10/03/2008 (The Star Online) - MALAYSIAN companies are increasingly aware of the detrimental effects of global warming, and some have been actively addressing its impact via systematic initiatives over the past three to five years.

The initiatives focus on sustainability via clean technology, renewable energy, trading of carbon credits through Kyoto Protocol's clean development mechanism (CDM), and biomass plant projects. 

Championing the environmental cause, YTL Corp Bhd director of investments Ruth Yeoh told StarBiz that YTL Group was a principal investor of the Asian Renewable Energy and Environment Fund (AREEF).

“AREEF is a vehicle that allows us to invest in and encourage companies that innovate in clean technology and the renewable energy sector,” she said.

”Though global warming has entered our mainstream consciousness, we realise there are still problems businesses and societies need to address and tackle head on.”

Yeoh recently co-edited Cut Carbon, Grow Profits book with Oxbridge Climate Capital Sdn Bhd founder and chief executive officer Dr Kenny Tang.

“The reason why we came up with the book was to educate individuals through case studies and what leading companies are doing to mitigate climate change risk. 

“The book even carries the stamp of approval from the Forest Stewardship Council, meaning the timber that was processed into paper for the book came from well-managed forests and other controlled sources.”

She pointed out that sustainability was practical. “Even something as simple as switching off your office lights when you step out for a meeting counts as common sense in energy saving.”

Yeoh said climate change and global warming had reached a global level of importance where it was embedded into the consciousness of every individual.

“I believe strong leadership is needed and I am pleased with the policy-making arena, Post-Conference of Parties in Bali. 

“So we see countries like Australia pledging to ratify the Kyoto Protocol and cap carbon emissions under the new leadership, even creating a Ministry of Climate Change and Water led by Malaysian-born Penny Wong.

“However, the onus in not just on governments but on corporations and individuals to act,” she added.

Foreign companies like Wal-Mart and GE are already responding to climate change. GE is creating an “Ecomagination” arm which focuses on innovative solutions such as clean coal technology to adapt to climate change.

A report by Stern Review said the global carbon market was forecast to be US$70bil by 2010.

“Acting now to cut carbon will cost 1% of global gross domestic product (GDP) per year; and by doing nothing, the costs at the time would be a minimum of 5% and as high as 20% of GDP a year,” she said. 

The point is that there is now a need to solve climate issues whatever it costs through a low carbon global economy simply because the cost of not doing it will be far greater.

Zooming in on Asian companies, she said the track towards sustainability would be challenging, but certainly not impossible. 

IOI Corp Bhd group executive director Datuk Lee Yeow Chor said the global warming phenomenon required immediate and substantive action of every citizen of the world. 

He said large corporations with their substantial human, financial and organisational resources could make a significant impact in containing this rapidly escalating problem.

Concern and regard for the environment is an integral part of the sustainable oil palm cultivation that IOI believes in. It practices the zero-burning-cum-biomass-preservation method in the clearing of land for new planting or replanting.

“Although this method is costly and presents problems during the stage of upkeep of oil palm trees, we have voluntarily used it to minimise the impact of land clearing activities on the environment.”

In the last five years, the plantation giant's efforts toward practising sustainable agriculture and sustainable palm oil production have intensified with its participation in the Roundtable on Sustainable Palm Oil (RSPO).

“We have undergone a number of sustainable audits by several regional and international bodies and we intend to obtain the RSPO certification for some of our estates in the first half this year,” he said.

He added: “IOI has implemented or is starting to implement a few projects to utilise biomass such as empty fruit bunches (EFB), mesocarp fibre and kernel shells from its palm oil mills, which can be useful renewable resources.

About three years ago, the group has installed a biomass steam plant using EFB fibre and kernel shell in its palm oil refinery at Sandakan, Sabah. 

“This has saved us from having to purchase close to RM10mil of fuel oil annually and will insulate us from the fluctuations in fuel oil prices in the future.”

IOI Group is also commissioning a 15MW biomass power plant using the same fibre and shell in the same refinery. 

“With the setting up of the on-site power plant in the middle of this year, we will be self-sufficient in generating electricity for the entire refinery complex with some electricity to spare for the neighbouring plants,” Lee said.

For CPO mills, he said IOI had been drawing organic-rich effluent as a supplementary fertiliser for its estates. 

“After detailed studies, we are going to invest in a new processing technology in our mills this year with the aim of reducing the pollutant biological oxygen demand level in the effluent.”

IOI Group is able to apply for carbon credits for some of the projects, which will generate revenue.

“However, our major motivation is not from carbon credit revenue but rather from our desire to tackle the problem of global warming in a smart way through efficient and optimum utilisation of available resources,” said Lee.

CB Industrial Product Holdings Bhd (CBIP) business development director Sze Kok Sing concurs that global warming is seriously impacting planet earth and its long-term effects would be immense.

In 2003, CBIP started selling the Modipalm continuous sterilisation and processing of fresh fruit bunch technology, jointly developed with the Malaysian Palm Oil Board.

The Modipalm continuous sterilisation technology is energy efficient, environment friendly and requires only half the labour force of a conventional mill. In the long term, a Modipalm mill will consume less fossil diesel compared with a conventional mill.

Modipalm also produces less palm oil mill effluent. A conventional mill produces 0.6 to 0.7 tonne of effluent, also known as palm oil mill effluent (POME), for every tonne of FFB processed, but the Modipalm mill produces about 0.4 to 0.45 tonne. 

The Modipalm mill is said to reduce CO2 emission from a conventional mill by about 33%.

Malaysia’s annual FFB production is between 81 and 82 million tonnes and one can easily work out the amount of CO2 being released every year.

He said CBIP was also looking at preventing the production and release of methane by incorporating the co-composting of EFB with POME. This new development, together with the Modipalm continuous sterilisation technology, will result in zero-methane and zero-POME discharge. 

“We are incorporating this new process at our oil mill, which is under construction at Sachiew plantation in Sarawak. We are in the process of obtaining carbon credit certification under Kyoto Protocol’s CDM.”

Kim Loong Resources Bhd managing director Gooi Seong Lim said global warming would probably be the most serious disaster affecting both mankind and biodiversity if actions were not taken correctly and timely. 

Kim Loong is addressing the issues systematically since about five years ago. 

He said: “We recognise two major sources of greenhouse gases emission within the palm oil operations such as methane generated from anaerobic digestion of POME and greenhouses gases (GHG) generated from the manufacture, transportation and usage of inorganic fertilisers. 

Gooi said the company had converted its palm oil mill biomass and wastes into organic fertilisers. ”These organic fertilisers will substitute inorganic fertilisers to help reduce GHG emission.”

Its first CDM project on methane recovery and onsite utilisation at Kota Tinggi palm oil mill was registered in April 8, 2007. The project harnesses biogas, which contains 60% to 65% methane, and utilises it as boiler fuel.

Gooi said: “We have been generating steam and electricity using solely renewable energy like biogas and biomass from palm oil mill waste. The availability of these green and renewable energy sources enabled us to integrate a few energy-demanding manufacturing activities without jeopardising the environment and climate change.”

He said the optimising of biogas and biomass as renewable energy also resulted in surplus biomass to be available as renewable solid fuel or for other value-added applications.

The group also undertakes to maximise food supply by maximising oil recovery in press fibre and also uses non-destructive processes to recover value-added products from palm oil. 

Lim said Kim Loong Resources was currently applying to register another CDM project on methane recovery and onsite utilisation for another palm oil mill, located in Keningau, Sabah.