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Barrier Analysis for the Supply

Chain of Palm Oil Processing


Biomass (Empty Fruit Bunch) as
Renewable Fuel

Integrated Resource Planning 2

January 2006 (Final)

EFB Fuel in Bales Photo Anders Evald, 2004


Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Barrier Analysis for the Supply Chain of Palm Oil
Processing Biomass (Empty Fruit Bunch) as
Renewable Fuel
January 2005

A report prepared under the
Malaysian - Danish Environmental Cooperation Programme
Renewable Energy and Energy Efficiency Component



Consultants:
Eco-Ideal Consulting Sdn. Bhd.
Mensilin Holdings Sdn Bhd
The views expressed in this document, which has been reproduced without formal editing,
are those of the authors and do not necessarily reflect the views of the Government of
Malaysia nor DANIDA.


Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Table of Contents
LIST OF TABLES ...............................................................................................................................5
LIST OF FIGURES..............................................................................................................................5
LIST OF ANNEXES ............................................................................................................................5
LIST OF ABBREVIATIONS................................................................................................................6
1. INTRODUCTION.........................................................................................................................8
1.1 BACKGROUND ..........................................................................................................................8
1.2 OBJECTIVES & SCOPE ..............................................................................................................8
1.3 METHODOLOGIES .....................................................................................................................9
1.4 STAKEHOLDERS CONSULTED ....................................................................................................9
2. SUPPLY CHAIN OF EFB AS RENEWABLE ENERGY FUEL................................................11
2.1 GENERAL DISTRIBUTION OF OIL PALM PLANTATIONS................................................................11
2.2 SUPPLY CHAIN OF EFB AS FUEL .............................................................................................14
2.3 LARGE PALM OIL COMPANIES .................................................................................................16
2.4 INDEPENDENT PALM OIL PROCESSING MILLS...........................................................................16
2.5 OTHER TRANSPORTERS OF EFB (E.G. BROKERS, WASTE COMPANIES, USERS ETC.) ...................16
2.6 FUEL PROCESSING EQUIPMENT SUPPLIERS & OPERATORS ......................................................17
2.7 BOILER FACILITIES & SUPPLIERS.............................................................................................17
3. EFB FUEL SUPPLY CHAIN BARRIERS.................................................................................20
3.1 ACCEPTANCE OF EFB AS RENEWABLE FUEL............................................................................20
3.1.1 General Awareness and Acceptance ..........................................................................20
3.1.2 Palm Oil Mills Acceptance...........................................................................................20
3.1.3 Industry Acceptance....................................................................................................21
3.1.4 Power Sector Acceptance ...........................................................................................21
3.2 ACCESS TO EFB FUEL SUPPLY ...............................................................................................21
3.3 ECONOMIC ASPECTS ..............................................................................................................22
3.4 TECHNICALITIES......................................................................................................................22
3.4.1 Demand for Power and Heat .......................................................................................22
3.4.2 Suitability of EFB as a fuel...........................................................................................23
3.4.3 Reliability of EFB Energy Production Technologies....................................................23
3.4.4 Standardisation of EFB as Renewable Fuel................................................................23
3.5 SUMMARY OF EFB SUPPLY CHAIN BARRIERS ..........................................................................23
4. DEMONSTRATION PROJECT: EFB FUEL SUPPLY CHAIN ................................................25
4.1 INTRODUCTION .......................................................................................................................25
4.2 OBJECTIVES & ACTIVITIES.......................................................................................................26
4.3 SITE SELECTION AND DESCRIPTION.........................................................................................26
4.3.1 Site selection criteria....................................................................................................26
4.3.2 Description of Selected Case Proposed Penggeli CHP Plant..................................27
4.4 FINDINGS AND DISCUSSIONS ...................................................................................................27
4.4.1 Mapping of EFB Suppliers...........................................................................................27
4.4.2 Barriers Identified by Stakeholders on Penggeli CHP Plant .......................................28
4.4.3 Assessment of EFB Fuel Supply.................................................................................29
4.4.4 EFB Transportation......................................................................................................33
4.4.5 Economic Barriers with Penggeli EFB CHP Plant.......................................................34
4.4.6 Assessment of Fuel Supply Chain Options Case example......................................35
4.4.7 Potential Barriers of Sourcing EFB from Other Mills ...................................................38
4.4.8 Determining the EFB Fuel Value.................................................................................39
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
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4.4.9 EFB Fuel Price Vs CHP Economic Feasibility.............................................................40
5. CONCLUSIONS AND RECOMMENDATIONS........................................................................43
5.1 CONCLUSIONS........................................................................................................................43
5.2 POLICY RECOMMENDATIONS TO ENCOURAGE EFB AS RE FUEL ................................................44
5.2.1 Perceptions and Acceptance of EFB as Fuel ..............................................................44
5.2.2 Access and Security of Fuel Supply............................................................................45
5.2.3 Economic Aspects .......................................................................................................46
5.2.4 Technicalities...............................................................................................................47
5.2.5 Futher research and studies......................................... Error! Bookmark not defined.
6. REFERENCES..........................................................................................................................53


Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
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List of Tables
Table 1: Barriers Identified for the Proposed EFB CHP at Penggeli, Johor .................................................... 28
Table 2: EFB source for Penggeli power plant................................................................................................ 30
Table 3: EFB generation of non FELDA mills ................................................................................................. 30
Table 4: Nutrient content of typical EFB.......................................................................................................... 31
Table 5: EFB mulching value.......................................................................................................................... 32
Table 6: Comparison and sensitivity analysis of cost savings from EFB fuel supply scenarios ...................... 37
Table 7: Examples of fuel characteristics of EFB fuel in Malaysia .................................................................. 49
Table 8: Examples of boiler supplier demand on EBF fuel in Malaysia........................................................... 49

List of Figures
Figure 1: Distribution of palm oil plantations in Malaysia. ............................................................................... 11
Figure 2: Stakeholders involvement in the palm oil industries ........................................................................ 12
Figure 3: Distribution of palm oil mills in Malaysia........................................................................................... 13
Figure 4: EFB generated and mulching in typical palm oil mill in Malaysia..................................................... 13
Figure 5: Supply chain model for EFB fuel...................................................................................................... 15
Figure 6: A typical biomass fired boiler system............................................................................................... 18
Figure 7: A typical process diagram for EFB biomass power plant ................................................................. 19
Figure 8: Summary of Barriers of EFB as Renewable Energy ........................................................................ 24
Figure 9: EFB supply chain for Demonstration Case in Johor ........................................................................ 25
Figure 10: Location of proposed EFB CHP power plant ................................................................................. 28
Figure 11: Oil palm mills around Proposed Penggeli CHP.............................................................................. 36
Figure 12: Scenarios comparison - EFB supplied by other nearby mills......................................................... 38
Figure 13: Sensitivity analysis of EFB price to power plant IRR...................................................................... 41
Figure 14: An assessment of CDM on EFB CHP plant with different fuel price .............................................. 42
Figure 15: Processed EFB fibre.........................................................................Error! Bookmark not defined.
Figure 16: Example of standard sampling of biomass in Sweden................................................................... 50

List of Annexes
Annex A: Directory of Palm Oil Mills in Malaysia (valid till mid 2004).............................................................. 55
Annex B: Distribution of Palm Oil Mills in Malaysia......................................................................................... 71
Annex C: Independent palm oil millers & private mills with small plantations ................................................. 72
Annex D: Directory of EFB Fuel equipment/facilities suppliers ........................................................................ 74
Annex E: Directory of Known Existing / Planned EFB Energy Plant in Malaysia (Iskandar) ............................ 79
Annex F: Assessment of Barriers, Recommendations and Priorities.............................................................. 80
Annex G: Sensitivity Analysis for 10 MWe EFB Power Plant IRR................................................................... 86
Annex H: Discussion Notes from Stakeholder Workshop in Johor.................................................................. 89

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
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List of Abbreviations
Bhd. Limited (companies)
BOOT Build-Own Operate Transfer
CHP Combined heat and power generation
CPO Crude Palm Oil
DANIDA Danish International Development Assistance
EFB Empty Fruit Bunch
EPU Economic Planning Unit
FELDA Federal Land Development Authority
FELCRA Federal Land Consolidation and Rehabilitation Authority
FFB Fresh Fruit Bunch
FRIM Forest Research Institute Malaysia
GEF Global Environment Facility
GHG Green House Gas
IRR Internal Rate of Return
JTOP Johor Tenggara Oil Palm
K.S. Kilang Sawit
m.c. moisture content
mt metric ton
MDF Medium density fibreboard
MF mesocarp fibres
MPOA Malaysian Palm Oil Association
MPOB Malaysian Palm Oil Board
MW Mega Watt
PKC palm kernel cakes
PKS palm kernel shells
POM palm oil mill
POME palm oil mill effluent
PTM Pusat Tenaga Malaysia (Malaysia Energy Centre)
REEE Renewable Energy and Energy Efficiency Project
REPPA Renewable Energy Power Purchase Agreement
RISDA Rubber Industry Smallholders Development Authority
ROI Return on investment
SIRIM Standards and Industrial Research Institute of Malaysia
SLDB Sabah Land Development Board
TNB Tenaga National Berhad
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
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UKM Universiti Kebangsaan Malaysia
UNDP United Nations Development Programme
UPM Universiti Putra Malaysia
USD American Dollars
w.t. Weight


Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
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1. Introduction
1.1 Background
Biomass residue from palm oil industries such as palm kernel shells (PKS), mesocarp
fibres (MF) and empty fruit bunch (EFB) are potential renewable energy fuel in
Malaysia. The abundance of these biomass resources is increasing with the fast
development of palm oil industries in Malaysia.
The utilization of these energy sources will promote replacement of fossil fuel while
addressing the issue of waste management in relation to biomass especially EFB
which are difficult to transport, store and manage. Today, PKS and MF are the most
common fuel for energy for palm oil mills but not EFB. Most palm oil mills with their
own plantations will mulch their EFB in the field. However, EFB is currently a waste
problem especially the case for independent palm oil processing mills without their own
plantation where mulching of EFB is not possible.
Despite the great potential of EFB as a renewable fuel, there are several existing
barriers identified in relation to the market development of these palm oil biomasses as
fuel for energy in earlier studies on biomass potential by the DANIDA / Economic
Planning Unit (Energy Section) Renewable Energy / Energy Efficiency component.
These barriers impede development of renewable energy products as another product
from the palm oil industries while meeting the nations target to promote cleaner fuel.
1.2 Objectives & Scope
The overall objective of this study is to promote EFB as one of the renewable biomass
fuel in Malaysia and suggest policy measures to remove the existing barriers. Based
on earlier findings on the barriers and challenges identified in the DANIDA RE/EE
component, this study assessed these barriers in great details, including consultations
with relevant players in the supply chain as well as testing the barriers on a selected
demonstration case. Based on these, specific policy recommendations were
formulated to establish an enabling condition for future market development of EFB as
biomass fuel.
PKS & MF are higher quality fuel and easier for transport to other uses as compared to
EFB. Therefore, a potentially ideal model would be to utilize EFB for on-site energy
demand while making PKS & MF available to off-site utilization which will likely bring
higher market prices as compared to burning on-site. These off-site utilization can be
energy or non-energy related (increasing market for these e.g. activated carbon,
animal feed, etc.).
In this specific task, focus was placed on addressing issues related to the supply
chain of EFB as a ready feedstock for energy production. Special emphasize were
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
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placed on the especially the use of EFB in boilers for energy production. These boilers
could be those installed in palm oil mills, refineries as well as other industrial
applications such as glove manufacturing, cement production and so forth. In this
study, the demonstration case was based on an energy plant in palm oil milling setting.
The specific tasks under the overall objective were divided into 2 phases:
Phase 1 Mapping of EFB Fuel Supply Chain and Detail Barrier Analysis
To detail out the supply chain of EFB as fuel in boilers, including clarification of
stakeholders;
Confirm and address pertinent issues/barriers related to market development of
EFB as a fuel for energy;
Provide recommendations to alleviate these barriers and promote EFB as
biofuel;
Specifically, this study elaborated issues related to developing an EFB fuel
specification and standard in Malaysia;

Phase 2 Demonstration and application of supply chain model
Demonstration site: Testing of supply chain model and barriers identified
Provide evaluation and recommendations for barriers removal.
1.3 Methodologies
The following approaches were used to address the objectives of the study:
Collect, review and consolidate earlier and related studies and relevant
literatures, publications etc.;
Meeting and discussions with relevant stakeholders (palm oil industries,
research institutes, boiler manufacturers etc.);
Elaborate fuel standards based on other available standards and current best
practices;
Demonstration site for barrier supply chain testing;
Supply chain workshop with relevant stakeholders for demonstration site;
Elaborate findings, recommendations and reporting.
1.4 Stakeholders Consulted
The following stakeholders were consulted and involved during the study:
Government / Research Institutes
Malaysia Energy Centre (PTM), UNDP GEF BioGen Project
Malaysian Palm Oil Board (MPOB)
SIRIM
Palm Oil Industries
Palm Oil Millers Association
Felda Palm Industries Sdn Bhd
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United Bell Plantations
Penggeli Palm Oil Mill (FELDAs mill)
Johor Tenggara Oil Palm Berhad, JTOP (Plantation and mills)
Malim Sawit Sdn Bhd (independent mill)
Fuel Handling & Energy Equipment Suppliers
Vyncke (East Asia) Sdn Bhd
Enco Systems Sdn Bhd
Vickers Hoskins (M) Sdn Bhd
Kejuruteraan EMI Sdn Bhd

Others
Vyncke (East Asia) Sdn Bhd
Felda Technoplant Sdn. Bhd
Ladang Inas Selatan (FELDAs plantation)


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2. Supply Chain of EFB as Renewable Energy Fuel
2.1 General Distribution of Oil Palm Plantations
In Malaysia, there is a total acreage of 3.8 million hectares of oil palm plantation
throughout the country
1
. The Peninsular Malaysia contributes to 58% of the oil palm
planted area in Malaysia, where else the East Malaysia, which is Sabah and Sarawak
together contribute to the rest of 42% planted area. The distribution of oil palm
plantation throughout Malaysia is illustrated in figure below. Most of the oil palm
plantations located in Peninsular Malaysia are concentrated in Johor, Pahang and
Perak States while in East Malaysia, plantation is concentrated on the east coast of
Sabah and Northern region of Sarawak.


Figure 1: Distribution of palm oil plantations in Malaysia.
(Note : Plantation areas are shown in red (colour version) or dark grey (black and white
version. Source: MPOB homepage at www.mpob.gov.my, accessed October 2005)
Oil palm plantations can be classified into 3 broad categories involving a range of
stakeholders. These stakeholders and relationship can be genericly illustrated in the
figure below:


1
Based on the planted area in 2003 (Source: Malaysian Oil Palm Statistics 2003)
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Figure 2: Stakeholders involvement in the palm oil industries
(Source: http://www.fftc.agnet.org.)

There are three main sources of palm oil fruits (commonly referred as Fresh Fruit
Brunch FFB). These are large estate owners, farmers in land development scheme
such as FELDA/FELCRA as well as independent small holders. As illustrated above
fruits from large estates and land development scheme are processed in their own
palm oil mills. Where as the fruits from smallholders are usually sold to independent
palm oil mills which have no plantation or one with limited size. Of all these mill
owners, the independent palm oil millers are the ones that would have waste
management issues in term of handling empty fruit bunches (EFB).

At the first quarter of 2005, there were all together 388 palm mills in Malaysia
2
catering
the milling of the Fresh Fruit Bunches (FFB) produce by from these 3.8 million hectares
of plantations (see Figure 3 below).

A directory of palm oil mills categorised according to distribution according to State up
to year 2003
3
(consisting of 358 mills) is attached as Annex A. A summary showing the
mill size distribution according to State is attached as Annex B.

2
Records according to MPOB until March 2005.
3
Listing in 2004/2005 not made available during this study
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Figure 3: Distribution of palm oil mills in Malaysia
(Source: SIRIM Biogen Report 2005)

On average, total FFB produced is about 19-20 tonnes per every hectare of oil palm
planted. In year 2004, the total FFB yielded was estimated around 80 million tonnes
4
.
Among this, about 23% weight of FFB ends up as Empty Fruit Bunch (EFB), which is a
by-product generated during the stripping process of palm oil milling. Thus, about 18
million tonnes of EFB was produced in year 2004 and the figure is predicted to
increase due to the continuous growth trend of oil palm industry.











Figure 4: EFB generated and mulching in typical palm oil mill in Malaysia


4
Malaysia Palm Oil Statistics 2004, Malaysian Palm Oil Board (MPOB)
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Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Presently, most EFB are combusted in on-site incinerators where the ash is later
distributed back to plantation as fertiliser. These typically old and improperly
maintained incinerators are often inefficient in combustion.

Some are utilised for mulching directly in the oil palm plantations where common
problems are limitation of application, attraction of pest and vermins.

EFB in general is considered not a ready fuel due to its physical property e.g. high
moisture content, fibre structure causing problems in fuel feeding etc. However, with
appropriate fuel preparation, there is a large potential of converting these large amount
of EFB into renewable energy that could meet the existing energy demand of palm oil
mills or other industries. Under such scenario, other sources of biomass fuel such as
palm kernel shells and mesocarp fibres which are currently utilised for providing heat
for mills can be relieved for other uses off-site with higher economic returns for palm oil
millers.
2.2 Supply Chain of EFB as Fuel
The supply chain of EFB involves a series of stakeholders involved from the
generation, handling to the end users of the EFB as a product.

The following main groups of stakeholders were identified:
Oil palm plantations supplies FFB to mills, often transporters of EFB
Palm Oil Processing Mills generators and some case transporters of EFB
Other transporters of EFB (e.g. brokers, waste companies, users etc.)
Fuel Processing Equipment Suppliers & Operators
Boiler facility owners
Boiler equipment suppliers

An illustration of the supply chain of EFB as fuel is illustrated in Figure 5 below:
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Figure 5: Supply chain model for EFB fuel
(Source: Own Illustration)
The stakeholders and their roles in the EFB fuel supply chain will be described further
below:


EFB Fuel Pre-treatment
For Energy:

FFB
From Plantation
Oil Palm
Mills
Crude Palm Oil
(CPO)
Press
Cake
POME
Fibre Shell
Palm Kernel Cake
(PKC)
EFB
Moisture: 65-69%;
Calorific Value:18 MJ/kg (0% m.c.)
4.3 MJ/kg (67% m.c.)
23% wt FFB
Other usages /
products
Reduction of size & moisture
content
Shredding/Chipping
Moisture reduction to < 40%
Screw Pressing / Drying
Press into bales / pellets

Boiler / CHP Plant
Energy
Distribution and
Use
Transporters
(Transporters)
Suppliers
Transporters
Brokers
Suppliers
Facility owners,
operators
Energy consumer
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2.3 Large Palm Oil Companies
Large palm oil companies are those large scale oil palm plantations who have their
own mills installed typically within the vicinity of the plantation area. However the sizes
of these plantation companies vary considerably from few hundred hectares to more
than hundred thousand hectares of oil palm plantation.

The top ten main players in Malaysia with the large planted area and milling capacities
are government owned Felda (Federal Land Development Authority), private listed
corporations Kumpulan Guthrie Berhad, Golden Hope Plantation Bhd., IOI Corporation
Berhad and Sime Darby Bhd, Guthrie Bhd., S. Kinabalu Bhd., FFM Berhad, United
Plantations Bhd. and Boustead Group. The government scheme - FELDA is the
largest upstream player which accounts about 17% of the planted area in 2003
5
.

According to MPOB, in year 2004, there were 156 oil palm mills installed with milling
capacity over 50 tonnes of FFB per hour. These large palm oil mills are the main
contributor to EFB. However, the availability of EFB as boiler fuel is not certain as
often the EFB will be recycled as mulch for their own plantation. Transportation of FFB
(from plantations to mills) as well as EFB (from mills to plantations) is done by the
company themselves.
2.4 Independent Palm Oil Processing Mills
Independent palm oil processing mills refer to those mills which do not have their own
plantation. Instead, these mills obtain their role material i.e. FFB from mainly the small
holder oil palm farmers, and some from the state or government scheme plantation.
According to MPOA, the independent palm oil mills contributed to roughly 30-35% of
the mills production in Malaysia
6
. This group of stakeholder would be expected as the
main contributor to EFB as boiler fuel as they do not have plantation to decompose the
EFB residues generated from their mills.

A list of known independent palm oil processing mills identified is attached in ANNEX
C.
2.5 Other Transporters of EFB (e.g. brokers, waste companies,
users etc.)
Besides the plantations and millers who are directly involved in the transportation of
the EFB as mulch to plantation, there are also other parties involve in transporting the
EFB away from oil palm mills. These parties are either dedicated transporters or
companies mainly dealing with the secondary usage of EFB for example MDF
manufacturing, EFB fibre production, composting, charcoal briquettes, pulp and paper,

5
Source: Malaysian Oil Palm Statistics 2003.
6
Discussion with Datuk Lo, President of Palm Oil Millers Association, 13 April 2005.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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etc. All kinds of EFB users collect and transport the EFB from oil palm mills
themselves.
2.6 Fuel Processing Equipment Suppliers & Operators

The fuel processing equipment suppliers and operators play an very important role in
the supply chain of EFB for boiler fuel as the properties of the EFB are not naturally
suitable as boiler fuel. The large size, high moisture content and high bulk density EFB
resulting in a difficult to handle and lower caloric value fuel. Hence some pre-treatment
such as shredding/chipping and dewatering (screw pressing or drying) are necessary
in order to improve the fuel property of EFB. Without sufficient technologies to prepare
the EFB into suitable size and moisture content, problem will arise in introducing EFB
as boiler fuel as demonstrated in the few actual EFB power plants in operation now.

Depending on where the pre-treatment of EFB is carried out, the dewatering and
shredding will greatly improve the handling and reduces the transportation cost to the
end user i.e. energy plant.

A list of existing suppliers identified is attached in ANNEX D.
2.7 Boiler Facilities & Suppliers
There are several biomass boiler suppliers in Malaysia. A list of existing suppliers
identified is attached in ANNEX D.

Biomass fuel applications encompass of boilers, steam turbines and solid fuel handling
as basic components. As the nature of EFB contains high moisture, fibrous and
containing soluble alkalis, problems will be encountered if direct burning of EFB is
done in a boiler. Due to this problems, EFB has been categorised as poor fuels that
having risk for deposit and corrosion
7
. This nature must be reflected in the boiler
design where some efforts ought to be carried out to modify the boiler facility for
accommodating the EFB fuel. Some solutions to EFB combustion are as follow
8
:

1. The fuel handling facilities should include shredder and screw press to pre-treat the
EFB into suitable size and moisture (if not done earlier). The conveying systems
ought to be specially designed base on case to case.

7
Olle, Nystrm (2004). Applicability and competitive position of European equipment. EC
ASEAN Cogeneration Programme Phase III.
8
Stowell, Graham & Tubb, Victoria. (2000). Maximising energy from biomass A practical
view considering the technology issues within three case studies in Asia. Presented in Energy
Resource 2000 Virtual Conference; and Olle, Nystrm (2004). Applicability and competitive
position of European equipment. EC ASEAN Cogeneration Programme Phase III.
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2. Controlled combustion will be useful where staged combustion can be
implemented to minimise the generation of nitrogen oxides and to promote better
burnout of carbon in biomass fuel. This approach has been refined to handle high
moisture wastes where the temperatures in lower furnace are maintained lower to
dry the wet fuel for combustion.
3. Co-combustion or use of additives could be the option for EFB combustion.

For the purpose of power generation, higher thermal efficiencies can be achieved by
selecting higher boiler pressure and lower condenser pressure thermodynamic
9
.

A typical layout of a EFB power plant is illustrated below:


Figure 6: A typical biomass fired boiler system
(Source: CETREE (2002). Modern renewable energy technologies are totally competitive with
conventional energy strategies. In Renewable energy: A private sector initiative.)


A typical process diagram from storing and preparing EFB fuel to power generation is
attached in Figure 7 below.




9
Anon (2004). The status of REPPA review exercise. BioGen News: Volume 1, Issue 1.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Figure 7: A typical process diagram for EFB biomass power plant
(Source: Samad, J.A. (2005). Renewable Energy The need for further incentives.
In Jurutera, February 2005)

A list of existing and planned EFB energy production plants installation in Malaysia is
attached in ANNEX E.

1. EFB
Collection &
Storage
2. EFB Moisture
& Size
Reduction
3. Prepared
EFB Fuel
Storage
4. Fuel Combustion
(Boiler Combustion
Zone)
Ash
Collection
Ash Sales
5. Steam Generation
(Boiler Water
Tubes)
6. Electricity
Production (Steam
Turbine Generator)
Oil
Recovery
Oil Sales
Steam/Water Cycle
Recirculation Loop
River/JBA
Water Electricity
Sales to Grid
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3. EFB Fuel Supply Chain Barriers
Most of the EFB residues generated in Malaysia are not currently used as boiler fuel
either in the palm oil mills or other industries. For palm oil mills, the quantity of PKS
and mesocarp fibre produced from the milling process can already meet the mills
energy demand and hence there has not been strong motivation to develop EFB as a
fuel.

As the development of EFB renewable fuel is relatively new in Malaysia, there exist
certain barriers that prevent further development of EFB as a fuel. These barriers,
many related to the supply chain of EFB, were identified and categorised into four main
categories by combining earlier findings and the findings from the interviews and
discussion of this study:
Acceptance of EFB as renewable fuel;
Access to fuel supply;
Economical aspect of EFB fuel;
Technicalities of EFB as fuel.

A summary of these barriers and some recommended measures to overcome them
are summarised in Annex F. These will be further elaborated below:
3.1 Acceptance of EFB as Renewable Fuel
3.1.1 General Awareness and Acceptance
Generally, the concept of EFB for energy production has not been widely promoted
until recent years. The idea of using EFB for energy is still a relatively new idea to
many, ranging from politicians to government officers (who both play important role in
directing the government policies), to palm oil millers, industries and so forth. Thus, the
EFB fuel market development is difficult to develop with this lack of awareness and
thus acceptance to the idea. In some cases, due to the lack of understanding and
success stories, EFB can be perceived as a messy waste generated from palm oil
industries

These perception and lack of awareness barriers will inevitably prevents inaction for
promoting EFB as fuel, leading to no further actions or policies being formulated.
3.1.2 Palm Oil Mills Acceptance
Some problems also arise from the acceptance of palm oil mills where many palm oil
mills may perceive energy as a troublesome, messy and less attractive way of dealing
with EFB. The perception of EFB as better option (mentioned earlier) further adds to
the barrier where palm oil mill owners will not further explore the EFB as renewable
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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energy fuel since their core business is to produce value added palm oil products such
as crude palm oil, but not producing energy.

Furthermore, since there are many other potential options of utilising EFB currently
being developed (as mentioned earlier), POMs are generally reluctant to commit
themselves when there are many new uncertain markets for EFB based downstream
products. The uncertain market conditions also allow speculations and expectations for
the EFB value to rise, thus resulting in a wait and see situation.
3.1.3 Industry Acceptance
In terms of using EFB in other industrial sectors, there seems to be an acceptance
issue due to lack of awareness and success stories. The overall impression of EFB as
messy fuel and the uncertainties surrounding the EFB fuel supply are discouraging
other industries to uptake using EFB as renewable fuel for their boiler applications.
3.1.4 Power Sector Acceptance
In addition to the similar acceptance barriers outlined above for palm oil mills and
industries that is equally applicable for power sectors, an additional barrier is the
uncertainty towards co-firing of EFB fuel technology. This uncertainty hinders the
acceptance of power sector toward usage of EFB fuel.
3.2 Access to EFB Fuel Supply
The access to sufficient and consistent EFB fuel supply is an important pre-condition
for EFB energy plants. This is particularly crucial for EFB plants entering into current
sales of power agreement such as the Renewable Energy Power Purchase
Agreement (REPPA) which include penalty clauses for non delivery due to the lack of
fuel supply.

The access to the supply of EFB can be subjected to several factors below:
Non-energy competitive usages of EFB
Season fluctuation of EFB produced

Due to the above factors, a firm and long term contract for EFB supply is not easily
achieved as most EFB suppliers will be anticipating changes in the value of EFB and
thus unwilling to commit to long term contracts.

For non-energy competitive usages, some are commonly practices e.g. the direct use
of EFB for mulching in oil palm plantations while others are still in developing phases
e.g. composting of EFB with palm oil mill effluent into fertiliser or compost, processing
of fibre for MDF (medium density fibre board) and particle boards, animal feeds, pulp
and paper and so forth.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Among the non-energy usage, mulching is the most common practice, where the
demand can ranges from 50-90% of the EFB usage
10
. Mulching is most commonly
practiced due to the minimal pre-treatment requirement of EFB before the distribution
back to the planation as mulch. The mulching practice is also able to reduce the
inorganic fertilisers applications required otherwise. Thus, a general perception is that
the EFB value for mulching is higher that for energy production. However, an economic
evaluation has shown that the returns of EFB as fuel for power generation may be
higher than mulching (as high as 3 times of mulching reported)
11
.
3.3 Economic Aspects
From the economical point of view, utilisation of EFB as renewable energy is facing the
same economic barrier as other renewable energy projects in Malaysia. These
economic barriers are a result of:
Due to economic of scale, unattractive current tariffs for renewable energy is
causing unattractive payback for the investment and to drive the market;
Subsidized fossil fuel price which results in fossil fuel based boilers more
attractive then biomass boilers;
Low-tariff natural gas at certain areas causes uncompetitive of biomass as fuel
for industrial boilers.
3.4 Technicalities
There are some technicalities issues that hamper development of EFB as fuel. Overall,
the available technology for EFB combustion is still undergoing adaptation and there is
no widely known success cases leading to the lack of confidence in the technology.
3.4.1 Demand for Power and Heat
The availability of demand for the power and heat generated from an EFB plant is of
great importance to the overall feasibility of the project. For the case of palm oil mills,
since most mills would have excess demand for power and heat, the availability of a
market for excess power and heat is important. Currently, the connection to power grid
is not possible for those mills located in remote area (especially those in East Coast
Sabah and Sarawak for examples) there no grid access is available.
In the case where grid connection is possible, there are also several existing barriers
applicable for all renewable energy projects:
Conditions and procuderal barriers of REPPA;

10
Anon. (2000). Feasibility study on grid connected power generation using biomass
cogeneration technology. Pusat Tenaga Malaysia. Pg 12.
11
Menon, Ravi, Rahman, Zulkifli & Bakar, A. Nasrin. (2003). Empty fruit bunches evaluation:
mulch in plantation vs. fuel for electricity generation. Oil palm industry economic journal: Vol.
3(2)/2003. Malaysian Palm Oil Board 2003.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Prohibitive standby charges for facilities such as EFB CHP plant.
Similarly, should there be no steam demand around palm oil mills; locating a EFB CHP
plant would be difficult. Thus, the location of such a facility will be limited by the
demand of the power and heat.
3.4.2 Suitability of EFB as a fuel
Due to the physical property (high moisture up to 65%, fibrous nature etc.) of EFB, it is
widely recognised that EFB is often perceived as unsuitable boiler fuel if not pre-
treated. The need of this additional fuel preparation (as compared to for example PKS
that can be directly combusted with good efficiency) presents a technical barrier for the
industries to take up EFB based boilers. Due to bulkiness and need of fuel preparation,
there will be additional need for land space as well as additional cost for the fuel
preparation.
3.4.3 Reliability of EFB Energy Production Technologies
Mostly due to the maturity of EFB energy production technology, many industries
perceived that the technology would not be reliable enough for industrial processes
where regular breakdown or energy disconnection would be too costly for the
investment in EFB energy plant. In addition, the accessibility to reliable fuel supply
adds to the uncertainties and overall reliability.
3.4.4 Standardisation of EFB as Renewable Fuel
Combustion of biomass (e.g. EFB) for energy recovery is not new in Malaysia.
However, the focal objectives of the combustion is waste disposal rather than for
energy production. Thus, not much effort has been placed on energy conversion
efficiency and the quality of biomass as a fuel.

There are several concerns related to the importance of knowing the fuel quality.
Examples such as pricing, whether the fuel will meet the demand of the process
equipment e.g. boiler and how the trade should be conducted and monitored. The lack
of EFB fuel specification may lead to difficulty in pricing as well as maintaining fual
quality.

3.5 Summary of EFB Supply Chain Barriers

A summary of the above barriers in relation to the supply chain stakeholders is
summarised in the figure below:

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Figure 8: Summary of Barriers of EFB as Renewable Energy

General Acceptance Barriers (awareness, messy EFB perceptions)
Palm Oil Mill
Acceptance
Industry / Power sector Acceptance
Access to fuel
supply Barrier
(competitive use,
seasonal cropping)
Economic barriers
Technicalities
(fuel property, technology reliability)
Low
payback
subsidized
oil price
Security of
supply
Palm oil Mills
(EFB fuel supplier)
EFB
transporters
EFB end user
(EFB energy
producer)
Products
(power/heat)
user
Barriers
Supply chain
stakeholders
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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4. Demonstration Project: EFB Fuel Supply Chain
4.1 Introduction

Phase 2 of this study focused on applying the supply chain barriers developed from
Phase 1 against a real proposed EFB project in reality.

The selected case (Penggeli in Johor) for testing was a proposed EFB energy plant
within palm oil plantation area. Both government owned and privately owned mills were
relevant. The conceptual idea of demonstration project is presented in the flow diagram
below:

Figure 9: EFB supply chain for Demonstration Case in Johor


End-users specific
requirements on EFB (type
of pre-treatment needed)
Transporters
EFB Suppliers (Palm Oil Mills)
Independent
mills
(without
plantation)
Excess from
mills with
own
plantation
Fuel Processing
Equipment suppliers:
* Shredder/Chopper
* Screw press, dryer
* Boiler, CHP plant
Palm oil CHP / Heat
Production plant
Data collection:
* Production capacity
* Energy (steam/power) demand
* Boiler/CHP type
* Location (distance from EFB fuel supply)
* Quantity of EFB needed
* Mapping of source of EFB
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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4.2 Objectives & Activities
The objectives of the demonstration project included:
To test and evaluate market barriers solution based on the supply chain
framework developed in phase 1;
Verify and develop real life experiences of the barriers identified in Phase 1;
To identify the benefits of improved supply chain management including
formation of cooperations among the mills and development of EFB market
within the area;
For the selected demonstration case (from the production, delivery to the
utilization of EFB), identify and recommend measures to alleviate EFB market
development barriers;
To demonstrate a successful supply chain model for disseminations to other
similar area;

Specific activities of the demonstration project included :
Identification of a specified supply chain geographical area;
Mapping of all relevant stakeholders;
Identification and engagement of related stakeholders related to the EFB
supply chain;
Briefing and discussion among the stakeholders;
Dissemination of supply chain information and formation of organisation;
Testing of solutions recommended to overcome barriers;
Monitoring and reporting.
4.3 Site Selection and Description
4.3.1 Site selection criteria

The demonstration site selected for the supply chain study was based on the following
criteria:
Planned EFB based power and heat plant
The EFB energy plant have no own sources of EFB
There is a need of EFB supply from several source
There exist both mills with plantation and private independent mills
There are potential demands of power and heat from different sources
Interest of project developers

After screening several potential sites, the proposed Penggeli CHP at Kota Tinggi,
Johor by FELDA was selected.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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4.3.2 Description of Selected Case Proposed Penggeli CHP Plant

FELDA is planning to construct an EFB to power and heat plant (CHP) at Kilang Sawit
Penggeli that located in Kota Tinggi district, Johor. This would be the first grid
connected EFB to power plant to operated by FELDA.

Although the power plant is proposed within the vicinity of Penggeli Palm Oil Mill, the
management of the power plant is proposed to be independent from the Penggeli mill
operation.
4.4 Findings and Discussions
4.4.1 Mapping of EFB Suppliers
The proposed EFB power plant is designed to source EFB supply from several FELDA
mills around the proposed site. Investigation by FELDA had shown that the plant can
meet their fuel supply demand from 5 FELDA mills identified. There are three nearby
(less then 20 km) FELDA mills (including Penggeli) while other possible suppliers are
expected from other FELDA mills located further away i.e. Kahang and Kulai Palm Oil.
The EFB fuel cost is estimated at RM 15-17 per ton which is mainly to cover the
transportation charges.

Besides own mills, there are some other non-FELDA mills (mills with plantation and
independent mills) situated near to the proposed Penggeli site and these could be
plausible sources of EFB for the power plant. The five mills which located within 30 km
of Kilang Sawit Penggeli are Kilang Sawit Sibol, Kilang Sawit Malim Sawit, Kilang
Sawit Sg. Kachur, Kilang Sawit Tabung Haji and Kilang Sawit Ladang Sindora. These
mills have capacity range between 30 and 40 mt/hour.

The location of EFB fuelled CHP power plant and the neighbouring mills are plotted in
Figure 10 below:
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Figure 10: Location of proposed EFB CHP power plant

4.4.2 Barriers Identified by Stakeholders on Penggeli CHP Plant

Consultations and field visits identified the following barriers through communication
with different stakeholders. A brief summary is tabulated in Table 1 below:

Table 1: Barriers Identified for the Proposed EFB CHP at Penggeli, Johor
Stakeholders Consulted Barriers Highlighted
FELDA Palm Industries Sdn
Bhd (Proponent of the Penggeli
EFB CHP plant)
SREP and REPPA conditions are not attractive
and too rigid:
- tariff price too low (RM0.17/kWh)
- limit of the size of power plant to maximum
10MWe (but normally approved at reduced size
than 10MWe)
- rigid penalty for non-conformance
- 3 tier conditions: peak, off-peak, weekend
Lack of government incentives
Source of fund hard to finance the power plant
compared to more established fossil fuels plant
as the success of the EFB plant is yet to be
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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proven
Communication problems in application and
monitoring process
Fuel (EFB) supply anc conditions not
consistent, boilers difficult to cater 100% EFB
FELDAs transporters Low EFB bulk density, high transportation cost
Loading and unloading conditions and time
spent
FELDAs mill managers Unstable EFB supply. There are plenty
competitive usage of EFB e.g. Mulching,
composting, MDF etc.
Fluctuation of supply due to cropping seasons
(peak/off peak) as well as crop cycle (age of
crop and replanting)
Unfavourable EFB fuel characteristics as fuel.
High moisture content of EFB causes long term
storage problem where degradation of EFB
easily happen. Besides, low bulk density of
EFB will occupy large storage.
Other non-FELDA millers Insecure EFB fuel supply. Each mill has own
usage for EFB. Problems may exist if the
power plant tries to source fuel from other non-
FELDA mills
Plantation operators Insufficient EFB as plantations also need EFB
for mulching

Details of the above barriers will be further elaborated in the sections below.
A final consultation workshop was carried out on 9 December 2005 to present and
discuss the findings from the study. Details from the discussions can be found in
APPENDIX H.
4.4.3 Assessment of EFB Fuel Supply
Fuel availability assessment for proposed Penggeli Power Plant was carried out by
PTM and TNB earlier. Based on a 10 years projection, the EFB supply from five
Feldas east coast mills are expected to be sufficient for the planned Penggeli EFB
biomass CHP plant. The total EFB requirement is estimated at about 200,000 ton/yr.
The capacity and location of each FELDA mill are listed in below:



Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Table 2: EFB source for Penggeli power plant
Mill Processing
capacity
(ton/yr)
Est. EFB
Generation
(ton/yr)
Location Distance from
Penggeli
Penggeli Palm Oil Mill 150,000 -
250,000
34,500 -
57,500
Kulai 0 km
Kahang Palm Oil Mill 150,000 34,500 Kluang 50 km
Belitong Palm Oil Mill 250,000 57,500 Kluang 20 km
Bukit Besar Palm Oil Mill 120,000 27,600 Kulai 10 km
Kulai Palm Oil Mill 120,000 27,600 Kulai 25 km
Total 181,700
204,700


It must be noted that the above assumed all EFB is supplied to Penggeli and it can be
noted that one of the potential supplier (Kahang) is located relatively far (around 50
km) from Penggeli while the rest are within 30 km.

Non-FELDA mills located within 20 km from proposed Penggeli site might be possible
alternative sources of EFB. They are Malim Sawit Palm Oil Mill (6 km from Penggeli
mill), Sibol Palm Oil Mill (10 km) and Sg Kachur mill (15 km). Both Sibol and Sg. Kacur
belong to JTOP Berhad (private corporation active in palm oil sector). The EFB
generated and location by non-FELDA mills are tabulated below:

Table 3: EFB generation of non FELDA mills
Mill Processing
capacity
(ton/hr)
Est. EFB
Generation
(ton/yr)
Location Distance from
Penggeli
Malim Sawit Palm Oil
Mill
30 34,500 Kulai 6 km
Sibol Palm Oil Mill 30 34,500 Kulai 10 km
Sg Kachur mill 40 46,000 Kota
Tinggi
15 km
Total 115,000

Currently, most of EFB in Penggeli area are incinerated and the bunch ash returned to
the field or the EFB is directly mulched in plantations. While FELDA mills interviewed
expressed their acceptance to the EFB CHP plant and have no objections to offer their
EFB, there were some barriers identified for the EFB generation and access to fuel
especially from non-FELDA mills:


Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Reluctance to offer excess EFB or entering into long term supply contracts;
Competitive use e.g. JTOP claiming they need all for mulching. There are also
companies engaging into composting of EFB with POME in the area (see below
for detail);
Setting of selling prices for EFB difficult.
4.4.3.1 Competitive Usage of EFB
As for Penggeli Mill, a mill constructed before year 1992, is equipped with incinerator
for EFB. The EFB ash is sold as fertilizer, a supplement of potassium (K), at a price of
RM 150 per tonne. However, to maintain the incinerators, the maintenance cost as
well as environmental is high. The mill is very willing to stop the operation of the
incinerator if there is better solution for EFB management
12
.

Two of the non-FELDA palm oil companies interviewed were both utilising their EFB.
JTOP recycles the EFB back to field as mulch. Malim Sawit, an independent mill that
does not own any plantation, processes EFB into fibre as feedstock for their own
steam boiler.

A comparison of the cost and benefit for competitive EFB applications at the area is
elaborated below:

Mulching
EFB nutrient contents make it suitable as fertilizer substitute for oil palm plantation.
Proper mulching technique of EFB in plantation can release nutrient content slowly
while the EFB degrades. Other than supplying nutrients, the more important role of
mulching is to conserve moisture content of soil and act as soil conditioner. The EFBs
nutrient composition is stated below:

Table 4: Nutrient content of typical EFB
Potassium
(K)
Nitrogen
(N)
Magnesium
(M)
Calcium
(Ca)
Phosphorus
(P)
% of dry
matter
2.24 0.44 0.36 0.36 0.144
(Source: Ravi, Menon, N., Zulkifli, Ad Rahman, & Nasrin, Abu Bakar. (2003). Empty fruit bunches
evaluation: mulch in plantation vs. fuel for electricity generation. Oil palm industry economic journal, vol.
3(2)/2003.)

12
Personal communication with Mill Manager, Penggeli Palm Oil Mill, 12 October 2005.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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The recommended EFB application rate for mature palm planted on inland soils is 35
to 70 t/ha. A field trial carried out by Sabah Land Development Board (SLDB)
indicated that one tonne EFB is equivalent to RM 11.47 of fertilizer but other
researchers found a lower value of RM 5.39/ton EFB. Both studies did not consider
the increase of yield in the range of 15 to 20% claimed by some researchers as well as
additional cost involved in EFB transportation. Cost benefit study carried out by
researchers under proper controlled and monitored conditions showing a net return of
RM 14.40 for a tonne of EFB used as mulch
13
. However, in reality, it is impractical to
achieve the ideal return as above. The EFB mulching can only cover small area of the
plantation, usually within 5 km radius of the mill, due to high transportation cost. The
application is also limited to certain areas depending on topography and land
conditions.

According to JTOP, the EFB application for mulching at their mills is at an average of
45 mt/ha/year and this rate conforms to the rate recommended
14
. The JTOPs
plantation is around 20,000 hectares and is expected to consume 900,000 tonnes of
EFB every year. However, due to high transportation cost, mulching for whole estate
will not technically be possible and economically feasible. The mulching practice is
normally recommended within 8,000 hectares from the mill
13
. For the Penggeli case,
to mulch 8,000 hectares, 360,000 tonnes of EFB is required.

JTOP claimed that their mills have no excess of EFB for Penggeli as all are ustilised
for mulching.

Table 5: EFB mulching value

Value, RM /ton EFB
(Dec 2002 fertilizers price)
Nutrient contents reported by Hoong and
Nadaraja, (1988)
11.47
Nutrient contents reported by Loong et al.
(1987)
5.39
Net returns for mulching (taking into
consideration for the cost of mulching
and the benefit yield from mulching)
14.40
(Source: Ravi, Menon, N., Zulkifli, Ad Rahman, & Nasrin, Abu Bakar. (2003). Empty fruit bunches
evaluation: mulch in plantation vs. fuel for electricity generation. Oil palm industry economic journal, vol.
3(2)/2003.)

13
Ravi, Menon, N., Zulkifli, Ad Rahman, & Nasrin, Abu Bakar. (2003). Empty fruit bunches
evaluation: mulch in plantation vs. fuel for electricity generation. Oil palm industry economic
journal, vol. 3(2)/2003.
14
Personal communication with Manager, JTOP Bhd., 12 October 2005.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Fuel for Boiler Steam Generation
EFB can be processed into fuel fibre by pressing, shredding and hammering to reduce
size and moisture. As an independent mill, Malim Sawit has no estate to dispose of
EFB generated. In order to solve the EFB disposal problem while meeting the biomass
fuel demand for their mill, Malim Sawit is currently converting part of their EFB
generated into fibre for feeding into boilers.

During the study, Malim Sawit converted on average 50% of the EFB generated into
fibre. This fibre is burnt together with shell and mesocarps fibre in boilers at a ratio
50:50 to generate steam for their mill operation. Malim Sawit is upgrading the system
to process all the EFB yielded into fibre and expected to complete by 2005. The
additional EFB fibre can be supplied to refinery boiler for replacing some of the shells
used. These shells (PKS) are purchased as fuel for refinery boiler at an average cost
of RM 56/ton.

It was estimated that one ton of EFB fibre (processed and reduced 75% of moisture
content) can yield 1.5 to 2 tonnes of steam as compared to the PKS that can generate
3.5 tonnes of steam. Therefore one ton of EFB fibre is equivalent to about 0.5 ton of
shell in fuel value. By replacing the shell with fibre, the fuel cost (shell) is saved.
Hence, one ton of EFB fibre can save about RM 28. One ton of raw EFB can produce
about half ton of EFB fibre. This leads to an average value of one ton raw EFB to be
equivalent to around RM 14
15
.

A comparison of the cost of EFB value as compared to the use as EFB fuel for the
proposed Penggeli CHP plant would be discussed later.
4.4.4 EFB Transportation
As the proposed EFB plant will be receiving EFB from off-site sources, these EFB will
have to be transported to the EFB CHP site. Some of the barriers in transporting EFB
identified during the study included:
High cost of transportation for mills far away i.e. Kahang Palm Oil Mill around
50 km away;
Handling of EFB : bulky, decomposition leading to foul odour etc;
Loading and unloading condition determine the cost of transportation. The
waiting time is a loss for transporters. Minimise the waiting time will be an
advantage to transporters;

15
This cost includes EFB fibre processing cost and the processing cost is not assessed in this
study. Therefore the actual value of raw EFB is lower than RM 14.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Processed EFB (in the fibre form) are too light to transport. A 34-feet truck can
only carry around 20 tonnes of EFB per trip. The fibres ought to be baled or
packed for the ease of handling.

The charges for EFB transportation in Penggeli area vary according to distance (from
mill to plantation) and practice (whether stacking or distribute on field). The average
cost is between RM 5 to 15 for every ton of EFB transported within 20 km of distance.
There is no common practice on how EFBs transportation is managed. Different
stakeholders will practice their own system.

For example, Ladang Sg. Sayong pays RM 7 for every ton of EFB transported by the
same lorry which sends the FFB to Penggeli mill. There is not contract among
tranporters and plantation. The distance of transportation is about 11 km. The
transporter is only responsible to bring back the EFB to field without doing any stacking
or field distribution. On the other hand, the cost involved for Ladang Inas Selatan is
RM 10.50 per ton of EFB transported within 9 15 km. The EFB transporter for Inas
Selatan is different with the FFB transporter. The transporter is contracted and
dedicated for transporting EFB. The transporter will carry EFB from Penggeli Mill to
the plantation, at the same time responsible to distribute the EFB on the field.

Summarising the information gathered from the site visit, the transportation cost for raw
EFB can be estimated at an average of RM 0.70 /ton/km. This will be used for further
calculations of EFB fuel cost below.

In terms of other technicalities, should preparation of fuel is desired, it is found that the
party that is responsible for pre-treatment and handling of fuel (shredding or chipping,
pressing or drying and finally compressed into bales or pellets) should be negotiated
and decided before the commissioning of the plant. The fuel could either be prepared
by the mills before sell to the power plants, or handled by the end users based on their
own requirements. Besides, centralised EFB collection and pre-processing system
could be considered as a component in EFB supply chain. From the discussion with
EFB power plant developer, boiler suppliers and palm oil mills, it appears that there is
a lack of interest and need at this stage to develop strict fuel specification for EFB as
fuel. This is mostly due to the flexibility of the boiler where some variation of fuel quality
is acceptable.
4.4.5 Economic Barriers with Penggeli EFB CHP Plant

The orginal proposed plant is designed at capacity between 10-13 MW. However, the
SREP licence approved was only for 7.5 MW installation capacities. With this lower
capacity, the feasibility of project is suppressed. After appeal and negotiation, the
allowed export capacity is increased to a maximum of 9 MW. However the three tier
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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conditions associated are not favourable to developer, where 9 MWe can only be
exported during peak load, but during off peak, only 6 and 4 MW is allowed for week
days and weekends respectively. With this maximum 9 MW EFB to power plant and
the three tier conditions, the feasibility of the project is predicted to be less attractive
compared to the economic analysis carried based on 10 MWe plant unless there is off-
grid power demand. The IRR is claimed to be about 9% which is not an economically
feasible project from business point of view
16
.

While the demand for power to grid is there, the demand of the steam produced is
rather limited in the area. Most mills interviewed were reluctant to rely their steam
supply off-site that is handled by other management while the piping of steam across
long distance will be costly as well.

Assessment of EFB fuel cost and the CHP plant feasibility will be discussed later in
Section 4.8 & 4.9.
4.4.6 Assessment of Fuel Supply Chain Options Case example
Sourcing EFB Fuel Supply from Surrounding non- FELDA Mills (within 20 km)
As indicated in Section 4.4.2, the transportation cost of EFB fuel supply to the plant
one of the major barriers due to the low bulk density of the EFB. The need to reduce
transportation is especially relevant considering the increasing fossil fuel prices that will
expect to continue. Thus, a case example to assess the possibilities of sourcing EFB
from nearer mills was carried out in this study for the case of Penggeli.

Although the EFB supplies from the FELDAs mills are claimed to be sufficient as
discussed earlier, it seems more logical from a EFB supply chain point of view to
source EFB from mills closer to the proposed CHP plant. This will largely reduce the
high transportation cost involved and thus more cost effective.

In this Penggeli demonstration case, some of the EFB is proposed to be sourced from
FELDAs mills that located relatively far away i.e. 50 km. The feasibility of sourcing
EFB from other mills (non-FELDA) which located within 20 km in radius is investigated
below. Some of the mills that located within 20 km from the proposed power plant are
plotted in the map below.

16
Personal communication with Felda Palm Industries Sdn Bhd, General Manager (Technical).
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Figure 11: Oil palm mills around Proposed Penggeli CHP
As discussed in section 4.4.3, the other three independent mills, Malim Sawit, Sg.
Kachur and Sibol located within 20 km from Penggeli have good potential to provide
cheaper EFB sources to replace especially Kahang Palm Oil Mills (FELDA) that is
located further away (50 m). As indicated in Table 3, three mills are estimated to
generate a total of 115,000 tonnes of EFB per year from the vicinity of 20 km. If the
Penggeli power plant manages to purchase for example 30% of these EFB, an amount
of 34,500 tonnes/year can be obtained. This will be equivalent to the EFB amount
generated by Kahang Mill that is located 50 km away from Penggeli. Although the EFB
fuel from Kahang is expected to be provided to Penggeli free of charge, the EFB
transportation cost for Kahang Mill to Penggeli is estimated to be as high as RM
35/ton
17
. By replacing the intended supply of EFB from Kahang Mill, the actual EFB
fuel cost is expected to be lower even if a price is to be paid for EFB obtained from
nearby mills.

By assuming the maximum distance of 15 km where EFB should be sourced from
nearer mills, the transport cost of EFB from above mentioned independent mills to
Penggeli will be on an average of RM 10.50/ton. Hence an average saving of EFB fuel
cost (including the transportation) from surrounding independent mills as opposed to
Kahang Mill will be in the range of say RM 20-25/ton of EFB. This indicates that
although Kahang mill can supply EFB free of charge, it is economically worth to pay for
EFB obtained from independent mills nearer.

17
Based on RM 0.70 /ton/km identified earlier.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 37 -

An attempt to assess the different supply scenarios (i.e. EFB supplied by Malim Sawit,
JTOP and a mixture from both) of EFB fuel supply with different EFB buying price is
summarised in Table 6 and Figure 12 below.

Table 6: Comparison and sensitivity analysis of cost savings from EFB
fuel supply scenarios
Scenario Amount
of EFB
Supplied
by FELDA
mills
(mt/yr)
Amount of
EFB
Supplied by
non-FELDA
mills* (mt/yr)
Cost of
fuel (EFB)
to
purchase
**
(RM)
Cost of
Fuel
(EFB)
transport
*** (RM)
Total Cost
of Fuel per
year
(RM)
% of Saving
for EFB fuel
procurement
Baseline EFB
supply by
FELDA only
200,000 0 0 2,688,700 2,688,700 -
EFB Supply by
Malim only:
- RM 2/mt
- RM 10/mt
- RM 15/mt
- RM 20/mt

165,500


34,500



69,000
345,000
517,500
690,000



1,626,100




1,695,100
1,971,100
2,143,600
2,316,100


37%
27%
20%
14%

EFB supply by
JTOP only:
- RM 2/mt
- RM 10/mt
- RM 15/mt
- RM 20/mt

165,500


34,500



69,000
345,000
517,500
690,000


1,783,100



1,852,100
2,128,100
2,300,600
2,473,100


31%
21%
14%
8%
EFB supply by
Malim (30%)
and JTOP
(30%) at
- RM 10/mt
- RM 15/mt
- RM 20/mt

165,500


34,500





345,000
517,500
690,000

1,704,600




2,049,600
2,222,100
2,394,600




24%
17%
11%
* The supply of Kahang mill which is estimated at 34,500 mt/yr is replaced by other nearby
mills.
** Assume that FELDAs mills will supply EFB free of charge.
***The cost of transportation is estimated as RM 0.70/mt/km as derived from the ground study.

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 38 -
0
5
10
15
20
25
30
35
40
Malim Sawit JTOP Both mills
Selling prices (Assumed)
%

s
a
v
i
n
g
RM 2/mt RM 10/mt RM 15/mt RM 20/mt

Figure 12: Scenarios comparison - EFB supplied by other nearby mills

From the above analysis, it can be shown that cost saving for fuel supply will be
applicable even if Penggeli CHP is to pay a price as high as RM 20 per tonne of EFB.
Significant savings can be achieved if the price of EFB is lower than RM 10 / tonne.
However, the earlier analysis had shown that the EFB is already being used for
mulching (JTOP) and Fibre boiler fuel (Malim) having an estimated value of around RM
14 / tonne of raw EFB. Thus, a win-win situation can be achieved if the price of EFB is
set above RM 15 where the Penggeli CHP will get lower price of EFB supply while the
EFB supplier gets higher value out of their EFB.
The analysis also shown highest saving if the EFB is obtained from Malim Sawit Palm
Oil only, mostly due to the proximity of the mill from Penggeli (only 6 km).

In summary, by purchasing EFB fuel from near by mills instead of Kahang, the
Penggeli EFB power plant can expect between 10 to 20% fuel cost saving depending
on the buying price of EFB from the these non-FELDA mills.
4.4.7 Potential Barriers of Sourcing EFB from Other Mills
The results from Section 4.4.6 show a possible win-win situation. However, besides the
obvious cost benefit due to logistic savings, there are several crucial considerations
that can potentially become barriers to the above proposal. These barriers can be
against the CHP plant operators as well as the potential EFB suppliers:
risk of inconsistent supply from other mills;
difficult in reaching a mutually agreeable price and fuel standard of EFB fuel;
EFB suppliers (Malim and JTop) expecting prices of EFB to increase due to for
example breakthrough in other utilisation giving higher value than the agreed
price, thus unwilling to commit long term contracts. Palm oil industry has high
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 39 -
expectation to the future value of EFB seeing its future potential. Hence not
many mills are interested to commit in their EFB selling
18
.

In order to have more secure supply, sell and purchase contract need to be signed
between the power plant and the mills. The EFB pricing should be based on the
positive and negative factors identified to each particular mill. Besides, the contract
period should be taken into consideration when determine the EFB pricing
19
.
4.4.8 Determining the EFB Fuel Value
The equivalent monetary values of EFB found from the field study are summarised in
Error! Reference source not found.. Considering the value of EFB to other mills, the
EFB purchasing price should be RM 15/ton and above.

The pricing of EFB however, must also be considerd from the EFB CHP plant
economic feasibility point of view. If the fuel price is too high, the project will not be
feasible. An assessment of the value based onenergy value, as compared to other
sources of fuel e.g. coal should also be assessed (see later).
When comparing coal to EFB, the coal with energy value of 31.8 MJ/ton
20
is carrying
about 7 times energy content of raw EFB (4.3 MJ/ton
21
). The current coal price is
about USD $ 50
22
per ton which is equivalent to about RM 190. Hence, the equivalent
monetary value for one tonne of raw EFB merely based on energy content will be
RM25. On the other hand, the well established coal power plants will have the
advantages in economic of scale; well developed technologies hence lower installation
prices. Besides, moisture and size reduction of EFB will consume almost 30% of total
biomass power plant auxiliary electrical load and this reduces the total output of EFB
biomass power plant
23
.

Thus, with the fast development of EFB biomass technologies and the lowering of
investments with economic of scale, the value of EFB as a fuel would definitely be
higher in the near future. This will be further supported by the expected increased in
fossil fuel prices and the lowering of government subsidies on fuel.

18
Anon (2005). Background report 2: Renewable energy resources. Integrated Resource
Planning, Economic Planning Unit.
19
Chow, Mee Chin. (2005). An assessment of pontential and availability of palm biomass for
bioconversion to bioethanol. NIRAS Consulting Engineers and Planners A/S, on Provision of
consultancy services on renewable energy efficient component.
20
Karunakaran, Phubalan (2003). Industrial energy audit guidelines: A handbook for energy
auditors bibliography. Pusat Tenaga Malaysia.
21
Anon. (2005). Background report 2: Renewable Energy Resources. Integrated Resource
Planning, Economic Planning Unit.
22
Reuters (25 Oct 2005) at http://aseanenergy.org/news/
23
Samad, J. A. (2005). Renewable Energy The need for further incentives. In Jurutera,
February 2005.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 40 -

Although the investment cost for power plant (RM 40-60 mil) is at higher end compared
to other application such as composting (RM 5-10 mil), MDF (RM 40 mil), pulp and
paper (RM 50-60 mil)
24
and mulching (minimal investment), the power generation is
suggested as the best option by the stakeholders involved (FELDA as well as other
millers) as there is more certainty in the market of the product especially the
electricity
25
. This preference can be supported by earlier study of Ravi et al.
26
that
showed a higher benefit above cost for EFB to energy then mulching.

The assessment of the EFB for energy above hardly include other potential benefits
(including) non-financial such as :
Localisation of power and heat generation decentralised power supply, less
grid losses etc.;
Reduced greenhouse gas emissions by substituting fossil fuel renewable
green energy. The potential of CDM will be discussed in 4.4.9;

4.4.9 EFB Fuel Price Vs CHP Economic Feasibility

A simple economic analysis of 10 MWe EFB biomass grid connected power plant had
been carried out by Ir Samad
23
. The following assumptions were used by him:
By assuming raw EFB price at RM 15/ton;
Predicting plant operation and maintenance costs based on established power
industry rates;
Supply to grid at 90% of net installed capacity (i.e. no 3-tiers conditions where
differential supply limit for peak and off-peak)
100% tax exemption for first 10 years and 28% tax on profit after that;
electricity sales at RM 0.17/kWh to TNB (under SREP);
land cost not considered cost for land;
other cost included : owners project management costs, loan interest etc.

The financial IRR of the investment before tax was estimated to be 14.7% and 13.5%
after tax. The simple pay back is within six to seven years. The overall investment
scenario is marginally acceptable when compared to a commonly accepted investment
IRR of 15%. However, it must be noted that this IRR is based on a very important

24
Suki, Anhar, Wok, Kamal & Nor, Mohd Tusirin (2005). Biomass utilization: Prospects &
challenges. Presented at International Palm Oil Congress (PIPOC), Kuala Lumpur, 25-29
September.
25
Recommendations from the Biomass EFB Stakeholder Workshop, Sofitel Johor Bahru, 8
December 2005.
26
Ravi, Menon, N., Zulkifli, Ad Rahman, & Nasrin, Abu Bakar. (2003). Empty fruit bunches
evaluation: mulch in plantation vs. fuel for electricity generation. Oil palm industry economic
journal, vol. 3(2)/2003.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 41 -
assumption where there are no peak and off- peak delivery conditions. As discussed
earlier, the REPPA conditions for example for Penggeli, only allows peak load delivery
during the peak period while as low as 50% delivery for off peak. Thus, the overall
payback of investment will be greatly reduced due to this condition.

In view of increasing demand in EFB for other application such as mulching,
composting, paper and pulp, MDF, etc, the increase of EFB fuel price is inevitable.
Therefore the uncertainty of the EFB price over long term will be the main concern and
major factor that hindering EFB biomass power plants development. Considering the
possibility of increase in EFB fuel price, the next constraint will be electricity sales tariff.

Based on the assumption employed by the above study, a sensitivity analysis for EFB
prices (Figure 13 below) was carried out (details attached as Error! Reference source
not found.). It is found that if the EFB price exceeds RM20, the 10 MWe CHP
becomes not feasible under the current REPPA condition.

0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
IRR (%) without Tax IRR (%) with Tax (28% after 10
years of exemption)
Payback (yrs)
I
R
R

/
S

i
m
p
l
e

P
a
y

B
a
c
k

(
%

/

y
r
s
)
RM 15/ton RM 20/ton RM 25/ton

Figure 13: Sensitivity analysis of EFB price to power plant IRR

Impact of Clean Development Mechanism on Proposed CHP
The utilisation of EFB as renewable fuel for substituting fossil fuel will reduce the
emission of greenhouse gases to the atmosphere. This would mean that EFB CHP
project such as Penggeli would be eligible for Clean Development Mechanism
application where additional financing of the investments can come from the sell of
carbon credits (known as Certified Emission Reduction (CERs)).

An assessment of the impact of CDM on the overall project feasibility of the 10 MWe
CHP plant case discussed above was carried out with different EFB fuel prices. The
following assumptions were made:
CAPEX and OPEX based on the Samads case study;
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 42 -
Average 80% delivery of CHP installed capacity.
Power tarrifs of RM 0.17 / kwh;
CERs unit price of USD 5 / tonne;

The results are plotted in Figure 14 below. It can be shown that CDM can make
projects more attractive when the price of EFB fuel is between RM 15-20 per tonne. If
the price of EFB exceeds RM 20, the proposed EFB CHP plant will be financially not
attractive even with CDM financing. This will only change if the some of the current
renewable energy supply conditions under the REPPA (such as power tariffs,
maximum installed capacity of 10 MWe, delivery conditions, other incentives) are
changed.
Assessment of CDM on CHP Project
0
5
10
15
20
25
5 10 15 20 25 30
Price of EFB / tonne
P
r
o
j
e
c
t

I
R
R

(
%
)
IRR
IRR with CDM

Figure 14: An assessment of CDM on EFB CHP plant with different fuel
price

SUMMARY
If EFB price is less that RM 15, then other competitive usage would be
economically equally attractive for the EFB suppliers while the EFB CHP plant
would be feasible;
If EFB price is between RM 15-20, the results above showed that the CHP
plant would be economically not feasible unless with CDM financing;
If EFB price exceeds RM 20 per tonne, EFB CHP plant below 10 MWe will not
be feasible even with CDM financing. The conditions offered to EFB as
renewable fuel must be improved!

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 43 -
5. Conclusions and Recommendations
5.1 Conclusions

This study concluded that there are indeed many existing barriers hampering the
development of EFB as renewable fuel in Malaysia. Most of the barriers associated
with the supply chain of EFB identified from earlier study by DANIDA RE/EE in 2004
were thoroughly assessed in this study and further confirmed. The main categories of
barriers include perception and acceptance, accessibility to fuel supply, economical
and technical barriers.

The study, based on individual consultation meetings, visits as well as the case of
demonstration site, further confirmed and illustrated the barriers identified were valid,
applicable and requires a variety of measures and actions from different levels in order
to overcome the barriers.

For the case of the demonstration (Penggeli) site, in terms of acceptance, most of the
stakeholders consulted were reasobably interested in utilising EFB as a renewable
fuel. However, key barriers were identified and mainly associated at the end of supply
chain with the overall economic viability of the EFB CHP plant and accessibility to
reliable fuel supply being the two most crucial barriers.

It appears that the major bottleneck of establishing such an EFB energy plant is the
economic barriers identified associated with low return of investment due to the low
SREP tariff and rigid conditions under the REPPA. Based on the current SREP and
REPPA conditions, there is need to ensure a minimal size of power plant (need to be
more than 10 MWe) to ensure the financial feasibility of the project. However, the
current approval is normally less than 10MWe installation (for the case only 9 MWe at
peak loading for Penggeli case) and further delivery conditions such as the 3-tier
system where peak and off-peak loading is imposed. With the less delivery due to this
limitation in supply to grid, the overall economic return will be hampered. The markets
demand for the products especially heat is limited due to the reluctance of most mills to
rely on off-site (such as the independent EFB power/heat plant) power or heat supply.

With the above economic of scale barriers surrounding proposed EFB CHP, the
proposed plant is subjected to various other supply chain barriers. The need to have a
minimium size would lead to the need to access EFB fuel from typically several EFB
producers. Due to this, the demand of EFB fuel is subjected to various barriers such as
accessibility of fuel due to high transportation costs, uncertainty of EFB fuel prices (e.g.
with other competitive usage of EFB) difficulty in handling as well as fluctuation of
supply due to cropping seasons (peak/off peak).
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 44 -
From the demonstration site experiences, it appeared that an improved supply chain
management, with an establishment of a EFB supply market within an area, would not
only bring benefits to the EFB energy plant but may also bring a win-win situation for
both the EFB fuel supplier as well as the EFB user i.e. the EFB energy plant.

The study showed that by gaining access to EFB supply from nearby mills, the EFB
energy plant can save at least between 10-20% on fuel cost and the suppliers can in
turn obtain higher return from EFB. In addition, the EFB suppliers will spend less
maintenance cost for their own EFB boilers or other usage such as mulching.

When it comes to the EFB fuel price, if EFB price is valued less that RM 15, then other
competitive usage would be economically equally attractive for the EFB suppliers while
the EFB CHP plant would be feasible. In contrast, if the EFB price is set between RM
15-20, the results above showed that the CHP plant would be economically not
feasible unless with Clean Development Mechanism (CDM) financing. CDM is found to
be able to improve the financial viability of EFB CHP plant especially when the price of
EFB is between RM 15-20 / tonne. In the case if EFB price exceeds RM 20 per tonne,
EFB CHP plant below 10 MWe will not be feasible even with CDM financing. The
overall renewable energy conditions offered to EFB as renewable fuel project must be
improved.

Drawing the findings from both the phase 1 and 2, further recommendations based on
the findings of the study are elaborated in the next section.
5.2 Policy Recommendations to encourage EFB as RE fuel
5.2.1 Perceptions and Acceptance of EFB as Fuel
In order to popularise EFB as renewable fuel to increase the acceptance, several
measures could be taken:

Promotion campaigns / Roadshows
Campaigns for EFB as a fuel can be held by campaigns, road shows, conferences and
other media release as examples. The promotion should be designed to target
politicians and high level management of relevant government departments and
authorities as well.

A more concrete way of promoting the EFB fuel will be setting up or assigning an
institution such as the Malaysia Energy Centre (PTM) with the role of collecting and
disseminating successful experiences. At the same time, such institution can actively
support market development by providing assistance to entrepreneurs, technological
development, research, development of standards etc.

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 45 -
Economic benefits and practical viability can be promoted through demonstration of
success stories. With more success stories, more interest can be generated leading to
more involvement in developing EFB as a RE fuel.

Changing Perception on EFB as Messy Fuel
The perception of messy and problematic conventional disposal of EFB e.g.
inefficiency incineration leading to air pollution etc. need to be changed with the
promotion of technological advancement in EFB handling technologies with closed
handling systems, good combustion quality, flue gas cleaning with less pollution.

Positive environmental benefits such as the need for renewable energy, reduction of
greenhouse gas (GHG) that could be eligible for Clean Development Mechanism
should be promoted as part of market development incentives.

Technological Reliability
In order to encourage the uptake of EFB as fuel in industries, government support in
setting up a few successful demonstrations would be beneficial in improving the
confidence in the technology and idea. Provision of information, technical support as
well as financial subsidies would be required.

Build-Own Operate Transfer (BOOT) contracts can be encouraged to further promote
the involvement of other industries in using EFB biomass fuel. The BOOT contracts
make the technology easier available for the related industries where by the industries
operators only need to operate the power or energy plants without bother to set up the
plants themselves.

For industrial boilers, the transfer the knowledge in co-firing biomass from other
countries utilising EFB would be useful in overcoming the lack of confidence in
technology. A system study can be performed to identify best supply chain, fuel quality
and fuel source. Besides, by launching research programmes to address problems
associated with co-firing for example standards, pre-treatment, milling, biomass
fraction, fly ash utilization, lower processing costs, etc, will be helpful to
5.2.2 Access and Security of Fuel Supply

From this study, it is clear that the mapping of available EFB resources would be useful
for EFB resource supply chain improvement. This is particular important as there are
many different competitive usages. An assessment of the current and potential market
to predict the potential quantities of EFB that may be taken up by these industries have
to be done to know the volume of EFB for energy fuel.

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 46 -
With proper mapping, assessment of better logistics and EFB resource planning can
lead to better cost effectiveness for both supplier and user of the EFB. This was
demonstrated from the Penggeli demonstration site in this study.

It is recommended to fund and promote a few good supply chain practices
demonstration facilities where proper mapping, evaluation and EFB supply contracting
are optimised. Supply chain analysis can be carried out to optimise EFB as fuel based
on the information of EFB distribution. Legally binding sale and purchase agreement
should be negotiated and signed to ensure supply as well as power and heat supply
once implementing the EFB to power project. The sale and purchase contract should
provide a win-win situation to both power plant operator and the millers (EFB
supplier).The success stories should be dessiminated to other areas for their
considerations. and end users location found from the directory.

As for other down-stream EFB applications such as MDF, particle board, pulp and
paper and so forth, a comparison of cost and benefit as compared to mulching and for
energy production need to be further assessed.

For the millers side, further study to elaborate on optimisation of biomass energy
resources within their palm oil industries and the impact on the CPO production and
cost could be beneficial. The available renewable energy resources include PKS,
Mesocarp, EFB, biogas from POME, etc which is generated in vast amount during the
milling process can be optimised whereby energy sources such as PKS and mesocarp
can be transported away for value-added utilisation while EFB and POME can be fully
capitalised for lower energy needs. Further study on this is recommended and
guidelines can be developed for palm oil mills to adopt.
5.2.3 Economic Aspects

The study revealed that the bottleneck of the whole EFB to energy supply chain is the
economic barriers of setting up a EFB energy plant. It is strongly recommended that
the government review and improve the following conditions currently offered to EFB
renewable energy project under the SREP programme:

Electricity tariffs : The size constraints of less than 10 MWe approval should be
increased. Current maximum tariffs of RM 0.17 to be uplifted for renewable
energy project to improve the economical feasibility of such an investment.
Should tariffs be increased, the minimum sizes of EFB plants as a barrier would
be reduced;
REPPA conditions : The overall conditions should be simplified and more
flexible, considering the national interest to promote renewable energy. The 3-
tier delivery conditions where the plant can only supply at installed capacity
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 47 -
during peak hours should be reviewed. It is recommended that the selling to
grid be organised based on whatever amount generated from the EFB plant as
the % contribution to the entire grid will be very minimal while contributes to the
national renewable target for grid.

In addition, to increase the payback to make the EFB fuel attractive, introduction of
some subsidies from an energy fund can be useful. An investment subsidy scheme
can be introduced to industries participating and as a return; information of their
operation is required.

Other financing sources such as green tax as incentive and Clean Development
Mechanism (CDM) financial support should be promoted to improve the feasibility of
EFB power plant.
Besides the recommendations above, gradual reduction and removable of subsidies
for fossil fuel is recommended or at least the level of playing field should be equal for
biomass fuel such as EFB.
5.2.4 Technicalities
5.2.4.1 Suitability of EFB as a fuel
Experiences developed from the various demonstration plants with different boiler
technologies and suppliers can be shared and promoted for the optimisation of EFB
combustion and energy recovery.

Setting up a R&D programme and a centre to manage and promote biomass
technology can be considered to help accelerate the deployment of EFB technologies
leading to faster EFB market development. Further research into the optimal fuel
specification e.g. % moisture content, can be carried out. Different fuel combinations
can be tested. Fuel standardisation based on the maturing EFB technologies is
recommended to be developed (see Section 5.4.2.3 below).

In terms of other technicalities, should preparation (pre-treatment) of EFB fuel is
desired, it is found that the party that is responsible for pre-treatment and handling of
fuel (shredding or chipping, pressing or drying and finally compressed into bales or
pellets) should be negotiated and decided before the commissioning of the plant. The
fuel could either be prepared by the mills before sell to the power plants, or handled by
the end users based on their own requirements. Besides, centralised EFB collection
and pre-processing system could be considered as a component in EFB supply chain.
From the discussion with EFB power plant developer, boiler suppliers and palm oil
mills, it appears that there is a lack of interest and need at this stage to develop strict
fuel specification for EFB as fuel. This is mostly due to the flexibility of the boiler where
some variation of fuel quality is acceptable.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 48 -
5.2.4.2 Reliability of EFB energy production technologies
On the other hand, the perception where the biomass boilers are not reliable can be
altered by having more successful demonstration cases. Disseminating operational
experience, benchmarking data and the best practice solutions which can be adopted
into the use of EFB fuel and the boilers design can help to improve confidence of
project developers. Besides, set up a network of biomass energy plant operators to
share and exchange experiences is recommended.
5.2.4.3 Fuel Specification and Standardisation
In the effort to develop a market for EFB, a standard fuel specification should be
developed to provide unambiguous and clear classification of EFB fuel. These
standards, as tool for communication, will enable better understanding and clarity
among the EFB fuel supplier (palm oil millers) and the buyers (boilers and CHP
operators). With such standards introduced, permissions and reporting from authorities
will also be facilitated.

The development of a technical specification of EFB fuel requires substantial effort and
experiences. To tackle this problem, the standards of fuel for trade can be introduced.
These standards include the specifications for moisture, heating value, fibre length,
impurities and control procedures. Thats mean the EFB will be pre-processed before
sold as fuel and this can guarantee the quality of EFB fuel.

In order to establish certainty in fuel quality, the following aspects of EFB as a fuel
must be addressed in the fuel standards:
Fuel Specification;
Sampling and Testing Methods.

Fuel specification describes the following properties of EFB fuel:
Origin of fuel source of supply;
Fuel preparation and storage;
Physical & Chemical characteristics.

Example of a specification and detail specification and standards can be developed for
EFB as a fuel as tabulated in Table 7 & 8 below:
Table 7 Examples of fuel characteristics of EFB fuel in Malaysia
Parameters Specification
Origin Palm Oil Processing Residues
Traded Form Empty Fruit Bunch (EFB)
Usage Biomass Boiler
Properties Particle P 45, Moisture M60, Ash A1.5
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Table 8: Examples of fuel characteristics of EFB fuel in Malaysia
Properties Example of Description / Quality Range
Origin (Source of fuel), Location Palm oil processing biomass residues
Traded form EFB
Preparation / Storage
Description: Shredding, press etc. Shred into small size and further screw press
to reduce moisture content.
Age of fuel 1-3 days
Storage / Conditions Open, no fungal activities observed
Physical & Chemical Characteristics
Moisture content (% weight as
received)
45-55%
Calorific value (67% moisture content
Low Heating Value)
4.3 MJ/kg
Net Calorific value (Dry matter Low
Heating Value)
18 MJ / kg
Bulk density (kg/m
3
loose) as received xx
Particle density (kg/m
3
) xx
Fibre length (mm) xx
Looseness (fluffiness) xx
Impurities
(dust, sand, dirt, aggregates)
Dust, soil, mud, sand, residue oil.
Total carbon, hydrogen, nitrogen xx
Sulphur (% weight of dry basis) xx
Chlorine (% weight of dry basis) xx
Major element (Al, Ca, Fe, Mg, P, K, Si,
Na & Ti)
xx
Minor element (As, Cd, Co, Cr, Cu etc.) xx
Ash content (% weight of dry basis) xx
Ash composition (wt. %) SiO
2
=34.7 MgO=2.90 TiO
2
=0.10
Fe
2
O
3
=3.9 AlO
3
=1.20 Na
2
O=0.80
P
2
O
5
=2.50
CaO=3.30 K
2
O=40.10 SO
3
=8.00

Sources:
UKM, PTM, FRIM & SIRIM

Ash melting behaviour xx
Soluble alkalis (potassium) xx
(Source: Adapted from the European Committee for Standardisation, 2002)
From this study, discussion with the various boiler suppliers gives the following
demand of EFB fuel characteristics:

Table 9: Examples of boiler supplier demand on EBF fuel in Malaysia
Property Supplier A Supplier B Supplier C Range
Moisture
content
50-55 % 40-45% < 45% 40-55%
Fuel Size (fibre
length mm)
Not specified <50 < 75 50-75 mm
(Source: Personal communication with boiler suppliers, April 2005)

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 50 -
It can be noted that the existing desirable raw EFB should have moisture content in the
range of 40-55% while fibre length of less than 75 mm. With the maturing of biomass
technologies in Malaysia with EFB application, the range is expected to be smaller and
more specific in the future for the fuel specification.

Sampling and Testing Methods
The various technical specifications need further elaboration of sampling and testing
method. Description of sampling standards ideally includes information such as:
Definition of sample e.g. common sample, combined sample, increment etc.;
Types of sampling equipment e.g. scoop, shovel, fork etc.;
Sampling point, size, plan;
Labelling and handling of samples;
Certificate of sampling.
An example of biomass (wood chips) fuel sampling is illustrated below:

Figure 15: Example of standard sampling of biomass in Sweden
(photo: Soon Hun Yang, 2003)

Example of sampling and testing standards can be developed into for example:

Table 10 Examples of Sampling and Testing Method Form for EFB Fuel
Properties
Description / Quality
Range
Sampling Method &
Procedure
Testing Method and
Procedure
Source of Supply
Source of fuel Palm oil biomass
residue (EFB)

Traded form EFB
Pre-treatment
Description:
Shredding, press etc.
Shred into small size
and further screw
press to reduce
moisture content.

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 51 -
EFB may be
compacted to about
one seventh of its
volume after
shredded and
squeezed out the
liquor content
Error!
Bookmark not defined.
.
Age of fuel:
(storage time,
conditions)

Physical properties
Calorific value (Dry
matter Low Heating
Value)
18 MJ / kg
Moisture content 45-55% 1-10 kg Weight before and
after heating @ 103
C ~ 1 hour.
Looseness
(fluffiness)
Visual
Fibre length
Impurities
Impurities
(dust, sand, dirt,
aggregates)
Dust, soil, mud, sand,
residue oil.

Soluble alkalis
(potassium)

Ash composition (wt.
%)
SiO
2
=34.7
MgO=2.90
TiO
2
=0.10
Fe
2
O
3
=3.9
AlO
3
=1.20
Na
2
O=0.80
P
2
O
5
=2.50
CaO=3.30
K
2
O=40.10
SO
3
=8.00

Sources:
UKM, PTM, FRIM &
SIRIM


Ash melting
behaviour

Residual oil

0.1 -0.2 % of EFB
27

(Source: Adapted from the European Committee for Standardisation, 2002)





27
Menon, Ravi (1999). Waste products from oil palm industry and their utilization potential.
Presented at the World Renewable Energy Congress, Kuala Lumpur, 8-11 June.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 52 -

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 53 -
6. References
Anon (2005). Background report 2: Renewable energy resources. Integrated
Resource Planning, Economic Planning Unit.

Anon (2004). The status of REPPA review exercise. BioGen News: Volume 1, Issue 1.

Anon. (2000). Feasibility study on grid connected power generation using biomass
cogeneration technology. Pusat Tenaga Malaysia. Pg 12.

CETREE (2002). Modern renewable energy technologies are totally competitive with
conventional energy strategies. In Renewable energy: A private sector initiative.)

Chow, Mee Chin. (2005). An assessment of pontential and availability of palm
biomass for bioconversion to bioethanol. NIRAS Consulting Engineers and Planners
A/S, on Provision of consultancy services on renewable energy efficient component.

European Committee for Standardisation. (2002). Final Draft : Technical Specification
for Solid Bio-fuels Fuel specification and classes. Stassart, Brussels.

European Committee for Standardisation. (2002). Final Draft : Technical Specification
for Solid Bio-fuels Sampling Part 1: Methods for sampling. Stassart, Brussels.

European Committee for Standardisation. (2002). Final Draft : Technical Specification
for Solid Bio-fuels Sampling Part 2: Methods for sampling particulate material
transported in lorries. Stassart, Brussels.

European Committee for Standardisation. (2002). Final Draft : Technical Specification
for Solid Bio-fuels Terminology, definition and description. Stassart, Brussels.

Karunakaran, Phubalan (2003). Industrial energy audit guidelines: A handbook for
energy auditors bibliography. Pusat Tenaga Malaysia.

Menon, Ravi, Rahman, Zulkifli & Bakar, A. Nasrin. (2003). Empty fruit bunches
evaluation: mulch in plantation vs. fuel for electricity generation. Oil palm industry
economic journal: Vol. 3(2)/2003. Malaysian Palm Oil Board 2003.

Menon, Ravi (1999). Waste products from oil palm industry and their utilization
potential. Presented at the World Renewable Energy Congress, Kuala Lumpur, 8-11
June.

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 54 -
Olle, Nystrm (2004). Applicability and competitive position of European equipment.
EC ASEAN Cogeneration Programme Phase III.

Reuters (25 Oct 2005). Malaysias Tenaga Q4 profit falls on higher costs. Accessed
at http://aseanenergy.org/news/

Samad, J. A. (2005). Renewable Energy The need for further incentives. In
Jurutera, February 2005.

Stowell, Graham & Tubb, Victoria. (2000). Maximising energy from biomass A
practical view considering the technology issues within three case studies in Asia.
Presented in Energy Resource 2000 Virtual Conference.

Suki, Anhar, Wok, Kamal & Nor, Mohd Tusirin (2005). Biomass utilization: Prospects &
challenges. Presented at International Palm Oil Congress (PIPOC), Kuala Lumpur, 25-
29 September.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 55 -
Annex A: Directory of Palm Oil Mills in Malaysia (valid till mid 2004)
No. Mill Name Mill Owner Cor State Mill Add 1
1 Bukit Benut Oil Palm Mill Golden Hope Plantations Johor Darul Takzim Bukit Benut Oil Mill, Batu 7, Jalan Renggam, 86009
2 Kilang Kelapa Sawit Ayer Itam Asiatec Development Berhad Johor Darul Takzim Batu 54, Jalan Johor, 86100 Ayer Itam
3 Kilang Kelapa Sawit Gomali IOI Corporation Berhad Johor Darul Takzim Batu 5, Jalan Gemas-Batu Anam, 85109 Batu Anam
4
Bandung Palm Oil Industries Sdn
Bhd Johor Darul Takzim
Batu 1, jalan Gambir, Kangkar Senangar, Parit Sulong,
83500 Batu Pahat
5 KSBP (Parit Ju) Sdn Bhd Johor Darul Takzim
Lot 4910-4911, Parit Ju, Mukim 4, Simpang Kiri, 83000
Batu Pahat
6 Kilang Kelapa Sawit Johor Labis Johor Darul Takzim c/o Johor Labs Estaste, 85400 Chaah
7 Kilang Kelapa Sawit Chaah Kumpulan Guthrie Berhad Johor Darul Takzim Chaah Estate, 17 Km., 002093-104000
8 Kilang Kelapa Sawit Ulu Tiram/Kulim Kulim Plantations (M) Bhd Johor Darul Takzim KKS Tiram, Mukim Ulu Tiram, Johor Bahru
9 Sedenak Oil Palm Mill
Perbadanan Kemajuan Negeri
Johor (PKENJ) Johor Darul Takzim Batu 28, Jalan Air Itam, Johor Bahru
10 Kilang Kelapa Sawit Sungai Kahang Johor Darul Takzim
Batu 22, Jalan Mersing, Lot 402, Mukim Kahang,
Kluang
11
Ladang Padang Kahang (Seong
Thye) Johor Darul Takzim
Lot 2262, Ladang Padang Kahang, Kahang, 86700
Kluang
12 Coronation Palm Oil Mill Johor Darul Takzim Batu 3, Jalan Batu Pahat
13 Kahang Palm Oil Mill Sdn Bhd Johor Darul Takzim Batu 26 Jalan Mersing, 86700 Kahang, Kluang
14 Kilang Kelapa Sawit Bukit Lawiang Johor Darul Takzim Km. 20, Lebuhraya Kluang-Kota Tinggi, 86007 Kluang
15
Kluang Oil Palm Processing Sdn
Bhd Johor Darul Takzim Batu 4 1/2, Jalan Mersing, 86000 Kluang
16 Kilang Kelapa Sawit Belitong Felda Palm Industries Sdn Bhd Johor Darul Takzim Km. 30, Jalan Kluang-Kota Tinggi, 86000 kluang
17 Kilang Kelapa Sawit Kahang Felda Palm Industries Sdn Bhd Johor Darul Takzim
18 Kilang Sawit Nitar Felda Palm Industries Sdn Bhd Johor Darul Takzim Batu 32, Jalan kluang, Mersing, Jemaluang
19 Kahang Palm Oil Mill IOI Corporation Bhd Johor Darul Takzim Batu 26, Jalan Kahang-Mersing, 86700 Kluang
20 Ladang Tereh Mill Kulim Plantations (M) Bhd Johor Darul Takzim MukimPaloh/Niyor, Kluang
21
Kilanmg Kelapa Sawit Sungai
Tawing Kumpulan Guthrie Berhad Johor Darul Takzim Mukim Paloh, Kluang
22 Kilang Kelapa Sawit Pamol Pamol Plantations Sdn Bhd Johor Darul Takzim Batu 8 1/2, Jalan Mersing, 86000 Kluang
23 Sindora Palm Oil Mill
Perbadanan Kemajuan Negeri
Johor (PKENJ) Johor Darul Takzim Km. 23, Jalan Kluang/Bandar Tenggara, 86009 Kluang
24 Chan Wing Palm Oil Mill Sime Darby Berhad Johor Darul Takzim Km. 32, Labis
25 Kilang Kelapa Sawit Air Tawar Johor Darul Takzim Felda Air Tawar 2, 81920 Kota Tinggi
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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26 Kim Loong Palm Oil Sdn Bhd Johor Darul Takzim Batu 7, Jalan Mawai, 81900 Kota Tinggi
27 Tai tak Oil Palm Mill Johor Darul Takzim Batu 21/22, Jalan Kota Tinggi, 81900 Kota Tinggi
28 Telok Sengat Oil Palm Mill
Boustead Estate Agency Sdn
Bhd Johor Darul Takzim
29 Kilang Kelapa Sawit Adela Felda Palm Industries Sdn Bhd Johor Darul Takzim Km. 51, Jalan Pengerang, 81907 Kota Tinggi
30 Kilang Kelapa Sawit Lok Heng Felda Palm Industries Sdn Bhd Johor Darul Takzim Km. 19, Jalan Desaru, 81907, Kota Tinggi
31 Kilang Kelapa Sawit Semencu Felda Palm Industries Sdn Bhd Johor Darul Takzim
32 Kilang Kelapa Sawit Sening Felda Palm Industries Sdn Bhd Johor Darul Takzim
33 Felda Kilang Kelapa Sawit Wa Ha Felda Palm Industries Sdn Bhd Johor Darul Takzim
34 Kilang Kelapa Sawit Tenggaroh 4 Felda Palm Industries Sdn Bhd Johor Darul Takzim Jemaluang, 86801 Mersing
35
Kilang Kelapa Sawit Tenggaroh
Timur Felda Palm Industries Sdn Bhd Johor Darul Takzim
36 Kilang Kelapa Sawit Pasir Panjang
Perbadanan Kemajuan Negeri
Johor (PKENJ) Johor Darul Takzim Lot MLO 27, Mukim Rambau, Kota Tinggi
37 Kilang Kelapa Sawit Siang
Perbadanan Kemajuan Negeri
Johor (PKENJ) Johor Darul Takzim Batu 29, Jalan Desaru, Mukim Penawar, Kota Tinggi
38 Tunjuk Laut Oil Palm Mill
Perbadanan Kemajuan Negeri
Johor (PKENJ) Johor Darul Takzim Bau 18, Jalan Kota Tinggi-Mersing
39 Malim Sawit Oil Palm Mill Johor Darul Takzim Lot 3460, Mukim Layang-Layang, 86000 Kulai
40 Ulu Sebol Oil Palm Mill Johor Darul Takzim
41 Kulai Besar Oil Mill Asiatec Development Berhad Johor Darul Takzim Batu 19, Jalan Johor-Air Itam, 81000 Kulai
42 Kilang Kelapa Sawit Bukit Besar Felda Palm Industries Sdn Bhd Johor Darul Takzim
43
Kilang Kelapa Sawit Kulai (Taib
Andak) Felda Palm Industries Sdn Bhd Johor Darul Takzim
44 Kilang Kelapa Sawit Penggeli Felda Palm Industries Sdn Bhd Johor Darul Takzim
45 Kilang Kelapa Sawit Fraser Kuala Lumpur-Kepong Berhad Johor Darul Takzim Ladang Chaah, Mukim Chaah Baru, Batu Pahat
46 Kulai Palm Oil Mill Sime Darby Berhad Johor Darul Takzim Batu 25, Jalan Air Itam-Kulai, Johor Bahru
47 Alaf Palm Oil Mill YPJ Oil Estate Sdn Bhd Johor Darul Takzim
YPJ Oil Estate Sdn Bhd, Alaf Palm Oil Mill, Batu 16,
Kulai, 81000 Kota Tinggi
48 Kilang Sawit Maokil Felda Palm Industries Sdn Bhd Johor Darul Takzim
49 Kilang Kelapa Sawit Ulu Remis Kumpulan Guthrie Berhad Johor Darul Takzim Batu 6, Jalan Renggam, Layang-Layang, Kluang
50 Masai Oil Palm Mill Kilang Kelapa Sawit Masai Johor Darul Takzim
No. 10-16, Jalan Sagu 8, Taman Daya, 81100 Johor
Bahru
51 Kilang Sawit Risda Sungai Ambat Risda Johor Darul Takzim Batu 32, Jalan Kota Tinggi-Mersing, 86810 Mersing
52
Kilang Kelapa Sawit Bukit Pasir Sdn
Bhd Johor Darul Takzim Batu 11, Off Jalan Bukit Pasir, 84300 Muar
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 57 -
53 Kilang Kelapa Sawit Muar Bhd Johor Darul Takzim
Lot 2743, Mukim Parit Jawa, Jalan Bukit Mor (Off 9 1/2
Mile, Jalan Yong Peng), Muar
54 Kilang Kelapa Sawit Bukit Kepong Felcra Berhad Johor Darul Takzim Bukit Kepong, Muar
55 Kilang Kelapa Sawit Nordanal Golden Hope Plantations Johor Darul Takzim 84500 Panchor, Muar
56
Perusahaan Minyak Sawit Bintang
Sdn Bhd Johor Darul Takzim
Batu 6 1/2, Jalan Paloh-Yomh Peng, T.S.T. No. 30,
86609 Paloh
57 Kilang Kelapa Sawit Landak Kuala Lumpur-Kepong Berhad Johor Darul Takzim Ladang Landak, Mukim Paloh, 86009 Paloh
58 Kilang Kelapa Sawit Paloh Kuala Lumpur-Kepong Berhad Johor Darul Takzim Lot 51, Mukim Paloh, 86609 Paloh
59 Kilang Sawit United Bell Sdn Bhd Karung Berkunci No. 103 Johor Darul Takzim Batu 7 1/2, Jalan Sawah, Pekan Nenas, Pontian
60 C.E.P. Renggam Palm Oil Mill Sime Darby Berhad Johor Darul Takzim 86300 Renggam
61 Bukit Bujang Palm Oil Mill Johor Darul Takzim
PTD 444, Mukim Buluh Kasap, Ladang Bukit Bujang,
85010 Segamat
62 KKS Selumpur Sdn Bhd Johor Darul Takzim Lot 1124, Mukim Sermin, Segamat
63
Stable Win Sdn Bhd (Segamat Oil
Palm Mill) Johor Darul Takzim Batu 10, Jalan Labis, PO Box No. 57, 85007 Segamat
64 Keratong Estate Oil Palm Mill Chin Teck Plantations Bhd Johor Darul Takzim Bukit Ibam, Rompin
65
Syarikat Pukin Ladang Kelapa Sawit
Sdn Bhd IOI Corporation Berhad Johor Darul Takzim 30 Km. Lebuhraya Tun Razak-Keratong
66 Palong Cocoa Palm Oil Mill
Perbadanan Kemajuan Negeri
Johor (PKENJ) Johor Darul Takzim 7 1/2 Km., Jalan Segamat-Kuantan, 85009 Segamat
67 Southern Malay Oil Palm Mill Johor Darul Takzim Bt. 41, Jalan Johore Baru, 86200 Simgpang Renggam
68
Syarikat Perusahaan Kelapa Sawit
Sdn Bhd Johor Darul Takzim Batu 9 3/4, Jala Labis, 83700 Yong Peng
69 Kilang Kelapa Sawit Yong Peng Kumpulan Guthrie Berhad Johor Darul Takzim Batu 6, Jalan Paloh, Yong Peng
70
Setiakawan Kilang Kelapa Sawit
Sdn Bhd Kedah
98A, Jalan Batu Putih, Mukim Padang Cina, 09700
Kulim
71 Taclico Oil Palm Mill Kedah
MK Padang Meha, Lot No. 20, 21 & 29, 09400 Padang
Serai
72 Bukit Mertajam Oil Palm Mill
Boustead Estate Agency Sdn
Bhd Kedah Sg. Kob, 09700 Karangan
73 Batu Lintang Oil Palm Mill Kuala Lumpur-Kepong Berhad Kedah Lot 5, Bandar Baru, 09800 Serdang
74 Kilang Sawit KPSB Paloh 3 Kelantan KPSB Paloh 3, 18300 Gua Musang
75 Gua Musang Oil Palm Mill Chin Teck Plantation Bhd Kelantan 18300 Gua Musang
76 Kilang Sawit Airing A Felda Palm Industries Sdn Bhd Kelantan Ladang Aring 2, 18300 Gua Musang
77 Kilang Sawit Airing B Felda Palm Industries Sdn Bhd Kelantan Km. 40, Gua Musang
78 Kilang Sawit Chiku Felda Palm Industries Sdn Bhd Kelantan Mukim Chiku, Gua Musang
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 58 -
79 Kilang Kelapa Sawit Serasa Kelantan Mukim Sg. Bayu, 18000 Kuala Krai
80 Lepan Kabu Oil Palm Mill
Boustead Estate Agency Sdn
Bhd Kelantan 18000 Pahi, Kuala Krai
81 Kuala Sawit Kuala Pertang Kuala Lumpur-Kepong Berhad Kelantan 18000 Kuala Krai
82 Kilang Sawit Kemahang Felda Palm Industries Sdn Bhd Kelantan Mukim Kemahang, Tanah Merah
83 Kilang Sawit Jerangau Felda Palm Industries Sdn Bhd Kuala Terengganu Kilang Sawit Jerangau
84 Kilang Sawit Felda Chalok Felda Palm Industries Sdn Bhd Kuala Terengganu KKS Felda Chalok
85 Kilang Sawit Jerangau Barat Felda Palm Industries Sdn Bhd Kuala Terengganu
86 Rakyat Ketengah Perwira Sdn Bhd Kuala Terengganu Bandar Ceneh Baharu
87 Kilang Sawit Risda Durian Mas
Kumpulan Kilang Sawit Risda
Sdn Bhd Kuala Terengganu Kawasan Perindustrian Bandar Al-Muktafi Billah Shah
88 Kilang Sawit Kerteh Felda Palm Industries Sdn Bhd Kuala Terengganu Perbadanan Kilang FELDA
89 Kilang Sawit Bukit Kapah Kuala Terengganu
90 Sungai Tong Oil Palm Mill Kuala Terengganu Kilang Kelapa Sawit Sungai Tong, Setiu
91 Nam Bee Company Sdn Bhd Melaka No. 87, Jalan Kg. Hulu, 75200
92 Diamond Jubilee Oil Mill
Golden Hope Plantations Sdn
Bhd Melaka Batu 24 3/4, Jalan Chabau/Asahan, 7709 Jasin
93 KKS Sri Lingga Sdn Bhd Melaka Batu 32, Kuala Linggi, Kuala Sg. Baru
94 Prosper Palm Oil Mill Sdn Bhd
Negeri Sembilan
Darul Khusus
Lebuhraya Bahau-Keratong, 72120 Bandar Baru
Serting
95 Kilang Kelapa Sawit Palong Timor Felda Palm Industries Sdn Bhd
Negeri Sembilan
Darul Khusus
96 Gemas Oil Mill Sdn Bhd
Negeri Sembilan
Darul Khusus Lot 514 / 515, Kg Tiong, 73400 Gemas PO
97
MPOB Experimental Palm oil Mill
(Labu) Kumpulan Guthrie Berhad
Negeri Sembilan
Darul Khusus Km. 16, Jalan Labu
98 Kilang Kelapa Sawit Linggi
Negeri Sembilan
Darul Khusus Lot 2680, Ladang Sua Manggis, 71150 Linggi
99 Tanah Merah Oil Palm Mill Kumpulan Guthrie Berhad
Negeri Sembilan
Darul Khusus
Batu 6 3/4, Jalan Sepang-Port Dickson, Tanah Merah,
71007 Port Dickson
100 Ulu Kanchong Oil Palm Mill
Negeri Sembilan
Darul Khusus
Gan Teng Siew Realty Sdn Bhd, Ulu Kanchong Estate,
71209 Rantau
101 Kilang Kelapa Sawit Rantau Kumpulan Guthrie Berhad
Negeri Sembilan
Darul Khusus Batu 1, Jalan Rantau-Siliau, 71209 Rembau
102 Kilang Kosfram Sdn Bhd
Pahang Darul
Makmur Lot PT 256, Mukim Keratong, Rompin
103 Kok Foh Palm Oli Mill Austarl Enterprises Bhd Pahang Darul
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Makmur
104 Jeram Padang Oil Palm Mill Kuala Lumpur-Kepong Berhad
Pahang Darul
Makmur Jalan Tampin
105 Bukit Berembun Palm Oil Mill
Pahang Darul
Makmur Lot PT 360, Ladang Bukit Berembun, Mukim Keratong
106 Kilang Kelapa Sawit Serting Hilir Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
Kilang Kelapa Sawit Serting hilir, Highway Keratong,
Segamat
107 Kilang Kelapa Sawit Jengka 3 Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
108 Kilang Kelapa Sawit Jengka 4 Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
109 Kilang Kelapa Sawit Jengka 8 Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
110 Kota Bahagia Oil Palm Mill
Pahang Darul
Makmur
Lot PT 289 (HSD) 83, Bandar 14, Kota Bahagia,
Keratong
111 Ladang Rompin Oil Mill
Pahang Darul
Makmur Km. 44, Jalan Rompin, Muadzam Shah
112 Kilang Kelapa Sawit Lepar Utara 4 Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
113 Kilang Kelapa Sawit Lepar Utara 6 Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
114 Kilang Kelapa Sawit Chenor Kumpulan Guthrie Berhad
Pahang Darul
Makmur Sungai Jerik, 26409 Bandar Pusat Jengka
115 Kilang Kelapa Sawit Jengka 9 Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
116 Kilang Kelapa Sawit Keratong 2 Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
117 Kilang Kelapa Sawit Keratong 3 Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
118 Kilang Kelapa Sawit Keratong 9 Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
119 Kilang Kelapa Sawit Krau Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
120 Kilang Kelapa Sawit Mempaga Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
121 Kilang Kelapa Sawit Serting Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur Kilang Kelapa Sawit Serting, 72109 Jempol
122
Kilang Kelapa Sawit FELCRA Bhd
Jaya Putra
Pahang Darul
Makmur Mukim Ulu Cheka, Jerantut
123 Kilang Kelapa Sawit Jerantut Sdn Pahang Darul PT 2571, Mukim Tebing Tinggi, Kg. Jeransong, 27100
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 60 -
Bhd Makmur Jerantut
124 Kilang Kelapa Sawit Kota Gelanggi Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
125 Kilang Kelapa Sawit Padang Piol Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
126 Kilang Sawit Kemaman
Pahang Darul
Makmur Mukim Tebak
127 Kilang Sawit Panji Alam Sdn Bhd
Pahang Darul
Makmur Bandar Seri bandi
128 Jeng Huat (Bahau) Realty Sdn Bhd
Pahang Darul
Makmur
KKS Ladang Juntai, Wakil Pos Kemayan, 28380
Kemayan
129 MHC Kemayan Plantation Sdn Bhd
Pahang Darul
Makmur Lot 15, Mukim Bera, Bera
130 Kilang Kelapa Sawit Kechau Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
131 Kilang Kelapa Sawit Kechau B Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
132 Endau Palm Oil Mill
Pahang Darul
Makmur NS(D) 1446, No. PT 1112 Mukim Endau Rompin
133 Kilang Kelapa Sawit Lepar
Pahang Darul
Makmur Blok 7, Kompleks Perladangan Lepar, Pekan
134 Pahang Enterprise Palm Oil Mill
Pahang Darul
Makmur PT116, Lot 3840, Mukim Ulu Lepar, Kuantan
135 Soon Seng Palm Oil Mill Sdn Bhd
Pahang Darul
Makmur Batu 19 1/2, Sg. Lembing, 25700 Kuantan
136 Kilang Sawit Neram Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur FELDA Neram 1
137 Kilang Kelapa Sawit Bukit Sagu Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
138 Kilang Kelapa Sawit Cini 3 Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
139 Kilang Kelapa Sawit Lepar Hilir 1 Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
140 Kilang Kelapa Sawit Pancing Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
141 Kilang Sawit Jabor Kumpulan Guthrie Berhad
Pahang Darul
Makmur Ulu Jabor
142 Suburban Properties Sdn Bhd
Pahang Darul
Makmur Blok 14, Mukim Keratong, Rompin
143 Kema Development Sdn Bhd Pahang Darul Pal Oil Mill Division, 26030 Sri Jaya, Maran
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 61 -
Makmur
144
Sri Senggora Kilang Kelapa Sawit
Sdn Bhd
Pahang Darul
Makmur PT 6108, Jalan Kg. Belimbing, 26500 Maran
145 Timur Oil Palm Plantation Bhd
Pahang Darul
Makmur Batu 4,Jalan Sekolah, 26500 Maran
146 Kilang Kelapa Sawit FELCRA Maran FELCRA Berhad
Pahang Darul
Makmur Simpang Jengka, Jalan Maran
147
Syarikat Penanaman Bukit
Senarong Sdn Bhd
Pahang Darul
Makmur 28380 Kemayan
148
Kilang Minyak Kelapa Sawit
Samantan Sdn Bhd
Pahang Darul
Makmur Batu 3, Lebuhraya Karak, 28407 Mentakap
149 Dara Lam Soon Oil Palm Mill
Pahang Darul
Makmur Ladang Sungai Merba, Pahang Tenggara
150 Kosma Palm Oil Mill
Pahang Darul
Makmur Lot ITS (D) 5, Lot PT 356 Mukim Keratong, Rompin
151 Rompin Palm Oil Mill Sdn Bhd
Pahang Darul
Makmur
Ladang Juasa, H.S9D) 1942, PT 3922, Mukim Bebar,
Pekan
152 Kilang Kelapa Sawit Bukit Leelau IOI Corporation Berhad
Pahang Darul
Makmur 75 Km. Kuantan/Segamat, 26700 Muadzam Shah
153
Kilang Kelapa Sawit LKPP Perwira
Sg. Jernih
Boustead Estate Egency Sdn
Bhd
Pahang Darul
Makmur
Km. 71, Lebuhraya-Kuatan-Segamat, Paloh, Hinai,
26650 Pekan
154 Kilang Kelapa Sawit Cini 2 Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
155 Raub Oil Mill Sdn Bhd
Pahang Darul
Makmur Bt. Koman, Lot 6073, Mukim Gali, Raub
156 Kilang Kelapa Sawit Sungai Koyan Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
157 Kilang Kelapa Sawit Tersang Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
158 Sawira Sdn Bhd
Pahang Darul
Makmur Lot 792, Mukim Keratong, Rompin
159 Kilang Kelapa Sawit Selendang Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
160 Kilang Kelapa Sawit Lum Sdn Bhd
Pahang Darul
Makmur Blok 13, Mukim Keratong, Rompin
161
Kuantan Trading Palm Oil Mill Sdn
Bhd
Pahang Darul
Makmur Blok 15, Keratong, Rompin
162
Lian Hup Manufacturing Co. Sdn
Bhd
Pahang Darul
Makmur
Blok 12, Ulu Keratong, Cenderawasih, 26700 Muadzam
Shah
163 Tee Teh Oil Palm Mill Pahang Darul Blok No. 10, Mukim Keratong, Rompin
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Makmur
164 Kilang Kelapa Sawit Selancar 2A Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
165 Kilang Kelapa Sawit Selancar 2B Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
166
Kilang Kelapa Sawit Risda Ulu
Keratong
Kumpulan Kilang Kelapa Sawit
Risda Sdn Bhd
Pahang Darul
Makmur Km. 32, Lebuhraya Tun Razak, Kuala Rompin
167
Jemina & Sg. Sendayan Estate Sdn
Bhd Chin Teck Plantations Bhd
Pahang Darul
Makmur Batu 10, Jalan Seremban-Siliau, Port Dickson, 71100
168 Kilang Kelapa Sawit Pasoh Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur 72300 Simpang Pertang
169
Kilang Kelapa Sawit LKPP Charuk
Putting Sdn Bhd
Pahang Darul
Makmur KKS Charuk Putting, 28000 Temerloh Pahang
170 Kerdau Palm Oil Austral Enterprises Bhd
Pahang Darul
Makmur
Lot 575, HS (D) 5401, Ladang Kerdau, Kerdau,
Temerloh
171 Kilang Kelapa Sawit Jengka 18 Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
172 Kilang Kelapa Sawit Seroja Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
173 Kilang Kelapa Sawit Bukit Kepayang Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
174 Kilang Kelapa Sawit Bukit Mendi Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
175 Kilang Kelapa Sawit Kemasul Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
176 Kilang Kelapa Sawit Tementi Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
177 Kilang Kelapa Sawit Triang Felda Palm Industries Sdn Bhd
Pahang Darul
Makmur
178
Tian Siang Oil Mill (Air Kuning0 Sdn
Bhd
Perak Darul
Ridzuan Lot 2161 & 2162
179 Changkat Cermin Oil Palm Mill
Perak Darul
Ridzuan
180 Kalumpang Oil Mill Sdn Bhd Kumpulan Guthrie Berhad
Perak Darul
Ridzuan
181 Tali Ayer Oil Palm Mill Sime Darby Bhd
Perak Darul
Ridzuan
182
Yee Lee Palm Oil Industries Sdn
Bhd
Perak Darul
Ridzuan
183 Kilang Sawit Felda Nasaruddin Felcra Berhad Perak Darul Km. 37, Jalan Tronoh, 32600 Bota
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Ridzuan
184 Dinding Oil Palm Industries Sdn Bhd
Perak Darul
Ridzuan Batu 26, Jalan Taiping / Bruas
185 Pantai Remis Palm Oil mill Sdn Bhd
Perak Darul
Ridzuan Lot 790
186 KKS Lekir Sdn Bhd
Perak Darul
Ridzuan Lot PT No. 20
187 Sungai Samak Oil Palm Mill
Golden Hope Plantations
Berhad
Perak Darul
Ridzuan Ladang Sungai Samak, 36500 Ulu Bernam, Hilir Perak
188 Southern Perak Plantations Sdn Bhd
Perak Darul
Ridzuan KKS Southern Perak
189 Kilang Sawit Felcra Seberang Perak Felcra Berhad
Perak Darul
Ridzuan Bandar Baru Seberang Perak, 36800 Kg. Gajah
190
Minsawi Industries (Kuala Kangsar)
Sdn Bhd
Perak Darul
Ridzuan Batu 29, Kampong Chuar, Kati
191 Gula Estate Oil Palm Mill
Perak Darul
Ridzuan
192 Malmaju Bina Sdn Bhd
Perak Darul
Ridzuan
193
Gabungan Perusahaan Minyak
langkap Ngan & Ngan Holding Sdn Bhd
Perak Darul
Ridzuan
194
United International Enterprise (M)
Sdn Bhd
Perak Darul
Ridzuan Lot 2986, Mk. Pengkalan Bahru
195 Sungai Kerang Palm Oil Mill Ngan & Ngan Holding Sdn Bhd
Perak Darul
Ridzuan Lot 13477, Mkm. Belanja
196 Foong Lee Sawminyak Sdn Bhd
Perak Darul
Ridzuan Batu 9, Jalan Lintang
197 Lima Blas Palm Oil Mill
Perak Darul
Ridzuan Lot 1899, Mukim Ulul Bernam, Ulu Selangor
198 Kilang Sawit Besout Felda Palm Industries Sdn Bhd
Perak Darul
Ridzuan
199 Kilang Sawit Trolak Felda Palm Industries Sdn Bhd
Perak Darul
Ridzuan
200
Bukit Bersatu Oil Palm Industries
Sdn Bhd
Perak Darul
Ridzuan Batu 5, Jalan Kamunting
201 SYNN Palm Oil Sdn Bhd
Perak Darul
Ridzuan Batu 1, Jalan Kg. Dew, Simpang
202 Taiping oil Industries Bhd
Perak Darul
Ridzuan 78 Km, Jalan Ipoh-Butterworth
203 Kilang Sawit Tanjong Malim Kuala Lumpur- Kepong Berhad Perak Darul Ulu Selangor
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Ridzuan
204
Syarikat Cahaya Muda Perak (Oil
Mill) Sdn Bhd Ngan & Ngan Holding Sdn Bhd
Perak Darul
Ridzuan 3rd Mile, Jalan Bidor, 35007 Tapah
205 Anson Oil Industries Bhd
Perak Darul
Ridzuan Batu 2 1/2
206 Benta Plantations (Perak) Sdn Bhd
Perak Darul
Ridzuan
207 Dominion Palm Oil Mill Sdn Bhd
Perak Darul
Ridzuan Lot PT 76
208 Ganda Edible Oils Sdn Bhd
Perak Darul
Ridzuan Bt. 10, Off Batu 7
209 Perak Motor Co. Sdn Bhd
Perak Darul
Ridzuan Batu 12, Jalan Bidor
210
Syarikat Peladang Dan Perusahaan
Minyak Sdn Bhd
Perak Darul
Ridzuan Batu 4 1/2
211
Syarikat Pertanian Kilang Kelapa
Sawit Sdn Bhd Felcra Berhad
Perak Darul
Ridzuan Batu 12, Jalan Bidor, 36008 Teluk Intan.
212
Intan Palm Products Factory /
Selaba Oil Mill
Golden Hope Plantations
Berhad
Perak Darul
Ridzuan
Lot No. 7376, Km. 7, Jalan Changkat Jong, 36000
Teluk Intan.
213 Nova Scotia Oil Palm Mill Sime Darby Bhd
Perak Darul
Ridzuan
214 Jendarata Oil Palm Mill United Plantations Berhad
Perak Darul
Ridzuan Batu 16 1/2
215 Sri Pelangi Oil Palm Mill United Plantations Berhad
Perak Darul
Ridzuan
216 KKS Tg, Tulang Sdn Bhd
Perak Darul
Ridzuan Lot PT 1278
217 Temerloh Oil Mill Sdn Bhd
Perak Darul
Ridzuan
218 Tian Siang Oil Mill (Perak) Sdn Bhd
Perak Darul
Ridzuan Lot 2161 & 2162
219 Topaz Sdn Bhd
Perak Darul
Ridzuan Lot 1597, Km. 40
220 KKS TRP (Trong Palm Oil Mill) Boustead Estate Agency
Perak Darul
Ridzuan Lot No. 568, Mukim Trong
221 Malpom Industries Bhd Pulau Pinang
No. 3609, Jalan Changkat, 14300 Nibong Tebal,
Seberang Prai Selatan
222 M.P. Mathew Palm Oil Mill Sdn Bhd Pulau Pinang Lot 1254 & 1268, Mukim 7, Seberang Perai Selatan
223 United Oil Palm Industries Sdn Bhd Pulau Pinang
878, Jalan Bandar Baru, Sg. Kecil, 14300 Nibong
Tebal, Seberang Perai Selatan
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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224 Lumadan Oil Palm Mill Sabah BSSB Km. 29.5, Beafort-Sipitang Highway
225 Bornion Palm Oil Mill Kuala Lumpur-Kepong Berhad Sabah Km. 72, Lebuhraya Sandakan-Lahad Datu, Sandakan
226 Langkon Oil Palm Mill Borneo Samudera Sdn Bhd Sabah Kota Marudu
227 Giram Palm Oil Mill
Golden Hope Plantations
Berhad Sabah CL 105361322 , Giram Estate, Kunak
228 Kilang Sawit Binuang
Golden Hope Plantations
Berhad Sabah Kunak
229 KKS Jeleta Bumi Kumpulan Guthrie Berhad Sabah Ladang Jelata Bumi, 15 Km., Jalan Tingkayu, Kunak
230 Asia Oil Palm Sdn Bhd Sabah Km. 45, Off Road Lahad Datu, Sandakan Highway
231 KKS TSH Resources (Lahad Datu) Sabah
KKS TSH, Km. 48, Jalan Lahad Datu, Sandakan
Highway, Tawau
232 Kilang Sawit Tian Siang Sdn Bhd Sabah Batu 5, Off Batu 40, Lebuhraya Lahad Datu, Sandakan
233
Kwantas Oil Sdn Bhd (Haranky
P.O.M) Sabah Mile 24, Jalan Sandakan, Lahad Datu
234 Ladang Permai Sdn Bhd Sabah Jalan Silabukan, Km. 20, Lahad Datu
235 Mewah Ol Mill Sabah Jalan Sandakan, Kinabatangan
236 Pasific Cocoa P.O.M. Sabah Lot L.A. Sg. Pin, Kinabatangan
237 Pontian Fico Plantation Sdn Bhd Sabah Off 20Km., Jalan Sandakan/Lahad Datu
238 Sandau Mill Sdn Bhd Sabah Km. 33, Sandakan-Lahad Datu, highway Lahad Datu
239 Sebrang Palm Oil Mill Sabah Jalan Tungku, Lahad Datu
240 Sungai Tenegang Oil Palm Mill Sabah Km. 48, Jalan Lahad Datu-Sandakan
241 Tamaco Oil Mill Sdn Bhd Sabah Km. 24, Jalan Jeroco, Lahad Datu
242 Timora Palm Oil Mill Sabah
Estate Timora, Km. 25 Off Jalan Jeroco, Off Jalan
Lahad Datu, Sanadakan
243 Unico Desa Oil Mill Sdn Bhd Sabah Jalan Jeroco, Km. 13
244 Silabukan Oil Palm Mill Borneo Samudera Sdn Bhd Sabah Jalan Tengku, Batu 18, Lahad Datu
245 Segamaha Palm Oil Mill Boustead Estate Agency Sabah Lot No. CL 115343336, Lahad Datu
246 Kilang Sawit Baiduri Ayu Felda Palm Industries Sdn Bhd Sabah
247
Kilang Sawit Embara Budi (Sahabat
B) Felda Palm Industries Sdn Bhd Sabah
248 Kilang Sawit Fajar Harapan Felda Palm Industries Sdn Bhd Sabah
249 Kilang Sawit Harapan Badai Felda Palm Industries Sdn Bhd Sabah
250 Kilang Sawit Indera Bakti Felda Palm Industries Sdn Bhd Sabah
251 Kilang Sawit Jeragan Bistari Felda Palm Industries Sdn Bhd Sabah
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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252 Kilang Sawit Kembara Sakti Felda Palm Industries Sdn Bhd Sabah
253 Kilang Sawit Mercu Puspita Felda Palm Industries Sdn Bhd Sabah
254 Kilang Sawit Nilam Permata Felda Palm Industries Sdn Bhd Sabah
255 Jeroco Plantations Sdn Bhd Hap Seng Consolidated Bhd Sabah Km. 50 Off Jalan Jeroco
256 Baturong Palm Oil Mill IOI Corporation Bhd Sabah Ladang Baturong, Sg. Tinkayu, Kunak
257 Leepang Palm Oil Mill IOI Corporation Bhd Sabah Batu 13, Jalan Jeroco, Sandakan
258 Morisem Palm Oil Mill Sdn Bhd IOI Corporation Bhd Sabah Batu 13, Jalan Jeroco
259 Syarimo Palm Oil Mill IOI Corporation Bhd Sabah Lahad Datu
260 KKS Lungmanis Kuala Lumpur-Kepong Berhad Sabah CL 115363472, Ldg. Lungmanis Silabukan, Lahad Datu
261 Rimmer Oil Palm Mill Kuala Lumpur-Kepong Berhad Sabah Km. 29, Jalan Tungku, 91118 Lahad Datu
262 Sandakan Bay Oil Palm Mill Sime Darby Berhad Sabah Suan Lamba, Sandakan
263 Abadi Mewah Sdn Bhd Sabah Sg. Lokan, Kota Kinabatangan
264 Abedon Oil Mill Sdn Bhd Sabah
265 Atlantica Sdn Bhd Sabah Km. 72, Sandakan-Telupid Highway
266 Batu Putih Palm Oil Mill Sabah Lahad Datu
267 Berkat Setia Oil Palm Mill Sabah Km. 70, Jalan Labuk Sandakan, 90090 Sandakan
268 Everyield Sdn Bhd Sabah B1 1/2, Jalan Utara, 90307 Sandakan
269
KKS Tanah Emas Oil Palm
Processing Sabah
CL 085324803, Batu 80, Jalan Labuk, Labuk/Sugut,
Beluran
270 Ladang Mills Sdn Bhd Sabah
10 Km. Off 65 Km., Sandakan-Telupid Highway,
District Of Kinabatangan
271 Malsa Corporation Sdn Bhd Sabah
Km. 7, Jalan beluran, Off Km. 58, Jalan Labuk-Sugut,
Sandakan
272 Mayvin Palm Oil Mill Sabah 18 Km., Jalan Sandakan, Telupid Road (Batu 75)
273 Melewar Palm Oil Mill Sabah 3Km. Off 44, 7Km., Lahad Datu, Sandakan
274 Minat Teguh Oil Palm Mill Sabah Batu 23, Jalan Labuk, Sandakan
275 Monsok Palm Oil Mill Sabah Km. 85, Jalan Labuk-Sugut District, 90009 Sandakan
276 Profilic Yield Sdn Bhd Sabah Sg. Segaliud, Sandakan
277 Sungai Manjang Oil Palm Mill Sabah Batu 34, Jalan Labuk, 90007 Sandakan
278
Sungai Ruku Oil Palm Plantation
Sdn Bhd Sabah WDT No. 514, 90000 Sandakan
279 Syarikat Kretam Mill Sdn Bhd Sabah Batu 45, Jalan Sandakan- Lahad Datu, Sandakan
280 Syarikat Trushidup Sdn Bhd Sabah 5Km. Jalan Sukau, Sandakan
281 Tung Hup Palm Oil Mill Sdn Bhd Sabah 17Km. Off Sandakan-Lahad Datu Highway, Sungai Pin
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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District of Kinabatangan
282 Unico Oil Mill Sdn Bhd Sabah Batu 13, Jalan Lahad Datu-Sandakan, Lahad Datu
283
Wee Tee Tong Palm Oil Mill Sdn
Bhd Sabah
Off Km. 69, Sandakan-Lahad Datu Highway, Segaliud
Lokan, Kinabatangan
284 Sabapalm Oil Mill Asiatic Development Berhad Sabah Beluran, Labuk Valley, Labuk, Sugut
285 Sri Tanjung Oil Mill Asiatic Development Berhad Sabah Kinabatangan
286 Suan Lamba Oil Palm Mill Borneo Samudera Sdn Bhd Sabah Jalan Sukau, Kinabatangan, Sandakan
287 Sungai Manila Palm Oil Mill Borneo Samudera Sdn Bhd Sabah
Kilang Rancangan Sg. Manila, Jalan Labuk, Batu 12,
Sandakan
288 Nak Oil Palm Mill Boustead Estate Agency Sabah
Batu 19, Off Jalan Batu 3, Jalan Labuk, 90009
Sandakan
289 Kilang Sawit lancang Kemudi Felda Palm Industries Sdn Bhd Sabah
290 Bukit MasPalm Oil Mill Hap Seng Consolidated Bhd Sabah
Lot No. CL 095317614, Km. 40, Jalan Jerako Off Batu
13, Lahad datu/Sandakan Highway, Sandakan
291 Tomanggong Palm Oil Mill Hap Seng Consolidated Bhd Sabah Lower Sungai Segama, 90008 Sandakan
292 Desa Talisai Sdn Bhd IJM Plantations Sdn Bhd Sabah Km. 54, Jalan Labuk 90009 Sandakan
293 Ladang Sabah Palm Oil Mill IOI Corporation Bhd Sabah Ladang P.O.M., Batu 45, Telupid, Jalan Sandakan
294 Sakilan Palm Oil Mill IOI Corporation Bhd Sabah Labuk/Sugut, Beluran
295 Pamol Estate (Sabah) Sdn Bhd Pamol Plantations Sdn Bhd Sabah Labuk Valley, Beluran, 90408 Sandakan
296 KKS Sabahmas Perlis Plantation Berhad Sabah CL 115378955, Jalan Dam, Lahad Datu
297 Reka Halus Sdn Bhd Perlis Plantation Berhad Sabah Km. 8, Jalan Batu Sapi, Karamunting, Sandakan
298 Sapi Oil Palm Mill Perlis Plantation Berhad Sabah Km. 8, Jalan Batu Sapi, Karamunting, Sandakan
299 Terusan Palm Oil Mill Perlis Plantation Berhad Sabah Km. 8, Jalan Batu Sapi, Karamunting, Sandakan
300 Segaliud Palm Oil Mill Sime Darby Berhad Sabah Batu 36, Jalan Sandakan, Lahad Datu
301 Segaria Palm Oil Mill Boustead Estate Agency Sabah Km. 16 Off tawau-Semporna Highway, Semporna
302 Balung Palm Oil Mill Sdn Bhd Sabah Km. 47, Jalan Tawau-Semporna, Tawau
303 KKS Brantian Sabah Km. 85, Jalan Tawau-Kalabakan, Tawau
304 KKS Pinangah Sabah Km. 8.8, Jalan Sing-Sing, Off Km. 19, Semporna
305 Kunak Palm Oil Mill Sabah Km. 50, Lebuhraya Tawau, Lahad Datu
306 Tong Len Palm Oil Mill Sabah Batu 42, Highway Tawau-Semporna, Sandakan
307 TSH Plantation Sdn Bhd (Tawau) Sabah Mukim Kalumpang, Km. 41, Kunak, tawau Highway
308 Apas Balung Palm Oil Mill Borneo Samudera Sdn Bhd Sabah Km. 37, Jalan Apas, Tawau
309 Kilang Sawit Kalabakan Felda Palm Industries Sdn Bhd Sabah
310 Kilang Sawit Umas Felda Palm Industries Sdn Bhd Sabah
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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311 Merotai Oil Mill
Golden Hope Plantations
Berhad Sabah Bombalai, Jalan Merotai, Tawaua
312 Mostyn Oil Palm Mill
Golden Hope Plantations
Berhad Sabah Km. 78, Jalan Tawau-Kunak, 91207 Kunak
313 KL-Kepong (Sabah) Sdn Bhd Kuala Lumpur-Kepong Berhad Sabah Batu 40, Jln. Tawau-Semporna, 91109 Tawau
314 KKS Pinang Kuala Lumpur-Kepong Berhad Sabah Ladang Pinang, 52 Km., Jalan Semporna, Tawau
315 WTK Oil Mill Sdn Bhd (KKS Imbok) Sarawak Lot 318, Jalan Tanjung Batu,
316 KKS Derawan Austral Enterprise Bhd Sarawak Km. 60, Jalan Bintulu-Miri
317 Pekaka Palm Oil Mill Austral Enterprise Bhd Sarawak PO Box No. 164
318 Rajawali Palm Oil Mill Austral Enterprise Bhd Sarawak Km. 52, Jalan Bintulu-Miri
319 Saremas Sdn Bhd Perlis Plantation Bhd Sarawak Lot 43, Btg. Suai Off Km. 12, Jalan Miri-Bintulu
320 Saremas II Palm Oil Mill Perlis Plantation Bhd Sarawak Lot 35, Batang Suai
321
Trusan Palm Oil Mill (Kumpulan Kris
Jati Sdn Bhd) Sarawak Km. 15, Jalan Trusan,
322 Kilang Kelapa Sawit Sampadi Felda Palm Industries Sdn Bhd Sarawak
323 Batu Niah Oil Palm Mill Sarawak Mile 42, Bintulu Road
324
Bintulu Lumber Development Sdn
Bhd Sarawak Mile 40, Sawai Land District Suai
325 Kilang Kelapa Sawit Binu Plantation Sarawak Lot 199, Bakong land District
326 R.H. Palm Oil Mill Sarawak Lot 53, Box District
327 Sarawak Oil Palm Sdn Bhd Sarawak Km. 41, Jalan Miri-Bintulu
328 Niah Oil Palm Mill
Sarawak Plantation Agriculture
Dev. Sdn Bhd Sarawak 76 Km. Miri/Bintulu Road
329 Saratok Palm Oil Sdn Bhd
Lembaga Penyatuan dan
Pemulihan Tanah Sarawak
(SALCRA) Sarawak Ng Melupa, Sri Aman
330 Serian palm Oil Mill Sdn Bhd Sarawak Km. 4, Kedup / Mongkos Link Road
331 Mukah Oil Palm Mill
Sarawak Plantation Agriculture
Dev. Sdn Bhd Sarawak Lot 3, Block 8, Gigis Land District
332 Lubuk Antu Oil Palm Mill
Lembaga Penyatuan dan
Pemulihan Tanah Sarawak
(SALCRA) Sarawak Bt. 13, Jalan Ridan/Lubok Antu
333 Teluk Merbau Plantation
Dupont & Leosk Enterprise
Sdn Bhd
Selangor Darul
Ehsan
Lot 223, Mukim Sepang, Batu 47 1/2, Jalan
Klang/Sepang, Sepang
334 Eng Hong Palm Oil Mill Sdn Bhd
Selangor Darul
Ehsan
Ladang Eng Hong, Jalan Sg. Buaya, Mukim Bandar,
42700 Banting, Kuala Langat
335 Jugra Palm Oil Mill Sdn Bhd Selangor Darul Lot 340, Jalan Tok Mujir, Sg. Buaya, 42700 Banting,
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Ehsan Kuala Langat
336 Dusun Durian Palm Oil Mill Golden Hope Plantation Bhd
Selangor Darul
Ehsan
Batu 26 1/2, Jalan Banting-Morib, 42700 Banting, Kuala
Langat
337
Kampung Kuatan Palm Oil Mill
Berhad
Selangor Darul
Ehsan
Batu 4, Jalan Kampung Kuatan, 45600 Batang
Berjuntai
338 Minyak Oil palm mOil Mill
Selangor Darul
Ehsan Ladang Minyak, Batang Berjuntai, Hulu Selangor
339 Bukit Rotan Palm Oil Mill Sdn Bhd Southern Realty (M) Sdn Bhd
Selangor Darul
Ehsan 45700 Bukit Rotan
340
Seri Ulu Langat Palm Oil Mill Sdn
Bhd
Selangor Darul
Ehsan Lot 3115, Batu 34, Jalan Banting, 43000 Dengkil
341 Bukit Kerayong Oil Palm Mill Kumpulan Guthrie Berhad
Selangor Darul
Ehsan
342
Lee Chin Cheng Dengkil Oil Palm
Plantations Sdn Bhd
Selangor Darul
Ehsan Lot 6180, Batu 31, 43800 Dengkil, Kajang
343 Golconda Palm Oil Mill Southern Realty (M) Sdn Bhd
Selangor Darul
Ehsan
Persiaran Hamzah Alang, Off Jalan Kapar, Jalan Kapar,
42200 Klang
344 Kilang Sawit Felda Sungai Tengi Felda Palm Industries Sdn Bhd
Selangor Darul
Ehsan
Kilang Kelapa Sawit Sungai Tengi, 44010 Kuala Kubu
Bahru
345 Bell Two Palm Oil Mill
Selangor Darul
Ehsan
Batu 32, Jalan Kelang-Sepang,42800 Tanjung Sepat,
Kuala Langat
346 Bukit Talang Oil Palm Mill Kumpulan Guthrie Berhad
Selangor Darul
Ehsan Batu 8, Jalan Raja Musa, 45000 Kuala Selangor
347 Tennamaram Plam Oil Mill Sime Darby Berhad
Selangor Darul
Ehsan
348 East Oil Mill Golden Hope Plantation Bhd
Selangor Darul
Ehsan
The Pataling Rubber Estate Ltd., East Oil Mill, East
Estate, 42960 Pulau Carey, Port Klang
349 West Estate Oil Mill Golden Hope Plantation Bhd
Selangor Darul
Ehsan Pulau Carey, 42960 Port Klang
350 Havy's Oil Mill Sdn Bhd
Selangor Darul
Ehsan Sydney Estate, Semenyih, 43500
351 Sri Langat Palm Oil Mill Sdn Bhd
Selangor Darul
Ehsan Batu 15, Jalan Banting, 42600 Jenjarom, Kuala Langat
352 Sepang Oil Palm Mill Golden Hope Plantation Bhd
Selangor Darul
Ehsan Kilang Kelapa Sawit Sepang, 43900 Sepang
353 Fermanagh Palm Oil Mill Sdn Bhd Southern Realty (M) Sdn Bhd
Selangor Darul
Ehsan Fermanagh Palm Oil Mill, 43950 Sg. Pelek
354 Meru Palm Oil Mill
Selangor Darul
Ehsan
Lot 20820, Batu 5, Kampung Jaya, Jalan Bukit
Kemuning, 40460 Shah Alam
355 Tuan Mee Oil Palm Mill Kuala Lumpur- Kepong Berhad Selangor Darul Batu 24 1/2, 47000 Sungai Buloh
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Ehsan
356 Elmina Oil Palm Mill Kumpulan Guthrie Berhad
Selangor Darul
Ehsan
Km. 36, Jalan Kuala Selangor, Kuala Selangor, 47000
Sungai Buloh
357 Ulu Basir Palm Oil Mill United Plantations Berhad
Selangor Darul
Ehsan Lot 584, Mukim Ulu Bernam
358 Ulu Bernam oil Palm Mill United Plantations Berhad
Selangor Darul
Ehsan

Note:
This directory is not updated to the date of this report. Based on the record of MPOB, a total of 388 palm oil mills were recorded as of March 2005.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
- 71 -
Annex B: Distribution of Palm Oil Mills in Malaysia
FFB/hr
STATES
< 20 20 - 29 30 - 39 40 - 49 50 - 59 > 60 TOTAL
JOHORE 0 8 10 18 15 16 67
KEDAH 0 1 1 1 1 0 4
KELANTAN 0 3 1 3 1 1 9
MALACCA 0 0 1 2 0 0 3
N.SEMBILAN 0 4 2 1 4 3 14
PAHANG 1 8 19 8 26 4 66
PENANG 0 0 3 0 0 0 3
PERAK 1 14 8 8 5 9 45
SELANGOR 1 14 4 3 2 2 26
TERENGGANU 0 2 3 0 4 3 12
P.MALAYSIA 3 54 52 44 58 38 249
SABAH 0 13 14 26 13 35 101
SARAWAK 1 2 11 4 9 3 30
SABAH/SARAWAK 1 15 25 30 22 38 131
MALAYSIA 4 69 77 74 80 76 380
% total 1 18 20 19 21 20 100
(Source: Malaysia Palm Oil Board, 2004)
Note: Similar to Annex A, the above summary is valid until Dec 2004. Between Dec 04 and March
05, there are 8 new mills being recorded.






Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Annex C: Independent palm oil millers & private mills with small
plantations
No Mill State Location
1 Setiakawan Kilang Kelapa
Sawit Sdn Bhd
Kedah 98A Jalan Batu Putih, MK Padang
Cina, 09700 Kulim
2 Taclico Company Sdn Bhd Kedah Lot No. 20, 21 & 29, MK Padang
Meha, 09400 Padang Serai
3 Malpom Industries Berhad Seberang Prai,
Penang
3609 Jalan Changkat, 14300 Nibong
Tebal
4 M P Mathew Palm Oil Mill
Sdn Bhd
Seberang Prai,
Penang
Lot 1254 & 1268, MK 7, 14200
Sungai Bakap
5 United Oil Palm Industries
Sdn Bhd
Seberang Prai,
Penang
878 Jalan Bandar Baru, Sg Kecil,
14300 Nibong Tebal
6 Bukit Bersatu Oil Palm Ind.
Sdn. Bhd
Perak Batu 5, Jln Kamunting, 34600
Kamunting
7 Foong Lee Sawiminyak Sdn
Bhd
Perak 9
th
Mile, Lintang Road, 31100 Sg
Siput
8 Gabungan Perusahaan
Minyak Langkap Sdn Bhd
Perak Batu 1, Jalan Teluk Intan, 36700
Langkap
9 Malmaju Bina Sdn Bhd Perak Jalam Selama, KTJBU Gajah, 34130
Selama
10 Minsawi Industries (Kuala
Kangsar) Sdn Bhd
Perak Batu 29, Kampong Chuar, Kati,
33020 Kuala Kangsar
11 Pantai Remis Palm Oil Mill
Sdn Bhd
Perak Lot 790, jalan Ayer Tawar, 32500
Changkat Kroing.
12 Perak Motor Co. Sdn Bhd Perak Batu 12, Jalan Teluk Intan-Bidor,
36008 Teluk Intan
13 Sykt. Peladang & Perusahan
Minyak Sdn Bhd
Perak Batu 4 1/2 , Jalan Maharaja Lela,
36000 Teluk Intan
14 Sykt. Peladang Kilang
Kelapa Sawit Sdn Bhd
Perak Batu 12, Jalan Teluk Intan-Bidor,
36008 Teluk Intan
15 Synn Palm il Sdn Bhd Perak Batu 1, Jalan Kg. Dew, 34700
Simpang Taiping
16 Taiping Oil Industries Bhd Perak 78 Km Jalan Raya Ipoh-Butterworth,
34700 Simpang Taiping
17 Temerloh Mill Sdn Bhd Perak 34800 Trong
18 Topaz Emas Sdn Bhd Perak Lot 1597, 40 km Jln Taiping/Bruas,
Sungai Rotan, 34800 Trong
19 Yee Lee Palm Oil Industries
Sdn Bhd
Perak Lot 9399, Bidor Industrial Estate,
35500 Bidor
20 Suburban Properties Sdn
Bhd
Johor 7/4, 7/5 Jalan Yong Peng, 85300
Labis
21 Sawira Sdn Bhd Pahang MM21, Medan Mewah, 26700
Muadzam Shah
22 Keck Seng (M) Berhad Johor P.O. Box 1, Jalan Kong Kong, 81757
Masai
23 Bandung Palm Oil Industries
Sdn Bhd
Johor No. 79 Jalan Muar, Parit Sulong,
83500 Batu Pahat
24 Sykt Perusahaan Kelapa
Sawit Sdn Bhd
Melaka P.O.Box 26, 78207 Kuala Sg Baru
25 Perusahaan Minyak Sawit
Bintang Sdn. Bhd.
Selangor Lot 6071, Jalan Haji Abd Manan, Off
Persiaran Hamzah Alang, Mukim
Kapar, 42200 Klang
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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26 Ulu Sebol Palm Oil Mill Johor No. 101, Bandar Tenggara, 81000
Kulai
27 Raub Oil Mill Sdn Bhd Pahang Bt. Koman, Lot 6073, Mukim Gali,
Raub
28 Juntai Palm Oil Mill Juntai
29 Kilang Sawit Batu Pahat Sdn
Bhd
Johor P. O. Box 64, 83007 Batu Pahat
30 Kuantan Trading Oil Mill Sdn
Bhd
Pahang Blok 15, Keratong, Rompin, 85007
Segamat
31 Kluang Oil Palm Processing
Sdn Bhd
Johor Batu 4 , Jalan Mersing, 86000
Kluang
32 Kilang Sawit Muar Berhad Johor Lot 2743, Mukim Parit Jawa, Jalan
Bukit Mor (Off 9 1/2 Mile, Jalan Yong
Peng), 84009 Muar
33 Kilang Kelapa Sawit Bukit
Pasir Sdn Bhd
Johor Batu 11, Off Jalan Bukit Pasir, 84300
Muar
34 Kilang Sawit United Bell Sdn
Bhd
Johor Batu 7 1/2, Jalan Sawah, Pekan
Nenas, Pontian
35 Syarikat Perusahaan Kelapa
Sawit Sdn Bhd
Johor Batu 9 3/4, Jalan Labis, 83700 Yong
Peng
36 Kilang Sawit Linggi Negeri Sembilan Ladang Sua Manggis, 71150 Linggi
37 Kilang Kelapa Sawit Jerantut
Sdn Bhd
Pahang No 12-15, Jerantut Feri, 27150
Jerantut
38 Lenga Palmoil Industries Sdn
Bhd
Johor Kunci Beg 502, 84900 Tangkak
39 Havys Palm Oil Mill Sdn Bhd Selangor 55, Jalan Goh Hock Huat, 41400
Klang
40 Seri Ulu Langat Palm Oil Mill
Sdn Bhd
Selangor Lot 3115, Batu 34, Jalan Banting,
43000 Dengkil
41 Seri Langat Palm Oil Mill Sdn
Bhd
Selangor 15th Mile, Jalan Banting, 46200
Jenjarom
42 Eng Hong Palm Oil Mill Sdn
Bhd
Selangor Ladang Eng Hong, Jalan Sg. Buaya,
Mukim Bandar, 42700 Banting,
Kuala Langat
43 Kampong Kuatan Palm Oil
Mill Sdn Bhd
Selangor Batu 4, Jalan Kg Kuatan, 45600
Batang Berjuntai
44 Meru Palm Oil Mill Selangor Lot 20820, Batu 5, Jalan Bukit
Kemuning, 40460 Shah Alam
45 Jugra Palm Oil Mill Sdn Bhd Selangor 132 Jalan Morib, 42700 Banting
46 Banting Palm Oil Mill Sdn
Bhd
Selangor Jalan Morib, 42700 Banting
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Annex D: Directory of EFB Fuel equipment/facilities suppliers
Facilities/equipment Supplier Address/Contact Notes
Vickers Hoskins (M)
Sdn. Bhd.

Lot 6074, Jalan Hj Abdul
Manan Kapar, Klang,
Selangor
Tel: (603) 39273857
Fax: (603) 3927398
Supplies boilers and
turbine.
Supplier for Kilang
Sawit United Bell
Sdn. Bhd
* a water tube boiler
generating;
* 35 tonnes of
steam/hr at 23 bar.
Vyncke (East Asia)
Sdn Bhd
No. 10, Section 14/44,
46100 Petaling Jaya,
MALAYSIA
Tel: (603)79541408
Fax: (603)79541409
Supplied Vyncke
boilers to Sungei
Dingin Palm Oil Mill
(Guthrie), a full scale
demonstration project
of Cogen 3.
ENCO Engineering
Sdn. Bhd.
Lot 43, Rawang
Integrated Industrial
Park, Selangor,
Malaysia.
Tel: (603)6913223
Fax: (603)6913222
Supplier for boilers
and shredder.
ABB Power
Generation Limited
124, Pacific Highway,
St. Leonards NSW
2065, Australia
Supplies biomass
boilers
Mechmar Energy
Sdn. Bhd.
No. 1, Jalan Perunding
Ui/17, Seksyen UI,
Hicom-Glenmarie
Industrial Park, Shah
Alam, Selangor.
Tel: (603)5193688
Supplies boilers
Boiler
Schneider Kessel Office South-East Asia
GTB Building, 79/7
Moo2 Srinakarin Road,
Nongborn Pravej,
6 MW Boiler supplier
for Bumi Biopower
(Pantai Remis) Sdn.
Bhd.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Facilities/equipment Supplier Address/Contact Notes
Bangkok 10260,
Thailand
Tel: +66 (0)23660537
Fax : +66 (0)23660547
Metro Spectrum
Sdn. Bhd.
P.O.Box 20451, 88761
Luyang, Kota Kinabalu,
Sabah.
Tel: (6088) 238 800
Fax: (6088) 238 900
Supplies boilers.
Sun Boiler System
Sdn. Bhd.
Lot 58, Jalan Utas 15/7,
Kawasan Perusahaan
Seksyen 15, 40000
Shah Alam, Selangor,
Malaysia.
Tel: (603) 5511 2000
Fax: (603) 5511 2266
Supplies boilers and
pressure vessel.
Boiler Care Sdn.
Bhd.
No. 28, Jalan 5/38B,
Taman Segambut
(SPPK), 51200 Kuala
Lumpur, Malaysia.
Tel: (603) 6252 2213
Fax: (603) 6252 1210
Supplies boilers.
Okuma Sdn. Bhd. No. 6, Jalan Permai 3/4,
Taman Subang Permai,
47500 Petaling Jaya,
Selangor.
Tel: (603) 8023 5877
Fax: (603) 8023 1194
Supplies boilers.
FELDA Engineering
Services Sdn. Bhd.
No. 1, Jalan U1/15,
Seksyen U1, HICOM
Glenmarie Industrial
Park, 40150 Shah Alam,
Selangor.
Tel: (609) 5569 1505
Fax: (609) 5569 2505
Supplies boilers.
Hargrave Corp.
Sdn. Bhd.
No. 19, Jalan TP 7/7,
Section 26 UEP
Supplies boilers
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Facilities/equipment Supplier Address/Contact Notes
Industrial Park, 40400
Shah Alam.
Tel: (603) 5192 2008
Fax: (603) 5191 1007
James Howden (M)
Sdn. Bhd.
No. 2, Jalan SS13/4,
47500 Subang Jaya,
Selangor.
Tel: (603) 5632 9888
Fax: (603) 5632 3192
Supplies boilers.
Jebsen & Jessen
Technology
(M) Sdn Bhd
16, Jalan 51A/225,
46100, Petaling Jaya,
Selangor Darul Ehsan,
MALAYSIA
Tel: (603)78769333
Fax: (603)78771033
Supplies steam
turbine.
Supplied KKK
turbines to Sungei
Dingin Palm Oil Mill
(Guthrie), a full scale
demonstration project
of Cogen 3.
J. Nadrowski Asia
Pacific (M) Sdn.
Bhd.
No. 25, 1
st
floor, Jalan
USJ 10/1D Subang
Jaya, Selangor
Tel: (603) 7366879
Fax: (603) 7367610
Supplies Turbine.
Supplier to Kilang
Sawit United Bell
Sdn. Bhd:
* 1200 kW back
pressure turbo-
generator.
Tuthill Energy
Systems (Asia
Pacific) Sdn. Bhd.
No. 26, Jalan PBP 5,
Tmn Industri Pusat
Bandar Puchong,
Selangor.
Tel: (603)4329466
Fax: (603)4327466
Supplies steam
turbines range from 1
HP to 15,000 HP.
Vickers Hoskins (M)
Sdn. Bhd.

Lot 6074, Jalan Hj Abdul
Manan Kapar, Klang,
Selangor
Tel: (603) 39273857
Fax: (603) 3927398
Supplies boilers and
turbine.
Turbine
ATTS Engineering
Sdn. Bhd.
12, Jalan 2/2A, Taman
Industri Selesa Jaya, off
Supplies turbines and
also boiler spares.
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Facilities/equipment Supplier Address/Contact Notes
Jalan Balakong, 43300
Balakong, Selangor.
Tel: (603) 8961 7217
Fax: (603) 8961 6010
PMT Industries
Sdn. Bhd.
33, Lengkungan Raja
Lumu, Kawasan
Perusahaan
Pandamaran, 42000
Pelabuhan Klang.
Tel: (603) 3167 13571/
3165 2919
Fax: (603) 3167 1578
Supplies steam
turbines.
Turbo Turbine
Service Sdn. Bhd.
10, Jalan TS6, Taman
Industri Subang, 47510
Subang Jaya.
Tel: (603) 5631 7115
Fax: (603) 5631 9695
Supplies turbines.
ENCO Engineering
Sdn. Bhd.
Lot 43, Rawang
Integrated Industrial
Park, Selangor,
Malaysia.
Tel: (603)6913223
Fax: (603)6913222
Supplier for boilers
and shredder.
Ecofibre
Technologhy Sdn.
Bhd.
P.O Box 3017, TTDI,
Kuala Lumpur
Supplies fibre
extractor for EFB,
trunks and fronds
Szetech
Engineering Sdn.
Bhd.
Lot 719-5, Jalan Sg.
Rasah, Kg. Padang
Jawa, 41300 Klang,
Selangor.

Fuel Handling
(Shredder, Fibre
extractor, Press)
Natpro Resources
Sdn Bhd
Showroom:
Timber Technology
Centre, FRIM, Kepong,
52109 KL
Tel: 603-62772633
Fax: 603-62778366
Biomass related
machineries e.g.
shredder
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Facilities/equipment Supplier Address/Contact Notes
Khun Heng
Engineering Works
Sdn Bhd
58-1 Batu 3.5, Jln Bakri,
84000 Muar, Johor,
Malaysia
EFB Shredder,
Crusher and Press
Palm Kernel Oil
Expeller
Avecpalm
Engineering (M)
Sdn. Bhd.
Lot 4, Jalan Waja 15,
Kawasan Perindustrian,
Telok Panglima Garang,
42500 Telok Panglima
Garang, Selangor,
Malaysia.
Tel: 603-31228899
Fax: 603-31229152
Supplies twin screw
presses, bunch
crushers and
conveyors.
Kejuruteraan EMI
Sdn Bhd
55-2-1, 2nd Floor
Lorong Batu Nilam 1A
Bandar Bukit Tinggi
41200 Klang,
Selangor Darul Ehsan
Tel: 03-3324 1876
Fax:03-3324 0878
Supplies presses and
shredders for EFB

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Annex E: Directory of Known Existing / Planned EFB Energy Plant in
Malaysia (Iskandar)
Location Proponent Project type
Grid
connection
Size
MW
Kunak, Sabah TSH CHP biomass Yes 14
Lahad Datu-Sandakan,
Sabah TSH Biomass
11/10
MW
Lahad Datu, Sabah Felda CHP biomass No 7
Manjung, Perak Bumibiopower CHP biomass Yes 6 MW
Batang Berjuntai,
Selangor Tennamaram CHP biomass Yes 9
Sitiawan, Perak ENCO CHP biomass Yes 0.8
Kota Tinggi, Johor Baru Kim Loong Power CHP biomass Yes 14
Masai, Johor Keck Seng CHP biomass No 0.85
Sabah Palm Energy Sdn Bhd biomass
9.8/8
MW
Sg. Burong Plam oil mill,
Sabah Potensi Gaya Sdn Bhd EFB 7/7 MW
Apas Balung mill, sabah Alaf Ekspresi Sdn. Bhd Biomass
8.4/7
MW
Negeri Sembilan
Felda Palm industries
S.B. Biomass
10/10M
W
Johor
Johore Tenggara Oil
Palm
Biomass/wood
chip 2.2 MW
Sabah
Kalansa Energy Corp.
Sdn. Bhd. EFB 5/5 MW
Merotai Oil Mill, Sabah Golden Hope Plantations Biomass
10/10
MW
Johor Kim Loong Biomass
12/9
MW
Kilang Sawit felda
Penggeli, Johor Felda Biomass 8/7 MW


Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Annex F: Assessment of Barriers, Recommendations and Priorities
Category Barrier Possible solutions Priority
General acceptance The concept of POM residues for energy
are not well known in general public
Involve public persons, politicians in media
promotion of energy from biomass
Set up an institution to collect and
disseminate experiences, and to actively
support market development through
assistance to entrepreneurs, development of
standards etc. (details in biomass report)
General campaigning for biomass as a fuel
(roadshow, media etc.)
2
Biomass is generally perceived as a
messy fuel
Promote positive GHG effects of biomass
fuels
Reduce "mess" through closed handling
systems
Focus on flue gas cleaning: good combustion
quality, flue gas cleaning equipment and
control procedures
2
POMs acceptance Many POMs (Palm Oil Mills) see energy
as less attractive than other - potential
products, the economic of energy market
is not promising
Improve economic conditions
Study and disseminate energy services
superior economic performance as compared
to mulching and industrial products
Focus on economic benefits (increased oil
from EFB, fuels sales value, energy services
1
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Category Barrier Possible solutions Priority
value) rather than problems
Demonstrate economic and practical viability
in 2 successful demonstration plants - and
create media interest for results - promote
the POM owner who makes money from
biomass
POM's are generally reluctant to involve
themselves in a new uncertain market
Involve government controlled POM's (the
FELDA mills) in a forced market development
- create an obligation to make fuel supply
contracts
Involve a privately owned POM group (UP,
Golden Hope or similar) in a front-runner
market development through personal
involvement of key executives in the
company
Mandatory shredding of all EFB
1
Industry acceptance No first mover and lack of success
stories due to uncertainty and messy
fuel
Subsidy scheme
Information
Demonstration units in 2-5 industries
Encourage BOOT contracts
3
Power sector
acceptance
Uncertainty towards co-firing technology Transfer know-how from co-firing biomass in
other countries
Start a RD&D programme to solve problems
2
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Category Barrier Possible solutions Priority
associated with co-firing (standards,
pretreatment, milling, biomass fraction, fly
ash utilization, lower processing costs)
Perform a systems study to identify best
supply chain, fuel quality and fuel source
Access to fuel No secure supply of EFB biomass- Hard
to get long term contract - POM's may
refuse to sign a supply contract
Set up two demonstration facilities including
contracting companies, to demonstrate fuel
supply systems, reliability and fuel quality
Provide investment funds for such
demonstration facilities
1
Non-energy competitive usages of EFB
including common practice of mulching
and others which is in developing
phases e.g. composting
Make a market versus volume assessment of
potential markets for industrial use of EFB
(listing in biomass report)
Demonstrate economic balance between
other usages and energy (power, steam and
fuel)
2
Seasonal fluctuation of EFB production

Establishing EFB supply contract 2
General: introduce subsidies from an energy
fund
2 Economy Economic of scale and unattractive
tariffs cause the payback or ROI not
attractive enough to drive the market
CHP: increase tariff from app. RM 0.17/kWh
to RM 0.22/kWh (financed by all power
1
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Category Barrier Possible solutions Priority
consumers)
Fuel supply: expand existing support
schemes for agricultural development to
POM's or others investing in fuel supply
systems
2
Industry: introduce an investment subsidy
scheme - require information as payback

2
Fossil fuel based boilers more attractive
due to low (subsidized) fuel price
Reduce or remove fossil fuel subsidies
Subsidize biomass fuels to same extend as
fossil fuels
Subsidize Investments in biomass supply
systems or boilers
2
Uncompetitive of biomass as industrial
boilers fuel at certain areas with low-tariff
natural gas
Introduce more market-oriented natural gas
tariffs (international market value rather than
national subsidized price) (details in Policy
report from January 2005)
2
Technicalities 3 barriers for POM CHP: 1: Missing
power grid connection to POM's; 2:
Administrative work to make REPPA
contract for power sales is overwhelming
high; 3: Standby charges are prohibitive
Institute an obligation for TNB to connect for
free any mill that wants to be connected
Remove standby charges, or ease conditions
(details in policy report).
Institute very simple power sales contracts
(details in policy report)
1
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Category Barrier Possible solutions Priority
Missing market for excess heat (steam)
at the POM
Encourage co-location of steam consuming
industries at POM sites.
2
Suitability of EFB as a fuel Demonstrate boilers for EFB
Choose boilers for demonstration very
carefully (collect existing experiences with
different boiler-fuel combinations, different
manufacturers) - failure in demonstration
units is a disaster!
Develop (optimize) and demonstrate fuel
supply systems
Open a RD&D programme, and a "Centre for
Biomass Technology"
2
Reliability of EFB Energy Production
Technologies
Communicate, that reliability is always less
than oil/gas
Set up a network of operating personal from
such installations
Require access to operational experience
from boilers under subsidy scheme
Collect and disseminate operational
experience, benchmarking data and best
practice solutions
Educate operating personal
2
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Category Barrier Possible solutions Priority
Lack of understanding of EFB fuel yet no
standard for the fuel lead to difficulty in
pricing and trading of EFB fuel
Prepare and introduce standards for fuel
trade - specifications for moisture, heating
value, fiber length, impurities and control
procedures
3

1: Extremely important 2: Very important 3: Important

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Annex G: Sensitivity Analysis for 10 MWe EFB Power Plant IRR

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
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Annex H: Discussion Notes from Stakeholder Workshop in Johor
BIOMASS SUPPLY CHAIN WORKSHOP, JOHOR BAHRU
Date : 9 Dec 2005
Time : 2.30 -5.00 pm
Venue : Clubhouse, Sofitel Palm Resort, Senai
Present : Soeren Varming, Key Advisor, DANIDA RE/EE Component
Tham Ah Fun, Deputy CTA, DANIDA RE/EE Component
Soon Hun Yang, Eco-Ideal Consulting Sdn Bhd
Liew Shuk Huey, Eco-Ideal Consulting Sdn Bhd
Mohd Iskandar Majidi, Mensilin Holdings Sdn Bhd
Chang Chow Swan, Kim Loong Palm Oil Mill
Rakesh, Malim Sawit
Ganesh, Malim Sawit
K. Sankaran, Malim Sawit
Mohd Ramli Adnan, Felda Palm Industries Sdn. Bhd (FPISB)
Ahmad Nor Azman Bin Jamin, FELDA Holdings Bhd
Shuhaimi Ismail, Kilang Sawit Kahang, FPISB
Mohd Tahrir Bin Roham, Kilang Sawit Belitong, FPISB
Mohamed Fazil Mohamed Said, Kilang Sawit Penggeli, FPISB
Latif Yusof Ghani, Sindora Mill
Ahmad Rusuki Hamid, Penggeli Mill, FPISB
Hambali Ahmad, Kilang Sawit Kulai, FPISB
Abd Samad Shafik, Kilang Sawit Bukit Lawing, THP Bhd

Attachment: 1. Annex 1: Power point presentation slides on Barrier
Analysis for the Supply Chain of EFB (Empty Fruit Bunch)
as Renewable Fuel Case of Penggeli
1.0 Introduction
The workshop started with an opening remark by Mr. Soeren Varming. He delivered a
presentation entitled Introduction to the Renewable Energy and Energy Efficiency
Component and gave a brief introduction on the background of the Integrated Resource
Planning 2, DANIDA RE/EE Component, and the main objectives of the workshop which
were to discuss barriers of developing energy supply from the palm oil sector and to
prepare recommendations to be brought back to EPU.

2.0 Biomass Supply Chain Study
Mr. Soon presented the background, scope and approach of the BARRIER ANALYSIS
FOR THE SUPPLY CHAIN OF EFB (EMPTY FRUIT BUNCH) AS RENEWABLE FUEL
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
Sub-component 1 Integrated Resource Planning 2 Activity 1.6
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with the proposed Penggeli Plant as a demonstration. The power point presentation is
attached as Annex 1.

3.0 Discussions & Decisions
Some comments on the study by the participants:
The assessment should be carried out from two view points, the palm oil mills
and the power plant operators
Besides calculating the current EFB values associated with its usage, the
affordable EFB price for the power plant should be quantified backwards from the
SREP electric tariff
To compare the energy value of EFB with other fuel such as coal and its
equivalent monetary value.

The millers are using their own biomass (PKS and fiber) as boiler fuels. The usage of
diesel is minimal. In addition, in order to fully utilize their biomass, Malim Sawit shreds
the EFB into fiber and burns them together with shells in boilers.
Most of the participants agreed that the best option of EFB utilisation is to burn for
energy generation. There is secure demand for the energy, unlike composting where
the off take is slow if there is no demand for the final product. Incineration is not a wise
option since DOE may withdraw the incinerators licenses in due time.
En. Azman (FELDA Holdings Bhd) informed that instead of 7.5 MW presented by Mr.
Soon (Eco-Ideal), the SREP license approved capacity has been increased to 9 MW
after appeal. However, the size of the plant is still considered small and not so feasible
in economic terms when associated with the low electricity sale tariff as the main
problem faced by biomass power plant operators. The EFB fuel supply issue was
raised. However for the proposed plant, this problem is not as significant due to
sufficient in-house supply.

Some ideas/suggestions to overcome the barriers were proposed:
Third party financing the power plant
Green tax as incentive
To increase the electric sale tariff

Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
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Annex 1: Barrier Analysis for the Supply Chain of EFB (Empty Fruit Bunch) as
Renewable Fuel Case of Penggeli
Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
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Barrier Analysis for the Supply Chain of Palm Oil Empty Fruit Bunch as Renewable Fuel January 2005
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