The projects in Malaysia aim to use empty fruit bunches (EFB), a waste product of the palm oil milling process, as the fuel for a modern, highly efficient, biomass-fired cogeneration system to supply steam and electricity to a palm oil refinery in Sabah, Malaysia. The projects will be implemented in two stages. In the first stage, steam will be generated for palm oil refinery process consumption. The second stage will optimize the steam energy by installing a steam turbine generator to supply electricity for the refineries’ own use.

The project activities will be able to reduce emissions in three ways. First, by displacing fuel oil, which is used to generate steam, second, by displacing electricity from the local grid and diesel-fired plant generators, and third, by reducing methane emissions from the rotting EFB waste piles.

The energy plant will be sourcing the biomass waste from neighboring palm oil mills via fuel purchase agreements. This biomass, earlier open air burned, is abundantly available in the region. However, since the ban on open air burning in Malaysia, the biomass must be disposed of within the plantations. Many mills face a problem with disposing this waste, as they do not possess any plantation. Plantation owners supplying the fresh palm oil fruit bunches (FFB) are not interested in collecting the waste at the mill and disposing of it at their plantation. Therefore the mills are left with only one option - to dispose the EFB in piles at their mill site or into natural valleys to decompose. As these piles decay, they emit biogas containing methane, a potent greenhouse gas and potential fire hazard. The biogas also emits a putrid odor which poses an increasing problem for employees and nearby residents.

These palm oil refineries are currently operating a fuel oil fired boiler plant to supply steam for the refining process. These biomass projects will replace the amount of steam and electricity produced from fuel oil in the refinery, and also replace grid generated power, thus reducing greenhouse gas emissions from the refinery and the local electricity grid.