PALM WASTE TO COMPOST WITH AERATED BUNKERS 1 About Carbon - - PDF document

PALMWASTETOCOMPOSTWITHAERATEDBUNKERS

1 12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 2 2007

$3MRioTintodealprotecting13,000HainAustralia,runnerupBanksia andUNEarthDayAwards MOUsignedwiththreeGovernorsinIndonesiatousecarbonfinanceto avoiddeforestation&Green Governors Dinner funded by ADB FrontpageofWSJ,Time Magazine,AcehForestryMoratorium,Sydney MorningHerald,Age

2008

AcehprojectasworldfirstCCBAvalidatedREDDprojectandlargest carbonprojectintheworldwith100MtCO2e,750,000Ha MerrillLynchpurchaseagreementUSD$9MuptoUSD$420M CCwithPTErnaDjuliawati todevelopaCDMproject7MWbiomass cogenerationplantlocatedWestKalimantan EnvironmentalFinanceDealofYear,FinalistFTSustainableBanking MoU withCaliforniaGovernorSchwarzenegger

2009

Signedcarbondeals:biomassenergy,forests,agriculture DorjeeSunnamedTIMEMagazine’sEnvironmentalHero2009

2010

CCandPTSocfin Indonesiatojointlydevelopcocompostingplants undertheCDMatallofits9crudePalmOilMills CCandAsiaPulp&Paper(APP)developingtheworld’sfirstprivately fundedREDDtypeproject,theKamparCarbonReserveon15,640ha

2011

CCandAPPIndonesiadevelopaSustainabilityRoadmapto2020 CAjointlydevelopingsustainabilityandpalmwasteprojectsinthe SouthEastAsianandrecentlyintheLatinAmericanpalmoilsector.

AboutCarbonConservationandCarbonAgro

• Finalist:

For the Financial Times Sustainable Banking Deal of the Year Award

• Winner:

Environmental Finance's Carbon Finance Deal of the Year Award with Merrill Lynch for Aceh Project Cover of TIME Magazine

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 4

WASTE 1:EMPTY FRUIT BUNCH (EFB)

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 5

• EmptyFruitBunches,mesocarp fibre and

shell).Ithashighmoisturecontentandis bulky

• Anaverage45TPHpalmoilmillgenerates215

tonnes ofEFBdaily.

• GlobalproductionofFFBsettobeapprox 200

MillionMT

• Thiswillresultinapprox 42MillionMTOf

EFB.(21%ofFFBvolume)

• Conventionalmethodofburningthese

residuesoftencreateenvironmental problems EmptyFruitBunch

WASTE 1:EMPTY FRUIT BUNCH (EFB)

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 6

WASTE 2:PALM OIL MILL EFFLUENT (POME)

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 7

PalmOilMillEffluent

• GlobalproductionofFFBsettobeapprox 200

MillionMT

• Thiswillresultinapprox 120millionm3Of

POME.(approx 60%)

• Conventionaldumping/pondingthese

residuesoftencreateenvironmental problems

• 0.60tonnes ofrawPOMEisproducedfor

everytonoffreshfruitbunches(FFB) processed

• Anaverage45TPHpalmoilmillgenerates

morethan550m3 ofPOMEdaily.

WASTE 2:PALM OIL MILL EFFLUENT (POME)

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 8

Principle5:Environmentalresponsibilityandconservationofnaturalresourcesand biodiversity 5.3WasteManagement

• Toimprovetheefficiencyofresourceutilisation
• Recyclingpotentialwasteintovalueaddedproducts
• Highlightingpotentialareasofconcernlikemanagementofeffluentponds

5.6Reducegreenhouse gasemissionsand pollution

• Mandatingassessmentandmonitoringofpollutingactivities
• Highlightingtheneedtomonitormethanefromeffluentdigestion

SustainabilityCriteriaforBiofuelsforuseintheEU OriginofBiofuels/Bioliquids

• Rawmaterialnottobeobtainedfromwetlands,peatlands,

continuouslyforestedareas,biodiverse areas Art17MeetingGreenhouseGasSavings

• GHGSavingstobecalculatedandmustreach35%,tobe

increasedto50%by2017,and60%by2018.

• Ifplantation/millinoperationon23January2008atthe

latest,thecriterionofaminimum35%greenhousegas savingstartstoapplyonlyfrom1April2013. AnnexVDefaultValuesforGHGSavings(no netcarbonemissionsfromlandusechange)

• Palmoilbiodiesel(processnotspecified):19%
• Palmoilbiodiesel(processwithmethanecapture):56%

RSPOandtheUN

RSPOREQUIREMENTS

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 9

RegulationsandLawonWasteManagementTightening

LOCAL LEGAL REQUIREMENTS

EnvironmentalManagementActNo.23of1997

• Thisactisanumbrellaofallwastemanagementregulations.Thisacts

asthebasisforevaluatingandadaptingallapplicablelawsand regulationcontainingstipulationsonenvironment. GovernmentRegulationNo.82of2001regardingWater QualityManagementandWaterPollutioncontrol

• Containsprovisionsassociatedwithwaterclassificationandits

standardqualitycriteria. DecreeoftheStateMinisterofEnvironmentNo.28of2003 concerningTechnicalGuidelinesonTheAssessmentofLand ApplicationofPOME

• ThedecreespecifiesrequirementsforutilizingPOMEforLand

Application. DecreeoftheStateMinisterofEnvironmentNo.29of2003 concerningGuidelinesandPermitProcedureforutilizingPOME /orLandApplicationinOilPalmPlantation

• Thedecreedefinesrequirementsandpermitsthatarerequiredfor

utilizingofPOMEforlandapplication DecreeoftheStateMinisterofEnvironmentNo.111of7003 regardingGuidelinesofRequirements,PermitProceduresand StudiesforWastewaterDisposalintoWaterorWater Resources

• Decreeprovidesguidelinesandproceduretodisposewastewaterinto

watercourse. DecreeoftheStateMinisterofEnvironmentNo.51of1995 concerningLiguidWasteStandardsforIndustrialActivities

• Thisregulationspecifiesstandardsforindustrialliquidwastesincluding

POME.PalmOilMillownersareobligatedtotreatPOMEtoensure liquidwastedoesnotexceedcertainstandard. DecreeoftheMinisterofEnvironmentNo.13of1995 concerningqualityStandardsforStationarySourceEmission

• Providesregulationtopreventoccurrenceofairpollutionfrom

stationarysourcesactivity.

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 10

Colombia:Themainregulatornormfor watermanagementistheDecree1594of 1984 Whichnormalizeswaterusagesandwastewaterdisposal throughallthenationalterritory.Thedecreeestablishes waterqualitystandards,whichareguidestobeusedasa basisfordecisionmakinginassignationofwaterusesand determinationofwatercharacteristicsforeach application. Colombia:Resolution3957of2009 Toenlargethewaterparameterscomparisoninthis country.Thisresolutionestablishesthetechnicalnorm,for wastewaterdischargesmanagementandcontrolinpublic sewageforthecapitaldistrict. Ecuador:thegenerallawofenvironmental management Itwascreatedwiththeaimofregulatethedischargeover sewersystems,criteriaofwaterqualityforseveraluses andtheproceduresformeasuringtheparametersonthe water.Alsothenormestablishesthatcompaniesmust keeparecordofthegeneratedeffluentswiththemain

• perationaldatarelatedtotheeffluents.

Brazil:Decree18.328ofJune8,1997 Inthenormisestablishedthemaximumlimitforindustrial effluentsinthefederaldistrict.Alsoit'sstatedthefines appliedinthecasethecompaniessurpassthenorm.Also thedecreeindicatesthetypeofindustryandthetypesof parameters,thateachofthemmustcontrol. Venezuela:TheDecree883. TheDecreeregulatesthequalityofwaterbodiesand wastewaterdischarges.Thislawestablishesthedifferent typesofwaterandthepermissibleparametersforwater dischargesinaccordancetothefinalwateruse. Wastewaterdischargingparameterstopublicsewer systemarecontainedinsectionVofDecree883.

RegulationsandLawonWasteManagementTightening

LOCAL LEGAL REQUIREMENTS

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 11

Wasteintheearlydays Thenwegotsmarter

MANY WAYS WASTE CAN BE UTILIZED

Palm Oil Industry pain points: 1. Waste disposal can cause pollution, community issues and public pressure 2.Greater demand for fertilizer is driving prices up with “peak potash” and phosphorous costs 3.Soil security and stability is resulting in reduced response from chemical fertilizers

PAIL POINTS FOR PALM INDUSTRY

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 12

WASTE IS AN OPPORTUNITY

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 13

Our Approach: 1. We looked at a range of solutions to find the most cost effective use of palm waste 2. Our focus was on economics, reliability, speed, long term suitability of the solution and handling the large volumes of EFB and POME 3. How will the solution help sustainable, integrated and intensified plantation management CURRENTGENERATIONWASTEMANAGEMENT

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 14

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 15

1st GENLagoonCovers

Upfrontcapitalislowerbut…

• DoesnotprocessandreuseEFB
• Requiresadditionalprocessessuchasflaring,

sludgedigesters,highratesettlingtank,decanter andboilerrefinery

• Usesexistinglagoonsandinsomecasesmore

lagoonsthusbeingunabletocapitalizeonfilling inlagoonsformorelandovertime

• Increasedpotentialforproductionofodours and

corrosivegases

• CDMprojectsthatimplementalagooncover

systemworkinconjunctionwithananaerobic digester

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 16

1st GENBiogasDigester

Upfrontcapitalishighand…

• Doesnotprocess andreuseEFB
• Requiresadditionalprocessessuchasflaring,

sludgedigesters,highratesettlingtank,decanter andboilerrefinery

• Usesexistinglagoonsandinsomecasesmore

lagoonsthusbeingunabletocapitalizeonfilling inlagoonsformorelandovertime

• Digestersizeshavedifferentratesofbiogas

generationthereforeutilizationisrestrictedby therateofproduction.

• Mostmillscouldbepowersufficientwithfibre

andshell,thereforebiogaswhenflareddoesnot providethevaluethatnutrientrichcompostdoes

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 17

1st GENCoComposting– TurnedWindrow

Upfrontcapitalcostlowbut…

• Requireslargeareaoflandandmanpower(1.7Ha

foraanaveragesizedmill)

• Maximum3:1POMErationsindryseasonso

thereforestillneedponds andlessnutrients

• 810weekstocompletecycle
• Largeriskthatwon’tbeabletoreliablydelivery

compostvolumesandquality

• Notsuitableforhighrainfallenvironmente.g.

2000mm/yearwhichisoppositeofoilpalm

• Inabilitytocontrolinnercorefrombecoming

anaerobic,thereforewillstillemitmethane

• Smell,flies,leachaterunoff

BESTSOLUTIONTODAY:AERATEDCOMPOSTBUNKERS

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 18

AERATED BUNKERS OF OUR CLIENT

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 20

• Bunkerdesignandcompostingprocessensures
• ptimumaerobicconditionsfornaturallyoccuring

compostingmicroorganisms

• Compostisprotectedinbunkers,withinconcrete

walls,underaroof.

• Airisforcedintothecompostbyfansthroughthe

specificallydesignedairaeratedfloor.

• Tofurtheraidthemicroorganismstocompost

effectivelyandtofacilitatetheadditionofPOME, thecompostismovedregularlythroughthesetof bunkers

• The(pipesin)flooraswellassupplyingairwhen

requiredalsodrainanyleachateandrecyclesit intothePOMEtankstoensuretrulyzerowaste

Roof

COMPOST Roof to exclude rain

CustomAeratedBunkerDesign

AERATED BUNKERS OPTIMIZE NUTRIENTS

OPTIMAL MIXING/FILLING BUNKER

Optimum conditions reached naturally via aerobic

• breakdown. Temperature, Oxygen levels and

moisture levels are ideal for the natural microbes to function effectively = optimal compost

BATCHING BUNKER

Can also add boiler ash and decanter solids which adds nutrients

MONITORING BUNKER

Constant monitoring of compost

• ptimizes the POME addition, speed

and nutrients in the outputs

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 24

TurnedWindrowComposting

• Surfacelayertoodryorwetdependingon

ambientconditions

• Smallvolumeinoptimumconditions
• Thecompostmasswillbeinsuboptimal

conditions,mostlyduetoinadequateoxygen level

• Bottomofthewindrowwillbeanaerobic,too

wetandcoldasitisincontactwiththefloor

Roof

AutomatedComputerControlledEnvironment

ZeroDischargeAeratedBunker

• Compostingprocessisuptotemp.within24–

36hourscomparedtowindrowstakingupto6 – 7daystogetstarted

• Allofthecompostmassisheldatoptimum

conditionssaveforafewcentimetersagainst theconcrete

VERTICAL HEIGHT REDUCES LAND

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 25 NPK in Soil + Palm NPK in FFB NPK in EFB + POME NPK in Compost

Plantation Management Mill Operations Waste Mgnt

RETURNING NUTRIENT TO THE PLANTATION

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 26

• 24Hourcomputercontrolledenvironment.Real

timemonitoringofperformanceofOxygen, temperatureandmethanelevelsofcompost

• Thecontrolsmaintainthemassofcompostinthe
• ptimumconditionsforthenaturalmicro
• rganismstofunctioneffectively.NOADDITIONAL

MICROORGANSIMS,ENZYMESORADDITIVESARE REQUIRED

• Maintenanceofadequateoxygenlevelswithinthe

massofcompostensuresthattheprocess producesnomethane

• Usingthecomputercontrolsandrecords,itis

possibletofinetunefuturebatchesofcompost andmakeadjustmentstothecomposting programtosuitanyseasonalvariationsor changesinmaterials

AutomatedComputerControlledEnvironment

SOFTWARE AND AUTOMATED PLATFORM

CARBON AGRO – BUSINESS PLAN

1. Fast: Industry leading 25-30 days compost production cycle 2. Less concrete: By building vertically with 6m stacking use 60% less area 3. Less labor required: Automated with aerated floors & machines 4. Efficient: Highest nutrients most efficiently reused of nutrients

BENEFITS OF AERATION

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 27

CARBON AGRO – BUSINESS PLAN

• Previously was no technology that reliably

produced compost in an effective manner

• Now with greater need for sustainable soil

management

• Greater scientific proof for nutrient improvements

compared to mulching

• Greater focus on reducing emissions and

greenhouse gas management

WHY COMPOSTING IS BECOMING MAINSTREAM

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 28

• Environmentalbenefits
• YieldBenefits
• ManagementBenefits
• Optimizingthesoilhealth

Agronomic Advantages of Compost application

BENEFITS OF COMPOST

CARBON AGRO – BUSINESS PLAN

1. Maximum nutrient recycling 2. More effective slow release of nutrients 3. Less nutrient waste 4Rs, Right Product, Right Rate, Right Time & Right Place 4. Effective way to cover whole plantation 5. Waste goes from cost center to cost saver and helps with RSPO 6. Maximum yields from long term use

BENEFITS OF COMPOST

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 30

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 31

• Enables soils to hold more plant nutrients
• Enhance buffering capacity of soil
• Composts contain [N,P,K, Ca, Mg and S] and essential

micronutrients

• Nutrients are released slowly and steadily
• Stabilizes volatile N of raw materials thus reduce N losses
• Provides active agents e.g. growth substances for

germinating plants

BENEFITS OF COMPOST

IMPROVES CHEMICAL PROPERTIES OF SOIL

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 32

• Reduce soil bulk density and improve soil structure
• Improves root penetration and turf establishment
• Increase water-holding capacity of the soil
• Increase soil stability by fungi or actinomycetes mycelia
• Improves soil aeration

IMPROVES PHYSICAL PROPERTIES OF SOIL

BENEFITS OF COMPOST

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 33

• Supplies food & growth of beneficial micro-organisms/worms
• Reduces and kills weed seeds
• Helps suppress certain plant diseases, soil-borne diseases

& parasites through:

• Competition for nutrients by beneficial microbes
• Antibiotic production by beneficial microbes
• Predation against pathogens by beneficial microbes
• Activate disease-resistant genes in plants
• High temperature from composting kills pathogens

BENEFITS OF COMPOST

IMPROVES BIOLOGICAL PROPERTIES OF SOIL

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 34

Organic compost is more efficient in increasing leaf N and P levels Research 10-15 tons of OC can replace average rates of N and P fertilizers with yield increase up to 27%

CompostBenefits

BENEFITS OF COMPOST

22.5 23.5 24.5 25.5 26.5 20 40 60 80 100 120

NFertiliser(kg/ha/yr)

FFBYield(t/Ha/yr

OC Urea

PROGRAM OF ACTIVITIES SUCCESS JUNE 2012

12/11/12 CarbonAgroPteLtd2012Allrightsreserved Confidential 35

• Officially registered

in EB website: Project reference number is 6511

• The verification can

be done in December 2013 (one year after registration for the 1st verification). Then the next verification (2nd, 3rd, 4th, etc.) in every December per year.

E: derek@carbonagro.com P: +65 8522 5047

THANKYOU!