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Department of Chemical and Environmental Engineering, The University of Nottingham, Malaysia Campus, Jalan Broga, 43500 Semenyih, Selangor, Malaysia
Malaysian Palm Oil Council, 2nd Floor, Wisma Sawit, Lot 6, SS 6, Jalan Perbandaran, 47301 Petaling Jaya, Selangor, Malaysia
c
Universiti Teknologi Malaysia, Faculty of Chemical & Natural Resources Engineering, Jalan Semarak, 54100 Kuala Lumpur, Malaysia
d
Global Green Synergy Sdn Bhd, Wisma Zelan, Suite 01.12B, First Floor, No 1, Jalan Tasik Permaisuri 2, Bandar Tun Razak, Cheras, 56000 Kuala Lumpur, Malaysia
b
a r t i c l e i n f o
a b s t r a c t
Article history:
Received 10 November 2011
Received in revised form
3 April 2012
Accepted 4 April 2012
Available online 16 April 2012
This paper gives an overview of the green potential of the palm biomass industry, which contributes to
Malaysias economic and sustainable development. An overall picture of the green development indicators of the country is provided based on the authors experiences in policy making, research and
business development. The emerging palm biomass industry in Malaysia is foreseen to dominate the
countrys directional development in the coming years, particularly when the sustainability issue is
raised globally. With the increasing volume of palm oil residue accumulation due to palm oil production,
palm biomass is gaining signicant attention and being increasingly utilised to produce various green
products as well as highly valuable biochemicals, such as bioethanol, vitamins, etc. The palm oil industry
has been identied as the key industry for expansion to achieve economic advancement along with the
development of greener production processes in the country. Research on palm biomass, which is
actively being carried out by both private and public institutions, is categorised. Furthermore, actions and
policies to promote the implementation of green technology in Malaysia, while simultaneously
defending both environmental and ecological health and promoting technology transformation, are
summarised. Challenges and concerns over the green future of the country are discussed, as well as the
business trend in the Malaysian palm biomass industry.
2012 Elsevier Ltd. All rights reserved.
Keywords:
Palm biomass
Waste-to-wealth
Green potential
1. Introduction
As the worlds demand for biomass is increasing, an overview on
the palm biomass industry in Malaysia is needed to evaluate the
Abbreviations: CDM, Clean Development Mechanism; CER, certied emission
reductions; EFB, Empty Fruit Bunches; FFB, Fresh Fruit Bunches; FiT, Feed-in Tariff;
FOEI, Friends of the Earth International; GAPKI, Indonesian Palm Oil Association;
GBI, Green Building Index; GHG, greenhouse gases; GTFS, Green Technology
Financing Scheme; IPOSC, International Palm Oil Sustainability Conference; ISO,
International Organisation for Standardisation; ISPO, Indonesian Sustainable Palm
Oil; ITA, Investment Tax Allowance; KeTTHA, Ministry of Energy, Green Technology
and Water; LCA, Life Cycle Analysis; MARDI, Malaysian Agricultural Research and
Development Institute; MOHE, Ministry of Higher Education; MOSTI, Ministry of
Science, Technology & Innovation; MPOB, Malaysia Palm Oil Board; MPOC, Malaysia
Palm Oil Council; MSPO, Malaysian Sustainable Palm Oil; NKEA, National Key
Economic Activities; PEMANDU, Performance Management and Delivery Unit;
POME, Palm oil mill efuent; USD, American dollars, conversion at 1 USD w 3
Ringgit Malaysia (national currency of Malaysia); RSPO, Roundtable on Sustainable
Palm Oil; SEDA, Sustainable Energy Development Authority; SIRIM, Standards and
Industrial Research Institute of Malaysia; SREP, Small Renewable Energy
Programme.
* Corresponding author.
E-mail addresses: wendyngpq@gmail.com, kebx1wnn@nottingham.edu.my
(W.P.Q. Ng).
0959-6526/$ e see front matter 2012 Elsevier Ltd. All rights reserved.
doi:10.1016/j.jclepro.2012.04.004
58
59
Table 1
Malaysia: Final commercial energy demanda by source, 2000e2010 (EPU, 2006).
Source
% of total
2000
2005
2010
Petroleum products
Natural gas
Electricity
Coal and coke
26002
5131
6989
1316
32442
7820
9830
1649
Total
39437
51741
9 MPb
61.9
15.8
18.9
3.4
4.5
8.8
7.1
4.6
6.1
7.3
6.3
7.6
100.0
5.6
6.3
2000
2005
2010
43534
11098
13318
2378
65.9
13.0
17.7
3.4
62.7
15.1
19.0
3.2
70329
100.0
100.0
Final commercial energy is the commercial energy delivered to nal consumer. The amount of nal energy afxed to natural gas, liquid fuel, coal and coke exclude the fuel
energy used in electricity generation.
b
Malaysia Plan (MP) - the economic development plan implemented by the Malaysian government every 5 years (for a period of 5 years).
Table 2
The amount of biomass available as of 2010.
Biomass available
from palm oil industry
Quantity
(Mt/y)
(GGS, 2011)
Net caloric
value (MJ/t)
(Chow et al., 2003)
Potential
energy
(MTOE/y)a
21.27
10.80
4.98
49.85
18795
19055
20093
16992
9.55
4.92
2.39
20.23
Total
86.90
a
b
37.09
Fig. 2. The projected cumulative renewable energy target for biomass (after KeTTHA,
2011a).
60
61
Table 3
Common local studies on palm biomass carried out by educational institutions in
Malaysia.
Field of research
Educational institution
- University of Nottingham,
Palm Biomass
Value-Added Products
62
dried long bre, which is then sold at USD 170/t. This possibility
raises interest and attracts more investors to the palm biomass
industry. With respect to environmental sustainability, the utilisation of palm biomass generates carbon sinks, boosts the
economy of the country and simultaneously introduces Malaysia as
a green country to the world through the exploitation of renewable
energy.
However, the economic value of moderate value products such
as dried long bre and bio-briquette are predicted to decrease in
the coming few years. This decrease will most likely result from the
overwhelming production of moderate value products by millers or
industrial players. On the other hand, the market of the palm
biomass industry is expected to grow by moving up the value chain.
It is also predicted that by 2020, the biomass industry will evolve to
produce value-added biochemicals, such as bioethanol, to full the
global market demand as well as the industrial players prot
orientation. Thus, Malaysia will proceed to the next generation of
biomass conversion in the coming future.
In Malaysia, there is still no strict policy for the biomass
industry. However, it is believed that the countrys government will
introduce new policies soon to control and direct the development
of the industry.
6. Discussion - challenges in green future
Despite the existence of local policies and agencies that promote
the development of the palm biomass industry, there are barriers
that prevent the full development of the green biomass industry
and that obfuscate the direction of Malaysias green future. These
barriers exist as challenges that have to be tackled for the expansion of the palm biomass industry. This section discusses the
challenges faced by the palm biomass industry, such as biodiversity
issues, life cycle assessment, business development, eco-labelling,
health hazards, and replantation issues.
The main challenge for the development of the palm biomass
industry relates to the growth of oil palm industry, as the development of the palm biomass industry is directly affected by the
existence of the oil palm industry. In Malaysia, the projects that
utilise palm oil as feedstock have been criticised by some environmentalists. A report has been published by Friends of the Earth
International (FOEI) claiming that the clearance of lands or forests
for oil palm plantation is threatening some of the last habitats of
endangered species, including the orangutan (Buckland, 2005). To
protect these endangered species, Malaysia has introduced the
Malaysian Palm Oil Wildlife Conservation Fund (MPOC, 2011a). The
introduction of the wildlife conservation fund and the engagements of non-governmental organisations are pacifying the groups
concerned for the welfare of orangutans in Malaysia. The Wildlife
Capture and Rescue Centre has been established and other ongoing
projects, such as the mega wildlife sanctuary, are being developed
to further tackle the issue (MPOB, 2010).
Land use issues, specically deforestation that leads to the loss
of ecosystems preservation and the homes of indigenous people,
are capturing the attention of some environmentalists. However,
the forest cover loss in Malaysia is caused by different regional
factors. The projection of land use change in Malaysia has been
analysed in detail by Wicke et al. (2011), and the study revealed that
the increasing palm oil demand up to 2020 can be met without
further forest cover loss through improving yield and degraded
land conversion. Additionally, oil palm uses relatively little land
area for oil production compared to other crops, as shown in
Table 4. In terms of both economic and sustainability values, oil
palm outperforms other oil crops.
However, it has been claimed that land clearance by cutting and
burning large forests releases large net amounts of greenhouse
Table 4
Comparison of oil yield rates for major oil crops (Source: MPIC,
2011).
Oil crop
Soybean
Sunower
Rapeseed
Oil palm
0.37
0.50
0.75
4.09
gases such as carbon dioxide that will not be reabsorbed by the oil
palm trees. Through the development of biomass utilisation, this
condition can be improved. The conversion of palm biomass into
bres, furniture and plywood as building materials turns the
products into carbon sinks that reduce the amount of carbon
emissions released into the atmosphere.
The combustible properties of the palm bre and shell allow the
et al., 2010).
biomass to act as an alternative energy source (Cucek
Leaving the biomass resulting from the palm oil production behind
for mulching is a conventional practice. However, the volume of
CO2 emitted from the combustion of palm briquettes, a type of
biomass product made of palm EFB, is lower compared to the
amount of CO2 emitted from mulching (Chiew et al., 2011). By
replacing fossil fuels with palm biomass for incineration, the
amount of carbon originally emitted from the combustion of fossil
fuels can be omitted. Non-governmental organisations formerly
claimed that oil palm plantation is inferior to the natural rainforest
in relation to carbon cycle succession. However, as reported by Tan
et al. (2009), the net assimilation of CO2 for an oil palm plantation is
higher, with 64.5 t/ha/y of CO2 assimilated for an oil palm plantation compared to only 42.2 t/ha/yr of CO2 for a rainforest. As far as
carbon sequestration is concerned, oil palm plantations are more
advanced than natural rainforests.
Another signicant source of carbon emissions is the greenhouse gases emitted from the transportation sector. Raw materials
such as oil palm are transported from plantation sources to processing sites and nally to demand points. Similarly, both rapeseed
and soybean are transported from farms to storage facilities before
they are crushed and processed. To reduce greenhouse gas emissions and secure product supply, a proper management system or
efcient supply chain is needed. In Malaysia, the eld of biomass
supply chain optimisation is under development, and studies are
currently being carried out by researchers from both the public and
private sectors. This research in supply chain development is
expected to further advance the countrys sustainability practice
and ensure the supply security of oil palm-based products.
Other than the biodiversity and emission issues mentioned
above, the existence of challenges facing a green future depend on
national policy, the amount of research being performed and
society. Because greenness is often inversely proportional to the
size of the carbon footprint, the accomplishment of a green future
can be attained by reducing this footprint. With respect to oil palm,
this reduction can be realised through the optimisation of the total
oil palm utilisation as a whole. This may be accomplished by
carrying out Life Cycle Analysis (LCA) on the oil palm industry.
Other than the conventional LCA, some other aspect should be
analysed in the future: various other footprints - e.g. nitrogen
(Cu
cek et al., 2012), Sustainable process index e SPI (Kettl et al.,
2011) and Environmental Performance Strategy Map e EPSM
(De Benedetto and Klemes, 2009, 2010).
LCA activities in Malaysia took off in 2006 under the Ninth
Malaysia Plan (2006e2010), when it was recognised to promote the
greater use of environmentally sound technologies, industries will be
encouraged to adapt self-regulatory measures and apply the Life Cycle
Approach in their production processes and product development.
63
7. Conclusions
This paper outlines the positive potential of palm biomass utilisation in Malaysia based on the points of view from (i) the support
and policies from the Malaysian government, (ii) national and
international business opportunities and (iii) research and development activities from Malaysian agencies and higher institutions.
Obviously, Malaysia has shown a strong desire to promote itself as
a major biomass hub in the South East Asia region. Supportive
policies such as the SREP and the National Renewable Energy Policy
of 2010 have been introduced to enhance implementation and
investment from the private sector. Various agencies and policies
have been set to control and direct the development of the palm
biomass industry in Malaysia.
The new trend of business opportunities speeds up the development of the palm biomass industry in terms of technology
development, product improvement, process synthesis and supply
chain optimisation. Research and development of palm biomass by
governmental institutions and universities supports new product
synthesis and improves process efciencies. This ongoing research
and development on palm biomass is expected to promote a more
64
advanced generation of palm biomass products, where high valueadded products and biobased chemicals are produced.
In the future, Malaysia will be able to exert signicant green
potential by developing a solid supply network for proper biomass
supply and demand connection. In addition, facilities can be clustered by functions in centralising resources and management. From
facilities clustering, an industrial symbiotic approach can be
introduced for optimising resources usage and recovery among
facilities and different industries.
Acknowledgements
The authors would like to acknowledge the corporate grant
sponsored by Global Green Synergy Sdn Bhd for nancially supporting the project studies and the nancial contribution from The
University of Nottingham, Malaysia Campus through the Dean
Scholarship. In addition, highest gratitude is expressed for the
cooperation and information provided by the Malaysian Palm Oil
Council throughout the study.
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