Palm Oil Waste to Green Energy: MTC Orec's Biogas Ventures at Sedenak, Tereh and Sindora Mills

MTC Orec Sdn. Bhd. (MTCO) is expecting for the full commissioning and first gas of its first biomethane upgrading plant at Sedenak, Johor within Q1 2023. At present, the construction and fabrication phase has come across its final touch and a series of pre-commissioning activities have been successfully executed.

The plant is designed to produce 250,000 MMBtu of biomethane a year.

The Sedenak project is under Kulim Green Energy Ventures Sdn. Bhd. (KGEV), where MTCO has a 45% share and Kulim Berhad with the majority share. KGEV is the ultimate owner of the green gas and has executed a 20 year sales agreement of the Sedenak biomethane production to Gas Malaysia Berhad (GMB).

As MTCO is providing the turnkey engineering, procurement, construction, installation and commissioning scopes of the project, the successful execution of the Sedenak plant will set a precedent for the local biogas industry in Palm Oil Mill Effluent (POME) conversion and propel MTCO for a more aggressive approach to secure in-house EPCIC projects within the field.

Meanwhile, MTCO has struck another opportunity to provide BioCNG plants across the Sedenak Mills located in Kluang, Johor, namely Tereh Mill and Sindora Mill. The Tereh and Sindora project is awarded as one package by Kulim GrEnergy Sdn. Bhd., a Kulim Berhad subsidiary separate from KGEV, in October 2022.

With a flowrate of 1600 m³ per hour, the BioCNG Plants will be designed to supply a total of 350,000 MMBtu of bioCNG annually for sale to GMB through its Gas Malaysia Virtual Pipeline (GMVP). The expected of the completion of this project is by November 2023.

POME is a wastewater generated from palm oil milling activities, which are generally difficult and expensive waste to dispose and manage. Technological advances has introduced various methods to convert this waste into valuable green energy through anaerobic digestion processes, in form of the biogas upgrading and processing plant. Malaysia is relatively new to this technology and has only recently has its first biomethane and bioCNG plants introduced.