NEXT GENERATION BIOFUELS:

MALAYSIAN EXPERIENCE

Sabri Ahmad and Choo Yuen May

International Conference on Green Industry in Asia, Manila, Philippines, 9-11 September 2009

Malaysian Palm Oil Board (MPOB)Ministry of Plantation Industries and Commodities, Malaysia

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

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: 17.73 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: RM2,350.00 (USD 660.00)

• Malaysian palm oil exported to more than 150 countries.

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.

Common Raw Materials for Biodiesel Production and Their Oil Yield

Source: Oil World Annual 2008

0.20

0.60

3.43

0.14

0.42

0.36

0 1 2 3 4Tonnes/ Ha/ Year

Groundnut

Rapeseed

Palm

Cottonseed

Sunflower

Soyabean

PALM KERNEL CAKE

SHELL, 5.5%

FIBRE, 13.5%

POMEPOME

EMPTY FRUIT BUNCH, 22%

FRESH FRUIT BUNCH

ABUNDANCE OF OIL ABUNDANCE OF OIL PALM BIOMASSPALM BIOMASS

OIL PALM FRONDS

OIL PALM TRUNK 10% oil

90% biomass

The flow chart of oil palm biomass distribution of one hectare plantation area

A hectare of oil palm

Felled palm trunk once in 25-30 years

Dry wt: 74.48 kg/ha

Palm fronds(a) During replanting Dry wt: 14.47 tonnes/ha(b) Annual pruning Dry wt: 10.40 tonnes/ha

Fresh fruit bunches (FFB)Annual product: 20.08 tonnes/ha

Dry wt: 10.59 tonnes/haEmpty fruit bunches (EFB)EFB 22% FFB = 4.42 tonnes/haDry wt: 35% EFB = 1.546 tonnes/ha

Fibre 13.5% FFB = 2.71 ton/haDry weight: 60% fibre = 1.626 tonnes/ha

Shell 5.5 % FFB = 1.10 ton/haDry weight: 85% wet shell = 0.938 tonnes/ha

Effluent

Sterilizer condensate12% FFB = 2.460 tonnes/ha Centrifugal sludge

50% FFB = 10.04 tonnes/ha

Hydrocyclone washing5% FFB = 1.10 tonnes/ha

Total = 13.604 tonnes/haDry weight 5% of wet effluent = 0.673 tonnes/ha

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)

20072008200920102011201220132014201520162017201820192020

24.032.034.027.033.038.040.042.043.040.035.027.020.010.0

3.224.294.563.624.425.095.365.635.765.364.693.622.681.34

5.277.027.465.937.248.348.789.229.448.787.685.934.392.19

54.7654.4454.1454.1754.2454.2754.1753.9753.8953.9754.1954.6455.2155.93

• EFB 19.4

• Fibre 20.8

• Shell 13.0

• Effluent 3.1

Total 56.3

*Computed based on calorific values

Barrel of Oil Equivalent (Mil)

Biomass Potential

SectorQuantity (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

1. 1st Generation Biofuels using Palm Oil & Waste Palm Oil

2. 2nd Generation Biofuels using Oil Palm Biomass and Non-Edible Feedstocks (Jatropha)

3. 3rd Generation Biofuel (Algae)

Trends in R&D on Biofuels:Trends in R&D on Biofuels:Programmes in the PipelineProgrammes in the Pipeline

(1) National Biofuel Policy – launched March 2006.

(2) Malaysian Biofuel Industrial Act 2006

– passed by Parliament in 2007.

(1) Total no. of biodiesel plants built: 20 (capacity ~2 million tonnes).

(2) Palm Biodiesela) Normal grade biodiesel (CFPP: +15°C)b) Winter grade biodiesel (CFPP: 0 to -21°C)MPOB technology, already commerciallised

(3) B5 Implementation in Malaysia with government vehicles – commenced February 2009.

(4) Nation wide Implementation – expected by 2010.

First Generation Biofuels (from palm oil)

Palm Biomass as Renewable Palm Biomass as Renewable Energy Sources and Next Energy Sources and Next

Generation BiofuelGeneration Biofuel

• Firing boilers in Palm Oil Mills

• Produce steam for processing

• Produce electricity for power requirement

Current Uses of Palm Biomass: Fibre & Shell

PALM OIL MILLS : SELF SUFFICIENT IN ENERGY

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

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

SREP Projects

SREP Approved Projects

Palm Biomass, 14 Projects 50%

(133MW) Palm Biogas, 6 Projects -

21% (10 MW)

Others 8 Projects

29% (56 MW)

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

(1) Biogas from palm oil mill effluent (1981 – to date)

(2) Production of syngas (2002)

(3) Production of bio-oils (2002)

(4) Palm biomass briquettes (2004)

(5) Production of bioethanol (2006)

2nd Generation BiofuelsEmerging Field

(1) Gaseous Fuel (Biogas)

UP POME treatment systemUP POME treatment system

Ponds & Tank DigesterPonds & Tank Digester

Gas EngineGas Engine

80% of palm oil mills deploy 80% of palm oil mills deploy ponding system for POME ponding system for POME treatmenttreatment

CO2

CH4

CH4CH4 CO

2CO2

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 60-70 % CH4, 30-40 % 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

GHG Emissions Savings from Selected Biodiesel from Major Vegetable Oils

Biofuel FeedstockGHG 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

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

GHG Emission Savings: A Comparison Study

* Data from EU Directive on the Promotion of the Use of Energy from Renewable Sources

Biofuel FeedstockGHG 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* 58 51

• Feed: Empty fruit bunches, palm shell and fiber

• Process optimization in progress to achieve: H2 (40%); CO (30%); CH4 (10%)

(2) Production of Syngas (2) Production of Syngas

Rig Set-up for Pyrolysis Experiment

Pulley to Pulley to Suspend / raiseSuspend / raise

ReactorReactor

Pressure Pressure GaugeGauge

Mass flow controllerMass flow controller

ReactorReactor

ExhaustExhaust

(3) Production of Bio-oils

Fluidised - Fluidised - Fixed Bed Fixed Bed Quartz Quartz ReactorReactor

0

20

40

60

80

100

120

0 200 400 600 800

Temperature,oC

Yiel

d, %

Volatiles

Char

Volatiles and char yield at different pyrolysis temperatures(Based on weight of samples collected)

Char CrudeBio-oils

Bio-oil 42.28% at 500º CChar 41.56% at 300º CGas 46.00% at 700º C

(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)

(A) From Palm Biomass1) Pre-Treatment of Palm Biomass

2) Conversion of Palm Lignocellulosic biomass to sugar.

3) Fermentation (Sugar to bioethanol).

Hemicellulose(30-35%)

Lignin(17-21%)

Cellulose(35-42%)

(5) Production of Bioethanol

(B) From Sago Biomass

R&D for (A) and (B) above on going - for yield optimisation

2nd Generation Biofuel generally have better GHG savings than 1st Generation Biofuel

Biofuel Production Pathway Typical * GHG emission savings

1st. GenerationWheat Ethanol ( process fuel not specified)Corn Ethanol ( community produced, natural gas as process fuel in CHP plant)

2nd. GenerationWheat straw ethanolWaste wood ethanolFarmed wood ethanol

32%

56%

87%80%76%

* EU Directive on Renewable Energy

Challenges & Future Outlook: 2nd Generation Biofuels

• Types of biomass /Biomass availability

• Sustainable Development

• Fundamental aspect

Economics

CHALLENGES ON SECOND GENERATION CHALLENGES ON SECOND GENERATION BIOFUELS FROM OIL PALM BIOMASSBIOFUELS FROM OIL PALM BIOMASS

Synergic ApproachSynergic Approach

Energy balance

Environmental

Technological

TREND IN BIOENERGY POTENTIAL

Future Outlook: Next Generation Biofuel - BTL

BTL production via integrated pyrolysis, gasification and Fischer-Tropsch (F-T)BTL production via integrated pyrolysis, gasification and Fischer-Tropsch (F-T)

Sustainable Palm Resources Management

CO2

water

SustainableSociety

Industrial Products

MethaneHydrogen

Bioethanol BiodieselIndustrial Biotechnology:Conversion to UsefulMaterials

Malaysia is

Biomass-rich countryHydrolysis, fermentation, enzymatic bioconversion, etc

Adopted from SIRIM, 2008

Palm Resource:

Oil & Biomass

Biofuels from Jatropha & Algae

• Some activities including R&D are on-going in Malaysia.

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.

Thank you

Production & Exports of Malaysia’s Palm Oil (1995 – 2008)

0

2

4

6

8

10

12

14

16

18

20

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Mil

l. T

on

ne

s

Year

Prod Export

Production: 08 – 17.73 Mill. TonnesExport: 08 – 15.40 Mill. Tonnes

Overview of Conversion Routes of Crops to Biofuels

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).

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

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

GHG emissions for the Production of One Tonne CPO

OutputGHG emissions per tonne CPO

with allocation

Nursery 0.041 kg CO2 eq

Plantation 1031.02 kg CO2 eq( 20 years)

Milling Milling Biogas Capture (85%)

693.96 kg CO2 eq 210.52 kg CO2 eq

Total 1.72 t CO2 eq (20 years)1.24 t CO2 eq (20 years) (biogas cap)

Breakdown of GHG emissions contribution by each factor

Factor

GHG emission

(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* Conversion from oil palm plantation – land use change is excluded** Biogas is captured at palm oil mills

Breakdown of GHG emissions contribution by each factor

Factor

GHG emission

(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

* With biogas emissions

Breakdown of GHG emissions contribution by each factor

Factor

GHG emission

(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* Conversion from oil palm plantation – land use change is excluded** Biogas is captured at palm oil mills

GHG Emission Savings: A Comparison Study

* Data from EU Directive on the Promotion of the Use of Energy from Renewable Sources

Biofuel FeedstockGHG 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* 58 51

Breakdown of GHG emissions contribution by each factor

Factor

GHG emission

(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* Conversion from oil palm plantation – land use change is excluded** Biogas is captured at palm oil mills

Breakdown of GHG emissions contribution by each factor

Factor

GHG emission

(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* Conversion from oil palm plantation – land use change is excluded** Biogas is captured at palm oil mills

GHG Emission Savings: A Comparison Study

* Data from EU Directive on the Promotion of the Use of Energy from Renewable Sources

Biofuel FeedstockGHG 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* 58 51

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.

…Cont