Methane and EFB Power Generation Project in Terengganu States, Malaysia

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of the researchMethane and EFB Power Generation Project in Terengganu States, Malaysia
FYFY 2005
Main research orgnisationEX Corporation
Research partner(s)Osaka Gas Co., Ltd., Takuma Co., Ltd., Gas and Power Investment Co., Ltd,
TDM Sdn Bhd
Location of the projectMalaysia (Terengganu States)
Summary of the research report (PDF)Summary
Description of the projectThe project factory is a Sungai Tong palm oil mill which is located in Terengganu states in Malaysia. This project includes power generation utilizing the Empty Fruit Bunch(EFB) generated by the mill and also neighbouring mills and the methane recovered from Palm Oil Mill Effluent (POME) by installation of methane digester tank. The generated electricity will be exported to the national grid. This project aims GHG emission reduction by means of avoidance of methane emissions from EFB decay, methane recovery from POME and electricity displacement of national grid. This study places higher priority on EFB power generation which were strongly requested from the counterpart. The following two cases were set for feasibility study and the conclusion of the study is that case2 is more appropriate for a CDM project to be implemented.
[Case1] EFB power generation + Methane recovery from POME for power generation
[Case2] EFB power generation
Sector of the projectBiomass Utilisation
Duration of the project activity/ crediting period2008 - 2029
Baseline methodology/additionalityThis project applies small scale methodology “Type I.D. Renewable electricity generation for a grid”, “Type III.E. Avoidance of methane production from biomass decay through controlled combustion”, “Type III.H. Methane recovery in wastewater treatment”
Continuation of the current system is assumed as a baseline scenario for this project activity. This project will not result in a BAU scenario because of the three barriers: “Investment barrier”, “Technical barrier” and “Barrier due to prevailing practice.”
Estimation of GHG emissionsThe amount of avoided methane emission is calculated based on First Order Decay model which assumes gradual methane fermentation, therefore, the amount of GHG emission reduction changes every year. The expected GHG emission reduction during the first 7 years by this project activity is shown as follows:
Case 1: 578,567tCO2 (7 years)
Case 2: 371,073tCO2 (7 years)
Monitoring methodologyThe monitoring items of this project activity are as follows:
- Monitoring items for methane recovery from effluent
Amount of biogas(inlet of gas engine、inlet of flaring system), Methane content of the biogas(inlet of gas engine, inlet of flaring system), Operation hours of flaring system, Composition of exhaust gas, Conditions of plant operation
- Methane emission avoidance from EFB decay
Amount of biomass combusted, Amount of biomass transported from other mills, Composition of biomass, Amount of auxiliary fuel used, Amount of non-biomass carbon in the waste combusted, Average truck capacity
Amount of power consumed and/or generated, Distance for transporting,
If EFB is utilized in neighboring CPO mills
- Displaced grid electricity
Amount of Electricity exported to the grid
Environmental impactNo significant adverse environmental impact will arise from the project due to following reasons:
  No exploitation or destruction of natural resources and ecosystem arise from the project, since the project is carried out within the site of the existing project factory.
  The project is expected to contribute to reduction of water pollutant emissions from EFB by combusting it to generate power. Furthermore, it will also contribute to the mitigation of air pollutants and greenhouse gas emissions through replacement of national grid electricity generated by fossil fuel combustion.
The Malaysian Government requires environmental impact assessment (EIA) to be conducted for the development of power plants with installed capacity of more than 10MW. However, since the installed capacity of power plant in the project is only 7.0MW, EIA is not required for the project.
Issues and tasks for project implementationAfter studying cost-effectiveness, it was found out there is little possibility to implement case 1, on the other hand, case 2 has more possibilities, however, its financial feasibility is still not enough. Therefore, further investigation should be done regarding the following items towards early implementation of the project:
  Reviewing cost estimation (enhancement of financial feasibility by reduction of the project cost)
  Enhancement of electricity and CER sales by scale expansion of power generation plant
  Seeking the effective measures to acquire better conditions for renewable power purchase agreement(REPA).