Syed Ahmad Syed MustafaHead, GTFS Strategic Planning, Alliance & Business Development Division

May 2012

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TABLE OF CONTENTS

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BIOMASS IN MALAYSIA

• MUNICIPAL SOLID WASTE• OIL PALM BIOMASS• BIOMASS APPLICATIONS

GREEN TECHNOLOGY FINANCING SCHEME (GTFS)• WHAT IS GTFS?• GTFS TERMS• WHO SHOULD APPLY?• THE PROCESS • GTFS STATUSGREENTECH MALAYSIA

Q & A

BIOMASS IN MALAYSIA

Source: UPM

Agricultural residues•Generate>85 million tonnes / year (94% palm oil, 4% wood industry & 1% rice husk and baggase

Municipal solid waste•Generate >25,000 tonnes / day (48% organic / food waste, 24% paper, 9% rubber & plastic, 6% metal, 5% wood and 8% glass & textile

Source: JPSPN

o25,000 tons/day waste generated in Peninsular Malaysia in 2012

oOnly an estimated of 5% recycled.

oLandfills are the only means of disposal.

oLife span of landfill 5-10 years

Current state of affairs Reduce dependence on landfills • lack of areas for new landfills

especially within major conurbation and corridors

• landfills increase methane and GHG emissions causing climate change

• negative public perception on landfills

New sustainable SWM technologies are required to address environmental issues.

Emerging technologies are available and looks promising but viability needs to be verified.

MUNICIPAL SOLID WASTES

Source: JPSPN

Oil Palm Biomass• Palm oil industry is 4th largest

contributor to GNI (8% or RM50 million of GNI)

• Malaysia is the 2nd largest producer in the world and largest exporter for CPO

• Produce 80 mil tonnes solid biomass/ yr and 60 mil tonnes of POME in 2010

• In 2020 solid biomass and POME volume expected to increase to 85-110 mil tonnes/ yr and 70-110 mil tonnes / yr respectively

OIL PALM BIOMASS

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1 MT of FFB

Biomass

6%CPKO

21% CPO22%-24% EFB

12%-13% Mesocarp Fibre

5%-6% Shell

65%-70% POME

Fronds

Trunks

BIOMASS APPLICATIONS

ENERGY

BIODEGRABALES

CONSTRUCTION MATERIALS

COMPOST

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WHAT IS GTFS?

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Soft loan scheme initiated by the government to facilitate the improvement of supply and utilization of Green Technology by providing easier access to financing.

RM1.5b ALLOCATION

3-YEAR PERIOD (2010-2012)

LET IT BE GREEN!

THE GREEN PROJECTS CRITERIA

Minimize degradation of environment;Zero or low green house gas emission;Safe for use and promotes healthy and improved environment for inhabitants Conserve the use of energy and natural resources; and Promote the use of renewable energy resources.

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PRODUCER

Maximum: RM50 Million per company Up to 15 years

Legally registered Malaysian – owned companies (at least 51%) in all economic

sectors

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GTFS TERMS

i) CRITERIA

GTFS TERMS

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Financing will be provided by all commercial & Islamic banks, Development Finance Institutions (DFIs)

2% p.a. of government’s subsidy

60% government guarantee of financing approved

0.5% p.a. guarantee fee to the government

Projects are to be located in Malaysia

Refinancing is not allowed.

ii) OTHERS

KEY PLAYERS

BANK NEGARA MALAYSIA•COORDINATING THE SCHEME

GREENTECH MALAYSIA•ISSUANCE OF PROJECT CERTIFICATE

CREDIT GUARANTEE CORPORATION •PROVIDING GUARANTEE ON THE FINANCING AMOUNT

PARTICIPATING FINANCIAL INSTITUTIONS•FINANCING PROVIDER

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WHO SHOULD APPLY?

ENERGY SECTOR• ENERGY SUPPLY

SECTOR • ENERGY

UTILIZATION SECTOR

BULDING• CONSTRUCTION,

MANAGEMENT, MAINTENANCE AND DEMOLITION

WATER & WASTE MANAGEMENT SECTOR• MANAGEMENT

AND UTILIZATION OF WATER RESOURCES

• WASTE WATER TREATMENT, SOLID WASTE AND SANITARY LANDFILL

TRANSPORTATION• TRANSPORTATIO

N INFRASTRUCTURE AND VEHICLE

• PUBLIC ROAD TRANSPORT

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TH

E P

RO

CESS

ES• PROJECT

CERTIFICATIONSTAGE 1

• FINANCING & GUARANTEESTAGE 2

• PROJECT OUTCOME /MONITORING

STAGE 3

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STAGE 1: PROJECT CERTIFICATION

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STAGE 2: FINANCING & GUARANTEEFINANCING

APPLICATION • Loan Application

Processed by PFIs

• Additional supporting documents are required

LOAN APPROVAL BY PFI• Approved/

Applicant will be notified if not approved

LETTER OF OFFER TO BORROWER

FROM PFI

GOVERNMENT GUARANTEE

APPROVED BY CREDIT GUARANTEE

GROUP (CGC)

LOAN AGREEMENT & DOCUMENTATION

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STAGE 3: PROJECT OUTCOME/MONITORING

PROJECT MONITORING & VERIFICATION• S

ubmission of monthly Project Progress Report to GreenTech Malaysia during project implementation

• Submission of Project Outcome Report every six months to GreenTech Malaysia upon commissioning

PROJECT IMPACT• S

ubmission of Project Impact Study upon completion of Project Monitoring and Verification

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GTFSSTATUS

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201 APPLICATION PROCESSED AMOUNTING TO RM3.4BILLION IN GREEN COSTS

63%

27%

5% 4%

ENERGYWASTE & WATERBUILDINGTRANSPORTATION

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178 PROJECTS CERTIFIED AMOUNTING TO RM3.3BILLION IN GREEN COSTS

63%

28%

4% 4%

ENERGYWATER & WASTEBUILDINGTRANSPORTATION

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43 PROJECTS SECURED FINANCING AMOUNTING TO RM659.1 MILLION AND RM188.2 MILLION DISBURSED

ENERGY

WATER & WASTE

BUILDING

TRANSPORTATION

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15

1

2

435.6

207.8

8.8

7

129.6

58.6

0

0

AMT DISBURSED (RM million) AMT APPROVED (RM million)NO. OF PROJECTS

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37 GTFS CERTIFIED BIOMASS PROJECTS AMOUNTING TO RM855 MILLION IN GREEN COST

BIO-FUEL14%

POWER PLANT51%

PAPER8%

PELLETS14%

FERTILIZER8%

DRY FIBER5%

11 PROJECTS SECURED FINANCING AMOUNTING TO RM307 MILLION

POWER PLANT; 8

PAPER; 1

FER-TILIZER; 1

PELLETS; 1

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CRITICAL SUCCESS FACTORS

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PROVEN TECHNOLOGYMANAGEMENT

OFFTAKECAPITAL

BUSINESS SENSE FEEDSTOCK SUPPLY

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Project Build & operate a biogas power plant at Palm Oil Mill for internal use.

Capacity Total capacity : 1 MW

Location Sandakan, Sabah

Project Cost RM 18.5 million

Project Objectives

Surplus gas to be used a fuel for existing boiler so that biomass can be displaced.

Technology

Stirred anaerobic digestion at thermophillic conditions with monitoring and control systems that can capture as much gas possible.

Project outcome

Reduction of GHG emission about 53,000 tCO2-eq/yr

Biogas Plant Criteria: Biogas power plant (RE )

Category: Producer

CER-53,000tCO2/yr

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Project Paper Mill derived from EFB

Location Pekan, Pahang

Capacity 60,000mt paper p.a. utilising 350,000mt EFB

Project Cost RM 93.4 million

Project Objectives

To Utilize Environmentally Friendly Processes to Optimize Malaysia Agro-waste and Create a Sustainable Product (paper using EFB )with Beneficial Environmental and Fiscal Impact.

Technology

Steam explosion technology to produce the pulp such as Fiber Extraction, Pulping & Paper making.

Project outcome

Reduction of GHG emission about 109,165 tCO2-eq/yr

Paper FromWaste (Oil Palm EFB) Criteria: EFB based paper

Category: Producer

CER-109,165tCO2/yr

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Project Green Pelleting Plant

Location Klang, Selangor

Capacity7,200 Mt/month (30% for domestic market) Green pellets and flakes at Calorific Value of 19MJ/kg

Project Cost RM 42.1 million

Project Objectives

To produce palm tree-based pellets; Bio Green Pellets(BGP) and Green Flakes(Palm Kennel Shell)

Technology

The process is locally invented with German and Japanese technology application such as pellet press machine. The process includes demoisturization, vibrator separation, blending, drying exchange, fumigations, homogenization, packing in standard bags(Jumbo bag or loose).

Project outcome

Reduction of GHG emission about 60,054tCO2-eq/yr

Pellet Production Criteria: Green pellets & flakes

Category: Producer

CER-60,054tCO2/yr

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ProjectNutrient Recycling Strategy via Decomposition of Palm Oil Mill Green Waste

Location Gua Musang, Kelantan

Capacity

Compost plant capacity : • incoming EFB 50,544 metric ton/year• compost production 27,048 metric ton/yearPlant area requirement is 56.22 acres

Project Cost RM 8.4 million

Project Objectives

To convert EFB (50,544 metric ton/year) into bio-organic fertilizer (27,048 metric ton/year) by using a compost plant.

Technology

1. Composting technology and addition of beneficial microbes.2. Extraction of humic acid from composting leachate.

Project outcome

Reduction of GHG emission about 28,593.95 tCO2-eq/year

CompostingCriteria: Bio-compost

Category: Producer

CER-28,594tCO2/yr

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Projects Name

Manufacturing of Long Dried Palm Fibre (LDPF)

Location Taiping, Perak

Capacity7,920 tonnes annually of long dried palm fibre (15-20 cm in length) from about 31,680 tonnes of EFB.

Project Cost RM 2.7 million

Project Objectives

Conversion of empty fruit bunch (EFB) into long dried fibre through hammering, screening and drying..

Technology

Simple process of hammering, screening and drying producing long dried fibre.

Project outcome

Reduction of GHG emission about 3,910 tCO2-eq/year

Dry Fiber Criteria: EFB dry fiber

Category: Producer

CER-3,910tCO2/yr

ABOUT GREENTECH MALAYSIA

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INCEPTION:12 MAY 1998

FOCUS Technology and

Research Centre in the Energy Sector

focussing on EE and RE.

CHANGED NAME:7 APRIL 2010

MANDATEImplementation Agency for development of Green Technology

Transformation

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ENERGY AUDIT GREEN TOWNSHIP CLEAN DEVELOPMENT MECHANISM

GREEN TECHNOLOGY FINANCING SCHEME

COMPETENCY DEVELOPMENT CENTRE

IGEM EV ROADMAP GREEN TECHNOLOGY ROADMAP

CENTRE OF EXCELLENCE

GREEN LABEL GREEN DIRECTORY SMART PARTNERSHIPS

Activities… 34

Q & A SESSION

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Malaysian Green Technology Corporation (462237-T)

No. 2, Jalan 9/10, Persiaran Usahawan, Seksyen 943650 Bandar Baru Bangi, Selangor Darul Ehsan

Website: www.gtfs.my

Hotline: 1-800-88-4837

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