peninsular malaysia

Dr. Harrison L. N. Lau Leader, Biodiesel Technology Group

Leader, MPOB B5/B7/B10 Working Group Malaysian Palm Oil Board

Workshop on Higher blending of Biodiesel (H-FAME) for Automotive Utilisation in ASEAN,

17-18 September 2015, Bangkok, Thailand

Malaysian Policy Towards High Blend of Biodiesel for Transportation and

Market Experience

Presentation Outline • MPOB Experience in Biodiesel

• Biodiesel Policy and Price Mechanism

• Malaysian Biodiesel and Diesel Standards

• Biodiesel Industry

• Biodiesel Implementation

• Market experience on B7

• Proposal of using higher biodiesel blends and discussion with auto makers

• B10/B20 trials conducted by MPOB

• Conclusion

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• Lab scale R&D – 1982 • Pilot plant built and commissioned

– 1985 • Produces palm biodiesel for

engine testing and market seeding • Preliminary Field Trial (July 1984 – May 1985) : 8 taxis • Exhaustive Field Trial (Phase I):

1986- 1989 : 31 diesel engines of different makes

• Exhaustive Field Trial (Phase II): 1990 – 1994: 36 buses

• Fully established as diesel substitute in 1995

MPOB Palm Biodiesel Pilot Plant

MPOB R&D on Palm Biodiesel

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• Successfully conducted between 1986 – 1994 on diesel engines of different makes and models.

• Trials involved 36 buses mounted with Mercedes Benz OM352 Engine:

– 100% palm biodiesel (13 buses)

– 50% : 50% blend (10 buses)

– 100% Petroleum Diesel – as control (13 buses)

– Each bus covered 300,000 km – life time of engine

• No engine modification is required.

• Results in terms of engine performance, fuel consumption, exhaust emission, repair and maintenance were promising.

Exhaustive Field Trials Using Palm Biodiesel

Field Trials Using Mercedes Benz (Om352) Diesel Engines Mounted On Passenger Buses

(Each Bus Covered 300,000 Km)

• No modification of diesel engine is required. Wear and tear of the engines was normal.

• Performance of the engines are generally good. The engines are easy to start with no knocking and smooth running.

• Exhaust gas emissions of the engines are much cleaner with less hydrocarbons, NOx, CO amd SO2.

• The engine oil still usable after the recommended distance travelled.

• Carbon build-up at the injector nozzles was normal except that the nature of carbon was different. Deposits in the engine combustion chamber were normal.

• No sludge formation on all the engine parts in contact with the lubricating oil was observed. This is very encouraging because Mercedez found that engines running on soyabean methly ester encountered considerable sludging problems.

The evaluation of palm biodiesel as diesel substitutes has led to the following conclusions:

Enertech Biodiesel Plant, South Korea (2006/07)

New Biodiesel Co. Ltd., Thailand (2008/09)

Palm Biodiesel Plants (Overseas)

60,000 TPA Palm Biodiesel Plant La Paz in San Carlos, Colombia

Palm Biodiesel Plants (Overseas)

BIOFUEL POLICY

Renewable Energy Electricity Biofuel

The National Biofuel Policy launched in March 2006.

National Biofuel Policy Ministry of Plantation Industries and Commodities

Five (5) strategic thrusts :-

Thrust 1: Biofuel for Transport

Thrust 2: Biofuel for Industry

Thrust 3: Biofuel Technologies

Thrust 4: Biofuel for Export

Thrust 5: Biofuel for Cleaner Environment

• The Act was gazetted on 1st November 2008

• To regulate and ensure orderly development of the biofuel industry :-

• Prescribing the type of biofuel • Percentage blending • Licensing activities related to biofuel and

other related matters • Mandatory blending of palm biodiesel

with diesel for local use

Malaysian Biofuel Industry Act

Pricing Mechanism

• Petroleum companies purchase biodiesel at a “fixed formula price” agreed by government and MBA

• The government fixed the monthly retail price using “managed float mechanism” to subsidise or impose tax on the consumer

• Retail price > Product price = tax mode

Pricing Formula

• Biodiesel per tonne Average RBDPO price of previous month + fixed processing cost @ USD100-120

• Retail diesel price Average MOPs diesel price of previous month (93%) + biodiesel price (7%) + dealer margin + other build up costs

MALAYSIAN BIODIESEL AND DIESEL STANDARDS

Standard Revision on PME – MS 2008:2014

Major modifications in this revision is as follows: e) an increase in oxidation stability requirement from 6 h minimum to 10 h minimum f) a decrease in the monoglycerides content from 0.8 % (m/m) to 0.7 % (m/m)

Standard Revision on Diesel – MS 123-1:2014

Modification in this revision is as follow: a) provision is made for a maximum of 7 % (v/v) of palm methyl ester (PME) to be included in diesel fuel.

BIODIESEL INDUSTRY

Status of Biodiesel Industry (2015)

Implementation Phase

No. of Plants Biodiesel Production

Capacity (Tonnes/Year)

Commercial Production* 22 3,198,000

Completed Construction** 7 582,400

Produced from Used Cooking Oil 4 107,800

Construction 6 905,000

Pre-Construction / Planning 19 1,691,400

Terminate Biodiesel Project*** 2 350,000

Total 59 6,714,600

Source: BBA, MPIC

Note: * On / Off production ** Completed construction covers the biodiesel plants which have completed but yet to commence production and also includes those undertaking production trials. *** Company which had decided not to proceed with biodiesel project, however, its biodiesel manufacturing license under MPIC is still valid.

Status of Biodiesel Industry

Year Biodiesel

Production (Tonnes)

Biodiesel Exports (Tonnes)

Biodiesel Export Earnings

(RM Million)

Jan – Aug 2006

54,981 47,986 120.89

2007 129,706 95,013 253.20

2008 171,555 182,108 610.70

2009 222,217 227,457 605.75

2010 117,173 89,609 266.53

2011 173,220 49,999 179.72

2012 249,213 28,983 98.44

2013 472,129 175,032 502.61

2014 602,335 87,354 257.37

Ipoh Carotech – 45,000 tan/tahun

Kuantan Mission Biofuels – 250,000 tan/tahun Mission Biotechnologies – 100,000 tan/tahun Plant Biofuels – 100,000 tan/tahun

Location of Biodiesel Plants in Peninsular Malaysia

Segamat AJ Oleo – 110,000 tan/tahun

Pasir Gudang Carotino – 180,000 tan/tahun Vance – 600,000 tan/tahun Nexsol – 100,000 tan/tahun MVO – 21,600 tan/tahun PGEO – 100,000 tan/tahun Am Biofuels – 30,000 tan/tahun YPJ Palm International – 120,000 tan/tahun PZ Bio Energy – 100,000 tan/tahun

Lumut Carotech – 120,000 tan/tahun Lereno – 60,000 tan/tahun

Kuala Terengganu Himpunan Sari – 250,000 tan/tahun

Location of Biodiesel Plant in East Malaysia

Sandakan

LABUAN

Tawau Bintulu

Sandakan Green Edible Oil – 100,000 tonne/year

Lahad Datu Global Biodiesel – 200,000 tonne/year SPC Biodiesel – 100,000 tonne/year

Kuching Senari Biofuels – 108,000 tonne / year

SOP Green Energy Sdn. Bhd. 100,000 tonne/year

(under construction)

BIODIESEL IMPLEMENTATION

Implementation of Biodiesel Programme

Region State Implementatio

n Date % of blend

Central WP Putrajaya, Melaka, Negeri Sembilan, WP Kuala Lumpur &

Selangor

June - November 2011

5% (B5)

Southren Johor July 2013 5% (B5)

Eastern Pahang, Kelantan & Terengganu February 2014 5% (B5)

Northern Pulau Pinang, Kedah, Perak & Perlis

March 2014 5% (B5)

Peninsular Malaysia November 2014 7% (B7)

Sarawak, Sabah & Labuan December 7% (B7)

Note: Implementation of biodiesel programme for transportation & fishery sector only

Nationwide Biodiesel Implementation – B7

Implementation in East Malaysia - January 2015

Full implementation in Peninsular Malaysia - March

2014

Installation of Biodiesel Blending Facilities at 35 Petroleum Depots Throughout Malaysia (2011-2015)

PME storage tanks Blending facilities

Unloading area Pumps area

2 unit of PME vertical skid tanks and 1 unit PME storage tanks

Pump system

Blending Facilities Installed at Petroleum Depot

Pump system

Unloading system

2 units of PME storage tanks

Blending Facilities Installed at Petroleum Depot

Pump system

4 units of PME skid tanks

Blending system at gantry

Blending Facilities Installed at Petroleum Depot

MARKET EXPERIENCE ON B7

Fuel Filter Plugging

• Korean company reported > 30 cases of fuel filter plugging in Malaysia since introduction of B7 in the market

• Five (5) fuel filter samples from Hyundai were cut opened and diagnosed

• Test conducted: visual inspection, extraction of contaminants, GC, SEM and FTIR analysis

Table 1: Type of contaminants on filter surface and filter leaf extracts from samples

SEM, GC and FTIR

Top layer

Bottom layer

Conclusion of Fuel Filter Analysis

The analysis results shows that the cause of fuel filter blocking was not due to biodiesel component in diesel. Based on the evidence of analysis obtained, it is diagnosed that the black waxy substances recovered from the fuel filter were asphaltenes–like materials. There is also a possibility that water accumulation in fuel filter has caused the fuel filter blocking.

Joint Fuel Monitoring with JAMA

• Not all the specifications of B7 fuel as recommended by JAMA has been incorporated in the Malaysian standard

• Parameters not included: moisture 200 ppm, oxidative stability 65 min.

• MPOB conducted Joint Fuel Monitoring Programme with JAMA to ensure the actual fuel quality in the market

• First meeting held in July 2015 and results on B7 fuel were presented

Water Content (ISO 12937) – 2014/15

0

50

100

150

200

250

300

350

400

450

500

0.00 2.00 4.00 6.00 8.00 10.00

Sample: 142 Sampling period: Jan – Dec 2014 Sampling area: Peninsular Malaysia

B10

0

50

100

150

200

250

300

350

400

450

500

0.00 2.00 4.00 6.00 8.00

Sample: 73 Sampling period: April 2015 Sampling area: Borneo

Oxidative Stability – PetroOXY (ASTM D7545) – 2014/15

0

200

400

600

800

1000

1200

1400

0.00 2.00 4.00 6.00 8.00 10.00

Sample: 142 Sampling period: Jan – Dec 2014 Sampling area: Peninsular Malaysia

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B10

0

100

200

300

400

500

600

700

800

900

0.00 2.00 4.00 6.00 8.00

Sample: 73 Sampling period: April 2015 Sampling area: Borneo

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PROPOSAL OF USING HIGHER BIODIESEL BLENDS AND DISCUSSION

WITH AUTO MAKERS

Consultation Meeting on B10

• Government announced of B10 implementation by October 2015

• Objection received from BMW that B10 will have detrimental effects on engine

• Consultation meeting held to summaries the findings of B10 trials carried out around the world including report by JATOP

• Survey questionnaire sent after the meeting to obtain official feedback from auto makers

Biodiesel trials using more than 7% biodiesel

Summary of Tests Conducted by Various Organisations

Preliminary Proposal on Joint Research on Precipitation Test on B10

Implementation between MPOB and JAMA

• Concerns on fuel filter clogging at highlands in actual vehicle running conditions

• Verifications test using various biodiesel blends to be conducted in Malaysia

• Propose measure to prevent upper concerns • Meeting on 21 Sept 2015 to discuss the proposal

Source JAMA

B10/B20 TRIALS CONDUCTED BY MPOB

MPOB Biodiesel Projects Biodiesel Incentive Scheme for

Industrial Use (>B10)

B10 & B20 MPOB Vehicles

B10 Peugeot Car

B10 Alam Flora

B10 DBKL

B10 Fishery Sector

B10 Armed Forces

B7 Locomotive Use

B10 Power Plant

Implemented

On-going discussion

B10 & B20 MPOB Vehicles

B10 with Alam Flora

B10 Peugeot Car

B10 for DBKL vehicles

Transfer of skid tank to Alam Flora Transfer station, Taman Beringin for the use of extension B10 trial project

for 10 trucks

MPOB B10/B20 Trial Projects

No. Type Registration No. Year

B10 Vehicles 1. Mitsubishi Pajero Sport WUD 5601 2010 2. Ford Everest WPW 7902 2007 3. Toyota Hilux WVY 6404 2011 4. Toyota Fortuner WQU 6715 2007 5. Toyota Hilux WRM 3092 2008 6. Mitsubishi Triton WWH 2858 2012 9. Toyota Hilux WWK 5206 2012 7. Toyota Fortuner WVS 3257 2011 8. Toyota Fortuner WVS 3242 2011 9. Mitsubishi Pajero WMB 9684 2007

10. Mercedes Benz ML 270 WPE 13 2006 11. Bas – MAN WMK 7604 2005 12. Ford Everest WQE 4507 2007 13. Mitsubishi Pajero WKY 965 2003 14. Hyundai Grand Starex WUM 1142 2010 15. Peugeot 508 GT WYC 5465 2013 16. Peugeot 508 GT WYS 53 2013 17. Peugeot 508 GT WYS 393 2013

B20 Vehicles 1. Toyota Fortuner (B20) WQQ 9217 2007 2. Toyota Hilux (B20) WRM 3352 2008 3. Ssangyong Rexton (B20) WPE 388 2006 4. Mitsubishi Pajero (B20) WKY 986 2003 5. Ford Everest (B20) WSQ 4051 2009 6. Mercedes Benz (B20) BDQ 2121 1992

List of MPOB Vehicles Involved in B10 and B20 Progr amme

List of 50 KL City Hall Diesel Vehicles Involved in B10 Programme

Peugeot 508 GT (Euro 5 Engine)

• Filter sample acquired at vehicle 60,000km service interval.

• No deposits observed in filter.

Used Lube Oil Analysis Peugeot 508 GT (Euro 5 Engine)

WA 8785 A Test Limits ULO/1K NLO/5K ULO/5K ULO/10K

Metals (ppm) Aluminium 55 max 2 1 3 3

Nickel 3 max <1 <1 <1 1 Copper 100 max 28 <1 7 4

Chromium 38 max <1 <1 <1 <1 Iron 100 max 10 1 8 6 Lead 30 max <1 <1 <1 1 Tin 24 max 1 1 <1 <1

Contaminants and Additives (ppm) Silicon 200 max 102 10 37 21 Boron

less 25% (critical low)

16 329 290 283 Sodium 4 3 2 2

Potassium <1 <1 <1 <1 Phosphorus 699 986 985 972 Molybdenum 2 36 33 36

Calcium 1858 3377 3255 3196 Magnesium 7 10 10 26

Zinc 1097 1578 1542 1533 Physical tests

Water (%) 0.2% max <0.1 <0.1 <0.1 <0.1 Soot (%) 3% max 0.4 0.4 0.4 0.4

Viscosity (cST, 100 deg. C) 10% min, 20% max 10.8 13.5 13 13 PQ Index <10 <10 <10 <10

Oxidation (Abs) 23 max 5.9 7.6 8.6 6.2 Sulphation (Abs) 40 max 10.2 12.9 14.3 10.9

Fuel (%) 2% max 1 1 1 1 Total Base Number (FTIR) 2 min 6.3 9.8 9.5 10.3

Lab Analysis Normal Normal Normal Normal

Used Lube Oil Analysis Toyota Fortuner (Euro 3 Engine)

B20 for Bunkering

Manufacturer Type Daihatsu 6DSM 26F/1912KW

Hanshin

6EL30-69

6LUN28

6L26BGSH/6 CYLINDER 563 KW

6MF-UT

Niigata 6M26ZG/597 KW

Ships and Engine

Loading of biodiesel at jetty

Loading pipe

Loading jetty

Receiving ship

Ships and Engine

Unloading of biodiesel at sea

Receiving ship

Dispensing ship

Conclusion

• Biodiesel mandate – B7 implemented: Continuous engagement

with JAMA on joint fuel monitoring programme

– B10: Ongoing consultation with relevant stakeholders e.g. conduct verification test on precipitation at highlands

– B15: 2020

Thank you