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THE

FAT EXPRESS

Asia 2011

#1

FREE

FHE’s MD welcomes Minister of Energy, Green Technology and Water Dato’ Sri Peter Chin Fah Kui to IGEM 2010.

BIOFUELS: A CATALYST TO CHANGE

In December of 2009, Malaysian Prime Minister Dato’ Sri Najib Tun Razak committed the nation to a voluntary Carbon Intensity Reduction of 40% by the year 2020, at the United Nations Climate Change Conference that year.

While undoubtedly ambitious the target is still a realistic goal, should the widespread adoption of renewable, organically derived, non-fossil biofuel be realised in the country. According to current trends, Malaysia’s industrial dependence on conventional fuels

ASSESSING BIOFUELS Climate change, together with an increasing demand for energy, volatile oil prices, and energy poverty have led to a search for alternative sources of energy that would be economically efficient, socially equitable, and environmentally sound. One option that has raised enormous public and private interest is biofuels. Farmers seek additional income and biofuels may have the potential to promote rural development and access to energy in poorer countries. As a ‘readily available’ alternative, biofuels offer to continue business as usual in the transport sector. Encouraged by research indicating that biofuels could provide substantial energy while mitigating climate change, governments have supported production aimed at increasing biofuel use in many countries. Industry has invested significantly in production and technology development. However, concern has been growing about negative implications of growing biomass for biofuel production. Current biofuels are often made from feedstock crops that also serve as food. Hence, there is a potential risk for competition between food and fuel, and consequences on food prices as a result. However, through the application of sustainable practices, these effects can be avoided. Another risk identified is expansion of biofuel feedstock production into areas that provide valuable ecosystems that support

high biodiversity and services that are crucial to our economies and human life. Moreover, as a consequence of land use change associated with expanding agriculture, the envisaged positive effects on climate mitigation could turn out to have the opposite effect. To deal with these issues, several initiatives have been started by governments, industry players and civil society to develop criteria for sustainable production of biofuels. Countries have started to set minimum standards for biofuels, in order to guarantee a net benefit for climate change mitigation and to avoid side effects of land use change. These approaches, however, are aimed at the product or project level and are therefore not necessarily sufficient to avoid displacement

such as diesel, to run machinery and drive transportation, vastly contributes towards the bulk of carbon emissions in our atmosphere. Apart from compounding the locally felt effects of climate change and global warming, this, in turn, deters the progress of the nation as a whole, towards achieving the Prime Minister’s international commitment. Non-fossil biofuel alternatives that are currently available, such as biodiesel and bioethanol present viable, one-for-one replacements to the highly polluting counterparts that are in broad use at the moment. In contrast, biodiesel is known to produce at least half of all carbon monoxide, carbon dioxide and particulate matter released in the burning of the fuel, when compared to conventional petroleum-based diesel. It has also been found that the usage of biodiesel releases dramatically reduced amounts of unburned hydrocarbons, which otherwise contribute to the formation of ozone and can be seriously detrimental to human health. Specifically, the unchecked release of un-

of feedstock production and problem shifting to other areas. The Biofuels Working Group of the International Panel for Sustainable Resource Management (IPSRM) aims to improve the analytical basis for decision making towards sustainable production and use of biomass for energy purposes (biofuels), at the national, regional and international level. Applying a comprehensive systems perspective, the group has developed an analysis encompassing the overall effects of biomass use for food, fibre and fuel, in particular on land and water use and resulting environmental impacts such as greenhouse gas emissions, biodiversity loss, and nutrient pollution. The focus is on the environmental effects of so-called “modern bioenergy” or biofuels, while considering their economic aspects and social concerns, especially with regard to relevant side effects and potential synergies. An integrated view of supplying both materials and energy for enhanced service provision for households and industry will lead to wider potentials and allow better choices to increase sustainability of resource use. Improved systems technologies will enhance overall resource efficiency, while more effective management instruments can adjust the demand for biofuels to sustainable levels. This publication strives to showcase innovative, environmentally compliant methods and practices that can help overcome any obstacles that may lie in the path to sustainable biofuel utilization.

burned hydrocarbons into the atmosphere has been linked to a marked spike in the number of people put into direct risk of contracting cancer as a result. Perhaps the most unfortunate part of these developments is that cleaner, more environmentally compliant fuel sources are actually already here and accessible to the conscientious energy consumer. These energy alternatives are proving to not only be better for the environment, but also make better financial sense for the user – especially when taking into account the wildly escalating costs of fossil fuel extraction for energy production. Finally, business models surrounding the propagation and capitalisation on renewable Green fuels have been found to be far more sustainable than conventional options, as they are not reliant on finite fuel sources. The energy entrepreneur of the future will be exclusively concerned with the growing of biofuel-yielding feedstock crops, ultimately freeing them from limitations that would otherwise determine the extent of profitability.

VALUES 4 INTEGRITY 3 TRANSPARENCY 2 ACCOUNTABILITY 1 STEWARDSHIP

www.fathopesenergy.com


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The Fat Express 2011

LIQUID GOLD processes used cooking oil into biodiesel. The problem, he says, stems from government subsidies which cap diesel price at RM1.80 a litre. To compete with normal diesel, biodiesel has to be sold cheap, too. He cannot afford to pay high prices for used cooking oil and offers between 80 sen and RM1 per litre. He is also faced with an erratic supply of used oil. “Some people ask for 10sen more despite having agreed on the price. Sometimes when my workers go to the restaurant, they find that the oil has been collected by someone else claiming to be from my company.” Due to the inconsistent local supply, he plans to import used cooking oil for the new biodiesel plant that he is planning to open in Telok Gong Klang. Ja’afar Abdullah of CGV Industries, another used cooking oil collector, is in a similar predicament. He cannot get enough

waste oil to supply customers who run biodiesel plants. He too, says waste oil is being recycled into new cooking oil. “Many traders are exporting used cooking oil as they can get lucrative prices for it. So they can also offer higher prices for the used oil, and I cannot compete. All the collectors say the oil will be used to make soap and candles but if you ask where the factory is, they cannot tell you. They’re willing to pay more than RM2 per kg for the used oil. It is not

logical to pay so much if it is just to make soap and candles. I can only offer between 80 sen and RM2. The government should stop the export of used cooking oil. Then we’ll have enough feedstock to produce biodiesel.” Ja’afar now collects used oil from food premises in the Klang Valley as well as from Kuantan, Johor Baru, Ipoh, Penang and Alor Setar. His monthly collection of approximately 200 tonnes is sold to Unigreen, a company which processes the oil to yield fatty acids, fatty alcohol and glycerin. “I sell to Unigreen as it does not recycle the oil into new cooking oil,” says Ja’afar. Recycled cooking oil poses health risks because it is bleached with chemicals before being blended with virgin oil. He recently tied up with Alam Flora and Putrajaya Corporation to start an oil collection scheme at the recycling centre in Precinct 9 in Putrajaya. About 230kg of used fats has been collected since a drum was placed there on Feb 1. Residents are paid 80 sen per kg of used oil. To expand the collection of used cooking oil, he suggests that hypermarkets such as Tesco and Giant, which already have drop-off centres for recyclables, also collect used oil. In order to collect used cooking oil, he says, one must obtain a license from the Malaysia Palm Oil Board.

strong commitment integrity. FHE monitors all aspects of operations, inline with strict and regimented internal carbon emissions reduction policies. Apart from its products being low in carbon emissions, the collection, filtration and production stages of their process emit negligible amounts of carbon. All biodiesel produced within FHE’s facilities is also guaranteed to be waste-derived; primarily used cooking oil and/or contaminated vegetable oil. Materials utilized throughout the process are predominantly reclaimed or recycled, presenting a cheaper and more environmentally compliant alternative. By seeking out strategic partnerships and R&D in Asia and globally, FHE has significantly expanded the range of

financially viable bio-energy technology that is available. FHE was conceived and founded in the last quarter of 2009 by founders Vinesh and B.K. Sinha. They were approached for assistance in a social issue with a local logistics company. While providing voluntary sustainable consultancy, the idea blossomed into an avenue for a multiple bottom line business model, which has now become the core motto of FHE: Waste to Wealth Conversion. FHE is the sole distributor in Asia for a range of technologies, and has quickly grown into one of Malaysia’s leading biodiesel equipment distributors while remaining focused on cementing its position in regional markets. The technology has since reached

the shores of most regional countries like Vietnam, Korea, India and Singapore. Boasting an impressive range in processor technologies, FHE’s machinery and equipment is currently capable of handling any capacity between one and 100 tons per day. The USP of the technology lies in the essentialities of time, minimal hands-on time and the dry wash system. In meeting the everyday demands of biodiesel markets, FHE maintains its characteristic enthusiasm in the potential of leveraging new technologies for triple bottom line benefits.The company is confident that the latest developments and technologies will continue to redefine the standards that their products and services are held accountable to.

the drain will be clogged and the water will pollute rivers. Imagine how many fish will die because of this.” Ashwathy Balakrishnan says her mother was initially not keen on her taking used cooking oil to school for fear that it would be messy. “But I explained to her, not only are we getting money for the school fund (FatHopes pays them 70 sen per litre), we’re also saving the environment. It is very easy to protect the Earth. What is needed are small actions by may people,” she says. Although they initiated the oil collection as part of a green project competition which they are participating in , the students are eager to make it a permanent - and bigger school activity. “We plan to collect used oil from restaurants nearby. We’re also telling friends and relatives about what they can do with used cooking oil,” declares Munirah Ayoob. FatHopes Energy is also recycling fryer oil from MJ Cafe in Jaya 33 mall and Casa Tropicana condominium in Petaling Jaya, into biodiesel. Owner of the restaurants, Ken Lee, says the 14kg drums in both establishments are picked up by FatHopes when they are filled up, which is every two to three weeks. “We don’t pour the oil down the sink as it will clog the drainage systems and cause major problems. We might need to spend as much as RM10,000 to clear the pipes.” Lee says getting rid of used oil was never

a problem as there are numerous collectors but now, he only gives it to FatHopes. “I don’t really know what the other collectors do with the oil but they say it is used in engines and machinery. At lease with FatHopes, I know what they do with the oil. What they’re doing is more environment-friendly and I prefer to support green causes.” Lee used to get RM60 to RM80 for a 14kg drum of oil from other collectors but with FatHopes, he has opted to instead get soap and detergent made from the glycerine that is a byproduct of processing the waste oil. “The money for the used oil is not much. Exchanging it for soap and detergent is a better deal as we spend more than RM100 on that each month for all our cleaning and washing,” he says. Over at the certified green building, GTower along Jalan Ampang in Kuala Lumpur, used cooking oil is also being put to good use.

Some 400 litres have gone to FatHopes since last August. Since the building opened last March, waste oil from restaurant kitchens has been collected fro proper disposal, says Melessa Hon, Marketing Communications Manager of Goldis Berhad. “Being a new building, we could afford the pre-planning and organisation of such initiatives without having to dispose of our waste oil irresponsibly, such as throwing it down the drain or selling it to waste oil collectors. We wanted to showcase and highlight that going green and being green wasn’t a difficult endeavour. All it takes is a little rethinking and a willingness to commit towards looking at reducing a building’s impact on the environment,” says Hon. The building management has also opted to receive soaps in return for the used oil but to date, has not gotten any yet from FatHopes.

Used cooking oil is in high demand Used vegetable oil is deemed by many as one of the best feedstocks for producing biodiesel. For one, waste will be recycled into new - and green - fuel. And as the price of crude palm oil escalates, waste oil becomes an even more attractive alternative for making biodiesel. Furthermore, making biodiesel from waste oil - instead of virgin palm oil - allays fears of a food source being into fuel. But there is a snag: used cooking oil is sought after for other uses, too. Biofuel producers have to compete with not only traditional users of the waste oil - soap, candle and animal feed manufacturers - but also those who recycle it into fresh cooking oil. “Many collectors prefer to sell the collected oil for recycling into cooking oil rather than for biodiesel production, as they get better prices,” says Vinesh Sinha, managing director of FatHopes Energy which

GREEN GROWTH FatHopes Energy Sdn. Bhd. (FHE) was founded with the key pillars of sustainability as a solid business foundation. Among the pillars of sustainability, it prioritizes the economic first, then the social and the environmental. By consistently revising its policies and guidelines, the company is allowed to continuously produce goods and deliver services of high environmental compliance. In line with their core principles, FHE holds true to producing high quality products with

-Star Two, Tuesday 1 March 2011

YOUNG GREENIES -Star Two, Tuesday 1 March 2011 At one school, SMK Subang Utama in Subang Jaya, Selangor, the used oil recycling scheme is a pet project of a group of Form 2 students. To encourage students’ support, a competition is held; a prize awaits the class that brings in the most used oil. “The amounts are recorded and the labelled containers are returned to the students to be reused for the next round of collection,” says student Sunny Foo. Some 80 litres have been brought in so far and will soon be sold to FatHopes Energy. At the canteen, posters and banners - made by the students - describe the health risks of consuming stale oil and pollution caused by wanton dumping. Chadric Yeo has contributed 500ml of used oil to the school so far. “What’s the point of throwing the oil away? If we do that, marine life will be affect. One litre of cooking oil can contaminate one million litres of clean drinking water. And cooking oil, after being used three times, can cause heart diseases and cancer,” he says, sharing information which he had gleaned from the internet. Darshan Poopalan chips in: “Oil can clog drains and if poured into rivers, can cover the water surface and prevent oxygen from getting in, so killing aquatic life.” The 14-yearold says he once observed a kuih seller at SS19, Subang Jaya, emptying a huge wok of oil into a drain. “if six or seven people do this,

www.fathopesenergy.com


Incubation SECTOR 0

The Fat Express 2011

FROM WOK TO FUEL TANK

Housewives, students and restaurateurs are saving up their used cooking oil - for a good reason -Startwo, Tuesday 1 March 2011 Instead of pouring fryer oil down the sink like she used to, Sheila Varghese now dutifuly tips the stale fats into an old water bottle. And once that is full, she heads to the central rubbish disposal shed at her condo in Petaling Jaya, Selangor, and empties it into a huge drum. This has become a common practice among the residents of Armanee Terrace. The grease collection drive is a green move among the condo residents and management to recycle used cooking oil into biodiesel. “If we don’t do this, all the oil ends up in pipes and grease traps,” says Varghese. “Not all the oil is removed, so the grease still goes into the sewerage system. This makes water treatment to remove the oil more difficult. So the oil eventually ends up in our water supply and comes back to us. If all of us prevent oil from entering drains and rivers, then we’ll be helping ourselves and reducing the maintenance cost of our condos’ grease traps.” Hers is one of several condo projects in the Klang Valley that is giving used oils to FatHopes Energy, a company which processes the grease into biodiesel. “This scheme has good intentions, that is

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why I’m participating. Turning the oil into biodiesel is better as the used oil will then not be recycled into cooking oil again. Highrise dwellers should do this, as the collection will be easier compared with (dispersed) landed properties,” says Varghese. Waste oils from residences have so far been ignore by used oil collectors who source for the grease only from major generators such as restaurants. The gap is now filled by FatHopers Energy, which collects fryer oil from highrise condominiums, hospitals, eateries and one school, all within the Klang Valley. The endeavour recycles a troublesome waste that too often ends up in sewers, and transforms a waste into green fuel. Biodiesel emits 70% less carbon dioxide than conventional diesel, according to FatHopes managing director, Vinesh Sinha. Turning used oil into biodiesel, he adds, also prevents it from being recycled into new cooking oil, a product that poses health risks because of the chemicals used to bleach and process the waste oil. The monthly production of 40 tonnes of biodiesel at his plant in Jalan 227, Petaling Jaya, is taken up by tour agency in Penang (to

run its buses), a developer (for its construction vehicles and machinery) and a fast food factory (for machinery and vehicles). FatHopes collects about 1.3 tonnes of

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used oil each week from Armanee Terrace. Since the collection of used oil started last August, there has been less build-up of sludge in the grease traps. For resident Sujata Narendra, clogged pipes is a thing of the past since she started giving away waste oil for recycling. “I always had clogged pipes as my maid has this habit of dumping oils down the sink. I no longer have that problem. When I heard about the project, I wanted to take part. We’re reusing something that is going to be thrown anyway and making better use of waste oil.” The oil collection drive proved so popular that it was introduced in a neighbouring condomimium, Perdana View Boutique, late last year. “If we don’t give the oil away, we’ll just pour it into the sink and it goes into the grease trap,” says resident Joy Kumar. He said some building owners, to avoid the high cost of cleaning grease traps, create outlets that lead directly into drains. And some, after emptying the grease trap, just chuck the sludge into drains. “We leave the bottles of used oil outside our apartments, and the cleaners take them down to the central rubbish depository.” As the scheme is still fairly new, only about one-fifth of the over 500 condo owners or tenants is taking part. Kumar is hopeful that the number will grow once other residents are aware of the pollution posed by careless disposal of grease.

SMEs and women can generate green money by recycling cooking oil -Malaysia SME Magazine November 20 - December 3, 2010

FatHopes Energy Sdn Bhd (FHE) an exhibitor in IGEM2010 showcased its first imported Biodiesel processor called Freedom Biofuels Equipment from the United States That uses recycled cooking oil to convert to biodiesel. Minister of the Women, Family and Community Development, Datuk Seri Shahrizat Abdul Jalil who was present at the exhibition, expressed amazement at the highly rewarding yet simple biodiesel processor brought in by FHE. FHE has developed a variety of campaigns and events that are in the pipeline to promote this product at the grassroots level and schools. Mothers of Mother Earth campaign targets householders especially the women

folk to make a difference. Women will be exposed to information on the benefits of recycling used cooking oil. Used cooking oil contains carcinogenic properties that allows for FHE to be converted to biodiesel. This is surely an interesting way to garner the participation of the women folk in converting waste to wealth and ultimately reducing our national carbon emissions. Furthermore, such an initiative allows for women to act as catalyst in spreading the green message and this in turn creates a conducive environment for the family unit to behave sustainably. FHE managing director Vinesh Sinha said, “We truly believe that sustainability at an individual level is the only permanent solution

Capacity Building FatHopes Energy (FHE) has a deep-rooted passion for and commitment to Malaysian capacity building. The company coaches interested individuals and entities in developing sustainable biofuel manufacturing businesses across Asia. It takes pride in creating sustainable business models customized specifically for individual markets. To date, FHE has developed biofuel business models in Indonesia, Singapore, Vietnam, Philippines and Malaysia. Currently, the most difficult market for biofuel production, specifically biodiesel, has been Malaysia. This is caused by low fuel prices to consumers due to heavy subsidies by the government. Having developed a successful biodiesel business model in Malaysia, regional markets appear less challenging, as fuel prices are far higher compared to Malaysia. Due to cheap fuel prices, there are far more petrol vehicles compared to diesel, set-

ting the mentality of the masses against diesel powered vehicles. Many Malaysians prefer petrol to diesel due to the misconception that of diesel engines are only suited to heavy machinery. This further reduces the desirability of biodiesel compounded with the low price. By comparison, neighboring Thailand has far more diesel vehicles personally owned by commuters. FatHopes specializes in customizing sustainable biofuel production business models to suit specific environments, business cultures and social norms. All three facets of the business are addressed, to ensure successful business models. Among the key objectives of every business model FHE develops, the ability to realize long-term multiple bottom line success is prioritized. Economic bottom line success is achieved by ensuring feedstock is exclusively sourced from the local community, applying sustaina-

to the current global environment pandemic.” Minister of Energy, Green Technology and Water Datuk Seri Peter Chin who made his visit to FHE’s booth in IGEM2010 showed great interest in discussing possibility of implementing these processors at local boroughs especially in Bandar Baru Bangi. He also mentioned that the price of the processor is reasonable and as such is affordable for any small entrepreneur. This can help them generate income from the upcoming green industry. FHE has also teamed up with DSI International of Denmark in a collaborative effort to produce renewable energy from solar panels as well as regenerative energy from UCO to biodiesel.

bility-based procurement methods. This will ensure that each plant/facility set up continues running as long as its community and the businesses in its vicinity remain operational. Many options of biofuel feedstock are sourced from waste, with a minor quantum from sustainable, fast gestation crops. The social bottom line is the most important bottom line as it determines the efficiency of each project. It is addressed by ensuring all stakeholders in a given project have a vested interest in the project’s success, and further stand to gain something from their positive contribution. Developing projects hand-in-hand with stakeholders on the ground consistently indicates increases in projects’ efficiencies. As the environmental implications of every proposed project is always at the forefront of their planners’ minds, FHE assures that projects that are well-aligned to the two aforementioned bottom lines, will excel in the area of environmental stewardship.

WASTE TO FUEL -Star Two, Tuesday 1 March 2011 With his six McDonald’s outlets located in Kota Kinabalu, Harry Teo could not send waste oil from his eateries to FatHopes Energy for recycling. So instead, he is purchasing the machinery that will convert the oil to biodiesel. Teo has, for years. been searching for ways to deal with used oil and finally found a solution at a green technology exhibition in Kuala Lumpur last year, where FatHopes was one of the exhibitors. Ever since he received the McDonald’s franchise 12 years ago, Teo has been accumulating used cooking oil and now has an estimated 90,800 litres stored in a warehouse. “Under the franchise rule, I cannot sell used cooking oil to a third party without knowing what it will do with the oil. It is difficult to monitor them. We’ve heard about used oil being recycled into cooking oil. We cannot let that happen. So I decided to store the oil until I find a solution. “Initially when I only had one restaurant, there was not a lot of oil so I gave it to a friend who turned it into animal feed. As the number of restaurants grew, I was left with more and more oil,” says Teo. He believes the equipment to be supplied by FatHopes will meet his needs as they are small-scaled. He expects to start recycling waste oil in a few months’ time after his staff receives training to run the machinery. He will use the biodiesel to run his company’s fleet of trucks. “As fuel cost is growing, recycling our cooking oil will reduce our overheads. It is also for a good cause and we will release less carbon.”

www.fathopesenergy.com


4 SECTOR 1 BIOFUEL FROM ALGAE FatHopes Algae (FHA) is working hand in hand with FHE and University Malaya (UM) to commercialize the cultivation of high lipid content algae. Numerous strains have been identified and adequate methodologies are being screened before mass cultivation. Both marine and fresh water are being experimented on, to determination the most feasible method for mass cultivation. The continued use of petroleum-based fuels is the driving concern behind algal biofuel development, as conventional fuel supplies are widely accepted to be depleting, while massively contributing to the accumulation of CO2 in the environment. Renewable and carbon neutral fuels are in demand to support the widespread promotion of environmental and economic sustainability. Biodiesel is an attractive alternative fuel option that can directly replace petroleum diesel, while offering many advantages over its conventional counterpart. Of late, there has been increased interest in exploiting microalgae as a viablefeedstock for biodiesel production. The oil content of microalgae can range from 16% to 68% of its dry weight. Microalgae oil yield can reach up to 136,900 L/ ha compared to other plant crops, which range from 172 to 5950 L/ha. The crop produces a variety of lipids including tryglerides, hydrocarbons, glycolipids and phospholipids. While most algal strains primarily produce triglycerides, Botryococcus braunii contains high amounts of hydrocarbons, which can be converted to gasoline and light and heavy cycle oil after subjected to the cracking process. An added advantage of using photoautotrophic microalgae is that it absorbs greenhouse gases. Using such a system, any emissions released upon burning the biodiesel will have been previously sequestered, rendering the combustion carbon neutral. Recently it has been demonstrated that microalgae like Spirulina and Scenedesmus obliquus are efficient in removing pollutants from the atmosphere.One productive approach to applying this technology would be to use microalgae in removing carbon emitted by power plants and industry, while producing biodiesel. FHA stays focused on developing scalable models to put the option of fuel production into the individual’s hands. The model strives to allow entrepreneurs with minimal investment capital to purchase modularized systems that cultivate algae and produce biofuel for consumption. This will enable individuals and entities alike to hedge on fuel price and offer lower prices for services, as the cost remains constant. For more information on FatHopes Algae please log on to www.fathopesalgae.com or visit us at IGEM2011.

Algae has potential as biofuel for aviation industry Marine algae is seen to have the potential to provide third generation biofuels for use as jet fuel by airplanes, said a senior government official. “Unlike other biofuels like bioethanol from corn and biodiesel from soyabean, the lipids from micro-algae can be

Raw Materials

BIODIESEL FROM ALGAE High oil prices and advances in biotech over the past decade have refueled the algae biofuel race.

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Carbon dioxide water

What is Marine Algae?

Castor Coconut Palm Algae www.fathopesenergy.com

Extraction of oil. A press produces 70-75% of the oils from the plant. Algae

screw press

Oil

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Solvents used to separate sugar from oil; solvents then evaporate.

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4

Solvent

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2

Solvent

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Oil is ready. Can be used as oil directly in diesel engines or refined further into fuel.

transformed into jet fuel,” said Professor Dr Nor Aieni Mokhtar, the national oceanography directorate at the Ministry of Science, Technology and Innovation. “Algae biomass is able to efficiently capture carbon dioxide and is suitable for waste water treatment,” she told reporters at the opening of the Asean workshop on the status and technology development of biofuel from marine algae. The workshop was part of a seminar on third generation biofuels held in Kuala Lumpur recently. Nor Aieni said that under the 9th Malaysia Plan, RM3.52 million had been allocated to seven marine algae research projects. She said algae offer a promising renewable energy source for a fully sustainable and low-carbon economy.

About algae Amongst the fastest growing plants; about 50% of their weight is oil

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Sunflower

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Algae are a form of aquatic plant life that can range from microscopic unicellular organisms (microalgae) to multicellular organisms that can grow to exceed 50 metres in length (macroalgae). In most cases, strains of algae are photosynthetic, meaning they are able to derive energy and reproduce with little more than sunlight, carbon dioxide and water. Recent breakthrough discoveries have found that algae can be cultivated to yield biofuels, including biodiesel and bioethanol, at a rate that is 10 to 100 times higher than that of comparable energy crops. In addition, algae has been found to produce more oxygen than all other vegetation on earth put together, thus removing a huge amount of carbon from the atmosphere. It is also an incredibly versatile crop, able to grow in a myriad of temperatures and environmental conditions. When this is coupled with the fact that it grows in seawater, the potential area available for its cultivation increases to multiple times that of the total arable space on land. These factors collectively contribute to the strong conviction we have, that the avenue of marine algae presents a remarkably unique capacity for delivering triple bottom line success. In turn, the application of our specialised expertise and in-depth knowhow in the field will guarantee the success of every project we undertake.

(Gallons per hectare) Safflower

After initial growth, algae is deprived of nutrients to produce a greater oil yield.

Sunlight

Yield of various plant oils Soy

The Fat Express 2011

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Contains no sulfur; non toxic, highly biodegradable

251 373

Algae fuel is also known as algal fuel or oilgae

605 1,572

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Raw Materials SECTOR 1 5 SUSTAINABLE SOURCING OF FEEDSTOCK INNOVATIVE WASTE OIL MANAGEMENT SYSTEM FOR PENANG STATE GOVERNMENT The Fat Express 2011

FatHopes Commodities (FHC) is a synergistic partnership between CGV Industries – Malaysia’s leading waste oil collector – and FatHopes Energy. The primary objective of the company is to efficiently consolidate and convert waste materials/ oils for environmentally compliant biofuel production. FHC not only collects waste materials/oils, but also consolidates by way of sourcing and importing the raw materials required for the production of biofuel in Malaysia. It evaluates the Malaysian biofuel market’s requirements and offers more sustainable alternatives that cause less environmental degradation. For example, biodiesel facilities currently using Crude Palm Oil (CPO) – which can be used as cooking oil – are able to choose alternatives like used cooking oil, grease trap sludge, palm oil sludge, palm fatty distillates, or palm acid oils, all of which are non-edible waste products that perform perfectly as substitute biodiesel feedstocks in Malaysia today. FHC offers waste oil collection services to the public, as the pioneers in facilitating waste to energy conversion nationally. Realizing that as the nation works towards a better financial future we are bound to consume more and more fossil fuel – thereby exacerbating global warming and climate change – the company prioritizes energy production. In line with achieving the B5 Policy and our 40% Carbon Emissions

eco.logical Pass the source? Ecological (M) is the brainchild of FatHopes Energy, a company that has worked tirelessly in order to unite this group of capable individuals from various backgrounds. Having secured shining talents from the realms of marketing, industrial design, and systems development, Ecological (M) is ideally positioned to meet the extensive needs of its customers. Only serving to buttress this formidable offering is FatHopes Energy’s considerable experience in the industry. Our mission is to source all available recyclable raw materials by providing efficient and holistic collection, storage, and management services catering to any customer category. Such raw materials include dry waste (metals, plastics, and papers), wet waste (food scraps, garden waste, kitchen waste) and used cooking oil. Our current customer pool is dominated by schools, apartments, and orphanages. However, the applicability of our system allows us a very promising scope as to including other potential groups such as commercial centres and offices. The main criterion for any proposed collection points is volume but more significantly, they need to qualify as places of congregation, locations that enjoy substantial exposure and traffic. Ecological (M)’s collection system uses conventional multi-tonne diesel trucks to retrieve recyclable waste from designated locations. The striking difference between Ecological’s system and your average logistics service provider lies in

Intensity reduction commitment, FHC sees the value in seizing a valuable resource, rather than letting it go to waste. FHC strives to offer the best customer service and response for waste oil collection to individuals and companies alike. Customer focused and results driven, the company seeks to apply its industry experience by completing jobs in a neat and timely manner. Currently the appointed collector of more than 300 businesses, FHC is confident of being able to offer its services to more clients. Some of the most successful F&B chains in the world have placed their trust in the company, to supply the stated waste oil collection service. All results are measured in compliance with global carbon emissions standards and by way of carbon emissions reduction. With the wide utilization of sustainable biofuels produced from recovered or inedible sources, FHC is centered and resolute on significantly reducing carbon emissions intensity in Malaysia. Malaysia has set an example for the rest of the world with the production of biodiesel from CPO due to the mass production of palm oil; shouldn’t we set another Malaysian example with sustainable production of biodiesel derived from waste and inedible streams?

terms of environmental impact. Ecological uses FatHopes Biodiesel. With our transportation overheads kept to a minimum, both in terms of ‘Mother Nature’ and operations, Ecological (M) thrives in conditions where others find it difficult to survive, let alone profit. To complement our collection system, we at Ecological (M) insist on integrated sustainable design to all our concepts, most notably for our storage systems. For example, our school recycling campaigns boast purpose-built recycling collection facilities fitted with rainwater tanks for the regular cleaning of the aforesaid. Meanwhile, our orphanages and apartments have floor-to-floor collection facilities with depositories made of recycled plastic. Such stringent internal practices allow us to offer our services confidently, unconcerned about thirdparty credibility checks simply because we in turn scrutinize other companies who purport to offer green services. Ecological (M) management services further enhances collection and storage systems by combining known best-practices such as Kaizen, TQM and knowledge-management. Like all other forerunners of industry, the Internet is an indispensable tool to the workings of our supply chain. Customers of Ecological (M) benefit from this regular and up-to-date transfer of information because it ensures that each participating school, apartment, or orphanage receives the best available market rates for their recyclable items. Each group is also subject to routine quality control practices which enables all complaints, discrepancies and losses are speedily amended. We also practice change-management by constantly analysing political, economic, social, technological, environmental, and legal trends both locally and internationally. Such a holistic service is a scarcity in Malaysia thus belying the reason for our existence. Our services are unique and sophisticated enough to pique investor interest while remaining applicable and current enough for any customer wanting to upgrade their sustainability factor.

Beginning in Q3 2011, FatHopes Energy-incubated Sustainable Biofuels Malaysia (SBM) and the Penang State Government will jointly explore the potential for capitalizing on producing and utilizing biofuel from waste oils. The first stage is a state-wide Used Cooking Oil (UCO) Awareness and Recycling Campaign, in line with addressing environmental issues caused by fats, oils and grease pollution in water lines. Pilot UCO collection centers are to be set up on Jalan Kampung Benggali on the mainland, and Jalan Macalister on the island, before adoption across the state. SBM will provide the knowhow and expertise in ensuring stewardship in UCO collection and management, through conversion into biofuel. Timely, conscientious disposal of UCO will be demonstrated to the state’s hawkers and F&B operators, in order to engender mutually beneficial partnerships with the local population. Consumers will initially be advised to equip their kitchens with oil collection containers, to encourage individual contribution until centralized disposal depots are allocated to each locality. The campaign will also involve the use of online portals, awareness posters and educational materials to promote widespread public support for a cause where every individual can take charge of proper waste oil disposal. This initiative was proposed as a result of the infrastructural stresses caused by Penang’s numerous eateries, thanks to its reputation as a regional food heaven. The project’s objectives are to: 1. Mitigate irresponsible UCO disposal, which is currently the cause of clogged drains, bad odor and consistently costly maintenance costs to the state. 2. Reduce water pollution in streams and surrounding seas. 3. Maximize application of subsidy-independent renewable, environmentally compliant fuel. 4. Offer greater food security by reducing the amount of UCO being re-sold for human consumption. The innovative program will also offer operators automatic grease traps, with minimal maintenance costs and justifiable return-on-investment periods. This equipment assures optimal efficiency of extraction, by skimming wastewater for oil in a heated chamber, as the water flows through it.

ALTERNATIVE FUEL FARMING AT FATHOPES Plantations (FHP), alternative sources of feedstock are consistently devised and developed, to ensure a constant supply of raw material for the production of organically derived biofuel. The company prioritizes sustainable growth methodologies and procedures that simultaneously work to mitigate the food vs. fuel crisis. One of its primary aims is to ensure its plantations and crops alike, are able to provide a sustainable, cost effective and efficient fuel solution for generations to come. FHP specializes in rapid growth crops – like those with fast gestation cycles – which have the ability to absorb heavy metals and can be grown in degraded land. After several cycles of growing these crops on the otherwise non-arable land, other food crops can also be introduced –once the area has been suitably rehabilitated – thus multiplying the plantation’s utility. Further, the company insists that 10% of all land used is allocated for livestock breeding, primarily for cattle and chickens. The animal droppings are used for energy generation and as crop fertilizer. The culmination of these elements reliably results in a plot of land that is not only able to sustain itself, but also release feedstock for energy generation while organically enriching the area used. All growing methodologies are automated, significantly reducing dependency on manpower; the availability of which has proven to fluctuate. Further, with the biodiesel production machinery located on-site, the entire production process is

rendered energy positive. This means that all energy required for the planting, growing, harvesting, processing, cleaning, and delivery to the end user is powered by the crop and the excess biofuel is sold to the market for a profit. FHP creates micro-businesses in every plantation that is set up, providing local populations with sustainable job opportunities and the chance to create new streams of revenue generation. From the crops’ by-products, native populations are encouraged to produce cottage industry goods, such as organic cloth and dyes. Locals are also allowed to plant their choice of food crop in the space between those that exist, contributing towards their nutritional sustenance. FatHopes also offers farmers contract farming opportuni-

ties for a consistent and significant return. This illustrates the company’s beliefs in wealth sharing, as one of the most pertinent values in sustainable business and further, its belief in allowing more people experience first-hand, the process of biodiesel production. In turn, this leads to a better understanding held by the general population, and therefore a strong sense of confidence in the feasibility of biofuel as a far-reachingsolution to today’s overdependence on finite fossil fuels. FHP also explores the option of leasing land for biofuel crop cultivation. For more information, members of the public should log on to www.fathopesenergy.com

www.fathopesenergy.com


6

IN THE NEWS

www.fathopesenergy.com

The Fat Express 2011


The Fat Express 2011

IN THE NEWS

7

www.fathopesenergy.com


8

SECTOR 2

Manufacturing

SUSTAINABLE BIODIESEL FOR MALAYSIA FatHopes Biodiesel (FHB) is the biodieselmanufacturing arm of the FatHopes group. FHB produces environmentally compliant fuels prioritizing the lowest embodied emission throughout the manufacturing process. The entity is constantly on the look out for alternative feedstock sources inline with increasing the product’s sustainability standards. FHB is exclusively specialized as a multiple bottom-line business. The company sources and localizes stateof-the-art equipment from around the world to ensure the latest technologies are used in the efficient production of biodiesel in the Malaysian business environment. It specializes in converting waste streams into biodiesel of globally recognized standard, while ensuring prices stay competitive and affordable to the masses. FHB currently operates in Malaysia; converting waste streams like used cooking oil (UCO), grease trap waste, palm fatty distillates, palm acid oil and palm oil sludge. Sustainable crop oils that don’t compete with food supply, like Jatropha and Safflower oil, are also explored. The technology currently utilized by FHB was supplied and set up by FatHopes Energy, a distributor of fully automated multi-feedstock plants. The technology’s inventor is from Calcutta’s Eastern Biodiesel Technologies India Pvt. Ltd., which been supplying some of the most reputable companies like TATA, Indian Railway and Reliance India. The technology comprises components combined from some of the best specific-equipment producers from around

the world. Entire plants are fabricated, assembled, commissioned and tested in India before being dismantled and dispatched to Malaysia. FHB utilizes multi-feedstock equipment, reducing business risk and allowing fuel to be produced more sustainably. It focuses on empowering Malaysians to use biodiesel by capitalizing on the fact that it is produced from waste streams and can therefore be made at very competitive prices. FHB strives to enable consumers at large to comply with the national 5% biodiesel policy: the B5 scheme. If biodiesel can be purchased at slightly cheaper than current prices shouldn’t we all start using it? It is only when producers can find alternative feedstocks at cheaper prices, that the end product can be affordable enough for consumption in Malaysian vehicles. FHB, FatHopes Commodities and CGV Industries, one of Malaysia’s most experienced and reputable UCO collectors, are working to bring this awareness into the public eye. The ultimate goal is a Malaysia where all realize the value in proper UCO disposal: cheaper energy. As the cost of producing UCO-derived biodiesel can be kept constant at the current level – less than that of petroleum-based diesel – it will continue to be a profitable business model, while the cost of conventional fuel continues to rise. Nevertheless, the quantity of UCO collected is dependent on widespread public participation and is expected to continue growing, along with the national population.

ENVIRONMENTALLY FRIENDLY BIODIESEL NOW ON SALE -The Star - 2/6/2011 PUTRAJAYA: Biodiesel is now available in the market. Beginning this month until October, the supply of the new fuel will be available in stages starting at Putrajaya followed by Malacca, Negri Sembilan, Kuala Lumpur and Selangor respectively. Plantation Industries and Commodities Minister Tan Sri Bernard Dompok launched the B5 biodiesel programme at the Petronas station at Precint 9 here yesterday. With this, all five Petronas stations and one Shell station here will be dispensing the fuel. B5 is a blend of 95% regular petroleumbased diesel and 5% biodiesel which can be used in normal diesel engine vehicles without any modifications. It will be sold at the same

price as regular diesel at RM1.80 per litre. Dompok said that the B5 price mechanism would be regulated and determined by the Finance Ministry. “The rolling out of the B5 programme will not cause any price changes as the Government will continue providing subsidies to ensure that the B5 will be at the same cost as regular diesel,” he said. “The production of the B5 is more expensive but the cost is absorbed by the Government,” he added. Malaysian Palm Oil Board director general Datuk Dr Choo Yuen May said the fuel is more environmentally friendly compared to regular diesel.

CONVERTING WASTE TO CNG FatHopes Biogas (FHBG) manufactures sustainable compressed natural gas (CNG) as a swap-in replacement of gas for natural gas-powered vehicles (NGV). FHBG also supplies biogasification equipment, enabling individual and companies alike, the opportunity to begin converting any organic waste stream into biogas and/or CNG. All feedstock used for CNG production is waste-derived and it is recommended that such facilities are set up for sustainable waste management. This is probably the most financially feasible manner to deal with the waste we produce daily. FHBG’s equipment and machinery is capable of converting all organic waste into biogas, allowing the

www.fathopesenergy.com

company to support the propagation of a zero-waste system. Biogasification technology significantly reduces waste that needs to be sent to landfill, in turn limiting the overall number of dumpsites required. Further, all emissions released from rotting material at the dumpsite can be captured and utilized for energy generation. Ultimately, land that is currently taken up by landfills can be converted into projects that return greater financial benefits. Current landfill operators stand to not only realize savings from the reduction of maintenance work required, but also have the option of becoming independent power producers, by retailing organic waste-derived

The Fat Express 2011

Sustainable Biofuels Malaysia SBM Inline with the Penang State Government’s motto ‘A Cleaner, Greener Penang’, Sustainable Biofuels Malaysia (SBM) has emerged to offer innovative waste management solutions that prioritize energy production in the form of biofuels. SBM has recently set up a micro biodiesel processing facility in Bukit Mertajam, Penang to provide the apparatus necessary to convert used cooking oil (UCO) and grease trap waste into biodiesel. The facility was set up to address the issue of water pollution caused by improper disposal and management of UCO. Meanwhile, the threat to food security is mounting, with increasing amounts of UCO being blended with virgin oils for re-consumption. The company is currently developing an integrated pig waste management facility with the objective of producing high-end compressed natural gas (CNG) to power natural gas vehicles (NGV). The project was proposed in order to help increase the standard of living for downstream communities, while providing value addition to pig farmers by allowing land currently used for wastewater treatment to be converted into additional farming area.

All of SBM’s projects are developed to ensure the achievement of all three bottom lines within the given circumstances; namely the economic, social and environmental pillars. This comes with the realization that business models that discount even one of these bottom lines are bound to be finite and nonrenewable. Instead, they have opted for models that are cyclic and work hand-in-glove with triple bottom line business. SBM’s success is benchmarked by stakeholder satisfaction and maintaining the perfect return-on-investment record. In addition, environmental achievement is measured by the realization of significant carbon emissions reductions while keeping detailed carbon emissions reports, in accordance with global standards. By properly managing 150 tons of pig manure per day, the company is confident of being able to reduce carbon dioxide emissions by at least 30,000 tons per year. SBM also strives to supply Penang’s citizens and businesses with more accessible renewable fuel choices, contributing towards achievement of the State Government’s goal to create a ‘habitat of choice’ for all Penangites. The realization of this vision – through the application of alternative biofuels – will not only revitalize its urban spaces and streetscapes, but also deliver better living environments while serving to reposition Penang as Malaysia’s sustainable city.

An Eco Friendly Alternative to Petrol As a division of the FatHopes group, FatHopes Ethanol is currently developing a feasible business model for the production of Ethanol in the Malaysian environment. Ethanol is a one-for-one replacement for conventional petrol that can be used in today’s petrol engines. Along with FatHopes Algae, working in collaboration with University of Malaya, the company is currently exploring the conversion of algae into ethanol. It is developing the most sustainable and cost effective arrangement to convert macro marine algae into bioethanol. These in-depth studies into suitable mechanisms are tailored to suit Malaysian market demands imposed by the low price of petrol, due to heavy subsidies. The entity’s main objective is to develop a renewable, alternative fuel that can compete with the price of subsidized fuel. This is mainly due to the fact that the majority of primary petrol users buy the fuel at the subsidized price. In contrast, the vast majority of Malaysian diesel consumers purchase the fuel without subsidies. The wide-scale utilization of ethanol, as a conventional petrol replacement, also offers attractive returns from its potential for reduction of environmental impact. In addition to being cheaper than fossil petrol, it doesn’t release carbon monoxide emissions, making

petrol vehicles safe again. This comes as a reminder of how the petrol vehicle was first powered by its inventors, running it on moonshine – alcohol. Ethanol has a promising future, but risks may arise unless a solid foundation of research and development is established, followed by exhaustive testing and certification. The development of a cost effective model capable of producing in commercial quantity is presently being centralized. Confident that the Malaysian market is receptive enough to delve into a future-fuel, the entity remains on the look out for partners to assist with project development. At present, considerable awareness on the difference between conventional petrol and renewable alternatives is still required, to facilitate the realization that it is worthwhile to pay slightly more for environmentally complaint fuel. This only applies at the final stage, after viable options have been prepared for consideration and approval. FatHopes Ethanol strives to meet the public will to contribute on a personal level, but unfortunately the majority of Malaysian consumers’ cars are petrol driven.

CNG. Conversion of existing waste will allow the landfill to go from a utility funded by costs to the consumer, to a revenue-oriented business model, letting operators gain more control over their landfill’s future. This shift will, however, profoundly affect the enduser in two ways; while incurred costs are lessened, waste separation will have to be done by the consumer at the source. Awareness and educational efforts are currently being undertaken in pockets throughout the country to facilitate better understanding of waste separation at the source. FatHopes’ strategic partners like EcoLogical Sustainable Services and Sustainable Biofuels Malaysia are providing assistance in this field, disseminating information, while mentoring reception and

compiling progress reports. Biogasification solutions are successful in a broad range of applications, if cornerstone stakeholders are united for the project’s implementation. Biogas solutions are also perfectly suited to livestock farm conditions, where waste treatment can incur considerable costs. Apart from minimizing waste treatment costs, they can result in a further saving on energy, or a new revenue stream for the farm through the sale of energy generated. FHBG prides itself in consistently offering individuals and companies cost effective organic waste management systems with a proven return on investment. Available equipment ranges from 300 KGs to 50 tons per day, each allowing for attractive savings on waste and wastewater treatment.

Members of the public interested in more information should log on to www.fathopesenergy.com


Dissemination

The Fat Express 2011

eco.logical Spreads the word The level of understanding of environmentalism in Malaysia leaves something to be desired in comparison to other developing nations. Other countries are already dabbling in bio-fuels and flexi-fuels for cars while still others have mastered the technique of converting sewage into drinking water. In order for Malaysia to compete on an international level we must break the current paradigm, uniting under the guidance of Ecological (M) primary and secondary visions to achieve excellence and credibility. Ecological’s primary vision is concerned with debunking current perceptions of prohibitive costsand difficulty associated with environmentally friendly practices, ultimately demonstrating the accessibility of these practices to the public at large. Many remain unaware of available technologies and practices that enable fiscal savings as well as their corresponding environmental benefits. Ecological (M) endeavours to revolutionize this status quo by initiating a steady stream of extensive campaigns, each with its own specific goal for a targeted demographic. Such an effort will be accelerated by the simultaneous creation of suitable forums for engagement to which active environmentalists and non-active individuals can flock. From a long-term perspective, this will enhance collective understanding of sustainability. By identifying the various definitions commanded by ‘sustainability’, we can bet-

ter inform, educate, and manage such willing individuals along the appropriate phases for enacting change. Each group may stand at differing levels of environmental activism, thus Ecological (M)’s faculty for the adaptation and accommodation of each must suit multiple backgrounds. Such capability has effectively been demonstrated via the various groups of customers with whom we currently work. Ecological’s secondary vision is geared toward the connection and integration of all members of the public to achieve an agreed state of unity – that elusive ideal of zero waste. In the transition period to becoming a ‘zero waste’ nation, the effort of each and every individual will not go unnoticed. Ecological (M) prioritizes the people who devote time and effort to their involvement in any program servicing a customer group. For example, the myriad cleaning staff who customarily toil in seeing to the removal of our waste are heavily integrated into any system. They receive a regular stipend from the waste as part of any program implemented for a customer. This provides them with greater incentive to collect, sort and manage recyclable waste in addition to that collected by the customer, as they grow to appreciate the tangible value of the waste. Such considerations are mandatory to our operations. Each decision, action, and plan endeavours to consider every single individual who may be affected. This is vital to ensuring success in connecting individuals to create critical mass for change. The general connotation of peer pressure is a negative one but in this context, a wave of environmental activism is undoubtedly a good influence on society, country and the world as a whole.

9

SECTOR 3

BEYOND INCREMENTAL IMPROVEMENTS The climate crisis is spinning out of control at the same time as the world is faced with a major development crisis; by 2050 the global human population will have reached 9 billion. The majority of whom will live a life of poverty if we fail to alter our current development path. Until now, most efforts to solve the climate crisis have focused on how to reduce the carbon footprint of our current economic system. However, this approach will not alone lead us onto the right path as it is concerned with eliminating a problem rather than building a new economy. Efforts to solve the climate crisis must focus simultaneously and speedily on all sectors, all gases in all regions on how to reduce the carbon footprint of our current economic system. However, this approach will not lead us onto the right path if only selective actions are being taken which may focus only on short-term economic benefits and costs. If we do not radically alter the system and construct a 21st century green economy we are likely to reduce the problem but not solve it entirely. Furthermore, enhancing the efficiency of the current system will not build an economy capable of providing the jobs and services needed for 9 billion people, within the limits of our planet. Creating a new economy seems an overwhelming task to most of us and obviously no one knows how a future sustainable economy will look like. However, if we have the courage to rise to this challenge and alter our perspec-

tive we will see that certain technologies and sectors have an often overlooked potential to help us take the important steps on the path toward sustainability. Industrial biotechnology is one such sector. Even though the sector is still in it’s infancy, it globally avoids the creation of 33 million tonnes of CO2 each year through various applications, without taking ethanol use into consideration, whilst globally emitting 2 million tonnes of CO2. With this report, WWF sets out to explore the magnitude and nature of this sector in our search for pathways toward a green economy and a sustainable future. The potential is enormous, but the uncertainties and pitfalls are many. The courage, vision and drive of the world’s politicians, investors and business leaders will ultimately determine whether we realize this potential. The path toward a green economy will not be easy, but we must be mindful of where we are likely to end up if we continue on our current path. With this in mind, it is clear that there is no alternative to explore these innovative pathways.

CARBON FOOTPRINT OF 1L OF UCOME (USED COOKING OIL METHELY ESTER) Biodiesel and Straight Vegetable Oil The vast majority of biodiesel available in Malaysia is sourced from palm oil, often grown on recently deforested rainforest, like vast tracts of land in Indonesia. It is conceivable that cultivating biofuel crop could emit 2 to 8 times more carbon than using conventional fossil-diesel. FatHopes only converts waste/ non-edible oils into biodiesel, dramatically

reducing the product’s carbon footprint. With technologies capable of achieving a one-forone conversion yield in Malaysia, FatHopes was able to drastically streamline its emissions. The advanced technologies applied help ensure that every liter of used cooking oil (UCO) processed is turned into biodiesel, without discharge or effluent.

100% recycled biodiesel releases: •70% less Hydrocarbons •50% less Carbon Monoxide Carbon Footprint by Stage of Production.

Green House Gas (GHG) Emissions Reductions. Average emissions impacts of biodiesel for heavy-duty highway engines.

100

80 Share of overall footprint

20 10 0 Percent change in emissions

•50% less Particulate Matter •10% more Nitrogen Oxide

-10 -20

Biodiesel from tallow scenario I or biodiesel from used cooking oil

60

Biodiesel from tallow scenario II Biodiesel from tallow scenario III (price allocation)

40

Biodiesel from tallow scenario III (mass allocation)

-30 20

-40 -50 0

-60 -70 -80 0

20

40

60

80

Percent biodiesel

NOx

PM

CO

HC

100

Combustion

Process Energy

Process Chemicals

As shown above, used cooking oil biodiesel releases less emissions than conventional biodiesel and far less emissions, compared to fossil diesel. FatHopes’ BioRecoil (Biodiesel from Recycled Cooking Oil) has a carbon content of only 0.65 KGs per liter, 2.03 KGs less than conventional diesel’s 2.68 KGs per liter. FatHopes’ manufacturing facility currently operates at the rate of 150 Mt per month, resulting in:

Transport

Raw Material

3,645 tons of carbon saved in just one year. www.fathopesenergy.com


10

SECTOR 3

Dissemination

The Fat Express 2011

ENVIRONMENTALLY COMPLAINT TRANSPORTATION SERVICE FatHopes Transport (FHT) is Malaysia’s premier B5-compliant transportation provider, running all its vehicles on 5% biodiesel blend, in line with national policy. FHT is the fist environmentally compliant transportation provider in Malaysia, achieving its vision by ensuring its sustainability policies are kept relevant. Having set the benchmark for the national sustainable transport industry, the company is keen to satisfy client expectations. FHT is an functional example of how a sustainable business can actually be cheaper than conventional businesses; charging one of the lowest rates in the market, since the biodiesel used is acquired at slightly cheaper than market fuel prices. Coupled with a focus on routing and avoiding congested areas at peak times, we are able to considerably reduce fuel consumption. From fleet management alone, overall fuel consumption was reduced noticeably. Further reducing the carbon embodied in the transport service, FHT runs on biodiesel derived from reclaimed Used

mono alkyl esters

Cooking Oil (UCO), cutting the environmental costs of growing and manufacturing more feedstock crop. All vehicles run on UCO biodiesel, ensuring that all transportation operations have minimal environmental impact. Industryleaders looking to put a real Green edge to satisfying their transport needs should start with Green fuel. In fact, companies that have yet to adapt to the Green movement also have the perfect opportunity to take a significant step, with something that will actually make a difference. Regardless, the affordable rates are also a great reason to commission FHT’s services. FHT currently serves Penang and the Klang Valley area, also catering to individuals interested to charter vehicles and return them at either of the two locations. For more information on the services offered, members of the public should contact Pete at +60176853648 for all lorry enquiries and confirmations, or Yunda at +60124932082 for bus and van enquiries and confirmations.

Plants Produce Vegetable Oil Used in Restaurants

Chemical Reaction Separates Biodiesel from Glycerol

Waste Vegetable Oil Collected and Purified

Biodiesel Lifecycle

CO2

glycerol

Biodiesel Sold to Consumers

Exhaust Gases Absorbed by Plants

Biodiesel Polished by Proprietary Process

offers a full range of transportation services, among them:

+603 2300 3780

+603 2300 3780

A Lorry Rental Service (1t, 3t & 5t)

Separated Biodiesel Washed to Remove Impurities

info@fathopestransport.com

Glycerol Used in Manufacturing

info@fathopestransport.com

www.fathopestransport.com

www.fathopestransport.com

B Van Service (8 & 12 seaters) C Bus Service (25 & 40 seaters)

Biofuels

FAMINE, MALNUTRITION and other health concerns

Crops are renewable

BIOFUELS

Agricultural prices up

vs.

Land use competition with food production

FOSSIL FUELS

CLIMATE CHANGE

Fossil Fuels

Fossil fuel shortage

Limited resource

Threats

Biodiversity damage

Deforestation Land use change Monoculture

Global process: Agricultural production Massive need for agricultural land

Global process: Prospecting + extracting

Water + soil pollution

Production + use of fertilizers Use of farm machinery

Virtuous initial equation in favour of biofuels

Main concerns related to biofuels Main concerns related to fossil fuels

Greenhouse gas emission

Industrial transformation process Distribution

Final Use Road Transport

Petrol and diesel substituion

No greenhouse gas emission

Refining Transport Distribution

Fossil fuel burning

Final Use

Petrol and diesel use

Road Transport

Source: Emmanuelle Bournay, Atlas Environnement du Monde Displomatique 2007

www.fathopesenergy.com


WHY SUSTAINABLE BIOFUELS?

several criteria developing the principle further:

Biofuels – in the form of liquid fuels derived from plant materials – are entering the market, driven by factors like oil price spikes and the need for increased energy security. However, many of biofuels that are currently supplied have been criticized for their adverse impacts on the natural environment, food security and land use. The challenge is to support biofuel development – including the development of new cellulosic technologies – with responsible policies and economic instruments to help ensure sustainability in biofuel commercialization. Responsible commercialization of biofuels represents an opportunity to enhance sustainable economic prospects in Africa, Latin America and Asia. Biofuels offer the prospect of increased market competition and oil price moderation. A healthy supply of alternative energy sources will help to combat gasoline price spikes and reduce dependency on fossil fuels, especially in the transport sector. Using transportation fuels more efficiently is also an integral part of sustainable transport strategies. Biofuel development and use is a complex issue, because of the diversity of available biofuel options. Biofuels like ethanol and biodiesel are currently produced from the products of conventional food crops such as the starch, sugar and oil feedstocks from crops like wheat, maize, sugar cane, palm oil and rapeseed oil. A major switch to biofuels derived from such crops would create direct competition with their use for food and animal feed, with clearly visible economic consequences already emerging in some parts of the world. Second-generation biofuels are now being produced from a much broader range of feedstocks, including the cellulose in dedicated energy crops (perennial grasses such as Switchgrass and Miscanthus giganteus), forestry materials, by-products of food production, and domestic vegetable waste. Advancements in conversion processes will improve biofuel sustainability, through higher

1. Biofuel production shall follow international treaties and national laws regarding such things as air quality, water resources, agricultural practices, labor conditions and more.

efficiencies and reduced environmental impact from the propagation and cultivation of alternative fuel feedstocks. Produced responsibly, alternative feedstocks are a sustainable energy source that need not divert any land from the growing of food, nor cause damage to the environment; they can also help solve problems caused by the unchecked generation of waste, while creating jobs in downtrodden rural communities, where opportunities are scarce. Produced irresponsibly, they at best offer no climate benefit and, at worst, have detrimental social and environmental consequences. In other words, the application methodology of biofuel is critical, just as with any other product. According to the Rocky Mountain Institute, sound biofuel production practices don’t hamper food and fibre production, nor cause water or environmental problems, and could even enhance soil fertility. The selection of land on which to grow the feedstocks is a critical component of the ability of biofuels to deliver sustainable solutions. A key consideration is the minimization of biofuel competition for prime cropland. Public attitudes and the actions of stakeholders can play a crucial role in realizing the potential of biofuels. Informed discussion and dialogue, based both on hard science and an understanding of public and stakeholder views, is important. The Roundtable on Sustainable Biofuels is an international initiative, which brings together farmers, companies, governments, non-governmental organizations, and scientists who are interested in the sustainability of biofuel production and distribution. Throughout 2008, the Roundtable developed a series of principles and criteria for sustainable biofuel production through meetings, teleconferences, and online discussions. The Roundtable for Sustainable Biofuels released ‘Version Zero’ of its proposed standards for sustainable biofuels on August 13, 2008. This included 12 principles, each with

Feedstock Price Comparison

80

80

60

60

40

40

20

20

0

Linseed Oil (raw)

Peanut Oil (crude)

Soybean Oil (crude/de-gummed)

Sunflower Oil (RBD)

Canola Oil (RBD)

0

80

80

60

60

40

40

20

20

0

Corn Oil (refined)

Soybean Oil (RBD)

Palm Olein (RBD)

Palm Oil (RBD)

Cottonseed Oil (PBSY)

0

80

80

60

60

40

40

20

0

20

Palm Kernel Oil (RBD)

Coconut Oil (crude)

Corn Oil (crude)

Palm Stearin (RBD)

Palm Stearin

0

80

80

60

60

40

40

20

0

20

Edible/Technical Tallow

Lard

Intermediate Tallow

Poultry Fat (less than 4% FFA)

Bleachable Fancy Tallow - Packer

0

80

80

60

60

40

40

20

20

0

Choice White Grease

11

CONSUMER / NATION

The Fat Express 2011

Bleachable Fancy Tallow - Renderer

Transportation Rates Price per Pound

Palm Fatty Acid Distillate

Stabilized/Poultry Fat

Yellow Grease

0

Units in cents per pound Pricing as of 4/1/2009 Source: The Jacobson and BNSF Published Rates

2. Biofuel projects shall be designed and operated in participatory processes that involve all relevant stakeholders in planning and monitoring. 3. Biofuels shall significantly reduce greenhouse gas emissions as compared to fossil fuels. This principle seeks to establish a standard methodology for comparing Greenhouse Gas (GHG) benefits. 4. Biofuel production shall not violate human rights or labor rights, and shall ensure decent work and the wellbeing of workers. 5. Biofuel production shall contribute to the social and economic development of local, rural and indigenous peoples and communities. 6. Biofuel production shall not impair food security.

the biofuel value chain. 12. Biofuel production shall not violate land rights. In April 2011, the Roundtable on Sustainable Biofuels launched a comprehensive set of sustainability criteria – the ‘RSB Certification System.’ Biofuels producers that meet these criteria are able to show buyers and regulators that their product has been obtained withoutharming the environment or violating human rights. Composition of various biodiesel feedstocks 0

20

40

Sunflower Corn Olive Soybean Peanut

8. Biofuel production shall promote practices that improve soil health and minimize degradation.

Lard

TYPES OF BIOFUELS Biofuels are combustible materials directly or indirectly derived from biomass, commonly produced from plants, animals and micro-organisms but also from organic wastes. Biofuels may be solid, liquid or gaseous and include all kinds of biomass and derived products used for energetic purposes. This “bioenergy” is one of the so-called renewable energies. Besides the traditional use of bioenergy 3, ‘modern bioenergy’ comprises biofuels for transport, and processed biomass for heat and electricity production. Biofuels for transport are commonly addressed according to their current or future availability as first, second or third generation biofuels (OECD/IEA 2008). Second and third generation biofuels are also called “advanced” biofuels. UNEP (2008) points out that this differentiation is not always straightforward due to overlaps regarding feedstocks and processing technologies, as well as uncertainties regarding environmental impacts. Terms such as “higher generation” or more “advanced” biofuels suggest superiority; however, superiority in terms of sustainability is not a given and needs to be assessed as critically as for all kinds of biofuels. ‘First-generation biofuels’ are commercially produced using conventional technology. The basic feedstocks are seeds, grains, or whole plants from crops such as corn, sugar cane, rapeseed, wheat, sunflower seeds or oil palm. These plants were originally selected as food or fodder and most are still mainly used to feed people. The most common first-

100

Safflower

Cottonseed

10. Air pollution shall be minimized along the supply chain. 11. Biofuels shall be produced in the most cost-effective way, with a commitment to improve production efficiency and social and environmental performance in all stages of

80

Canola

7. Biofuel production shall avoid negative impacts on biodiversity, ecosystems and areas of high conservation value.

9. Surface and groundwater use will be optimized and contamination or depletion of water resources minimized.

60

Yellow Grease

Beef Tallow Palm Coconut

Saturated Monounsaturated Polyunsaturated

generation biofuels are bioethanol (currently over 80% of liquid biofuels production by energy content), followed by biodiesel, vegetable oil, and biogas. Second-generation biofuels can be produced from a variety of non-food sources. These include waste biomass, the stalks of wheat, corn stover, wood, and special energy or biomass crops (e.g. Miscanthus). Secondgeneration biofuels use biomass to liquid (BtL) technology, by thermochemical conversion (mainly to produce biodiesel) or fermentation (e.g. to produce cellulosic ethanol). Many second-generation biofuels are under development such as biohydrogen, biomethanol, DMF, Bio-DME, Fischer-Tropsch diesel, biohydrogen diesel, and mixed alcohols. Algae fuel, also called oilgae, is a biofuel from algae and addressed as a third-generation biofuel (OECD/IEA 2008). Algae are feedstocks from aquatic cultivation for production of triglycerides (from algal oil) to produce biodiesel. The processing technology is basically the same as for biodiesel from secondgeneration feedstocks. Other third -generation biofuels include alcohols like bio-propanol or bio-butanol, which due to lack of production experience are usually not considered to be relevant as fuels on the market before 2050 (OECD/IEA 2008), though increased investment could accelerate their development. The same feedstocks as for first-generation ethanol can be used, but using more sophisticated technology. Propanol can be derived from chemical processing such as dehydration followed by hydrogenation. As a transport fuel, butanol has properties closer to gasoline than bioethanol. The table on page 26 and 27 of Towards Sustainable Production and use of resource : Assessing Biofuel – UNEP Document

www.fathopesenergy.com


12

CONSUMER / NATION

WHO WAS RUDOLF DIESEL?

Born 18 March 1858 in Paris, France to German immigrants Theodore and Elise Diesel, Rudolf Christian Karl Diesel was a Mechanical Engineer most notable for the invention of the diesel engine. Rudolf Diesel understood the theoretical and practical constraints on fuel efficiency

BIORECOIL

O

IL

B

IO D

IE S

LED EL F ROM RECYC

BioRecoil is Biodiesel from Recycled Oil. The FatHopes group has recently launched this brand as the pioneer product that has been tested and proven for the biofuel market. BioRecoil was coined for the easy understanding of the product and wide dissemination of the brand. The brand aspires to encourage diesel consumers to relook fossil energy dependency and gather the courage to delve into renewable alternatives. BIORecoil is biodiesel manufactured from recycled cooking oil in compliance with global standards. BioRecoil is benchmarked to EN14214 and ASTM D6751 standards to ensure the consistent reliability and product

FATHOPES ENERGY SDN BHD (920586-w)

www.fathopesenergy.com

The Fat Express 2011

and knew that good steam engines are only 10-15% thermodynamically efficient, equating to 90% wastage of the fuel’s energy. Driven by the goal of higher efficiency ratios, he developed his own approach and eventually designed his engine which he described as a “slow-combustion engine” that first compressed air thereby raising its temperature above the igniting-point of the fuel. The engine would then gradually introduce fuel while letting the mixture expand “against resistance sufficiently to prevent an essential increase of temperature and pressure”, then cutting off fuel and “expanding without transfer of heat.” His engine was the first to prove that fuel could be ignited solely with high compression. The engine he patented ran on Peanut Oil, now more commonly known as straight vegetable oil (SVO) or Biodiesel. Though most remembered for his pressure-ignited heat engine, Rudolf Diesel was also a social theorist with three commonalities in his inventions; they relate to heat transfer by natural physical processes or laws; they involve markedly creative mechanical design; and they were initially motivated by the inventor’s concept of sociological needs – he originally conceived the diesel engine to enable independent craftsmen and artisans to compete with industry. On August 10, 1893, Rudolf Diesel’s prime model; a single 10-foot iron cylinder with a flywheel base, ran on its own power for the first time. He spent two more years on improvements and demonstrated a model capable of 75% efficiency in 1896. By 1898, he became a millionaire and his engines were used to power pipelines, electric and water plants, automobiles, trucks and marine craft. They were soon also used in mines, oil fields, factories and transoceanic shipping.

quality. It is also useable under operating temperatures of as low as 0˚C. These standards ensure the fuel is a one-for- one replacement – widely know as a ‘drop-in alternative fuel’ – useable in today’s diesel engines. BioRecoil is a renewable fuel with one of the lowest carbon emissions due to the origin of the feedstock – used cooking oil (UCO); a kitchen waste product sourced locally as well as internationally. The waste collected is consolidated in Klang, Malaysia before being processed. The entire process, from collection to processing to distribution, is closely monitored and documented in an internationally recognized ‘chain of custody’ format. The trail of documentation allows forverification and confirmation that the feedstock originated from waste streams, ensuring the waste oil’s lifecycle continued after it was first used, instead of being disposed of. FatHopes Commodities and CGV Industries Sdn. Bhd. – one of Malaysia’s most sizeable and reputable UCO collectors – collect UCO, BioRecoil’s raw material. The raw product is primarily collected from fast food chains, factories, large canteens and food courts. As part of the FatHopes group’s Corporate Social Responsibility commitment, UCO is also collected at community level and at schools, to spread awareness of wealth sharing and alternative energy options available today. This reflects well with a younger generation that is curious, and willing to look at things differently. The benefits of using BioRecoil, apart from the fact that it is priced extremely com-

INNOVATIVE UCO COLLECTION FOR THE MASSES FatHopes and Tywei Marketing have recently collaborated to launch an innovative used cooking oil (UCO) collection system designed for the masses. The unique integration of FHE’s UCO collection methods and Tywei’s 3R Box Recycling Program results in a creative solution that bridges the gap between recycling contributors and waste-to-energy producers. The collaboration between FatHopes and the widely successful 3R Box Recycling Program in Penang – which strategically places

petitively with conventional fossil diesel, are: •BioRecoil users will find their vehicles achieving additional mileage; this is due to the fact that BioRecoil is far more flammable than conventional diesel. •Once BioRecoil has been running in a vehicle for about 20 kilometers, users will notice considerable reductions in engine noise. Noise reductions have been noted up to the following levels: Reading 1: Before BioRecoil - 1809 to 2067 dB. The first results, taken on a Hyundai Starex right before a B50 blend was introduced, saw a bottom bore reading of 1809 dB and a top bore reading peaking at 2076 dB. Reading 2: 15 minutes after BIORecoil - 1593 to 1809 dB. 15 minutes after the blend was introduced, bottom bore readings peaked at just 1593 dB and the top bore reading peaked at 1809 dB. This illustrates a noticeable 10% reduction in engine noise. Reading 3: Three days after introducing BioRecoil - 345 to 775 dB. Three days after introducing the B50 blend, bottom bore readings further reduced to just 345 dB and top bore readings reduced all the way to 775 dB. Overall, this shows an incred-

management office:

manufacturing facility:

22-2, Jalan 28/70A, Desa Sri Hartamas, 50480 Kuala Lumpur, Malaysia

No. 10, Lorong 51A/227B, Seksyen 51A, 46100 Petaling Jaya, Malaysia

T : +603 2300 3780 / 3781 F : +603 2300 3782 E : info@fathopesenergy.com www.fathopesenergy.com

recycling depots in locations convenient to townsfolk – represents a robust formula in the face of the emergent global energy crisis. By engaging the masses in proper UCO disposal, society as a whole is effectively integrated into the waste-to-fuel production process, which will in turn reflect positively on the people’s fuel-related economic and environmental issues. Conscientious individuals, communities, schools, businesses and organizations can now adopt this innovative UCO collection system. Those who are keen and feel strongly for eradicating litterbugs and foul smelling, clogged drains, should visit Booth E-008-009 at IGEM 2011 for more information on 3R Boxes and opportunities for recycler remuneration.

ible engine noise reduction of up to 70%, bringing the diesel engine’s noise pollution down to levels comparable with a petrol engine. Engine noise can be so drastically reduced thanks to the fact that there are no carbon particles in the fuel, as BioRecoil is only made from recycled vegetable-based cooking oil. These are the particles usually responsible for the buildup of composites and the release of black smoke from diesel engines, therefore reducing the frequency of decarbonization and oil changes. One of the most attractive environmental benefits of BioRecoil is that its burning releases no sulphur emissions. The environmental detriment caused by the release of sulphur is well documented, and consumers should therefore make conscientious fuel choices. In Malaysia, BioRecoil is sold at RM 2.70/l to the industrial client. These consumers generally purchase conventional fuel at anywhere between RM 2.30/l and RM 3.08/l, due to the fluctuation of conventional fossil diesel prices. BioRecoil is poised to allow price hedging, thus making project costs more manageable and mitigating risk from unseen price fluctuation. Further, it is priced based on a system with minimal fluctuation, offering stability to consumers. Those with a longterm view will undoubtedly notice the benefits of price stability and realize the external benefits as well. For a free sample of Biorecoil, visit us at IGEM2011.

The Fat Express Team

editor designer content provider contributors

Vikesh Sinha Shawn Chen Vinesh James Veerapen Jane Leong Teh Yun Da

The Fat Express  

FatHopes Energy's inaugural newsletter, designed to publicise the company's areas of business and latest accomplishments. The tabloid was c...

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