1. NEXT GENERATION BIOFUELS: MALAYSIAN EXPERIENCE
International Conference on Green Industry in Asia,
Manila, Philippines, 9-11 September 2009
NEXT GENERATION BIOFUELS: MALAYSIAN EXPERIENCE
Sabri Ahmad and Choo Yuen May
Malaysian Palm Oil Board (MPOB)
Ministry of Plantation Industries and Commodities, Malaysia

2. Presentation Outline Overview of Malaysian Palm Oil Industry
First Generation Biofuels (from palm oil)
Palm Biomass as Renewable Energy Sources and Next Generation Biofuel
Challenges and Future Outlook of 2nd Generation Biofuels
Conclusion

3. Malaysian Palm Oil Industry
Currently one of the largest palm oil producer
Largest palm oil exporter in the world
Oil palm cultivation in 2008: 4.48 mil. Ha
Palm oil (crude) production in 2008: mil. T
About 50% of the world palm oil production
Export more than 90% of palm oil products
Export earnings in 2008: RM 65.2 billion
Current crude palm oil price: RM2, (USD )
Malaysian palm oil exported to more than 150 countries.

4. World Scenario About 20 countries involved in oil palm cultivation.
Malaysia, Indonesia, Thailand and Nigeria are 4 significant producers of palm oil.
Account for more than 80% of world palm oil production.
80-90% of palm oil used as food and 10-20% used in non-food applications (oleochemicals & biofuel)
Palm oil has to compete with 16 other oils and fats for its market share.

5. Common Raw Materials for Biodiesel Production and Their Oil Yield
The most economical feedstock for biodiesel production is palm oil which has the highest yield per ha compared to other seeds crops as shown in the slide.
Source: Oil World Annual 2008

6. ABUNDANCE OF OIL PALM BIOMASS
PALM KERNEL CAKE
OIL PALM FRONDS
SHELL, 5.5%
There is an abundance of oil palm biomass available in palm oil industry such as EFB (from the mills), fronds (pruning & replanting), trunks (replanting), fibre etc. Only 10% of the oil palm tree is oil and the rest are biomass.
(And it has abundance of oil palm biomass such
FRESH FRUIT BUNCH
EMPTY FRUIT BUNCH, 22%
POME
10% oil
90% biomass
OIL PALM TRUNK
FIBRE, 13.5%

7. The flow chart of oil palm biomass distribution of one hectare plantation area
A hectare of oil palm
Felled palm trunk once in years
Dry wt: kg/ha
Palm fronds
(a) During replanting
Dry wt: tonnes/ha
(b) Annual pruning
Dry wt: tonnes/ha
Fresh fruit bunches (FFB)
Annual product: tonnes/ha
Dry wt: tonnes/ha
Empty fruit bunches (EFB)
EFB 22% FFB = 4.42 tonnes/ha
Dry wt: 35% EFB = tonnes/ha
Fibre 13.5% FFB
= 2.71 ton/ha
Dry weight: 60% fibre
= tonnes/ha
Shell 5.5 % FFB
= 1.10 ton/ha
Dry weight: 85% wet shell
= tonnes/ha
Effluent
Sterilizer condensate
12% FFB = tonnes/ha
Centrifugal sludge
50% FFB = tonnes/ha
Hydrocyclone washing
5% FFB = 1.10 tonnes/ha
Total = tonnes/ha
Dry weight 5% of wet effluent = tonnes/ha
For 80 MT of FFB processed last year, the amount of biomass is estimated to be > 25 MTon dry weight basis

8. Volume of oil palm trunks
Projection of Oil Palm Trunks and Fronds during Replanting in Peninsular Malaysia (2007 – 2020)
Year
Replanting area
(thousand ha)
No. of trunks
(millions)
Volume of oil palm trunks
(million m3)
Fronds
(million tonnes)
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
24.0
32.0
34.0
27.0
33.0
38.0
40.0
42.0
43.0
35.0
20.0
10.0
3.22
4.29
4.56
3.62
4.42
5.09
5.36
5.63
5.76
4.69
2.68
1.34
5.27
7.02
7.46
5.93
7.24
8.34
8.78
9.22
9.44
7.68
4.39
2.19
54.76
54.44
54.14
54.17
54.24
54.27
53.97
53.89
54.19
54.64
55.21
55.93
Beside the biomass that is generated annually in POM, the biomass also will be available through replanting once every 25 years of its life cycle. The projected amount is MT in Most of this will be recycled back to the soil to replenish the land fertility.

9. Barrel of Oil Equivalent (Mil)
EFB
Fibre
Shell
Effluent
Total
*Computed based on calorific values
The l energy resources from oil palm biomass contribute significantly to the national energy security with a potential energy of 55 M barrel of oil equivalent

10. Biomass Potential Sector Quantity (million tonnes/year)
Annual Generation Potential (GWh)
Maximum Energy Potential (MW)
EFB
16.7
18,400
2,100
POME
38.9
2,800
320
Wood Chips
2.2
600 70
Rice Husks
0.4
300 30
Bagasse
0.3
200 25
TOTAL
58.5
22,300
2,545
For comparison, the energy potential for oil palm biomass is significantly better than others lignocellulosic materials

11. Trends in R&D on Biofuels:
Programmes in the Pipeline
1st Generation Biofuels using Palm Oil & Waste Palm Oil
2nd Generation Biofuels using Oil Palm Biomass and Non-Edible Feedstocks (Jatropha)
3rd Generation Biofuel (Algae)

12. First Generation Biofuels (from palm oil)
National Biofuel Policy – launched March 2006.
Malaysian Biofuel Industrial Act 2006
– passed by Parliament in 2007.
Total no. of biodiesel plants built: 20 (capacity ~2 million tonnes).
Palm Biodiesel
Normal grade biodiesel (CFPP: +15°C)
Winter grade biodiesel (CFPP: 0 to -21°C)
MPOB technology, already commerciallised
B5 Implementation in Malaysia with government vehicles – commenced February 2009.
Nation wide Implementation – expected by 2010.
MPOB has started R&D on first generation biofuel in 1980s.

13. Palm Biomass as Renewable Energy Sources and Next Generation Biofuel

14. Current Uses of Palm Biomass: Fibre & Shell
Firing boilers in Palm Oil Mills
Produce steam for processing
Produce electricity for power requirement
PALM OIL MILLS : SELF SUFFICIENT IN ENERGY

15. Potential of Palm based Renewable Energy
Substitute to fossil fuel (diesel & medium fuel oil)
Palm oil complex – supply steam and electricity to refinery & kernel crushing plant
Major feedstock for Small Renewable Energy Programme (SREP) & Clean Development Mechanism (CDM) projects

16. Small Renewable Energy Programme (SREP)
Launched on 11th May 2001 in conjunction with country’s fifth fuel policy (8th Malaysian Plan, 5% of total national generating capacity to be generated from the RE sources)
9th Malaysian Plan (2006 – 2010): Target of Electricity to be Generated
300 MW in West Malaysia
50 MW in East Malaysia
Implementation Agency : Ministry of Energy, Green Technology & Water.
Objective: to allow small power producers which utilize RE sources to sell their electricity to Tenaga Nasional Bhd. – maximum power export limited to 10MW
Biomass waste generated from Palm Oil Mills, in particular Empty Fruit Bunch (EFB) and Palm Oil Mill Effluent (POME) was identified as a main RE fuel for biomass based power plant

17. SREP Projects

18. Clean Development Mechanism
Involves the trading of emission reductions resulted from a specific project (called CERs once such reductions are certified) to countries that can use these CERs to meet their targets. In return for the CERs, there will be a transfer of money to the project that actually reduces the greenhouse gases.
January 2009 – 36 projects registered
28 projects – Palm based Biomass / Biogas projects
CER issued : 4 projects

19. 2nd Generation Biofuels Emerging Field
Biogas from palm oil mill effluent (1981 – to date)
Production of syngas (2002)
Production of bio-oils (2002)
Palm biomass briquettes (2004)
Production of bioethanol (2006)
As the first generation biofuel progress, MPOB has also looked into utilization of palm biomass resources for bioenergy generation such as gaseous fuel, liquid fuel and solid fuel

20. (1) Gaseous Fuel (Biogas)
80% of palm oil mills deploy ponding system for POME treatment
Ponds & Tank Digester
POME is the wastewater or sludge generated during the palm oil mill's operation containing organic matters. It is through the decomposition of this organic matters in anaerobic pond that the biogas is generated and released freely into the air and wasted.
UP POME treatment system
Gas Engine 20

21. Palm Oil Mill Effluent (POME) as a Renewable Energy Source - Biogas
Potential yield: 1 m3 of completely digested POME produces 28 m3 biogas
Biogas is made up of % CH4, % CO2 and trace H2S
Based on discharged POME containing 1.54 million ton COD:
GHG emission : 23 million tons CO2 eq.
Recovered energy: 539 million Nm3 CH4
For every 57 MT POME generated annually, the amount of biogas will be 2456 M m3. Biogas contains CH4 which is 21 times more global warming than CO2 as GHG emission. To mitigate climate change, the oil palm industry is encouraged to capture CH4
CH4
CH4
CO2
CH4
CO2
CO2

22. GHG Emissions Savings from Selected Biodiesel from Major Vegetable Oils
Biofuel Feedstock
GHG savings (%)
Typical*
Default**
Palm oil biodiesel (process not specified) 36 19
Palm oil biodiesel (process with methane capture at oil mill) 62 56
Soybean oil biodiesel 40 31
Rapeseed oil biodiesel 45 38
Sunflower seed oil biodiesel 58 51
To be eligible for incentives in the EU, under the current proposed EU Directive on the Promotion of the Use of Energy from Renewable Sources, the biofuels must meet the sustainability criteria to have at least 35% GHG emission savings as compared to petroleum diesel. With methane emission in mills, palm biodiesel has typical GHG emission savings of 36% but the acceptable default value is only 19%. With biogas capture, the typical value of GHG emission savings is 62% and default value of 56% Although these figures are still being contested by Malaysia, this places palm biodiesel in an unfavorable position based on current milling practices.
Note:
*Typical value refers to established GHG emission savings
**Default value refers to typical values with 40 per cent inefficiency factor for emission from processing 22

23. GHG Emission Savings: A Comparison Study
Biofuel Feedstock
GHG savings (%)
Typical
Default
Palm oil biodiesel (process not specified) 51 37
Palm oil biodiesel (process with methane capture at oil mill) 66 58
Soybean oil biodiesel* 40 31
Rapeseed oil biodiesel* 45 38
Sunflower seed oil biodiesel*
With the current LCA studies conducted at MPOB our findings show that with allocation the GHG savings is 51% and with biogas capture is 66%. Our data shows that palm biodiesel contributes to greater GHG emission savings as compared to soybean oil biodiesel and rapeseed oil biodiesel. Based on the data, GHG emission savings for palm biodiesel with biogas capture contributes to more than 60% as compared tp petroleum diesel.
* Data from EU Directive on the Promotion of the Use of Energy from Renewable Sources 23

24. (2) Production of Syngas
Feed: Empty fruit bunches, palm shell and fiber
Process optimization in progress to achieve: H2 (40%); CO (30%); CH4 (10%)
MPOB also work with Curtin University to develop the compartmented fluidized –bed gasifier. The bio producer gas of the system contain higher percentage of H2.

25. (3) Production of Bio-oils
Exhaust
Pulley to
Suspend / raise
Reactor
Mass flow controller
Pressure Gauge
Reactor
Another source of biofuel from oil palm biomass is bio-oils via pyrolysis of EFB. This is the experimental rig set up for pyrolysis.
Fluidised - Fixed Bed Quartz Reactor
Rig Set-up for Pyrolysis Experiment

26. Volatiles and char yield at different pyrolysis temperatures
(Based on weight of samples collected)
Bio-oil 42.28% at 500º C
Char 41.56% at 300º C
Gas 46.00% at 700º C
Char
Crude
Bio-oils
The pyrolysis process of EFB yielded volatiles and char. The yields of the volatiles and char differed at different temperature. Optimum yield of bio-oils can be obtained at 500 deg. C.

27. (4) Palm Biomass Briquettes
Treated EFB can be used as a raw material for the production of palm based biomass briquettes
As a substitute raw material for commercial sawdust briquette industry
Made either from 100% palm biomass or mixed with sawdust.
Calorific value: Palm briquette=17,823 kJ/kg, sawdust= 18,936 kJ/kg
Being commerciallised.
100% Pulverized EFB
(PEFB)
EFB Fibre + sawdust
(FEFB+SD) (50:50)5
Pulverized EFB + sawdust
(FEFB+SD) ( 50:50)
Biomass such as EFB can be briquetted/palleted/bailed for easy transportation as solid fuel or to generate energy via gasification or for export market.

28. (A) From Palm Biomass 1) Pre-Treatment of Palm Biomass
(5) Production of Bioethanol
(A) From Palm Biomass 1) Pre-Treatment of Palm Biomass
Hemicellulose
(30-35%)
Lignin
(17-21%)
Cellulose
(35-42%)
The bioethanol production from EFB involves three processes. The first and the most difficult one is the pre-treatment to break the biomass structure for enhancing other processes. In MPOB, R&D has been focused on attempting several pre-treatment methods such as chemical pulping, chemical thermo-mechanical digestion, steam explosion etc.
2) Conversion of Palm Lignocellulosic biomass to sugar.
3) Fermentation (Sugar to bioethanol).
(B) From Sago Biomass
R&D for (A) and (B) above on going - for yield optimisation

29. Typical * GHG emission savings
2nd Generation Biofuel generally have better GHG savings than 1st Generation Biofuel
Biofuel Production Pathway
Typical * GHG emission savings
1st. Generation
Wheat Ethanol ( process fuel not specified)
Corn Ethanol ( community produced, natural gas as process fuel in CHP plant)
2nd. Generation
Wheat straw ethanol
Waste wood ethanol
Farmed wood ethanol
32%
56%
87%
80%
76%
* EU Directive on Renewable Energy

30. Challenges & Future Outlook: 2nd Generation Biofuels

31. CHALLENGES ON SECOND GENERATION BIOFUELS FROM OIL PALM BIOMASS
Types of biomass /Biomass availability
Sustainable Development
Fundamental aspect
Synergic Approach
Before embarking on second generation biofuel production, the oil palm industry has to consider several challenges such as the choice for the most cost-effective type of oil palm biomass used and the biomass availability at the end of the day after deducting all the possible applications of oil palm biomass. There must also be synergic approach to take care of the 3Ps i.e. planet, people and profit as part and parcel to make sure the production of second generation biofuel is sustainable.
Economics
Environmental
Energy balance
Technological

32. Future Outlook: Next Generation Biofuel - BTL
TREND IN BIOENERGY POTENTIAL
There is also an emerging bioenergy trend in the future on the production of BTL, GTL from lignocellulosic materials. These energy can be generated via the integration of gasification, pyrolysis and F-T processes.
BTL production via integrated pyrolysis, gasification and Fischer-Tropsch (F-T)

33. Sustainable Palm Resources Management
CO2
water
Sustainable
Society
Palm
Resource:
Oil &
Biomass
Industrial Products
Hydrogen
Methane
To conclude, oil palm tree is a golden crop that produce oil as food and abundance of biomass that can be used for many applications. A strategic approach to distribute the oil and the biomass available for each possible applications is required so that a sustainable palm resource management can be achieved to maximize the use of the resources to benefit the palm oil industry taking into consideration to fulfill the requirement for sustainability
Industrial Biotechnology:
Conversion to Useful
Materials
Bioethanol
Biodiesel
Malaysia is
Biomass-rich country
Hydrolysis, fermentation,
enzymatic bioconversion, etc
Adopted from SIRIM, 2008

34. Biofuels from Jatropha & Algae
Some activities including R&D are on-going in Malaysia.

35. Conclusions
Next generation biofuels can be produced from various palm sources.
Biomass-to-Liquid (BTL) is an emerging bioenergy for future generation.
Algae & jatropha are two potential feedstocks for biofuels production.
Sustainable palm resources management is required to move the 2nd generation biofuels industry forward.
Development of green fuels will contribute significantly to reduction of GHG emissions and mitigate climate change.

36. Thank you

37. Production & Exports of Malaysia’s Palm Oil (1995 – 2008)
Prod Export
Production: 08 – Mill. Tonnes
Export: 08 – Mill. Tonnes

38. Overview of Conversion Routes of Crops to Biofuels

39. Well-to-Wheel emision changes for a range of 1st generation biofuels e
Well-to-Wheel emision changes for a range of 1st generation biofuels e.g. biodiesel and bioethanol (excluding land use change) compared with gasoline or mineral diesel
Source: OCED, 2008 based on IEA and UNEP analysis of 60 published life-cycle analysis studies giving either ranges (shown by the bars) or specific data (shown by the dots).

40. Projected translation between 1st and 2nd generation biofuels over time
Source: IEA, 2008a
MPOB’s biofuels research programmes covers both 1st and 2nd generation biofuels

41. MPOB LCA Programmes
Aim is to improve carbon footprint and GHG emissions of the entire production chain of palm oil and related products
LCA Programmes include
- Upstream (nursery, plantation)
- Midstream (CPO, RBD Palm Oil, RBD Palm Olein
production, margarine, etc.)
- Downstream (biodiesel)
Address to international issues on GHG emissions and climate change mitigation

42. GHG emissions for the Production of One Tonne CPO
Output
GHG emissions per tonne CPO
with allocation
Nursery
kg CO2 eq
Plantation
kg CO2 eq( 20 years)
Milling
Milling Biogas Capture (85%)
kg CO2 eq
kg CO2 eq
Total
t CO2 eq (20 years)
t CO2 eq (20 years) (biogas cap)
The green house gases (GHG) inventory was also calculated for the production of 1 tonne CPO with allocation as shown in this Table. The GHG inventory shows that the highest contribution comes from the plantation sector. It is mainly from the land use change (LUC) and the nitrogen fertiliser application. The emission from LUC is the changes in Carbon stock in oil palm biomass from previous land used, i.e logged over forest.
The next biggest contributor is from the biogas in the palm oil mills as can bee seen the value becomes a quarter when biogas is captured. The total CO2 eq for 1 tonne CPO produced (with allocation of palm kernel) is 1.72 t CO2 eq. If biogas is captured then the value drops to 1.24 t CO2 eq per tonne CPO produced.
Ladies and gentlemen,
EU being one of the biggest importers of palm oil and its products such as palm biodiesel, is imposing stringent requirement on sustainability. In view of this, I would like to share with you how our LCA data can be used to quantify the GHG emission saving based on the methodology as stipulated in the EU Directive. 42

43. Breakdown of GHG emissions contribution by each factor
(t CO2eq/ t biodiesel)
(g CO2eq/MJ biodiesel)
Nursery
6.09 x 10-5
0.0015
Oil Palm Plantation*
0.44
10.84
Palm Oil Mill**
0.22
5.46
Refinery
0.19
4.72
Biodiesel Factory
0.30
7.40
Total Emission
1.15
28.42
This slide shows the GHG breakdown when LUC is excluded and biogas is captured. The total emission drops from 1.66 to 1.15 tCO2 eq / tonne biodiesel.
* Conversion from oil palm plantation – land use change is excluded
** Biogas is captured at palm oil mills 43

44. Breakdown of GHG emissions contribution by each factor
(t CO2eq/ t biodiesel)
(g CO2eq/MJ biodiesel)
Nursery
6.09 x 10-5
0.0015
Oil Palm Plantation*
0.44
10.84
Palm Oil Mill
0.73
18.00
Refinery
0.19
4.72
Biodiesel Factory
0.30
7.40
Total Emission
1.66
40.96
Under the EU directive, the LUC is considered 0 if it has been cleared before Jan This slide shows the GHG breakdown when LUC is excluded with biogas emissions. The major contributor is from the palm oil mill.
* With biogas emissions

45. Breakdown of GHG emissions contribution by each factor
(t CO2eq/ t biodiesel)
(g CO2eq/MJ biodiesel)
Nursery
6.09 x 10-5
0.0015
Oil Palm Plantation*
0.44
10.84
Palm Oil Mill**
0.22
5.46
Refinery
0.19
4.72
Biodiesel Factory
0.30
7.40
Total Emission
1.15
28.42
This slide shows the GHG breakdown when LUC is excluded and biogas is captured. The total emission drops from 1.66 to 1.15 tCO2 eq / tonne biodiesel.
* Conversion from oil palm plantation – land use change is excluded
** Biogas is captured at palm oil mills 45

46. GHG Emission Savings: A Comparison Study
Biofuel Feedstock
GHG savings (%)
Typical
Default
Palm oil biodiesel (process not specified) 51 37
Palm oil biodiesel (process with methane capture at oil mill) 66 58
Soybean oil biodiesel* 40 31
Rapeseed oil biodiesel* 45 38
Sunflower seed oil biodiesel*
With the current LCA studies conducted at MPOB our findings show that with allocation the GHG savings is 51% and with biogas capture is 66%. Our data shows that palm biodiesel contributes to greater GHG emission savings as compared to soybean oil biodiesel and rapeseed oil biodiesel. Based on the data, GHG emission savings for palm biodiesel with biogas capture contributes to more than 60% as compared tp petroleum diesel.
* Data from EU Directive on the Promotion of the Use of Energy from Renewable Sources 46

47. Breakdown of GHG emissions contribution by each factor
(t CO2eq/ t biodiesel)
(g CO2eq/MJ biodiesel)
Nursery
6.09 x 10-5
0.0015
Oil Palm Plantation*
0.44
10.84
Palm Oil Mill**
0.22
5.46
Refinery
0.19
4.72
Biodiesel Factory
0.30
7.40
Total Emission
1.15
28.42
This slide shows the GHG breakdown when LUC is excluded and biogas is captured. The total emission drops from 1.66 to 1.15 tCO2 eq / tonne biodiesel.
* Conversion from oil palm plantation – land use change is excluded
** Biogas is captured at palm oil mills 47

48. Breakdown of GHG emissions contribution by each factor
(t CO2eq/ t biodiesel)
(g CO2eq/MJ biodiesel)
Nursery
6.09 x 10-5
0.0015
Oil Palm Plantation*
0.44
10.84
Palm Oil Mill**
0.22
5.46
Refinery
0.19
4.72
Biodiesel Factory
0.30
7.40
Total Emission
1.15
28.42
This slide shows the GHG breakdown when LUC is excluded and biogas is captured. The total emission drops from 1.66 to 1.15 tCO2 eq / tonne biodiesel.
* Conversion from oil palm plantation – land use change is excluded
** Biogas is captured at palm oil mills 48

49. GHG Emission Savings: A Comparison Study
Biofuel Feedstock
GHG savings (%)
Typical
Default
Palm oil biodiesel (process not specified) 51 37
Palm oil biodiesel (process with methane capture at oil mill) 66 58
Soybean oil biodiesel* 40 31
Rapeseed oil biodiesel* 45 38
Sunflower seed oil biodiesel*
With the current LCA studies conducted at MPOB our findings show that with allocation the GHG savings is 51% and with biogas capture is 66%. Our data shows that palm biodiesel contributes to greater GHG emission savings as compared to soybean oil biodiesel and rapeseed oil biodiesel. Based on the data, GHG emission savings for palm biodiesel with biogas capture contributes to more than 60% as compared tp petroleum diesel.
* Data from EU Directive on the Promotion of the Use of Energy from Renewable Sources 49

50. …Cont
Conclusions
Development of green fuels will contribute significantly to reduction of GHG emissions and mitigate climate change.
Use of renewable green fuel in energy sector will contribute to sustainable development of oil palm industry and nation.