Five Japanese groups keen to set up plants with palm planters

06/03/2009 (The Star Online), Subang Jaya - Water treatment expert Sumitomo Heavy Industries Environment Co Ltd (SHI-EV) of Japan plans to bring Japanese investors in to jointly develop biogas plants with local oil palm plantation companies.

President Yasuo Naide said: “We are in talks with five Japanese groups that have shown interest to invest in the biogas plants with local planters under the Clean Development Mechanism (CDM) project in exchange for carbon credits.”

SHI-EV will provide a total solution package of capital investment and technology to help design and build the biogas plants for local plantation companies via its exclusive representative for Malaysia and South-East Asia, OCNED Water Technology Sdn Bhd.

“Depending on the size of the biogas plants, the development cost can range from RM2mil to RM10mil per plant,” Naide told reporters after the signing of a licence and technical agreement between SHI-EV and OCNED yesterday.

Yasuo Naide (left) exchanging documents with Dennis Tan, witnessed by Datuk Peter Chin Fah Kui (centre) and other officials.
 
The signing was witnessed by Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui.

OCNED managing director Dennis Tan said local planters could develop a new source of income via carbon credit from the biogas plants. “Carbon credit is traded at about 11 to 12 euro per tonne in the world market.”

He said OCNED would initially target the biogas plants for the waste water treatment ponds of the palm oil mills. “Using OCNED’s experience in waste water treatment and Sumitomo technology, we can convert the waste water into renewable energy, namely biogas.”

At the end of the palm oil processing, biogas could be “collected” to prevent the emission of methane gas into the atmosphere.

Earlier, Chin said of the 406 palm oil mills in Malaysia, only about 20 were involved in CDM projects.

“We should have at least 300 mills in CDM projects. Apart from the old ones which really need new technology and refurbishment, I believe there are many other millers that can easily adopt the CDM project, especially independent millers with no estate but actively processing CPO for refineries.”

He urged palm oil millers to work under the framework of CDM to reduce the methane emission which contributes towards global warming.

“This long-term effort is two-pronged; benefits from carbon credits and provides justification to rebut the claim that production of palm oil and its use as biofuel do not result in greenhouse gas emission savings.”

He added the Malaysia want to continue promoting palm oil as a source for both food and energy.