3. Palm Oil’s Contribution
to World Supply
14 7.8
18.6
28
31.2
Palm Oil Soya Rapeseed Sunflower Others
4. Net Importing & Exporting Countries for
Oils & Fats (2009)
•Malaysia,
Indonesia &
Argentina –
are major net
exporters of
oils and fats. Indonesia
Malaysia
Argentina
Brazil
Saudi Arabia Ukraine
Canada
Philippines
Thailand
Russia
5. Cultivated Area of Oil Seeds in the World
Land Use Type Total Area As % of Area
(million ha)
Total Agricultural Land * 4267 100
Oil Seeds ** 233 4.69
Soyabean ** 92 1.85
Rapeseed ** 30 0.60
Sunflower ** 23 0.46
Oil Palm ** 11 0.22 ***
Coconut ** 9 0.18
Other Oil Seeds ** 68 1.37
Malaysian Oil Palm 4.7 0.09
Sources: * FAO ** Oil World
Planted on 4.7 million ha and produced 17.6 million tonnes of CPO production in
2009. We also generate biomass, nearly 115 million MT.
Palm Oil is only oil crop in world to have such a sustainability certifying system
6. Why did palm oil industry use green
technologies?
• Responsible business entity
• Green technologies sustain basic land resources
• Government helped to spur growth of green
technologies in some cases by putting legislations in
place
• In return this is beneficial for the cultivation of oil palm
• Quantum leaps in green technology took place in last
two decades
• Coincided with time of awareness of climate change
when environment friendly technologies sought
7. Zero burning & Integrated Pest Management are Traditional
Green Technologies
Zero burning returns nutrients and organic
matter to soil
Result: Lower inputs of chemical fertilizers
and saves costs
9. Palm Oil – A Choice Raw Material for Biodiesel
Production Using Malaysian Patented Technologies
Malaysia 1st Commercial Palm Sime Darby Biodiesel Sdn. Bhd.
Biodiesel Plant Winter-Grade Palm Biodiesel Plant,
Carotino Sdn. Bhd., Johor. Home Grown MPOB Technology
10. The greenhouse-gas perspective
• EU Renewable Energy Directive requires reduction of GHG emissions by at least
35% compared with fossil fuels, so that one biofuel is classified as "sustainable"
and therefore meets the objectives and requirements
• Palm Oil :Discriminatory element in RED - typical value ("state of the
technology") vs. default value ("worst case scenario") in the "calculation" of
GHG substitution:
Biofuel / source Typical value Default value
Ethanol / sugar-beet 61% 52%
biodiesel / rapeseed 45% 38%
biodiesel / sunflower oil 58% 51%
biodiesel / palmoil 36% 19%
(full methane capture) (62%) (56%)
Adapted from Dr. Gernot Pehnelt, IPOSC 2010 10
11. • As a raw material, the oil palm is more efficient than other oil crops:
Typical yields of different oil crops (t/ha/a) Rape seed Palm oil
5
Yield of seed, fruits 4.11 t/ha/a 19.5 t/ha/a
4 Oil available from process 30% 19%
3 Yield of plant oil 1.23 t/ha/a 3.85 t/ha/a*
t/ha/a
2
Yield of biodiesel 1.19 t/ha/a 3.63 t/ha/a
1
Gross energy of biodiesel
46.5 GJ/ha/a 141.6 GJ/ha/a
0 (biodiesel energy value: 39 GJ/t)
soybeans groundnut sunflow er rapeseed coconut palm
(US) (US) (ARG) (EU) (PHI) (MAL)
Source: Thoenes 2006
Average oilcrop yields (tonnes/ha/year)
6
5 • Energy balance of palmoil better than other
4
oil crops, e.g. rapeseed
t/ha/a
3
2 • Palmoil lowest land use and lowest cost per
1
output unit
0
soybeans groundnut sunflow er rapeseed coconut palm
Thoenes 2007 Basiron 2007
Source: Basiron 2007, Thoenes 2007
Adapted from Dr. Gernot Pehnelt, IPOSC 2010
12. US EPA: Palm Biodiesel LCA Analysis using GREET Model
Greenhouse Gas Emissions (GHG; g CO2e/MJ)
Hybrid Hybrid
Co-Product Method: Displacement
Allocation Allocation
Palm Kernels,
Co-Products Palm Kernels, Palm Kernels,
Palm Biomass
Credited Glycerin Glycerin
Glycerin
Farm Equipment 0.9 0.8 1.4
Farm Chemicals 5.0 4.5 7.5
Feedstock Transport 0.7 0.6 1.0
Oil Extraction 0.8 0.7 1.2
POME methane 4.0 3.6 5.9
Oil Transport 0.3 0.3 0.3
Transesterification 5.2 5.2 5.4
BD T&D 3.2 3.2 3.2
Fuel Combustion 4.4 4.4 4.4
Palm Kernel Credit -3.6
Glycerin Credit -21.5
Total Fuel Cycle 24.5 23.3 5.3
Reduction from Diesel 74.1% 75.4% 94.4%
The Well To Wheel (WTW) analysis of palm biodiesel indicates that from a GHG
perspective, a minimum 74.1% reduction in fuel cycle GHG savings are achieved
compared to baseline California Ultra Low Sulphur Diesel is achieved .
13. Life Cycle Analysis of Palm Biodiesel: US GREET MODEL Including LUC
GHG Emissions (g CO2 e / mmBtu) over 100 years
5,000,000
Fuel Production
4,000,000
Farm Inputs & N2O
3,000,000
50% Reduction Fuel & Feed Transport
2,000,000
Tailpipe
1,000,000 iLUC excl N cycle
0 Palm Plantation LUC/dLUC
-1,000,000 Net Emissions
in e se ld C
el ba yie yL
U
s l gh l
l Ba ies
e
lh
i on
es
e o d s e sia
Di Bi die ala
y
lm o RFS2: Biodiesel with 50% GHG
00
5
Pa Bi M
2 lm sel Reduction compared to Fossil Diesel
Pa ie
B iod Qualifies As an Advanced Diesel
lm
Pa Palm Biodiesel Should Thus Qualify
Since it has greater than 50% reduction
14. Sustainability criteria: EU Directive
• Minimum 35% greenhouse gas emission saving compared to fossil fuel
• No conversion of land with high carbon stock since January 2008
(wetlands, continuously forested areas, peatlands)
• No raw material from land that had high biodiversity value from January
2008 (primary forest, biodiverse grassland, nature protection areas)
• (EU raw materials must meet EU rules on agro-environmental practices)
There will be some further elements to report on
– Commission to determine them soon; no consequences
Based on presentation of Mr. Ewout DEURWAARDER (European Commission)
15. Developed countries should be fair to developing
countries to use some forest to alleviate poverty
70 % Forest
60
50
40
30
20
10
0
Average: 25.5% Average: 57%
16. The Carbon Cycle of a Palm Plantation includes Harvested Wood, Roots
and Other Biomass Products Apart from its Oil and Kernels.
Branches
Wood products
Herbaceous
vegetation
Litter Soil Carbon
Dead wood
Roots
Palm plantations sequester carbon – up to 5 tonnes C/ha/year or 110 tons C for
the lifecycle of the plantation (25 years) . A natural forest sequesters a bit slower if
starting also from scratch (around 1 tonne) but the stock is much higher.
The iLUC and LUC for palm must be better integrated to accurately take into
account these effects. Most current LUC models take into account the initial
release from clearing land. However, the uptake from the palm tree and root
systems is seldom accounted for.
17. The Wet Weight of Potential Oil Palm
Biomass Available in Malaysia in 2009
Unit
Sources of Oil Palm Biomass
Million tonnes per year Million cubic meter per
year
Oil Palm Trunk (OPT) 15.2 23.6
Oil Palm Frond (OPF) 83.0 -
Empty Fruit Bunches (EFB) 17.5 -
Total 115.7 23.6
Total oil palm planted area = 4.7 million hectares
18. 1. EMPTY FRUIT BUNCHES 37 tonnes per ha (dwb)
17.5 mil tonnes (wet )
65 % moisture
PALM FIBRES Fronds: 9.7 tonnes per ha (dwb)
11.3 mil. tonnes(wet)
Moisture 42 %
19. Solid Fuel
• Conventionally
combusted in mills
• Used by alternative
industry
• Independent heat
generation in industrial
plants supplying energy
to industries in vicinity
• Palm biomass briquettes
20. Palm Biomass Briquettes
• Treated EFB can be used as a raw material for the production of palm
based biomass briquettes
100% Pulverized EFB Pulverized EFB + sawdust EFB Fibre + sawdust
(PEFB) (PEFB+SD) ( 50:50) (FEFB+SD) (50:50)
• As a substitute raw material for commercial sawdust briquette industry
• Made either from 100% palm biomass or mixed with sawdust.
22. Waste Management
● Treated palm oil mill effluent (POME) contains high level of plant nutrients
that may replace inorganic fertilizers
● Treated POME applied to land improves the soil and increases yield
22
23. Reduced Emissions = Sustainability
Average 40 tonne/hr FFB Mill
C02 e Removed in Covered Pond =
34,486 t/year
Additional C02 e Removed when
methane used for electricity
= 8,966 t/year Total = 43,452 t/year less 5,431
site generated emissions
= 38,021 t/year C02 e. Over 400
Mills this = over 15 million t/y
Current CDM Value = RM800m/y
24. Gaseous Fuel (Biogas)
80% of palm oil mills deploy
ponding system for POME
treatment
Ponds & Tank Digester
UP POME treatment system Gas Engine
26. Renewable Energy to the Grid
TSH Bioenergy Sdn. Bhd.
• 8 MW palm biomass based grid
connected power plant
• Expected to supply a maximum
of 7 MW electricity to the grid.
Source: (FSDP Special Issue- Cogen3)
27. RESEARCH IN OIL PALM TISSUE CULTURE
• Solid culture system
• Liquid culture system
• Development of biomarker
Expression Profile of Embryogenic Markers
Explant EgRLK1 OPZE5
EgRLK1 EgRLK2 EgRLK3 EgRLK2 OPZE3
Callogenesis
OPZE5 OPZE3 EgRLK3
Embryogenic calli
(contains PEMs) Non-embryogenic calli
EgPER1 EgHOX1
Selection of calli for initiation of suspension
OPHb1 EgPK1
OPZE3
EgRLK3 EgPER1 EgHOX1 Suspension
cultures EgNAC1 OPZE5
EgRLK2 EgRLK1 OPHb1
Proliferation of embryogenic calli/early stage embryos
Progression of embryogenesis suppressed by auxins
EgPER1 Hormone-free medium
EgPER1 Expression Profile
EgPER1 profile in AM12-14
OPZE3 Rapid progression of embryogenesis
OPZE5
Pattern formation
log10 rescaled norm expr
EgNAC1 10
OPHb1 Meristem establishment
1
Transferred to solid media for embryoid maturation
EgPER1
(white & green embryoids) EgNAC1
OPZE5 OPZE3
0.1
OPZE3
Shooting EgRLK1
0.01 EgRLK3
OPZE5 EgRLK2
T0 T1d T7d T1m T2m T3m T3mA T4m T5m T6m T6mA T9m T9mA
Rooting
stages
LOW
AM12(L) ZERO
AM13(0) HIGH
AM14(H)
Pre-nursery
Courtesy: DG, MPOB
28. TISSUE
OIL PALM CLONING PROCESS (SOLID MEDIUM) CULTURE
Embryoid formation
Taking of leaf cabbage Cutting of young leaves Leaf explant culture Callus formation
/palm crown 24
6 months 9 months
month
s
In field nursery Acclimatization of ramets Rooting stage Shoot Polyembryoid
development stage multiplication stage
8-9 months 3 -4 months 3 months 4 months 2 months
(Field planting at 1 year old)
Courtesy: DG, MPOB
29. TISSUE
CLONING OF PALMS WITH SPECIAL TRAITS CULTURE
Palms with special traits from the
‘fast- track’ breeding programme
were cloned:
High bunch index
High vitamin E
High carotene
Long stalk High-bunch index dura of 0.68 (virescent High-bunch index
type) tenera of 0.58
Low height increment
Long stalk tenera (35.5cm) High-carotene oleifera
ramets (4000 ppm)
High vitamin E dura & tenera (1551 &
1392 ppm, respectively)
Courtesy: DG, MPOB
30. GENOME SEQUENCING
Deli Dura
5 crosses 18 crosses Progeny
Progeny tested tested in 3 trials
in 3 trials
Dura Pisifera
(Sh+Sh+) (Sh-Sh-)
0.212/70 0.182/77
Completed Genome Sequencing of 3 Palms
• 17.2 x - Oleifera genome
• 16.5 x - Pisifera genome
• 34.7 x - Dura genome
• 68.4 x Total
Deciphered the transcriptome of 17 Palm tissues (will complete another 13 palm tissues in 2010)
Courtesy: DG, MPOB
31. GENOME ANALYSIS
Relative Genome Sizes
Arabidopsis
Moss
Rice
Sorghum
Clover
Tomato
Soybean Elaeis
oleifera
Canola
Oil Palm Genome Analysis
Lolium
Corn
• Genome Size: est. to be > 1,710 MB
Tobacco
• 93.4% of the genome in sequence contigs
• 95.4% of genetic markers in sequence contigs
Wheat
Courtesy: DG, MPOB
32. ROADMAP OF GENETICALLY MODIFIED OIL PALM
IP auditing &
Regulatory
approval
Screening of D
& P with
Commercia
transgene
lization of
Selfing of Crossing of GM oil
progenies w/o selected D palm
bar gene &P
Screening
w/o Bar gene
Crossing GM
X Non-GM
Screenhouse
Planting/Proof of
concept
2010 2015 2020 2025 2030 2035 2040
Courtesy: DG, MPOB
33. ASIAN INNOVATIONS AWARD,
Far Eastern Economic Review,
October 2001
THE TECH MUSEUM, SAN JOSE,
CALIFORNIA, HONOURED THIS
INVENTION AS A
TECHNOLOGICAL
BREAKTHROUGH BENEFITTING
HUMANITY
THE TECH MUSEUM LAURATES
AWARAD, 2002
GOLD MEDAL, INVENTIONS
AND EXPOSITIONS, GENEVA,
SWITZERLAND, APRIL 2002
34. PATENTED TECHNOLOGY : RECOVERY OF PHENOLIC
ANTIOXIDANTS FROM PALM OIL MILLING WASTE
Plate heat
exchangers for
cooling
Holding Tank POME
Upper oil
Lower aqueous
phase
phase
containing Holding
Pelleted nutraceuticals Tank
solids
Palm oil mill
Centrifugal
system
Phenolic Flavonoid
Antioxidant rich
filtrate
Series of membrane systems
Patents granted in USA, Malaysia, Indonesia
The follow-up R&D on biological properties of this phenolic antioxidant or Palm
Fruit Juice has yielded additional 9 patents through collaborations between MPOB,
CSIRO (Australia), MIT (USA), Brandeis (USA).
Awaiting COMMERCIALIZATION
35. Capitalizing on America’s Fear of Heart Disease:
Palm Oil is the major ingredient in the American
Heart Association’s (AHA) Recommended Diet
36. SMART BALANCE FAMILY OF FOODS
Based on our Patents
(Sundram et al. ) and
the Brand name
“SMART BALANCE”, a
US public listed
company paid US$465
million (RM 1.58 Billion)
to acquire this business.
Company trades on the
Nasdaq as “Smart
Balance Inc.” - annual
turnover of US250
Million
Palm oil thus ticks even
in the most
sophisticated markets!
AMAZING PALM OIL INDEED!
37. How and Why Has the Malaysian Palm Oil Industry Innovated
How
Industry is taxed through an Act of Parliament and pays RM11 per
MT of CPO/CPKO produced for R&D and RM2 for promotion.
This provides for at least RM200 million for R&D (MPOB) and RM36
million for promotional activities (MPOC).
In addition we compete actively for government grants.
We have created a reasonable pool of experts who are in great
demand (and actively being fished by overseas producers).
WHY
We cannot afford to play second fiddle in the global oils
and fats markets. We remain the prime movers and will
hold this position for as long as possible!!!
