Strengthening the palm oil biomass Renewable Energy industry in Malaysia

Abstract

HighlightsWe recommend a fuel collection hub and explore the potential use of less sought after large fibre and palm frond. We suggest centralising a technology hub facility to encourage conversion to a low carbon technology at the existing mills. Smart-partnership collaboration for building a large-scale biomass plant is worth consideration as it lowers the business risks and enhances economies of scale. Off-grid solutions involving decentralized generation would help to avoid further grid infrastructure investment. Contents lists available at SciVerse ScienceDirectRenewable Energy j o u r n a l h o m e p a g e : w w w . e l s e v i e r . c o m / l o c a t e / r e n e n e a b s t r a c tThe palm oil industry contributes 85.5% of the total biomass production in Malaysia, hence offering great potential for large-scale power generation. Despite being a tool that was designed to steer renewable energy development, the Small Renewable Energy Power (SREP) scheme has failed to stimulate the growth of the industry. To assist the industry, a new Feed-in Tariff (FiT) regime was introduced in 2011 with an ambitious 2080 MW national renewable energy target by the year 2020. Palm oil biomass is projected to contribute 800 MW of grid-connected capacity towards this target, a huge step up from the 41.5 MW capacity reached during the SREP period. This study investigates whether the current downstream value chain mechanism under the new policy system is capable of supporting such a high capacity goal. The main objective of this study therefore is to evaluate the sustainability of components that constitute the value chain, including the availability of palm oil biomass supply, bio-energy conversion technology and the costs and alternatives to grid extension. In order to understand the industry problems, this study uses a mixed methodology approach involving a combination of market survey and regulators' interviews. The aggregated results from these techniques were later discussed by focus group experts representing both industry and government stakeholders before arriving at a final consensus. Potential future strategies deriving from this research include options to explore the potential use of less sought after large fibre and palm frond. Centralising a technology hub facility offers an alternative approach to encourage conversion to a low carbon technology at the existing mills. Smart-partnership collaboration for building a large-scale biomass plant is worth consideration as it lowers the business risks and enhances economies of scale. Finally, off-grid solutions involving decentralized generation would help to avoid further grid infrastructure investment.

An Investigation of Sustainable Power Generation from Oil Palm Biomass: A Case Study in Sarawak

“…All the plant operators used palm kernel shell and mesocarp fibre for power generation and were not currently using EFB as boiler fuel. The situation in Sarawak's mills is in contrast with practice in palm mills in Peninsular Malaysia where EFB is also used as boiler fuel, along with palm kernel shells and mesocarp fibres [32]. None of the respondents used EFB as boiler fuels mainly because of its bulkiness and high moisture content, which requires pre-treatment before being used as boiler fuel.…”

“…Inconsistent boiler fuel supplies, such as kernel shells, Empty Fruit Bunch (EFB), and mesocarp fibres will affect the business of small developers who rely upon a third party's supply. Uncertainties related to long-term biomass supply will expose the market to fluctuating prices, as the major plantation developers dominate the market with full control according to their business model [32]. Based on the demographic profiles from the returned questionnaires, it was found that 94% of oil palm mills in the Sarawak Northern region are associated with major developers.…”

Potencial económico de la palma aceitera (Elaeis guineensis Jacq)

“…Se conoce que un 78% en peso de los racimos cosechados representa los frutos y que el coeficiente de conversión de fruto a aceite crudo es de aproximadamente el 20% (González et al, 2015), puede estimarse que anualmente por cada hectárea se obtienen 3,14 t de aceite y 21,68 t de residuos, no contando el material foliar retirado de la planta al momento de la cosecha. Estas cifras han generado preocupación en muchos productores del sureste asiático y aún en Colombia, quienes optan por usar la biomasa para la generación de energía y vapor, principalmente, reduciendo en gran medida los costos energéticos, pero emitiendo gases y material particulado al ambiente (Yusoff, 2006;Umar et al, 2013;Briceño et al, 2015). Por consiguiente, y dado a que los residuos de la palma aceitera son diversos, es importante explorar e investigar la viabilidad de transformar de manera rentable desechos como los efluentes líquidos, capaces de generar biometano, bioetanol, fertilizantes o biohidrógeno mediante el uso de microorganismos, la torta de palmiste en la elaboración de concentrado para animales, y en especial la transformación de la biomasa que se obtiene en grandes cantidades, en la elaboración de biocompuestos o en la elaboración de muebles.…”

Generating renewable energy from oil palm biomass in Malaysia: The Feed-in Tariff policy framework

“…Overall, the final grid-connected capacity under the SREP regime ended up at 65 MW, which is certainly far behind the original capacity target of 350 MW envisaged early in the 9th Plan (2006). Biomass residues, particularly from oil palm plantations, contribute the most with 40 MW of gridconnected capacity [31,32], outweighing other renewable resources as shown below:…”