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FGV & EXPERIENCE WITH TECHNOLOGICAL MEASURES FOR METHANE REDUCTION

ISCC Technical Committee South East Asia (ISCC TC SEA)

Fourth Meeting August 12, 2015, 09:30 – 17:00

Jakarta, Indonesia Presented by M. KAMAHL M. KAMARUDIN

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CONTENT OF PRESENTATION

INTRODUCTION

FGV & SUSTAINABILITY

COMMITMENT IN METHANE REDUCTION PROJECT

BIOGAS CAPTURING FACILITY (Methane Avoidance)

CHALLENGES & MITIGATIONS

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INTRODUCTION

The harvested FFB from each smallholding or estate is sent to designated palm oil mills for processing.

The CPO is efficiently run by a network of lorry tankers bringing the oil to the refineries or to bulk installations.

Being in direct control of its operations throughout the entire chain of the palm oil business, FGV is aiming for managing the production cost effectively.

FFB Supply chain

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FGV & SUSTAINABILITY

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COMMITMENT IN METHANE REDUCTION PROJECT

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Methane Reduction Projects

CDM’s Achievement

Land Development

CLEAN DEVELOPMENT MECHANISM (CDM) REGISTERED PROJECT

PROJECT TYPE QTY

Biomass Independent Power Plant 1

Biogas Plant 12

Co-Composting Plant 4

PROJECT TYPE QTY REMARKS

Biomass Independent Power Plant 72,380 tCO2eq. Verification Period

( 1st Jan 2006 - 31st Dec 2009 )

Biogas Plant None Due to unstability of Carbon Market in 2012. Co-Composting Plant None

CERTIFIED EMISSION REDUCTION (CER) ISSUED BY CDM UNFCCC

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BIOGAS CAPTURING FACILITY

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Some of these projects are registered as ‘Clean Development Mechanism (CDM) Project’ with United Nation Framework Convention On Climate Change (UNFCCC).

Currently, 17 biogas trapping plants in operation and 8 more in construction.

In 2014 alone, more than 65,000 mt of CO2 emission is reduced from the constant operation of 10 biogas plants (methane capture) with constant operation.

One of the biogas plant in Sabah (Malaysia) supplies electricity under the rural electrification programme.

The methane captured in the remaining mills are either for grid connection purposes, Bio-Compressed Natural Gas (BioCNG) or used as boiler fuel for the mills.

FGV Biogas Project (in summary)

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CHALLENGES & MITIGATIONS (related to Biogas Plant)

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Challenges

&

Mitigations

Higher CAPEX

• Confirmed the off taker. • Wise decision on technology. Tank or Pond

System? • Clustered project with specific technology

provider.

Higher OPEX

• Do not totally rely on non-binding info provided by technology provider.

• Signing the Maintenance Agreement. • Clustered project with specific technology

provider.

Operational Issues - Failure of electronic

devices

• Proper installation of lightning & surge protector system.

• Ensure the power quality prior to any synchronization with biogas engine.

• Avoid installation at cooling & mixing area. • Proper selection of gas analyzer (proven track

record at other biogas plant).

CHALLENGES & MITIGATIONS

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Thank You