Availability of Biomass Residues for Co-Firing in Peninsular Malaysia: Implications for Cost and GHG Emissions in the Electricity Sector

Fossil fuels comprise 93% of Malaysia’s electricity generation and account for 36% of the country’s 2010 Greenhouse Gas (GHG) emissions. The government has targeted the installation of 330 MW of biomass electricity generation capacity by 2015 to avoid 1.3 Mt of CO 2 emissions annually and offset some emissions due to increased coal use. One biomass option is to co-fire with coal, which can result in reduced GHG emissions, coal use, and costs of electricity. A linear optimization cost model was developed using seven types of biomass residues for Peninsular Malaysia. Results suggest that about 12 Mt/year of residues are available annually, of which oil-palm residues contribute 77%, and rice and logging residues comprise 17%. While minimizing the cost of biomass and biomass residue transport, co-firing at four existing coal plants in Peninsular Malaysia could meet the 330 MW biomass electricity target and reduce costs by about $24 million per year compared to coal use alone and reduces GHG emissions by 1.9 Mt of CO 2 . Maximizing emissions reduction for biomass co-firing results in 17 Mt of CO 2 reductions at a cost of $23/t of CO 2 reduced.