The Star, Business
Saturday March 12, 2011
PETALING JAYA: Premium Renewable Energy (M) Sdn Bhd confirmed that it has selected US-based Envergent Technologies LLC, a Honeywell unit to undertake the engineering design for the first bio-oil plant in Malaysia that will use Envergent's RTP (Rapid Thermal Processing) technology to convert palm biomass into renewable heat and electricity.
A Premium spokeman told StarBiz yesterday that the company would be looking at setting up more such plants in the country possibly via joint ventures using palm biomass like empty fruit bunches (EFB), tree trunks and fronds as feedstock.
Premium has been identified as one of the two lead initiative owners for the seventh entry point project for the palm oil National Key Economic Area (NKEA) under the Economic Transformation Programme (ETP), involving the commercialisation of second-generation biofuel.
Premium has the exclusive rights to commercialise the proven RTP in Malaysia and other parts of the region for the production of renewable liquid fuels from biomass for heat, power and green transportation fuels.
"Premium Renewable Energy's bio oil project is part of the 45 initiatives outlined by the Felda Group to chart its business strategy for the next 50 years."Written by Super User
The Edge Malaysia (Cover Story), January 24, 2011.
“Taking Felda to the Next Level” by Jenny Ng
& “We are focusing on our core business and reinventing it” by Jenny Ng and Chua Sue-Ann.
Page 60, 61, 62 & 65.
“We see potential new revenue for biomass and we are focusing on green technology, how to convert biomass, empty fruit bunches into energy” said Sabri. Last year Felda Palm Industries Sdn. Bhd. a subsidiary of FHB, signed an MOU with Premium Renewable Energy to build a bio-oil plant based on pyrolysis technology in Felda Sahabat in Sabah.
“In Sahabat we intend to have another big one, 30MW, involving new technology which is to turn biomass into bio-oil pyrolysis. It is a joint-venture project. In the Felda group, the new business is to monetise the by-products apart from using them as compost."
Y. Bhg. Datuk Sabri Ahmad
Group President and CEO of Felda Global Ventures Sdn. Bhd. and Managing Director, Felda Holdings Bhd.
Written by Jenny Ng
Published in The Edge Financial Daily: 21st December 2010
Online since: Monday, 3rd January 2011 00:00
PETALING JAYA: Premium Renewable Energy Sdn Bhd is in talks with two plantation companies to form joint ventures to produce bio-oil using palm biomass, according to managing director Anand Selvaratnam.
Mark Reno, Managing Director of Envergent Technologies, part of Honeywell US, compares pyrolisis oil to fossil fuel.
Daily Express, Sabah
Prime Minister Datuk Seri Najib Tun Razak announced recently that nine agreements worth some RM30 billion have been inked between the Government and the private sector, boosting the RM1.3 trillion Economic Transformation Programme to transform Malaysia into a high-income nation by 2020.
There is only one company to be involved in Sabah by setting up a bio-oil plant, dubbed the first of its kind in Malaysia, which will use oil palm biomass as feedstock Selangor based Premium Renewable Energy (Malaysia) Sdn. Bhd.
It was reported at the Economic Transformation Programme: A Roadmap for Malaysia book launch at the Putra World Trade Centre recently that PRE will set up a RM124m bio-oil plant in Lahad Datu, besides investing in 29 bio-oil plants by 2020 as part of the Palm Oil NKEA to commercialise second-generation bio-fuel using oil palm biomass.
The Palm Oil, NKEA has an indicative Key Performance Indicator of nine bio-oil plants to be developed by 2015 and 29 bio-oil plants by 2020 throughout Malaysia with an annual production of 1.1 million tonnes and 3.8 million tonnes of bio-oil, respectively.
With the recent unveiling of the 10th Malaysia Plan by the Government, a new renewable energy target for power of 985 MW or 5.5 per cent of electricity generated by 2015 was set. The bulk of the target or 330MW comes from biomass.
PRE would work with the Federal Land Development Authority (Felda) and other oil palm players to spearhead production of bio-oil from oil palm biomass and other biomass available regionally via pyrolysis technology, as the local partner of technology giants Ensyn and UOP-Honeywell.
Its Chairman, Datuk Razman Hashim, said Malaysia’s energy sector is in transition based on the realisation that Malaysia’s petroleum resources having been developed since the 1970s, are finite and non-replaceable.
"The days of cheap and plentiful oil and gas some say are over, and Malaysia cannot remain in denial. Now seems the right time for Malaysia to really make headway in developing renewable energy resources and portfolio much like it did in the 1970s for its fossil fuel resources.”
"Malaysia must now look at delivering green renewable sources of energy for both its power and transportation needs," he said.
PRE and its partners UOP Honeywell and Honeywell International are working towards this in bio-oil and Rapid Thermal Process technology for power and heat applications.
The result is upgrading bio-oil into "drop-in" green renewable transportation fuels such as green diesel, gasoline and jet fuel ready for use in conventional engines.”
"RTP is a proven technology with seven commercial plants running in North America. It was developed over 20 years of R&D.”
"Bio-oil from oil palm biomass is renewable, biodegradable and does not contribute to a net rise in carbon dioxide and consequently to the greenhouse effect. It can be stored and transported just like crude oil with a multitude of energy use options.”
"For Malaysia, we have determined that oil palm biomass is the most abundant and suitable for bio-oil production...and among the answers to Malaysia’s future energy requirements, contributing positively to energy security and help achieve the up to 40 per cent targeted GDP carbon emission intensity by 2020 compared with 2005 levels our Prime Minister had committed to in Copenhagen."
This PRE company was set up in 2007 and formed a partnership with Ensyn Technologies of Canada in 2008 which provides it exclusive rights to commercialise Ensyn’s proven RTP technology in Malaysia and other parts of the region for the production of bio-oil for power and transportation fuels.
Ensyn is a world leader in production of bio-oil from biomass and has more than 20 years of commercial experience with its RTP technology at its seven commercial biomass plants in the US and Canada.
MAKING A POINT By Jagdev Singh Sidhu
IT would appear that green is in judging by the number of announcements companies have recently made with regards to generating power from renewable sources.
On Tuesday, two companies inked renewable power purchase agreements.
Cepatwawasan Group Bhd’s subsidiary, Cash Horse (M) Sdn Bhd, signed a 12MW, 21-year renewable energy power purchase agreement (PPA) with Sabah Electricity Sdn Bhd (SESB) at 21 sen per kwh while Tenaga Nasional Bhd (TNB) agreed to buy electricity from KUB-Berjaya Energy Sdn Bhd for a period of 21 years at an estimated cost of RM1.84mil annually.
Those announcements come after Premium Renewable Energy announced some weeks back that it would set up a RM124mil bio-oil plant in Lahad Datu, Sabah.
Premium Renewable is also investing in 29 bio-oil plants by 2020 as part of the Economic Transformation Programme to commercialise second-generation biofuel using oil palm biomass.
The move towards green energy is expected to be formalised once the feed-in-tariff mechanism under the Renewable Energy Act is implemented.
The feed-in-tariff is needed to boost the costlier renewable energy contribution to the country’s electricity generation mix from less than 1% in 2009 to around 5.5% by 2015 and to 11% of all electricity generated nationwide in 2020.
Consumers have to be prepared to pay a little bit more for their monthly electricity bills to support the higher charges being levied on renewable energy.
Proper education and awareness campaigns need to be created if consumers are to understand why they will be asked to pay more for their monthly electricity bills as the last thing anyone wants is a public hue and cry when those charges are implemented in the future.
Judging from the anecdotal evidence so far, I would suspect people would be more than willing to do their part.
Consumers in Selangor have got used to not getting free plastic shopping bags from hypermarkets on weekends and in Penang starting next year, consumers will not be given free plastic bags at all hypermarkets when they do their grocery shopping.
Those are small steps in the large scheme of things as there is already a commitment by the Government to drastically reduce carbon emission intensity per gross domestic product by 40% by 2020.
The drop in taxes and excise duties for hybrid and electric cars is a step towards that as apart from reducing carbon emissions, those cars would also cut down on petrol usage.
The next thing the Government must do properly where it has failed in the past is to get Malaysians to start separating rubbish to help in the recycling process.
Again, proper education is needed to get people to understand the importance of recycling and proper bins and a clockwork schedule would be needed as waste tends to bio-degrade faster in Malaysia.
Incinerators would have to be built as landfills are not the long-term solution. All of these add to the overall cost taxpayers would have to bear to do their part for the environment.
- Deputy news editor Jagdev Singh Sidhu wonders why today’s music is not as nice as in the 1980s and the early 1990s.
By Sira Habibu and Joshua Foong
KUALA LUMPUR: Nine agreements worth at least RM30bil have been inked between the Government and the private sector, boosting the RM1.3tril Economic Transformation Programme (ETP).
“This will convince those who have doubted the ETP,” Prime Minister Datuk Seri Najib Tun Razak said yesterday at the launch of the goal-oriented programme, which is seeking to transform Malaysia into a high-income nation by 2020.
He said the agreements to kick-start nine Entry Point Projects (EPPs) would put the nation on the right course on the ETP roadmap.
The companies are German-based LFoundry, St Regis, Mydin Group, Abu Dhabi-based Muba dala, WCT Bhd, renowned oilfield services player Schlumberger, Asia e-university, Premium Renewable Energy Sdn Bhd and Genting Bhd.
The projects are:
* Germany’s LFoundry will invest a total of RM1.9bil to set up five wafer fabrication plants in Kulim Hi-Tech, Kedah. The initial investment is RM214mil.
* St Regis will build a six-star hotel and residence worth RM1.2bil in KL Sentral. The 208-room hotel and 160-unit residence will be built on a 0.88ha plot.
* Mydin is investing RM1bil to open 14 new branches and assisting the Government in its sundry shop transformation programme.
* Schlumberger has invested RM300mil to establish a new Global Financial Hub and shared services in Bandar Utama, Selangor. This is part of the Greater KL New Key Economic Area to attract 100 multinational corporations to relocate to Kuala Lumpur by 2020.
* Premium Renewable Energy will set up a RM124mil bio-oil plant in Lahad Datu, Sabah. It is also investing in 29 bio-oil plants by 2020 as part of the Palm Oil NKEA to commercialise second-generation biofuel using oil palm biomass.
* Mubadala of Abu Dhabi is investing in the RM26bil KL International Financial District on a 34-ha plot near Jalan Tun Razak, Kuala Lumpur.
* Malaysia Airports Holdings Bhd had awarded a 25-year concession to WCT Bhd to build a RM486mil integrated complex at KLIA 2, the upcoming low-cost carrier terminal in Sepang.
* Asia e-University has been picked as the gateway university for international education in distance and on-line learning. It is expected to generate gross national income of RM100mil.
* Genting is investing RM150mil to build Johor Premium Outlets in Genting Indahpura.
Najib said the projects were part of the 131 EPPs that would be implemented to create 3.3 million new jobs.
KUALA LUMPUR: The nine parties that sealed their commitment to Malaysia’s Economic Transformation Programme (ETP) have described it as a golden opportunity which provides a win-win situation for both sides.
Managing director Datuk Ameer Ali Mydin, whose Mydin Mohamed Holdings Bhd will see another 14 branches set up over the next three years from its current 57 with investments worth RM1bil, said: “The healthier the nation, the better our economy will perform and, as a result, there will be better sales.”
“In business, it is not about winning or losing but the perseverance of our Malaysian retail entity.”
He was speaking at a joint press conference with the other eight companies that have pledged investments totalling RM30bil in agreements signed yesterday following the launch of the ETP.
Genting Simon Sdn Bhd director Datuk Justin Leong said the ETP had set an attractive climate for investors to develop a keen interest in the country.
His firm, which will develop the RM150mil Johor Premium Outlets, is expected to “put Malaysia on the world’s retail tourism map.”
The project is expected to attract four million visitors yearly. It is a joint venture between Genting Simon and Chelsea Premium Outlets as part of the Iskandar Malaysia project.
One IFC Sdn Bhd chairman Tan Sri Chua Ma Yu said the six-star St Regis Hotel, when completed in 2014, would be a testament of the ETP as it would establish a new benchmark in the Malaysian hospitality industry and service sector.
The RM1.2bil project will see a 208-room hotel and a 160-unit residential complex in Kuala Lumpur.
Premium Renewable Energy Sdn Bhd managing director Anand Selvaratnam, whose firm, will be building a RM124mil bio-oil plant in Sabah, said the ETP was a holistic programme.
by Rupinder Singh
PREMIUM Renewable Energy (Malaysia) Sdn Bhd, which is building the first bio-oil plant in Sabah, is planning to invest an initial RM1 billion to set up such power plants in the state, its top executive said.
"We are talking to a very large independent power producer (IPP) to go into power generation in Sabah," Premium Renewable managing director Anand Selvaratnam said.
He said the biodiesel power plants would likely be located in the east coast of Sabah.
"There isn't an east coast solution (for power supply). That's where the power shortage really is," Anand said at the launch of the Economic Transformation Programme (ETP) Roadmap in Kuala Lumpur yesterday.
The west coast of Sabah, he said, would be served by a new 300 megawatts (MW) gas-fired power plant under construction by Petronas.
"We would be hoping to roll out a pretty sizeable power plant, and if that works, we can roll out two or three other sites," he said.
Asked when the first power plant would be up, he said: "We are in negotiation right now. So it might happen very fast."
Anand said Premium Renewable would raise funds locally to set up the power plant on a joint-venture basis.
"In terms of technology, we are hoping to get Caterpillar Inc as one of the partners there for the power plant. They are the first diesel engine manufacturer able to burn bio-oil in their diesel engine stations."
He said Caterpillar's solution is 2.5 times more efficient than direct combustion engines and has a conversion rate of 45 per cent instead of 20 per cent.
"It really does make the utilisation of our resource that much more efficient," he said.
Premium Renewable's rapid thermal process (RTP) bio-oil plant will be built near Lahad Datu, Sabah, in 2011.
Dubbed as the first of its kind in Malaysia, the plant will use oil palm biomass as feedstock in partnership with one of the country's largest plantation companies.
"Our target is to generate RM3.3 billion Ebitda (earnings before interest, taxes, depreciation and amortisation) by 2002," Anand said.
The company's long-term plans were to build 38 plants producing RM5 billion to RM6 billion worth of biofuel, he added.
The following are some of the early wins from projects identified under the Economic Transformation Plan (ETP) launched by Prime Minister Datuk Seri Najib Razak in Kuala Lumpur today.
1. LFoundry of Germany to relocate and invest in five Wafer Fabrication Plant in Kedah over 5 yrs. RM1.9bil estimated investment.
2. MYDIN to invest in 14 new branches over 3 yrs, valued at RM1 bil. Also assist small sundry shops via Project TUKAR
3. St.Regis to manage 208-room hotel, 160-unit residence on 2.2-acre site at KL Sentral. RM1.2bil investment over 1.4 mil sqr ft
4. Schlumberger opened Eastern Hemisphere Global Financial Servcs Hub in BU. Initiative to attract 100 new MNCs to KL
5. MAH awarded 25-yr concession to WCT, build and operate integrated complex at KLIA2. RM486 mil transport hub,mall,carpark.
6. Mubadala to collaborate with 1MDB, develop KL Int'l Financial District (KLIFD). RM26bil on 34-hectre near Jln Tun Razak
7. Premium Renewable Energy to build 5 bio-oil plants over 5 yrs. First will be at Lahad Datu, Sabah costing RM124mil.
8. Asia e-University appointed by MoHE as gateway for development of online & distance learning. GNI USD110mil expected.
9. Johor Premium Outlet at Genting Indahpura offers designer labels at less than retail price, 1st in SEA. Investment: RM150mil.
Source: etp_roadmap Twitter feeds