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Malaysia to explore renewable gas potential

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The Energy, Green Technology and Water Ministry will explore the possibility of Peninsular Malaysia using renewable natural gas from biogas plants installed at palm oil mills.

On one hand, Peninsular Malaysia faces gas shortage and on the other, palm oil mills are encouraged to capture methane gas from palm oil mill effluent to reduce air pollution.

"It is an interesting suggestion that the pipelines that carry gas to facilities using the fuel be also used for methane gas generated from the palm oil industry," said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui.

"I will certainly explore this possibility," the minister replied via his blog at http://peterchin.my/ to questions recently posted by Business Times.

According to the Malaysian Palm Oil Board, there are 417 palm oil mills in the country, of which 246 are in Peninsular Malaysia.

Tenaga Nasional Bhd (TNB), a major user of natural gas in the generation of power is receptive to the concept but stressed that it is important for the government to assess whether it is economically viable to generate the amount of gas needed by consumers.

"It has potential, Malaysia can consider this option but it must be economically viable. If palm oil millers can generate the kind of volume we need at affordable rates, it would be good for natural gas users like us," TNB president and chief executive officer Datuk Che Khalib Mohd Noh said in an interview when met in Kuala Lumpur yesterday.

Currently, the anaerobic digester tanks that turn agriculture waste like palm oil mill effluent and animal manure into renewable natural gas are first generation products. They now take about a month to generate a reasonable amount of gas. Scientists and engineers are working on a second generation equipment that could do this 10 times faster, or in just three days.

Oil palm companies should build biomass power plants

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This newsreport was published in Berita Nasional Malaysia (Bernama) website.

SANDAKAN, 14 Jan 2010-- Large oil palm plantation companies are being encouraged to generate electricity using empty fruit bunches (EFB). This is to overcome the shortage of electricity supply in Sabah.

Minister of Energy, Green Technology and Water, Datuk Seri Peter Chin Fah Kui said the effort is important as the use of EFB can help overcome the shortage of electricity, especially on Sabah's east coast.

He said the oil palm industry in the state was among the biggest and surely the EFB from it can be recycled to generate electricity.

"If large plantation companies use EFB as one of the fuel sources to generate electricity for their factories, it will help in efforts to overcome power shortage problem in the state," he told reporters after visiting the Main Intake Substation at Buli Sim-Sim, Sandakan here today. The substation has 20 sets of mobile power generation sets with the ability to produce 20MW of electricity and has been operational since last year.

According to Chin, if necessary, it will be made mandatory for large plantation companies in the country to build biomass power generation plants to process the EFB at their respective factories.

"I will forward the proposal to the Minister of Plantation Industries and Commodities Tan Sri Bernard Dompok, as one of the long-term plans to overcome the shortage of electricity in Sabah," he said.


In Sabah, there are five biomass power generation plants processing the EFB and only three sell electricity to the Sabah State Electricity Board (SESB) under the Renewable Energy Power Production Agreement (REPPA). The three plants are Kina Biopower Sdn Bhd and Seguntor Bioenergy Sdn Bhd, both operating here and the other being, TSH Bioenergy Sdn Bhd in Tawau.

Msia Green Technology Financing Scheme

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I was browsing Energy, Green Technology and Water Minister Dato' Seri Peter Chin Fah Kui's blog and I came across this - cheap green loans that will benefit NEW energy-efficient palm oil mills, bio-fertiliser, biodiesel, biomass and biogas plants which have not been funded and partly funded.

Budget 2010 established the RM1.5 billion Green Technology Financing Scheme to encourage supply and usage of green technologies. This scheme benefits companies who are producers (max of RM50 million for 15 years) and users (max of RM10 million for 10 years) of green technologies.

The Government will bear 2% of the total interest/profit rate and guarantee 60% of the green loan via Credit Guarantee Corporation Malaysia Bhd (CGC), with the remaining 40% financing risk to be borne by participating banks.

The Green Technology Financing Scheme application forms are available at Pusat Tenaga Malaysia (or Malaysia Energy Centre) at Bandar Baru Bangi, Selangor. The GTFS HOTLINE is 1-800-88-4837. Please click here.

The new dealers in hope

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In this photo, Datuk Peter Chin Fah Kui and Senator Kohilan Pillay hand over the Plantation Industries & Commodities portfolio to Tan Sri Bernard Dompok and Datuk Hamzah Zainuddin.

Chin has moved on to head the Energy, Green Technology & Water Ministry.

Below, my boss made a keen observation when Prime Minister Datuk Seri Najib Razak announced his new Cabinet line up.

RECENTLY, I met some executives who told me how hard it was for their company, a large multinational that has invested about RM3 billion in Malaysia, so far, to open new facilities.

They have done everything by the book and yet the top civil servant at the relevant ministry still said no. The reason was flimsy, with no solid data to back up his refusal.

I'm sorry because I have to be quite vague here. The executives didn't want the story to be out because they believe that it can still be sorted out without going to the newspapers. But the strain was showing, they were worried. They worry because it seemed like the government doesn't want fresh investments, at a time when it needs it most.

This illustrates one of the many challenges facing the new Cabinet line-up.

On Thursday, during the live announcement of the new Cabinet line-up on TV, people went oohs and aahhs, like watching a football match. I have never seen so many people in the office so interested in a live telecast. It was a slight disappointment to me, though. Only one ministry merger was announced when there had been more expected.

The new faces are interesting. Some of them named to the powerful posts were not those who were normally in the limelight. One colleague even blurted out "who is this guy?" for one minister who shall remain anonymous in this column. Maybe it's a good thing that the minister in question is not well known. He will probably let his work do the talking. I like to give people the benefit of the doubt.

Asking ministries to set clear goals is a good move. Setting targets imposes a sense of unity and direction for an organisation and it does wonders for morale when the goals are met or surpassed.

Just look at Malaysia Airlines and what it has done under the helm of Datuk Seri Idris Jala. To do this, some of the targets need to be made public so that every one in the ministry can appreciate them and understand what needs to be done.

The next one month will be very important for our ministers as they need to put on their thinking caps and work out their key performance indicators (KPIs). I believe the new ministers will need all the help that they can get.

So here are two suggestions.

Ministers need to manage their time better. Pick and choose the right events to go to and make them short and sweet. Ministers also need to know the issues. This is where KPIs come in handy. The indicators make people focus not just on the targets, but also the problems.

Ministers should do spotchecks regularly to make sure their work is producing results.
Knowing the issues is crucial because there have been instances when reporters were left wondering if the minister actually knew what he was talking about.

French military leader Napoleon Bonaparte once said that leaders are dealers in hope. It means that leaders can have a big influence in the lives of others if they do their job well.
Now, let's get to work!

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