Innovations in Research and Development for Climate Change

Mitigation

MPOB Side EventUnited Nations Climate Change Conference, COP17/CMP 7

Colony Room, Suncoast Conference Centre, Durban, So uth Africa5 December 2011

Datuk Dr Choo Yuen MayDirector General

1. Introduction

2. Greenhouse Gas (GHG) Reduction Programmes and Activities

3. Research and Development in support of GHG reduction

4. Conclusion

2

PRESENTATION OUTLINE

2

1. INTRODUCTION1. INTRODUCTION

3

World Scenario of theOil Palm Industry

• About 20 countries involved in oil palm cultivation.

• Malaysia and Indonesia are 2 significant producers of palm oil.

• Account for more than 87% 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.

2. GHG Reduction Programmes and Activities

2. GHG Reduction Programmes and Activities

5

GHG Reduction Programmes and Activities

• Maintaining at least 50% forest cover• Increasing yield per hectare• Reducing emissions in cultivation• Reducing emissions in processing• Towards Zero Waste: Full utilization of

crop residues

6

3.RESEARCH AND DEVELOPMENT IN SUPPORT

OF GHG REDUCTION77

Maintaining 50% Forest Cover• Satellite mapping by MPOB to

determine oil palm planted areas, mapping of forest and other crops carried out by other agencies

• Latest techniques used and verified on the ground

• To date Malaysia still has 56 % forest cover

Increasing yield per hectare• Under Economic Transformation

Programme, oil yield per hectare will increase from 4 tonnes per hectare per year to 6 tonnes per hectare per year by 2020

• Additional 10 million tonnes of oil can be produced using same 5 million hectares

• Avoids land use change of high carbon stock areas to produce 10 million tonnes of vegetable oil

Economic Transformation Programme

• A roadmap for Malaysia to transform from a middle-income into a high income nation by 2020

• Strong focus on a few key growth engines – the National Key Economic Areas (NKEAs)

• The Palm Oil Sector is included as one of the 12 NKEAs

10

Oil Palm NKEA

• To increase GNI from RM 53 billion (2009) to RM 178 billion by 2020

• Create an additional 41,000 jobs of which 40% will be high skilled jobs

• 8 core Entry Point Projects (EPPs)– Improve upstream productivity and

sustainability– Increase downstream expansion and

sustainability

11

Importance of Sustainability in ETP

• Inclusiveness – benefits all Malaysians with special attention to lower income group (increase monthly mean income from RM1440 in 2009 to RM2300 in 2015)

• Growth must be sustainable in economic and environmental terms - preservation of environment and resources must be priced in the cost of development

• Increase average FFB yield from 19.2 tonnes/ha/yr in 2009 to 26.2 tonnes/ha/yr by 2020

• Promote, mandate and implement Best Agricultural Practices

• Set up smallholders cooperatives for establishing sustainable palm oil cluster (SPOC)

• Additional GNI of RM 10.2 billion by 2020

EPP 2: GAP to improve Fresh Fruit Bunch Yield

NATIONAL KEY ECONOMIC AREA (NKEA)

Fresh Fruit Bunch (FFB)

A) Elite DxP planting materialOil yield: >6 t/ha/yr

B) Clonal production through tissue cultureOil yield potential: 8-12

t/ha/yr

Germinated seeds

Oil palm clone

Enhanced Productivity through Improved Planting Material

P379Ortet performanceOTB=31.89%FFB=190.13

kg/palm/year

Ortet performanceOTB=31.89%FFB=190.13

kg/palm/year

• MPOB has successfully sequenced 3 oil palm genomes• First organization in the world to sequence the oleifera and

pisifera• The sequences are being mined for useful traits

Oil Palm Genome

E. oleifera

E. guineensis

AVROS Pisifera 0.182/77

Dura0.212/70

TARGETED TRAITS

M P O B

YIELD HEIGHT DISEASE RESISTANCE

SHELL THICKNESS

FRUIT COLOUR

TISSUE CULTURE UNIFORMITY

FRUIT COLOUR

CLASSICAL BREEDING

GENOMICS GUIDED BREEDING

IMPROVED PLANTING MATERIAL

MARKER APPLICATION

Genomics guided decisionsShort breeding cycleReduced cost of trialsTools for QC & selection of traits

Genomics Guided Breeding

10 – 12 year selection cycleLarge land requirementHigh cost in conducting breeding trials

TYPES OF MARKERS

Simple Sequence Repeats (SSRs)Single Nucleotide Polymorphisms (SNPs)

Oil Palm Genome

Improving the Oil Palm Cloning Process

Sampling leaf cabbage/palm crown

Cutting of young leaves Leaf explant culture

6 months Callus formation

9 months

Polyembryoid multiplication stage

2 months In field nursery

Shoot dev stage4 months

Rooting stage3 months

3 -4 months Acclimatization stage

Embryoid formation24 months

PerformanceTest

Abnormal Palm discarded

Plant Normal Palms

MPOB

MOgene, LLC,USA

Macrogen, South Korea

Cold Spring Harbor Labs,USA

Orion Genomics, USA

Washington University Genome Center, USA

Broad Institute, USA

Industry Members Arizona Genome

Institute, USA

International Collaborationsin Oil Palm Genome Spearheaded by MPOB

Fasteris, Switzerland

Gene Works, Australia

Beijing Genome Institute, China

Tufts University, USA

454 Roche, USA

Oxford Gene Technology, UK

PO + PKO Palm Oil Rapeseed Sunflower Soya bean

3.99

3.58

0.720.51

0.38

Oil Crop Production (million t)

% of total production

Total area(million ha)

Oil palm 51.10* 34.6 12.8Soya bean 40.18 27.2 104.2Rapeseed 23.78 16.1 33.0Sunflower 12.43 8.4 24.4

Source: Oil World 2011* Combined tonnage of palm oil and palm kernel oil

Average Oil Yield for Major Crops

Palm oil – yield potential (tons/ha)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

African Groove

African Plantation(national)

Malaysia CommercialPlantation

Best Experimental Plot

Selectedprogeny

Individualpalm

MaxTheoreticalyield

MalaysianPlantation(national)

8.6

6.0

3.9

12.2 13.6

0.2

18.2

Category of Production

2.0

Agronomic research on sustainable practices:

1.Optimum fertilizer inputs

2.Nutrient recycling –conserving soil fertility

3.Maintaining biodiversity of soil fauna and microbial communities

4.Moisture conservation and improved soil fertility

Study on nutrients: One set of lysimeter tubes at palm

circle

Cover crops and nutrient recycling

Enhanced Productivity through Best Management Practice

23

• Until 2011, 28 technologies on Ganoderma disease have been transferred including:a. Biology and epidemiology – 6b. Early detection of Ganoderma – 6c. Control and Management – 16

• More than 250 estates have adopted the technologies

• Potential microbial (endophytic fungi, Trichoderma and bacteria) for controlling Ganoderma disease has been identified. Mass production for field application is on going.

•The Ganoderma and Diseases Research for Oil Palm (GANODROP) Unit was established in April 2011.

Ganoderma

• To increase OER from 20.5% in 2009 to 23% by 2020

• Station enforcement officers at mills to ensure only ripe and quality fruits processed

• Improving extraction efficiency at mills through good milling practices

EPP 4 : Increasing the Oil Extraction Rate (OER)

NATIONAL KEY ECONOMIC AREA (NKEA)

FEEDING CONVEYOR

CONTINUOUS STERILISER

Commercialized at 70 mills in malaysia, indonesia, Central america and africa

Development of a Commercial-scale Continuous Sterilisation System

• Oil yield per hectare increases from 4 tonnes currently to 6 tonnes by 2020

• Reduces the need to clear new land in Malaysia or elsewhere for oil palm production

• Reduces GHG emissions from palm oil mills and from release of stored carbon from land use change

GHG Reduction Implications of Increasing Yield

• Good Agricultural Practices

• Optimisation of fertilizer inputs

• Accumulation of soil carbon in replanting

• Recycling of oil palm biomass

• Implementing zero burning

• Planting of leguminous cover crops

• Integrated Pest Management

Reducing Emissions in Cultivation

Normal composting and application in the oil palm

plantation

Oil palm biomass to reduce use of chemical fertilisers

EFB mulching for young palm

Pruned Fronds Stacking- Mulching

OPT being shreddedand use for landapplication, act asnatural fertilizer to thesoil

Innovative replanting technique – Young palms planted into residue rows

Improved accessibility & efficiency of nutrientAble to reduce 50% of fertilizer input

Fertilizer Equivalent of Oil PalmBiomass at Replanting

(Tonnes/Ha)(TONNES / HA.)

Theoretically oil palm biomass can supply N, K, Mg for 5-6 years and P for 2 years

A/S CIRP MOP Kieserite3.06 0.37 2.77 1.0

• Launched in August 2007 by Minister ofPlantation Industries and Commodities

• Seven Codes of Practice (CoP):– Good Practice for Nursery– Good Agricultural Practice for Oil Palm Estates &

Smallholdings – Good Milling Practice for Palm Oil Mills– Good Crushing Practice for Palm Kernel

Crushers – Good Refining Practice for Palm Oil Refineries– Good Practice for the Handling, Transport and

Storage of Products from the Oil Palm– Good Practice for Bulking Installations

Codes of Practice (COP)

MPOB LCA Study

• MPOB LCA study for oil palm products including biodiesel has been accepted by international external reviewers’ panel

• The results of the study had been published.

Reducing Emissions in Processing

• LCA study by MPOB has shown that the main factor contributing to carbon footprint is methane emissions from palm oil mills

• Under Economic Transformation Programme, all mills expected to trap methane by 2020

• Potential reduction of up to 20 million tonnes CO2 eq of GHG emissions if methane capture is implemented in all palm oil mills

GHG Emission Savings from Selected Biofuels

Biofuel FeedstockGHG emission

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

GHG Emission Savings* (Based on MPOB LCA Data)

Palm biodiesel pathwayGHG emission

savings (%)

Palm oil biodiesel (Without biogas capture)

50

Palm oil biodiesel (With biogas capture)

71

* Based on methodology as stipulated under EU Directive on the Promotion of the Use of Energy from Renewable Sources (2009/28/EC)

Zero Discharge Concept For POME

Source : MPOB, Ronser & Shanghai Jiao Tong Univers ity, 2011

Status Number of Palm Oil Mill

Plants in operation 47

Under construction 21

Under planning 46

NATIONAL KEY ECONOMIC AREA (NKEA)

Current Biogas Projects

Palm Fruit Factory• Total utilisation of the oil palm fruit to produce palm oil

puree in addition to crude palm oil and palm kernel.

• Palm puree is a new energy food source containing abalanced diet of essential macro and micro nutrients of bothlipid- and water-soluble components

• Zero emission and significant reduction of greenhouse gas (GHG)emission through methane avoidance at palm oil mills

• Production of palm oil puree reduces 20 million tonnes of GHGper year

• Compliance with stringent regulatory requirements of <20 ppmbiochemical oxygen demand (BOD) of discharge from palm oil milleffluent

Environmental Friendliness of Palm Fruit Factory

Towards Zero Waste: Full Utilisation of Crop Residues

• Oil palm Industry generates huge amounts of residues in the form of lignocellulosic biomass

• These can be exploited for bioenergy and other applications

• Products produced therefrom including second generation biofuels will have lower carbon footprint

Value Addition through Biomass Utilization

No. Biomass Amount (dry weight)

1. OPF (from pruning activity)OPF (from replanting activity)

50.44 million tonnes 2.99 million tonnes

2. OPT (~5% replanting rate) 15.69 million tonnes

3. From the 418 palm oil mills operating at total capacity of 85.09 million tonnes of FFB,~ Estimated EFB = 23% x 85.09 million tonnes

18.90 million tonnes

4. Mesocarp fibers (13% ) 10.8 million tonnes

5. Palm kernel shells (6%) 4.98 million tonnes

6. POME generated from per tonne of FFB is about 65%.

54.0 million tonnes

Oil Palm Biomass in 2010

Benefits of Zero Waste

• Economic Value “Waste” to value

Low to High Value

• Environment Addresses Local pollution

Mitigates Global Warming

BIOFERTILIZER

BIO COMPOSITE &AGRO-PRODUCTS

PHYTO/ FINE -CHEMICALS

RENEWABLE ENERGY

Oil PalmBiomass

Heat & Power*

Solid, liquid and gas bio-fuels **

Mulch*

Compost*

MDF**, Plywood, Fibremats etc.

Cellulose, **lignin, Vitamin E, Carotenes, Squalene. etc

* Developed** Emerging

Potential Applications of Oil Palm Biomass

Increase EconomicValue

Oil Palm Biomass from Palm Oil Mills

Biomass (wt% to FFB)

Quantity, Million tonnes

Moisture Content, %

Calorific Value, MJ/kg (dry basis)

Fibre (13%) 10.8 37.00 18.8

Shell (6%) 4.98 12.00 20.1

EFB (23%) 18.90 67.00 18.9

POME (65%) (biogas)

54.00 (1512 mill m3)

- 20.0 MJ/m3

Other Commercial Fuels (MJ/kg)

Bagasse, Cereal Straw

19.417.3

Illinois bituminuous, Coal (Anthracite) North Dakota lignite, Coal (lignite)Reed Sedge peat

28.3 27.014.0 15.02.8

Other Commercial Fuels (MJ/m 3)

Natural Gas 37.9

LPG 93 - 124

Present & Potential Usage of EFB and Palm Biogas Renewable Energy Fuel

• EFB Fibre and biogas from palm oil mill are also being used to produce energy to a limited extent in palm oil complexes or mills that require extra energy for downstream activities (KCP, EFB Fibre Plant)

• EFB fibre – being used as substitute to fossil fuel (diesel, coal & medium fuel oil) especially in palm oil mill complex (refinery & kernel crushing plant) and other industries.

Biogas Plant in POM

Biomass CHP in PO Complexes

Grid Connected Power Plant

Second Generation Biofuel

Biomass to Solid (BTS) • Palm biomass briquettes

Biomass to Gas (BTG) • Biogas capture and utilisation

from POME • Production of producer gas

Biomass to Liquid (BTL)• Production of bio-oils • Production of bioethanol • Production of synthetic diesel • Production of aviation fuel

• Undertaken by private company

• Fast-track using 60 million tonnes of oil palm biomass comprising mainly empty fruit bunches to produce 2nd

generation biofuels

• Initial stage – bio-oils, later to transportation fuels

• Reduce GHG emissions as compared to fossil fuels

• Additional GNI of RM 3.3 billion by 2020

NATIONAL KEY ECONOMIC AREA (NKEA)

EPP 7 : Commercialising 2 nd Generation Biofuels

GHG Savings of 2 nd GenerationBiofuel

49

Biofuel Typical GHG Emission Saving

Waste wood ethanol 87%

Farmed wood ethanol 76%

Waste wood Fischer-Tropsch diesel

Farmed wood Fisher-Tropsch diesel

95%

93%

Source : EU Directive on the Promotion of the Use of Energy from Renewable Sources (2009/28/EC)

• R&D by MPOB from the 1980’s laid the foundation for the development of National Biofuel Policy

• Patented MPOB palm biodiesel technologies commercialised with 6 normal grade (1 in South Korea and 1 in Thailand) and 3 winter grade plants

• Spurred development of biodiesel industry and B5 programme

50

Palm Biofuel Technology

50

• 3 MPOB Commercial Plants(Carotino, Sime Darby Biodiesel, Titian Asli -60,000 T/Year capacity (normal palm biodiesel)

• 30,000 T/Year capacity (winter grade biodiesel)

• 3 plants based on MPOB Technology- South Korea (1) 60,000 T/Year- Thailand (1) 60,000 T/Year- Johor (1) 120,00 T/Year

MPOB Palm Biodiesel Technologies

Carotino, Johor

Sime Darby, SelangorSurat Thani, Thailand

South Korea

• Implementation of blend of 5% biodiesel and 95% diesel (B5) commenced in February 2009 for 3900 vehicles of the Armed Forces and Kuala Lumpur City Hall

• From 1 November 2011, all retail stations in the central region of Peninsular Malaysia

• Nationwide implementation is planned after 1 January 2013

• 1.5 millon tonnes CO2 eq reduction per annum

52

B5 Implementation

52

Chronology of B5 Launch In Central Region of Malaysia

1st B5 Launching at Putrajaya on 1st June 2011

2nd B5 Launching at Melaka on 1st July 2011

3rd B5 Launching at Negeri Sembilan on 1st August

2011

4th B5 Launching at Kuala Lumpur on 6th October

2011

5th B5 Launching at Selangor & Completion of B5 Programme in Central Region on 1st November

2011

Putrajaya

5. CONCLUSION

54 54

55

Conclusion

• The oil palm Industry places great attention on sustainable development to generate economic growth

• Malaysia and the Malaysian oil palm industry is committed to the mitigation of climate change in the development of a high income economy

• To support GHG reduction, continuous innovation through R&D efforts is given high priority

Thank You56