SCHEDULE 5A (to be taken, read and construed as an integral and essential part of this Agreement) PROGRESS REPORT Report Period : ________________(please indicate report period, eg. Q1/200*,Q2/200* etc) A. PROJECT DETAILS Project number: 6364702 Project title: Production bio-compost from organic & agrowaste Project leader: Prof Dr Mohd Ali Hassan Project Duration : 20 (months) Project Start date : 9 (month) 2008 (year) Project End date : 9 (month) 2010 (year) Tel: 03-89467590 Fax : 03-86567123 E-mail : alihas@biotech.upm.edu.my B. FINANCIAL PROGRESS i. Approved Project Allocation : RM 1,490,000 Year 1 (200* ) : RM 1,155,000 Year 2 (200*) : RM 235,000 Year 3 (200*) : RM________ ii. Total Allocation Received Todate : RM 1,490,000 (including RM 100,000 for market survey) iii. Total Expenditure To date: RM received X 100) 1,219,259.25 or 81.8% (∑ Expenditure / ∑ Allocation iv. Balance of Allocation Todate : RM 170,740.75 (∑Allocation received – ∑ Expenditure) v. Actual Project Expenditure (Pls report ∑ cumulative expenditure up to the past report Report Period : Is this performance in line with plan? √ Jan-April √ Yes 1 May-Aug Sept-Dec No (Please complete para vi and vii) vi. Reasons for variations from budget (Please provide the reasons) vii. Proposed corrective action (Please give details of the proposed action) C. PHYSICAL PROGRESS i. Milestone Achievement No Planned Milestones M1 M2 Market Survey & feasibility study Renovation of laboratory and Acquisition of special equipment M3 Installation of packing and storage facilities M4 Optimisation of upscaled parameters M5 Marketing & licensing of technology Planned Milestone Date 6 (month/year) 8 Achieve d* (Yes/No Yes ) No Actual Completion Date (month/year) 12 No Jan 2010 20 8 No - May 2010 Sep 2010 March 2009 May 2009 * If No, please give reasons for non-achievement and proposed adjustments or corrective actions in section C ii ii. Planned milestone : Renovation of laboratory and acquisition of special equipment Reasons for non-achievement : In the early stages, the composting plant was proposed to be constructed in UPM. The site for the construction of the compost plant was then changed to Felda Serting Hilir Palm Oil mill, Negeri Sembilan on December 2008 due to the cost of transportation and availability of raw material. After discussion with FPI, both parties agreed to develop the composting site in the neighbourhood of the windrow composting plant at Felda Maokil Palm oil mill, Johor. The discussion and preparation of the plant layout was conducted from January to March 2009. However, the planning was cancelled as the cost of building construction was estimated to be higher than FPI`s budget. Therefore, UPM decided to overcome the problems by reconsidering the original construction plan and site as was located at UPM Agricultural Park. Proposed adjustments/corrective actions: The composter unit is currently fabricated outside UPM and the complete composting unit will be installed after the completion of the building on July 2010. The composting system is expected to be commissioned on September 2010. Revised milestone completion date : 12(month)/2010(year) iii. Impact on project schedule (if applicable) Request for project extention : 6(months) New date of project completion : March(month)/2011(year) Reasons for project extention : The compost plant require 6 month for commissioning and trouble shooting from September 2010 until March 2011. 2 iv. Project Achievement (please provide details on the project achievements, its status and prospects with regards to the followings :) 1. Intellectual Property Rights (Patent, Industrial Design, Trademark, Copyright etc) Mohd Ali Hassan, Azhari Samsu Baharuddin, Alawi Sulaiman, Khairul Anuar, Zubair Shafie, Hamidi Abdul Hamid, Mohd Fuad Saron and Shahruddin Omar. Novel In-Vessel High Rate Composter for Oil Palm Biomass, Organic and Municipal Waste. Patent pending: PCT application no:PCT/MY2009/000081 2. Publications and papers (International,national, books, citations etc)/ Award a) Journal Papers (In press) Azhari Samsu Baharuddin, Minato Wakisaka, Yoshihito Shirai, Suraini Abd-Aziz, Nor Aini Abdul Rahman, Mohd Ali Hassan, 2009. Co-composting of empty fruit bunches and partially treated palm oil mill effluents in pilot scale. International Journal of Agricultural Research, 4: 69-78. Azhari Samsu Baharuddin, Nakamura Kazunori Suraini Abd-Aziz, Nor' Aini Abdul Rahman, Mohd Ali Hassan, Minato Wakisaka, Kenji Sakai and Yoshihito Shirai, 2009. Characteristics and microbial succession in co-composting of oil palm empty fruit bunch and partially treated palm oil mill effluent. The Open Biotechnology Journal, 3: 87-95 Lim Siong Hock, Azhari Samsu Baharuddin, Mohd Najib Ahmad, Umi Kalsom Md Shah, Nor’ Aini Abdul Rahman, Suraini Abd-Aziz, Mohd Ali Hassan and Yoshihito Shirai. 2009. Physicochemical Changes in Windrow Co-Composting Process of Oil Palm Mesocarp Fiber and Palm Oil Mill Effluent Anaerobic Sludge. Australian Journal of Basic and Applied Sciences, 3(3): 2809-2816 Azhari Samsu Baharuddin, Mohamad Nafis Ab Razak, Lim Siong Hock, Mohd Najib Ahmad, Suraini AbdAziz, Nor’ Aini Abdul Rahman, Umi Kalsom Md Shah, Mohd Ali Hassan, Kenji Sakai and Yoshihito Shirai, 2010. Isolation and Characterization of Thermophilic Cellulase-Producing Bacteria from Empty Fruit BunchesPalm Oil Mill Effluent Compost. American Journal of Applied Sciences. 7(1):56-62 Azhari Samsu Baharuddin, Lim Siong Hock, Mohd Zulkhairi Md Yusof, Nor’ Aini Abdul Rahman, Umi kalsom Md Shah, 2Mohd Ali Hassan, Minato Wakisaka, Kenji Sakai and Yoshihito Shirai, 2010. Effects of Palm Oil Mill Effluent (POME) Anaerobic Sludge From 500m3 of Closed Anaerobic Methane Digested Tank on Pressed-Shredded Empty Fruit Bunch (EFB) Composting Process. African Journal of Biotechnology. 9(16):2427-2436 c) International conference/workshop/proceeding Azhari Samsu Baharuddin, Mohd Ali Hassan, Suraini Abd Aziz, Minato Wakisaka, and Yoshihito Shirai. Co-composting of Oil Palm Solid Biomass and Treated Palm Oil Mill Effluent in Pilot Scale. 5th Biomass Asia Workshop, 4th December 2008, China Azhari Samsu Baharuddin, Mohd Ali Hassan, Minato Wakisaka, Kenji Sakai and Yoshihito Shirai. Possibility of production and CDM business of the organic fertilizer with the unused biomass of palm oil industry. Society of Chemical Engineering Japan (SCEJ) 74th Annual Meeting, 18-20th March 2009, Yokohama, Japan. d) Award 1. Design, Research and Innovation Exhibition, University Putra Malaysia: 21-23th June 2009: -A Novel High Rate Composter for oil palm biomass, organic and municipal solid waste (Gold Medal) -Appropriate Technology for Accelerated Composting of Oil Palm Biomass (Gold Medal) 2. The International Exposition of Research and Invention of Institutions of Higher Learning 2009, Kuala Lumpur Convention Centre: 8-10 October 2009. -A novel High Rate In-Vessel Composter for Oil Palm Biomass, Organic and Municipal Waste (Silver Medal) 3 3. Expertise Development ( PhD, Masters, Research Staff with new speciality etc) 4. Prototype (prototype name, type eg, lab / engineering / commercial scale etc) 5. Commercialisation (licensing, royalty, spin-off, direct sale etc) 1. General Comment (please provide additional information, if any, on the future direction of this project in terms of its prospects to commercialization) Date: 29th June 2010 Signature: 4 Progress 1: Profiling of Pre-dominant Microbes and Isolation of Phosphate Solubilizing Bacteria and Xylanase-producing Actinomycetes from Pressedshredded Empty Fruit Bunch-Palm Oil Mill Effluent Anaerobic Sludge Compost This study revealed the microbial diversity of the pre-dominant microbes throughout cocomposting process of pressed-shredded EFB and POME anaerobic sludge. The DGGE analysis suggested that prominent microbes detected in the compost samples were mainly derived from POME anaerobic sludge addition throughout the treatment and belongs to Pseudomonas genera. In addition, the DGGE profiles in the final matured compost also lead to isolation, characterization and identification of the potential strains of phosphate solubilizing bacteria (PSB1) and xylanase-producing actinomycetes (ACT1 and ACT2). The isolated strain of PSB1 was found capable in solubilizing the insoluble phosphate (tricalcium phosphate) as indicated by the increase in phosphate solubility to about 69% after 15 days of incubation. Meanwhile, ACT2 was found capable in secreting xylanase during fermentation. The isolated strain ACT2 produced comparably higher activities of Xylanase than strain ACT1. The maximum specific activity of xylanase obtained from strain ACT2 at day 10 of fermentation was 31.2 U/mg protein. The results of DNA sequence and phylogenetic analysis showed that the isolated strain of PSB1 gave the highest homology (99%) to Pseudomonas mosselii strain. Meanwhile, the isolated strain of ACT2 was known as Streptomyces griseorubens (100% similarity). The information regarding the pre-dominant microbes involved in co-composting process of EFB-POME anaerobic sludge as well as isolation of P. mosselii (PSB1) and S. griseorubens (ACT2) were important for future development of plant growth stimulant and other bio-products. 5 Progress 2: Construction of Accelerated and Controlled Compost plant (UPM-KITMTDC) The construction progress of compost plant building is shown in Figure 1 to Figure 5. The compost plant building is expected to be completed before 20th July 2010. Installation of the compost equipment will be carried out after the building construction. The commissioning of compost plant will be conducted from September until March 2010. Figure 1: Compost plant layout 6 Figure2: Proposed compost plant building Figure 3: Building construction progress 7 Figure 4: Windrow turning area, leachate collection system and storage area Figure 5: Transparent roofing construction for windrow drying process 8