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Building An Integrated Biogas Value Chain From Feedstock to Biogas Offtaker

DR LIM DAW YUEN TSD - SIME DARBY OFFSHORE ENGINEERING SDN. BHD.

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Current Issues

• 500 mega tons of CO2 will be

released in Malaysia by 2020, a

43.3% increase compared to CO2

emitted in 2005, if without any

mitigation (source: Ang et. Al., 2013)

• Limited FIT quota

• Present RE-Biogas

Installation at about

13MW (source:SEDA)

• Lack of strategic

Location

• Lack of available

options & technology

• Not attractive economic return

• Lack of funding support

• High risk

• Lack of maintenance routines for

equipment

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Questions

What new opportunities come to stimulate new projects and increase existing

business value?

Who are the key stakeholders today that need to reach out to partner with

going forward?

What are some existing and new business models that will make these

opportunities a success?

What are the technology & options available going forward?

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WasteAgricultural

Products

Biomasses

Waste

Water

POME

Residue/

Manure

Organic

Industrial

Waste

Sewage

Sludge

Landfill

Municipal

Household

waste

Energy

crops

DigestateBiogas

Contaminated

Bio fertilizer

Clean

Bio

fertilizer

Pre-treated biogas

(Compressed

natural gas CNG)

Ag

ri-

Tru

ck

s

THE

BIOGASPROCESS

Overall Biogas Process

source: Wisconsin Bioenergy Initiatives, 2011

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Generation of POME, waste, sew. Sludge, manure, energy crops

Anaerobic Digester

Collection & Transport*

Consumption (Industry, Vehicles, Remote Power)

Distribution (Trailers, Natural gas grid)

Biogas Upgrade& Compressed

Consumption (FiT, CHP, Boiler, Flare)

Consumption (Industry, Vehicles, Remote Power, Export)

Distribution (Trucks)BioLNG

Biogas Value Chain

Consumption (Vehicles – Bifuel,Dual fuel)

* Subject to type of substrate

End-Use

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Generation of POME, waste, sew. Sludge, manure, energy crops

Anaerobic Digester

Collection & Transport*

End-UseDistribution (Trailers, Natural gas grid)

Biogas Upgrade& Compressed

Biogas Value Chain – Stakeholders and Supporting Activities

Note: Excluding segment for FiT, CHP, Boiler, Flare

Feedstock

Production

Collection &

Transport (supply of

substrate)

Pretreatment and Anaerobic

Digestion

Biogas Upgrading Distribution of

Upgrade Biogas

End-Use of upgraded Biogas

Plantation Co. Plantation Co. Plantation Co. Plantation Co. Logistic Co. Technology Providers

Landfill Co. Landfill Co. Energy Co. Energy Co. Energy Co. Industrial Co.

Municipal

Council

Municipal Council Waste water treatment Co. Public buses

Daily Processing

Co.

Private vehicle

Food Processing

Co.

Energy Co.

Mill’s Process/

Equipment

Plant Engineering Co Plant Engineering Co. Trailer Storage

OEM

Pressure Regulating System

(PRS), Dual Fuel Burner

Waste collection

equipment

Road Carriers, Waste

collection vehicles

Pre-treatment equipment Biogas Upgrade

Equipment/System

Filling stations

Anaerobic Digester System Compressor

Equipment/System

Bi-Fuel Vehicle/ Buses

Consultant Consultant Consultant Gas Engine / Gas Turbine

Stakeholders

Supporting Activities

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Generation of POME, waste, sew. Sludge, manure, energy crops

Anaerobic Digester

Collection & Transport*

End-UseDistribution (Trailers, Natural gas grid)

Biogas Upgrade& Compressed

Making the Biogas Value Chain Work

Process Engineering/

Technology/Application

R&D Capability

Technology &

Application

O&M O&M

Selection &

Logistic

Technology &

Application

All players across the value chain be able to make profit

RM3-5/MMBTU RM3-8/MMBTU RM8-18/MMBTU RM 9–16/MMBTU RM 3–10MMBTU

First Level Core Competence

Second Level Core Competence

Integration Capability

Logistic

Outcome

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Innovative Partnerships to catalyze biogas project2

Network & Policy Establishment3

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Potential of 80 Palm Oil Mills across

Malaysia*

Potential 25MMSCFD*

* source: SDOE, Gas Malaysia, SDP & other plantation co’s (over 7 years)

Northern Region

> 12 mills

Mills

> 400,000mmbtu

- Tangjung Malim

- Kulim

- Ipoh

- Behrang

Industrial Demand

Southern Region

> 15 mills

Mills

> 900,000mmbtu

- Simpang Renggam

- Sri Gading

- Batu Pahat

- Muar

- Gemas

- Ulu Tiram

Industrial Demand

Central Region

> 8 mills

Mills

> 500,000mmbtu

- Rawang

- Bukit Beruntung

- Sg. Buluh/Subang

- Serendah

Industrial Demand

> 15 mills

Mills

> 500,000mmbtu

- Bentong

- Raub

- Pengkalan Chepa

Industrial Demand

Eastern Region

Sabah

> 15 mills

Mills

> 900,000mmbtu

- Lahat Datu

- Sandakan

- others

Industrial Demand

An Integrated Network Biogas Upgrade to Off-taker Potential

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0

5

10

15

20

25

30

35

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Key Projection of Biogas Activities until 2025

FIT Biogas Upgrade Biogas - Others

34%

28%

38%

Composition of Biogas Activities until 2025

FIT Biogas Upgrade Biogas - Others

An Integrated Network Biogas Upgrade to Off-taker Potential

* source: SDOE & others (over 10 years)

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What SDOE - TSD Can Offer

* Case to Case basis

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Singapore

Kertih

Prai

Lumut

Port Klang

Connaught

Brudge

Port Dickson

Melaka

Kuala

Lumpura

Serdang

Pasir

Gudang

Segamat

Senoko

Paka

Kuantan

Duyong

Bekok

Resak

Angsi

LawitJernih

PM-3

Malaysia – Thailand

Joint Development AreaSongkhla

THAILAND

• Founded in 1992

• Distinctive Capability to design, install, construct, commissioning and after sales services for our core products – NGV Equipments, Cogeneration Equipments, Absorption Chillers

• Total 4 EPCC Projects value RM150million completed.

• Total 55 NGV Compressors, 83 NGV Dispensers, 48 NGV Trailers, 7 Gas Turbines (new project additional one), 11 Gas Chillers supplied to Malaysia industrial companies and government.

• TSD is now expanding to BioCNGprojects & BioCNG Trading

TSD

Technical Services Division - Snapshot

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Sole Dealer in Malaysia & Fully capitalizing Intermech Brand for:-

Gas Compressor

Gas Dispenser

Gas Storage Cascade

Gas Priority Panel

Integrated Solution Provider for:-

Equipment supply, install and commissioning

Full Service Maintenance at 98% station availability

Design, engineering and system optimization

Natural Gas Vehicle

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Pioneer in Malaysia forFull Commercial & Capitalization of Biogas Upgrade to BioCNGProject

Integrated Solution Provider for:-

Equipment supply, install and commissioning

Operation & Maintenance

Build, Own & Operate (BOO)

Industrial Customer integration

Authority liaison

Bio-Compressed Natural Gas (BioCNG)

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Composites Cylinders – High Pressure

Sole Dealer in Malaysia for Hexagon Lincoln Composites:-

Type 4 CNG Cylinders

Type 4 Tuffshell Bus Cylinders

Value Add Solution for:-

Install, Testing and Commissioning

Cylinders assembly, testing, and trouble shooting locally

Storage sizing and optimization

Value Proposition study

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Gas Driven Cogeneration

Dealer in Malaysia for:-

Kawasaki Gas Turbine

Capability in Malaysia for:-

Gas Turbine Cogeneration

Gas Engine Cogeneration

Gas District Cooling

Distinctive Capability for:-

Install, Testing and Commissioning

After sales services

Engineering capability for sizing, energy balance and optimization

Feasibility study

System/Process Tie-In

Built, Own, Operate & Transfer

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Absorption Chillers

Sole Dealer in Malaysia for:-

Kawasaki Gas Absorption Chillers

Gas Fired Absorption

Steam Fired Absorption

Solar Fired Absorption

Equipment specialist for:-

Install, commissioning & after sales services

Engineering capability for sizing, energy balance and optimization

System/Process Tie-In

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Thank you

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Correspondence Address

Sime Darby Offshore Engineering Sdn Bhd (214416-V)

GST Registration: 000303628288

General Line : +603 8022 9008

General Fax : +603 8022 9009

No.16, Jalan TP-5A, Taman Perindustrian UEP

47600 Subang Jaya, Selangor, Malaysia

www.simedarbyenergyutilities.com