CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in Effect As Of: 28 July 2006

CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in Effect As Of: 28 July 2006

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 1 CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS A. General description of project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / Crediting period D. Environmental impacts E. Stakeholders’ comments Annexes Annex 1: Contact information on participants in the project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Plan PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 2 SECTION A. General description of project activity A.1. Title of the project activity: Ejuara Melaka Composting Project at Ejuara Fertilisers Sdn. Bhd. (Formerly known as Eureka Juara Sdn. Bhd.) Version 5 28/03/2008 A.2. Description of the project activity: Malaysia is one of the largest palm oil exporter in the world which provides a very important element for the country’s rural economy development; significantly as a source of employment not only in agriculture sector, but also in down stream industries like palm oil mills, local services and support to the plantations. The palm oil mills processes the Fresh Fruit Bunches (FFB) into the main products Crude Palm Oil (CPO) and palm kernels. In the process, a number of waste streams are produced including solid biomass waste (Empty Fruit Bunches (EFB), mesocarp fibre and shell) and wastewater or Palm Oil Mill Effluent (POME). The CDM project activity comprises the design of a composting plant to minimize solid waste dumping, especially EFB into landfill. Few palm oil mills in the surrounding vicinity of the composting plant have been identified to supply excess EFB to the composting plant. The annual input capacity of the composting plant is 150,0001 tonnes/a EFB. Apart from producing compost fertilizer, the project activity avoids formation of methane gas which is considered as a green house gas (GHG) by diverting the high organic content EFB waste from dumping at unmanaged solid waste disposal sites (SWDS) with depth greater than 5 meter which is similar to the landfills (where anaerobic process occurs) to a composting plant (aerobic process). Most SWDS and landfills in Malaysia are poorly controlled sites with no coverage or landfill gas extraction. It is a common practice for mills to dispose EFB waste in SWDS located adjacent to palm oil mills owned by third parties that are not affiliated with this Project’s owners. The mesocarp fibre and shells wastes are commonly used as fuel source for biomass boilers; producing sufficient thermal heat and generating electricity for overall mill operation; thus does not cause dumping issues. The EFB waste has high moisture content, making it heavy and unsuitable as fuel source for biomass boilers in the mill or long-distance transport as it contains substantial amount of degradable organic carbon (DOC). The high moisture content and carbon- nitrogen ratio of 35-502 is optimum for aerobic composting. As such, composting of EFB waste is an attractive option for resource recovery and environmental improvement. 1 Source of EFB supply shall be available during validation 2 Ir.N.Ravi Menon, ‘Biomass from Palm Oil Industry and Their Utilization Potential’ for PIPOC 2007 by Malaysian Palm Oil Board & Vijaya Subramaniam, Chow Mee Chin & Ma Ah Ngan (n.d.) Energy Database of the Oil Palm, for Palm Oil Engineering Bulletin No.70 by Malaysian Palm Oil Board. PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 3 Earlier, the EFB produced in abundance in mills were generally incinerated or open burned. Since open burning is prohibited by local regulation, EFB is dumped in SWDS to decompose as a disposal option. EFB dumping is avoided by the Project activity and highly demanded compost is generated that combats soil degradation that is a severe problem in palm oil plantations. The project shall adapt Bio-PLUS Activator 3 advanced nitrogen-fixing microbes sourced from Philippines. The project therefore contributes to sustainable development of the agricultural sector in the region and will increase reuse of wastes from palm oil processing. Through the implementation of the project activity, it contributes to sustainable development in Malaysia in the following ways: a. It reduces air pollution from the anaerobic treatment of the EFB. The emissions to air include methane, volatile fatty acids and hydrogen sulphide (H2S). These emissions contribute to global climate change, acid rain and offensive smell in the local area. b. Through the composting project activity, less land area is needed for the EFB dumping, means that more palm oil trees can be planted to absorb more carbon dioxide from the atmosphere as well as to increase the yield in the oil palm plantation. c. The composting project activity prevents anaerobic decay of the EFB through aerobic treatment by composting and proper soil application of the compost (Avoidance of GHG which was not accounted in project activity). d. It produces organic fertilizer (compost) from biomass waste that will partly replace the existing use of chemical fertilizer and/or increase the harvest of Fresh Fruit Bunches from the palm plantations. The compost is rich in micronutrients and macronutrients. The compost will condition the soil to promote better quality and quantity of yields in agricultural crops. e. The project activity reduces the risk of methane ignited fires at SWDS. f. This initializes a clean technology on solid biomass waste management. The composting plant will be semi-mechanized, but will still create a large number of jobs, in particular for less educated workers especially in packing and distribution area. Composting might cause some local environmental impact, mainly odour emission. The composting plant is located in a roofed building in industrial park and odour filters will be applied if necessary using biofilters that need to be replaced twice per year and can contribute to the compost generation. Item Description Date 1. Date of Board approval starting the implementation of 03 – 10 – 2006 the project 2. Stakeholders Meeting 06 – 11 – 2006 3. On site validation of PDD xx – 04 – 2008 4. Date for start of construction at site 15 – 01 – 2008 3 Eliseo L.Ruiz, Ph.D.(n.d.) “The Bio-PLUS Activator: Its Discovery and Application” PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 4 5. Date of expected commissioning 01 – 05 – 2008 6. Date of commercial operation 01 – 07 – 2008 Table A.1. : Overall timeline of project implementation A.3. Project participants: Name of Party Private and/or public entity(ies) Kindly indicate if the Party involved (*) ((host) project participants (*) (as involved wishes to be indicates a host Party) applicable) considered as project participant (Yes/No) Malaysia, (host) Private entity: No Ejuara Fertilisers Sdn. Bhd. (Formerly known as Eureka Juara Sdn. Bhd. (Project Developer) Private entity: United Kingdom Grey K Environnemental No (Europe) II Ltd (*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public at the stage of validation, a Party involved may or may not have provided its approval. At the time of requesting registration, the approval by the Party(ies) involved is required. Table A.2. : Details of project participants A.4. Technical description of the project activity: A.4.1. Location of the project activity: A.4.1.1. Host Party (ies): Malaysia A.4.1.2. Region/State/Province etc.: Melaka A.4.1.3. City/Town/Community etc: Merlimau A.4.1.4. Detail of physical location, including information allowing the unique identification of this project activity (maximum one page): The project activity will be implemented at JA 911, Jalan Usaha 5, Fasa 2, Kawasan Perindustrian Merlimau, 77300 Merlimau, Melaka. (N 02° 10’03”, E 102° 25’47”). PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 5 Figure A.1. Project Site in Malaysia A.4.2. Category (ies) of project activity: The avoided emissions from organic waste through composting process fall under the “Scope 13 - Waste handling and disposal”. A.4.3. Technology to be employed by the project activity: The technology proposed for the composting plant is proven technology but relatively new to Malaysia. A number of similar plants exist in Malaysia, Philippines and China, but none using PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 6 EFB waste and advanced microbes to enhance the performance of the organic fertilizer. International standards and good labour conditions will be taken into account, with the processing equipment sourced either locally (with proven records) or from Germany and USA, and the microbes imported from Philippines. Technological or technical constraints are not expected. The composting plant is designed for a processing capacity of 500 tonnes/day (2008)4. An overall scheme of the process is presented in Figure A.2. as following: 4 One tonne of net input will result in approximately 500 kg of compost. These figures are continuously monitored (see monitoring plan). PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 7 COLLECTION & TRANSPORTATION OF SOLID WASTE TO THE COMPOSTNG PLANT Residue removal from the composting plant AEROBIC COMPOSTING PROCESS SHREDDINGPRE-PROCESSING Recording of data FILLING OF ORGANIC WASTE PROCESSING TURNING PROCESSING Temperature & Integrated moisture content quality monitoring control MOISTURE CONTROL PROCESSING MATURING PROCESSING SCREENING POST PROCESSING ENRICHMENT (POST PROCESSING) PACKAGING AND STORAGE (POST PROCESSING) MARKETING Figure A.2. Different steps in the composting process PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1. CDM – Executive Board page 8 I. Collection and transportation of EFB to mill The EFB supply to initiate the project activity shall be procured from surrounding mills within 40 – 65 km radius from composting plant.

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