MILLENNIUM FINANCIAL EXCHANGE CORP.
Vancouver, British Columbia, Canada
Tel: 1-604-941-7603 Cell: 1-778-996-4106 www.millenniumexchange.wordpress.com
Email: millennium.exchange@gmail.com
Executive Summary
Oil Palm Zero Waste Management Project
A.
Introduction
The two main wastes that are generated in a Crude Palm Oil mill are:

Empty Fruit Bunches (EFB)

Liquid Palm Oil Mill Effluent (POME)
CMS Waste Management Sdn Bhd (CMS), Malaysia, offers 2 types of Zero Waste Management : One that processes only the dry wastes (EFB); and the other: both the dry and liquid wastes.
The technology can be sold or joint-venture with plantation companies to assist them to process both EFB
& POME. The plant will be built next to the mill for such proposed venture.
The proposed bio-mass technology waste management plant costs USD 14 million each and takes about
12 months to build. It will be built independently on the project company’s own land and building. It will purchase EFB from oil palm plantations within 50 km vicinity, and sells the compost fertilizer to the free market.
It processes 100% of the EFB wastes into organic compost fertilizer – thus the name : Zero Waste
Management. Malaysia produces over 20 million tons of EFP per year. The project will use the EFB fibre,
Mesocarp Fibre, Boiler Ash, Decanter Cake produced by the Mill for the plant.
The plant can utilize both liquid & dry wastes, liquid wastes add more nutrients to the compost, but can be replaced by water for economic reasons (transportation cost savings).
Indonesia and Malaysia account for 85% of global production of palm oil. Malaysia is the world's largest exporter of palm oil, and the industry is one of the country's top export earners. Being one of the biggest producers and exporters of palm oil and palm oil products, Malaysia has an important role to play in fulfilling the growing global need for oils and fats sustainability .
The project objective is to help to eliminate the oil palm wastes, improve the environment, monetizes the wastes into organic compost fertilizer, an increasingly demanded world commodity, a profitable venture.
B.
History of CMS Waste Management Sdn. Bhd. (CMS)
CMS was incorporated on Oct. 27, 2010 by its Founder, Mr. Ronnie Tan who graduated from Auckland
University, New Zealand in 1977 with a degree in Chemical & Materials Engineering.
He is also the Founder and Managing Director of Concept Engineering Sdn. Bhd.(CE)
CE was incorporated on 1 March 1985 and operates as a filtration and environmental control specialist. It has successfully provided advance technology filtration services to numerous multinational companies from various industries. This has led him to research and development in the oil palm waste management systems.
Today, Mr Tan is the leader in environmental solutions in the Palm Oil Industry in Malaysia
The failure of the conventional system to reliably and effectively treat Palm Oil Mill waste has resulted in CE together with Malaysian Palm Oil Board (MPOB) jointly developed a new technology and process to treat oil palm wastes which has proven to be more effective and reliable. With the MPOB’s support and a financial grant from the Ministry of Science, Technology and Environment, CE had researched, developed and patented
1

MILLENNIUM FINANCIAL EXCHANGE CORP.
Vancouver, British Columbia, Canada
Tel: 1-604-941-7603 Cell: 1-778-996-4106 www.millenniumexchange.wordpress.com
Email: millennium.exchange@gmail.com
(worldwide patent no. 00200200494) an effective palm oil clarification system for liquid and solid wastes recovery.
The system was subsequently expanded to cater for solid oil palm wastes (EFB). CE has numerous patents and won awards for the systems and processes developed to treat waste of the Palm Oil Mill.
The first patents for treating EFB for Malaysia and Indonesia were applied jointly with MPOB and were granted some time in 2000. They are valid for 15 years. Patents for improved systems were applied in 2007 by CE and are still patents pending.
The other key management team : Mrs. Jacqueline Young, Founder and Director of Millennium Financial
Exchange Corp., Mr. Ariff Mohamad, former Manager and Vice of the Development Bank of Malaysia (CVs enclosed), Mr. Avital Kidron, Managing Partner of M & A Division of El-Asmar Law Office Group, New York.
Patents applied in 2007 for EFB zero waste management systems:
Malaysia Patent Application No. PI 9600341
Indonesian Patent Application No. P 970272
In early 2013, these Intellectual Property were transferred from CE to CMS, a special vehicle purpose company (SPV) incorporated specifically for oil palm waste management project.
C.
THE ENVIRONMENTAL IMPACT
Over the years, the adverse impact of palm oil industry on the environment have been neglected and overshadowed by both commercial and economical aspect of the industry.
The process of extracting palm oil from fresh fruit bunch (‘FFB’) is often not stringently regulated. Many palm oil mills are still disposing palm oil mill effluent (‘POME’) into the natural water system.
There are 420 or so plantation palm oil mills in Malaysia alone, to save its environment, each mill should install a zero waste recycling plant. There are about the same no. of palm oils mills in Indonesia. There are only about 40 mills that install waste management system, however, none is superior and efficient as ours. (See CMS brochure for comparison between our invessel system vs the conventional windrow system. (PDF file: CDM on Composting).
Our zero waste technology system has been proven to be the best optimal solution to reduce Global
Warming Potential in accordance with the research report of Institute of Agricultural Technology and
Biosystem Engineering, West Germany (copy enclosed).
POME is a thick brownish liquid that contains high amount of total solids (40,500 mg/l), oil and grease
(4,000 mf/l). The disposal of this highly polluting effluent is a major problem if it is not being treated properly. The untreated POME causes severe pollution of water waste due to oxygen depletion and other related effects.
The palm oil industry continues to face the challenge of balancing its social and legal responsibility for environmental protection with its economic viability and sustainable development.
The Malaysian government no longer issues permit for new palm oil mills unless they incorporate zero waste management system into their processing system. The government also provides several tax and financial benefits for green and high-technology companies.
2

MILLENNIUM FINANCIAL EXCHANGE CORP.
Vancouver, British Columbia, Canada
Tel: 1-604-941-7603 Cell: 1-778-996-4106 www.millenniumexchange.wordpress.com
Email: millennium.exchange@gmail.com
D. Competitor – The conventional technology
Although several treatment technologies have been developed and applied by palm oil mills to treat EFB and POME, the conventional biological aerobic treatments are still the most commonly used.
The conventional biological treatment systems require careful and proper maintenance and monitoring as the processes relies on micro- organism. These micro-organism have proven to be extremely sensitive to environmental changes which affect its efficiency.
Furthermore the conventional system generate vast amount of biogas which contains methane carbon dioxide and hydrogen sulphide. These gases are corrosive and odorous.
For the 420 palm oil mills in Malaysia, it is only a matter of time to transition to the high-technology waste management system.
BENEFITS TO PALM OIL MILLERS
(i) Facilitates the removal of solid waste (Empty Fruit Bunches - EFB) and liquid waste (palm oil mill effluent-POME) more effectively and efficiently.
(ii) Fulfill and meets the stringent Department of Environment (DOE) regulations.
(iii) Improves cleanliness and promotes a clean mill environment
(iv) Improves the cleanliness of waste pond ( can be used for fish farming);
(v) Improves the quality of oil extracted (Not applicable to our project of solid waste recycling only)
E.
Solutions & Advantages of CMS Wastes Management Technology
This technology has numerous distinct advantages over other conventional systems. Its advantages are:
1.
Increases oil recovery by improving oil recovery efficiency of up to maximum of 98%;
2.
Improves quality of oil recovery;
3.
Improves OER from 0.3% to 0.5%;
4.
Reduces oil losses into effluent by as much as 50%;
5.
Environmentally friendly and improves water discharge quality by eliminating highly polluted organic constituent upstream pollution (in compliance with Department of Environment requirement).
6.
Enables the recovery of solid waste to be composted into organic fertilizer with very high nutrient value;
7.
Final wastewater can be recycled back to mill for cleaning purpose or fish farming;
8.
The system is proven to be environmentally friendly and exceeds Dept. Of Environment standards.
9.
Cost effective with cost saving advantages over conventional systems – saves costs of transporting wastes for disposal.
10.
Opportunity to earn return on capital employed.
11.
The plant has year-round consistent process controls thus ensuring consistently higher quality compost.
12.
Capable of faster processing of compost as it only takes a maximum of 28 days to compost;
13.
The process is energy efficient as it only requires a maximum power of only 200kva;
14.
The plant only requires a minimum space requirement of only 100 ft (W) x 15 ft (H) x 50ft L
15.
High compost production capacity of up to 25,000 ton/hr FFB mill is achievable.
F. Projected Revenue & Costs
Each plant is estimated to cost USD 14 million to produce 36,000 metric tons of compost fertilizer p.a. The project plant will take up to 12 months to build to commence operation.
3

MILLENNIUM FINANCIAL EXCHANGE CORP.
Vancouver, British Columbia, Canada
Tel: 1-604-941-7603 Cell: 1-778-996-4106 www.millenniumexchange.wordpress.com
Email: millennium.exchange@gmail.com
Total funding for 10 plants for 5 years = $ 140 m
Rolling Stone principal: 6 plants will be financed externally & 4 plants from internal generated revenue.
(See attached Project Quick Facts Sheet).
The Management’s plan is to build 2 plants per year subject to availability of financing. The plan is to build a total of 10 plants, with 2 plants per year from year 2 onwards. For the first plant, land is being identified, quotations obtained from equipment vendors and contractor to build the plant.
The projected EBITDA based on USD 14 m investment is US$ 24,622,000 in 5 years. ( USD 5 million per year)
ROI based on $ 14 m investment, in 5 years = $ 24.62m/ $ 14m = 176%
ROI based on 50% equity = 24.62 X 0.5/ 14.0 = 88%
Investment for each plant is returned in year 3 after commencement of operation.
The project company qualifies for listing on the Malaysian stock exchange.
Commercial Value : $ 5 million x 5 years x potential 10 plants = $ 250 million
Gross profit margin is 54%, Net profit is 34% based on:
Sales price per metric ton for organic compost fertilizer- RM 1,200 : USD 400.00
Production cost per metric ton: RM 550 : USD 183.00
Cost of raw material : oil palm waste : RM 10 per metric ton : USD 3.30
The value of the technology is not yet been valued.
Construction of plant building
Piling
Land
Plant & Equipment:
Compost plant
Fertilizer mixer, dryer &
2,450,855
granulating plant 1,153,667
Freight & transport 166,667
Firefighting 303,334
US$ 3,562,204
456,167
4,058,371
862,500
Trucks Vehicles 200,000
Prof. fees 66,667
________
Contingency
Office & equipment
=========
4,341,190
Working capital
Cost of production (2 mths) 1,100,000
4,341,190
666,667
66,667
9,995,392
Operating expenses 720,000
Marketing & Promotion 288,000
Reserves 1,008,000
________
3,116,000 3,116,000
13,111,392
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MILLENNIUM FINANCIAL EXCHANGE CORP.
Vancouver, British Columbia, Canada
Tel: 1-604-941-7603 Cell: 1-778-996-4106 www.millenniumexchange.wordpress.com
Email: millennium.exchange@gmail.com
Prof. fees 655,570
US$ 13,766,962
= ============
Raw Materials
For the proposed plant which produces 36,000 tons of compost fertilizer per year, the plant requires about twice the amount in weight of EFB. There will be no shortage of supply of EFB as Malaysian produces 21 million tons of EFB per year.
Market & Customers
Fertilizer and organic fertilizer markets are increasingly growing due to the increased world population, increased demand for food; increased significance and growth of the biofuel energy industry processed from biomass.
(Report enclosed : World Fertilizer Outlooks & Trends 2011-2012)
Malaysia & Indonesia consume about 40% of the world’s total fertilizer production, hence each of our plant’s production of 36,000 tons per annum is an insignificant amount compared to the total consumption per annum in Malaysia alone (2009 – 3.17 million tons , Malaysia – Compost Fertilizer Consumption by IFA)
The potential growth for our project is tremendous, as demand exceeds supply by 200-300% in Malaysia alone. The percentage of consumption over production of fertilizer in Malaysia has been 2 – 3 times between
2002 – 2010. In 2010, it is 210% (Report enclosed: Malaysia - Fertilizer Consumption – Fertilizer consumption
(as a % of fertilizer production), by Food & Agriculture Organization.
G. Tax & Financial Benefits
Some of the incentives provided by the Malaysian government to qualifying companies are :

Subsidize 2% of the project company’s debt interests. (Green Tech. Certificate company)

Provide guarantee up to 60% of the debt financing secured by the project company. (Green tech. cert. co.- www.gtcs.my)

Pioneer Status -100% exemption from taxable statutory income. This incentive is granted for a period of 10 years for the first round. ( www.mida.gov.my
) Copy of Incentives for Investment published by
MIDA enclosed (section 1.7)

A 100-percent Investment Tax Allowance (ITA).

Eligibility for R&D grants (for majority Malaysian ownership MSC Malaysia-Status companies

Freedom to source capital and borrow funds globally.

Duty-free importation of multimedia equipment (DFI)
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