Umas 30,616 26,400 56,698 - 30,756 20,189 - - - - 122,518 228,036 515,213

TOTAL 9,763,388
Yearly Comparison :

Biogas FiT Revenue : 2018 has shown improvement of 95.73% increase compared to 2017 ( RM 7.71 mil vs RM
3.939 mil ). Umas and Nitar has shown positive P&L for the first time.

BioCNG Revenue : 2018 has shown improvement of 102.1 % increased compared to 2017 ( RM 1.17 mil vs RM
0.579 mil ). Sg Tengi has also exceed contractual obligation of 30,000 MMBTU/year. ( Actual 31,242.98 MMBTU for
2018 ). 13
 REVENUE & COST COMPARISON 2018/2017
Year 2017 2018 2018/2017 Variance

Biogas Plant Revenue Cost Revenue Cost Revenue (%) Cost (%)

Umas 319,484 1,742,574 2,374,921 1,463,760 643.36 -16.00

Serting Hilir 201,722 1,303,215 326,090 1,301,465 61.65 -0.13

Tenggaroh 350,343 1,287,050 573,912 1,263,781 63.81 -1.81

Nitar 1,374,917 1,669,457 2,368,772 1,900,322 72.28 13.83

Maokil 1,693,477 2,002,743 2,068,209 2,190,559 22.13 9.38

IPP Sahabat 10,037,455 17,852,657 8,060,232 16,730,084 -19.70 -6.29

Sg Tengi 595,306 259,193 1,170,598 687,030 96.64 165.07

TOTAL 14,572,705 26,116,889 16,942,734 25,537,001 16.26 -2.22

Revenue/Cost 2017 RM Revenue/Cost 2018

R
M
2,500,000 2,500,000

2,000,000 2,000,000

1,500,000 1,500,000

1,000,000 1,000,000

500,000 500,000

- -
Umas Serting Hi l i r Tenggaroh Ni tar Ma oki l Umas Serting Hi l i r Tengga roh Ni tar Maoki l
Revenue Cost Revenue Cost

14
 Cost Breakdown Umas Cost Breakdown Nitar

A; 62,972 ; 4.30%
B; 71,138 ; 4.86%
C; 313,663 ; 21.43% A; 750,331 ; 39.48% A
D; 811,097 ; 42.68%
A B
C
B
B; 145,285 ; 7.65% D
C E
D; 1,015,987 ; 69.41% C; 193,610 ; 10.19%
D

Cost Breakdown Serting Hilir Cost Breakdown Maokil

286,101 ; 21.98%

45,012 ; 3.46% A D; 646,380 ; 29.51%

B A
A; 1,139,976 ; 52.04%
C B
117,587 ; 9.03% D C; 339,272 ; 15.49%
B; 64,932 ; 2.96% C
852,765 ; 65.52%
D

A = BERUBAH [PERKHIDMATAN] = Maintenance works, spare parts, security, cleaning, ISO, Overtime, Medical
B = BERUBAH [BEKALAN & PERALATAN] = Fuels, Supply & Equipment
C = SEMI BERUBAH = Emolument, EPF, SOCSO
D = KOMITMEN = Depreciation
15
 Cost Breakdown Tenggaroh Cost Breakdown Total FiT Projects

A; 431,669 ; 34.16% A; 2,671,049 ; 32.90%

A A
D; 3,999,867B; 49.26% B
673,638 ; 53.30%
C C
B; 14,652 ; 1.16% D B; 341,018 ; 4.20% D
C; 143,821 ; 11.38% C; 1,107,953 ; 13.64%

A = BERUBAH [PERKHIDMATAN]
B = BERUBAH [BEKALAN & PERALATAN]
C = SEMI BERUBAH
D = KOMITMEN

Comment :

1) Except for Maokil, all other mills has shown quite similar pattern in which the largest percentage of cost is
due to depreciation
2) Nitar has shown most consistent percentage breakdown compared to other mills as it mirrors Total FiT Projects
breakdown.
3) Maokil has shown high percentage on A = 52% for high expenditure in maintenance costs ( engine, biogas )
4) Umas has high depreciation due to transfer of engine from Mercu Puspita to Umas

16
 Cost per kWh Breakdown - 2018

Items MAOKIL NITAR TENGGAROH UMAS SERTING H

Overheads (RM) 658,359.19 524,653.50 319,547.16 254,819.48 212,552.44
Biogas kWh Generation 4,894,343 5,390,549.00 1,445,621.00 2,903,564.00 1,029,326.00
Overheads per kWh 0.13 0.10 0.22 0.09 0.21

Operation & Maintenance Cost 885,819.95 564,571.99 241,245.17 199,329.00 236,147.64

(RM)
Biogas kWh Generation 4,894,343 5,390,549.00 1,445,621.00 2,903,564.00 1,029,326.00
Operation & Maintenance per 0.18 0.10 0.17 0.07 0.23
kWh

Depreciation 646,380 811,096.69 673,638.47 985,742.40 852,764.88

Biogas kWh Generation 4,894,343 5,390,549.00 1,445,621.00 2,903,564.00 1,029,326.00
Depreciation per kWh 0.13 0.15 0.47 0.34 0.83

Monthly kWh 4,830,087 5,390,549.00 1,445,621.00 2,903,564.00 1,029,326.00

Revenue per month (RM) 1,917,545 2,140,047.95 573,911.54 2,032,494.80 326,090.48
Cost per 0.45 0.35 0.85 0.50 1.26
kWh

Comment :

Serting Hilir has the highest cost/ kWH due to low generation. For O&M cost, Serting Hilir has the
highest cost followed by Maokil. As for depreciation, Umas has shown cost at RM 0.34/kWh.

Target for 2019 is that all mills need to cut down cost by targeting RM 0.10 – 0.12/kWh for overhead
and RM 0.10 – 0.15/kWh for O&M cost.
17
 CHAPTER 3 :

STRATEGY AND INITIATIVES FOR 2019 ;

MAXIMISING REVENUE AND COST CONTROL

18
 Potential Revenue Generator – focus on high value projects
& future utilization

Rationalization Addition of
Plan for 4 MW FiT
Biogas/ Triang &
Compost Keratong 9
Main
Revenue
5 BOO
biogas to FiT Improved Drivers
projects PKS and
bunch ash
(Green &
extraction
Smart,
rate
CGESB )
Initiative &
Strategy Biomass – Action Plan 2018
Financial
Direct Impact
Renewables
Segment
1) FiT maximum kWh & running hours
2) No generation to mill usage
RM 0.2
3) KPI reassignment to BO Chargemen mil/year
4) Intensify BOO/LOT efforts on
brownfield/greenfield
Maximum Revenue
Generation 1) Compost quality, physical properties and
Revenue Generation & Cost

nutrient content enhancement RM 0.8 mil

2) New product development
3) External market ( fetch higher price )
Optimisation

Rationalization non- 2018 – Jerangau Barat & Chalok ( RM 1.2

performing biogas/compost million savings ) RM 2.7 mil
Trolak ( RM 1 million savings ) saving
plant 2019 – Pasoh ( RM 0.5 million savings )

1) Execution of Maintenance Service

Cost saving initiatives Agreement with major engine service Less 20%
providers maintenanc
2) Minimal CAPEX from 2018 onwards e cost
 FORECAST 2019 – 2022
Forecast Revenue
Revenue Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 2019 RM 2019 kWh 2020 2021 2022 2023
Maokil 200,038 200,038 200,038 200,038 200,038 200,038 200,038 200,038 200,038 200,038 200,038 200,038 1,600,301 1,600,301 1,600,301
2,400,451 6,048,000 2,520,474
Nitar 309,582 309,582 309,582 309,582 309,582 309,582 309,582 309,582 309,582 309,582 309,582 309,582 2,476,656 2,476,656 2,476,656
3,714,984 9,360,000 4,086,482
Tenggaroh 200,038 200,038 200,038 200,038 200,038 200,038 200,038 200,038 200,038 200,038 200,038 200,038 1,600,301 1,600,301 1,600,301
2,400,451 6,048,000 1,981,325
Serting hilir 82,368 82,368 82,368 82,368 82,368 82,368 82,368 82,368 82,368 82,368 82,368 82,368 658,944 658,944 658,944
988,416 3,120,000 658,944
Umas 309,400 309,400 309,400 309,400 309,400 309,400 309,400 309,400 309,400 309,400 309,400 309,400 4,900,896 5,390,986 5,930,084
3,712,800 5,304,000 4,455,360
Sg Tengi 30,000
95,000 95,000 95,000 95,000 95,000 95,000 95,000 95,000 95,000 95,000 95,000 95,000 2,040,000 2,040,000 2,040,000
1,140,000 MMBTU 1,020,000
Triang ATPA & COD 485,576 485,576 485,576 485,576 485,576 485,576 485,576 485,576 5,462,730 5,735,867 5,735,867
3,884,608 8,320,000 4,370,184
Keratong 9 ATPA & COD 485,576 485,576 485,576 485,576 485,576 485,576 485,576 485,576 5,462,730 5,735,867 5,735,867
3,884,608 8,320,000 4,370,184
1,101,425 1,101,425 1,101,425 1,101,425 1,101,425 1,101,425 1,101,425 1,101,425 1,101,425 1,101,425 1,101,425 1,101,425 24,202,558 25,238,920 25,778,019
22,126,318 46,520,000 23,462,953

Forecast Cost
FiT Cost Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 2019 P/(L) 2020 2021 2022 2023
Maokil 151,542 190,973 100,723 100,000 143,334 189,386 152,980 147,656 140,000 167,039 100,000 90,000 1,260,000 1,260,000 1,260,000
1,673,632 726,819 1,680,000
- Nitar 171,731 105,176 155,000 186,018 104,822 120,633 140,000 140,236 142,986 147,503 100,000 110,000 1,320,000 1,320,000 1,320,000
1,624,105 2,090,879 1,560,000
Tenggaroh 86,145 125,000 130,000 1,200,000 115,001 93,288 90,499 114,687 120,000 95,459 105,000 95,000 1,260,000 1,260,000 1,260,000
2,370,078 30,373 1,200,000
Serting Hilir 131,253 96,687 106,418 99,545 106,707 130,068 111,741 119,100 137,889 132,564 90,000 90,000 1,080,000 1,080,000 1,080,000
1,351,973 (363,557) 1,080,000
Umas 176,682 120,000 118,078 138,230 50,534 145,491 130,930 147,281 170,012 119,328 100,000 90,000 1,260,000 1,260,000 1,260,000
1,506,566 2,206,234 1,200,000
Sg Tengi 85,000 80,000 80,000 89,032 78,594 85,000 77,271 85,791 85,000 85,671 70,000 90,000 1,920,000 1,920,000 1,920,000
991,358 148,642 960,000
Triang 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 1,827,000 1,918,350 2,014,268
1,560,000 2,324,608 1,740,000
Keratong 9 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 1,827,000 1,918,350 2,014,268
1,560,000 2,324,608 1,740,000
-
1,062,352 977,837 950,218 2,072,825 858,992 1,023,865 963,421 1,014,750 1,055,887 1,007,564 825,000 825,000
12,637,712 11,160,000 11,754,000 11,936,700 12,128,535

39,073 123,588 151,207 242,433 77,560 138,005 86,676 45,538 93,861 276,425 276,425 12,448,558 13,302,220 13,649,484
PBT (971,400) 9,488,606 9,403,980 12,302,953

• All BO Chargemen must work to achieve targeted revenue and PBT

• All figures will be included in KPI 2019 for all BO Chargemen
 PBT For All Biogas Utilization - Quarter 1/2019

Engine Forecast Forecast Forecast Forecast Forecast Forecast Forecast

Mills Input Q1
Capacity Jan-18 Feb-18 Mar-18 kWh/month Hrs/month FFB/month RM/FFB
2 x 600 kW Revenue 200,038 200,038 200,038 600,113 504,000 520 16364 12.22
Maokil Total 1.2 MW Cost 151,542 190,973 100,723 443,238
FiT rate : RM 0.3969/hr PBT 48,496 9,064 99,315 156,875
2 x 800 kW Revenue 309,582 309,582 309,582 928,746 840,000 520 27,273 11.35
Nitar Total 1.6 MW Cost 171,731 105,176 321,854 598,761
FiT rate : RM 0.3969/hr PBT 137,851 204,406 130,000 472,257
1 x 1.2 MW Revenue 200,038 200,038 200,038 600,113 504,000 520 16364 12.22
Tenggaroh Total 1.2 MW Cost 86,145 125,000 1,200,000 1,411,145
FiT rate : RM 0.3969/hr PBT 113,893 75,038 (999,962) (811,032)
2 x 600 kW Revenue 82,368 82,368 82,368 247,104 260,000 520 9,626 8.56
Serting Hilir Total 1.2 MW Cost 131,253 96,687 106,418 334,358
FiT rate : RM 0.3168/hr PBT (48,885) (14,319) (24,050) (87,254)
1 x 1.2 MW Revenue 309,400 309,400 309,400 928,200 442,000 520 14,351 21.56
Umas Total 1.2 MW Cost 176,682 120,000 118,078 414,760
FiT rate : RM 0.70/hr PBT 132,718 189,400 191,322 513,440
2 x compressor Revenue 95,000 95,000 95,000 285,000 2,500 215 12,000 7.92
Sg Tengi 440 m3 bio Cost 85,000 80,000 80,000 245,000
methane/hr PBT 10,000 15,000 15,000 40,000

Total PBT 394,073 478,588 (588,375) 284,286 2,550,000 2,600 83,976 12.31
 Issues need to be resolved in 2019

• POME pre-treatment
• Biogas Pre-treatment
• Engine breakdown

• BO Chargemen needs to take charge and focus on

delivering maximum generation and monitoring of all
important operational parameters!
Highlight of Issue in Umas :

1) Mill has reported that after cooling pond desludging and

cooling pump rectification, intake feed of POME into biogas
reactor has been affected
2) The cooling pump is unable to pump consistently and it affects
feed volume of POME into the reactor
3) This results in low biogas production and low membrane index
( very high risk for biogas membrane i.e tearing )
4) Recent Biomass Dept visit to Umas in March also finds cooling and
mixing pond in bad conditions
5) Rectifying works to be done in 2019 ( design of new cooling pond,
PMT, tender ). Budgetted for 2019

Pictures of current biogas

membran index < 4 ;
2 September 2018

24
 2 unit engine at major top overhaul in May – June 2018

Maokil : Engine MWM ( 600 kW )

Start Work 21/5 – 20/6 ( 35 days )

Main service incl. cylinder head 12 unit,
piston head & cylinder liner service ( 5 unit ),
change spark plug, service turbocharger
( Singapore – ABB ), now pending spark plug
( Perolehan FPI to expedite )
Total Cost :RM 365,000 at 15,000 hrs interval

Nitar : Engine Guascor No. 2 ( 810 kW )

Start Work 21/5 – 6/6 ( 14 days )

Main service incl. change spark plug, gasket,
rocker arm, valve set, tecjet, service turbocharger
Replace service kit turbocharger
Total Cost : RM 188,000 at 8,000 hrs interval
25
 Explanation for Sg Tengi ‘low’ biogas yield

Investigation at site on 5th June and discussion with principal designer ( Mr. Martin Campbell-Board ) on 7 th
June has been made.
Comments :

a) SV60 test is not reflecting the actual condition of the biogas plant. High Sludge Volume (SV) is due to
P15 recirculation pump is running for agitation purposes, hence explain the high SV. SV is more suitable
for sludge settleability testing*1

b) Based on actual biogas output to CNG compared to theoretical calculation is ;

Actual for month of May 2018 = 129,000 m3
Theoretical = 138,000 m3 ( based on MRE in m3 ) = not far off from theoretical

c) Last result on Continuous Monitoring Test Makmal Bukit Goh ; on 7th April 18 sampling, COD reduction
reported to be 94.9%

d) Further analysis for ratio of MLVSS / MLSS ( Mixed Liquor Volatile Suspended Solid ); result on testing
on 7th June 18 ; sample for biogas lagoon found to be = ( 8240 ppm / 12440 ppm ) = 66.23 %
Good ratio should be on range of 80% - 85%*2,3 , lower than that indicates low bacteria and high
inert & nonbiodegradable COD

Conclusion : based on COD efficiency, the lagoon is relatively in good conditions, however low MLVSS/MLSS
ratio indicates the need for fresh innoculants (POME) needs to be increased to stabilise the reactor.
Additional COD can be put into biogas system such as decanter cake.

*1 page 690; settleability ( Chapter 8 : Suspended Growth Biological Treatment Process; Metcalf & Eddy Waste Water Engineering
Treatment & Reuse Fourth Edition )
*2 page 1024; Covered Anaerobic Lagoon Process ( Chapter 10-6; Metcalf & Eddy Waste Water Engineering Treatment & Reuse Fourth
Edition )
*3 Journal ‘Effect of Palm Oil Mill Effluent Treatment by Activated Sludge’ – Faculty of Chemical Engineering, UMP
https://zibelinepub.com/archives/2jcleanwas2017/2jcleanwas2017-06-09.pdf 26
Sg Tengi
biogas
return sludge
system is
working

MLVSS and
MLSS testing
from
Makmal
Bukit Goh

27
 CHALLENGES AND MITIGATION FOR BIOMASS DEPARTMENT, FGVPISB
Challenges Mitigation Current Status
Mill using back electric 1) Show cause letter to Mill Manager 1) 2 letters has been issued from us,
generation from FiT biogas 2) KPI reassignment of BO Chargemen awaiting responses from managers
plant, causing losses of from Managers to Biomass 2) CEO had approved KPI reassignment
opportunity in revenue Department,
generation FPISB
Operator inadequacy in FiT 1) Meeting with HR to address 1) Quota for biogas need to be 7 ( 1
Mills/Compost, potential inadequacy BO chargemen + 6 G7 operators )
negative effect to plant output
& employee morale
Downtime and unscheduled 1) Biomass Dept initiated draft 1) Currently in discussion stage with all
breakdown agreement with major engine providers and Procurement FGVH.
provider/service agent ( Multico, SP Targeted to finalise agreement mid year
Energy, Sime Darby Industrial ) 2019
2) Close monitoring of POME and
biogas pretreatment
Cost Control Initiatives 1) All T1C & PMT needs to go through 1) Briefing session will be held on 8th
PICs of mills before being approved January 2018
by GM/VP/CEO 2) Implementation will be on
2) All urgent works needs to go through February 2018
HQ ( Biomass & Procurement )
 Performance
• Monitor equipment performance include:-
• Electric export.
• BioCNG – Volume biogas deliver.

Cost
• Monitor & study cost for biogas.
• Justify any expenses include OPEX AND CAPEX.

PIC Quality
• Monitor quality for each process in biogas plant:-

Respon • H2S red

• Voltage, Amp, Frequency

Problem Solver
sible • Suggest and advice any solution for issues rise at site.
• Help people onsite solve any issue that will affect plant quality and performance.

Middleman
• Company – Outsider (DOE, DOSH etc.)
• Onsite – HQ

Project Handling
• Handle any major work on site.
• Budget and plan any major work with people onsite.
 PIC LIST
Biogas Plant Exec Chargeman Manager PIC
Maokil Mohd Nizar Abdul Rauf Mohd Mursyidin
Umas Mohd Harris Mohd Nizar Izzat
Nitar Wan Mohd Shukry Solleh Mohd Hazri
Tenggaroh Mohd Firdaus Md Aseri Mohd Hazri
Serting Hilir Mohd Zainuddin Md Said Izzat
Triang Vacant New Manager Mohd Amra
Keratong 9 Ismail Rodin Ismail Hussain Mohd Amra
Sungai Tengi Mohd Yusri Abdul Malik Mohd Fazil

• Plan the operation • Monitor Perfrmance

• Execute work Onsite • Monitor Quality
HQ
• Perform the • Exec Chargeman • Monitor Cost
operation • PIC • Middleman
• Site handling issue
• Manager • Project Handling
• Problem solver
 Potential Revenue from Biomass/By-products
BIOMASS – TOTAL REVENUE
YEAR BY-PRODUCTS (RM) RENEWABLES (RM) (RM)

2015 43,018,217 9,536,637 52,554,854

2016 45,807,833 53,282,691
7,474,858
2017 77,249,423 92,224,592
14,975,169
2018 187,904,406 209,465,319
21,560,913
2019 197,773,410 226,513,403
28,739,993
2020 207,901,086 238,913,908
31,012,822
2021 214,947,962 248,125,283
33,177,321
2022 222,160,675 257,610,023
35,449,348
Ultimate 222,160,675 93,287,758 315,448,433

Note:
1. By-products (PKS, compost, sludge oil, bunch ash, shredded fibre, DLF, scum, EFB,
decanter cake & others)
2. Biomass (IPP, Biogas, BioCNG)
3. Compost price at RM300/mt
4. EFB shredded fibre price at RM12/mt
5. DLF price at RM400/mt
Thank You
 Potential Revenue – ByProduct Segment
REVENUE FY 2015 - 2017 & PROJECTION FY2018 - 2022
REVENUE PARAMETERS 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018

By Product (Mill) RM RM RM RM RM RM RM RM AVE PRICE AVE PRICE AVE PRICE AVE PRICE
1 B. ASH 329.59 463.90
4,262,146.64 4,649,200.92 7,239,357.95 14,288,210 14,798,503 15,656,723 15,917,668 16,538,139 399.81 463.90

2 SLUDGE OIL 22,859,167.34 23,767,759.0 35,631,339.2 32,781,563 1213.91 1,401.60 1722.05 1,561.03
33,952,333 35,123,104 35,708,489 36,293,874
8 0

3 PALM KERNEL SHELL 8,378,795.60 12,230,735.0 29,768,745.2 43,676,426 153.59 207.98

52,775,681 62,394,894 71,364,160 80,593,404 193.41 207.98
8 0
4 EFB 5.41 2.81
506,848.68 529,172.01 1,638,088.99 4,294,604 4,477,054 5,052,475 5,564,740 6,091,039 3.67 2.81
5 MESOCARP . FIBER 24.45 30.23
791,521.88 773,948.70 285,430.25 - - - - - - -
6 SCUM 1006.49 1387.31 1,387.31
1,784,350.15 1,184,308.00 982,809.50 1,109,845 1,005,797 1,040,480 1,057,821 1,075,162 953.73
7 D. CAKE 10.62 7.92
45,872.75 58,270.32 62,736.12 237,550 252,594 261,304 265,660 270,015 9.85 7.92
8 TANAH HITAM 8.00 6.71
199,102.18 127,667.31 45,727.83 93,991 97,348 100,705 102,383 104,061 7.25 6.71
9 MINYAK KERNEL 752.42 735.19
26,447.72 11,579.29 14,571.48 - - - - - - -
10 SOLID 28.00 332.32
710.36 1,679.16 27,891.86 - - - - - - -
11 S. IRON 1006.54 794.11
4,590,001.44 3,444,054.49 3,980,044.35 714,701 794,113 794,113 794,113 794,113 510.08 794.11

TOTAL BY PRODUCT (MILL) 46,778,374.3 79,676,742.7

43,444,964.74 97,196,889 108,153,423 120,423,797 130,775,033 141,759,807
6 3

By Product (Biomass) RM RM RM RM RM RM RM RM AVE PRICE AVE PRICE AVE PRICE AVE PRICE
12 COMPOST 137.09 153.95
2,335,418.00 1,764,166.00 628,714.70 1,470,201 1,522,708 1,575,215 1,601,468 1,627,722 140.04 153.95
13 SHREDDED EFB 6.74 9.16
271,310.12 383,311.29 574,705.82 801,198 829,812 858,426 872,733 887,040 7.69 9.16
14 DLF 418.93 329.35
1,325,802.30 105,541.80 45,345.30 553,313 573,074 592,835 602,716 612,596 237.25 329.35

TOTAL BY PRODUCT 3,932,530.42 2,253,019.09 1,248,765.82

(BIOMASS) 2,824,711 2,925,594 3,026,476 3,076,917 3,127,359

TOTAL BY PRODUCT REVENUE

49,031,393.4 80,925,508.5
( RM ) 47,377,495 5 5 100,021,600 111,079,016 123,450,273 133,851,950 144,887,165 153.57 138.00 94.10 51.66