Purpose: This project will recover methane caused by the decay of biogenic matter in the effluent stream of an existing palm oil processing mill by introducing methane recovery and combustion to the existing anaerobic effluent treatment system (lagoons).

Explanation of GHG emission reductions: The proposed project activities will reduce GHG emissions in an economically sustainable manner, and will result in other environmental benefits, such as improved water quality and reduced odour. In simple terms, the project proposes to move from a high-GHG-emitting anaerobic open air lagoon system, to a lower-GHG-emitting anaerobic digester with capture and combustion of the resulting biogas. The project reduces greenhouse gas emissions by preventing methane emission through biogas capture.

Contribution to sustainable development: Worldwide, agricultural operations are becoming progressively more intensive to realize the economies of production and scale. The pressure to become more efficient drives significant operational similarities between facilities of a “type,” as inputs, outputs, practices, and technology have become similar around the world.

This is especially true in palm oil operations. Untreated, or raw, palm oil mill effluent (POME) is 100 times more polluting than domestic sewage. The Biological Oxygen Demand (BOD) of raw POME averages approximately 25,000 mg/liter.1 In other words, the entire Malaysian palm oil industry produced POME with a BOD equivalent to the domestic sewage of 38 million people in 1998.2 Because POME is quite concentrated, its handling and disposal can create profound environmental consequences, such as greenhouse gas emissions, odour, and water/land contamination (including seepage, runoff, and over application).

In addition to the reduction of greenhouse gases, the project will have positive effects on the local environment by improving air quality through the reduction of odor and cleaner emissions. The project will be installed with an extensive monitoring system, and is designed to comply with all the local environmental regulations.

The 9th Malaysian Plan discusses the increased focus on renewable energy and the use of the Clean Development Mechanism (CDM) to foster the implementation of renewable energy projects. In accordance with the intent of the Plan, the project participants will use a portion (at least 10%) of the biogas output for renewable energy. Biogas utilization will occur within the first year of project implementation in order to allow the project participants to better understand biogas production characteristics specific to this site. This utilization of biogas for renewable energy is not part of the current project activity; therefore, credits for renewable energy generation are not requested in this PDD. The project participants are not involved in the installation of equipment for renewable energy generation or any selling or receiving of revenues for renewable energy.

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CDM – Executive Board