# Presentation: 336166

## TECHNOLOGICAL PROGRESS AND COMMERCIALIZATION OF BIODIESEL IN MALAYSIA

**TECHNOLOGICAL PROGRESS AND COMMERCIALIZATION OF BIODIESEL ****IN MALAYSIA**

**DATO’ DR. MOHD. BASRI WAHID**
**MALAYSIAN PALM OIL BOARD **
**(MPOB)**
**MOHD. ZAIN OMAR**
**MINISTRY OF PLANTATION INDUSTRIES & COMMODITIES (MPIC)**
**MALAYSIA**

## AVAILABILITY OF PALM OIL FEEDSTOCK FOR BIODIESEL, MALAYSIA (2006)

**World’s largest palm oil producer and exporter**
**Production 15.88 million tonnes**
**Exports 14.42 million tonnes**
**Export value of oil palm products: RM31.85 billion**

## OIL YIELD

|  | Yield 
(tonne / ha / yr) |
| --- | --- |
| Palm Oil (Malaysia) | 3.80* |
| Rapeseed (EU) | 1.33** |
| Soyabean (USA) | 0.46** |
| Sunflower (Argentina) | 0.66** |
| Jatropha | 3.00*** |

**Source:   * MPOB (2005)      ** Khoo (2001)       *** Khoo H.A. (2007)**

**Highest Yield**
** ****& Most **
**Economical **
**Oil**

## MARKET PRICE TREND OF WORLD MAJOR VEGETABLE OIL

**MARKET PRICE TREND OF WORLD MAJOR VEGETABLE OIL**

**Traditional price discount of palm oil eroded in recent months**

## STANDARD TRANSESTERIFICATION PROCESS FOR BIODIESEL

**STANDARD TRANSESTERIFICATION ****PROCESS FOR BIODIESEL**

## CURRENT MPOB PALM BIODIESEL PROCESS

**Transesterification**

**Phase Separation**

**Methanol-Recovery**
**Glycerol **
**Phase**

**Drying**

**Methanol-Recovery**
**Ester Phase**

**Water**
**Washing**

**Palm**
**Biodiesel**

**Crude Glycerol**

**RBD Palm Oil**
**RBD Olein**

**Catalyst**

**Methanol**

## DEVELOPMENT OF MPOB PALM BIODIESEL TECHNOLOGY

**Idea conceived – 1981**
**Lab scale R&D – 1982**
**Continuous Pilot plant (3,000 TPA) built and commissioned – 1985**

**MPOB Palm Biodiesel Pilot Plant**

## EXHAUSTIVE FIELD TRIALS USING PALM BIODIESEL

**Produces palm biodiesel for stationary engine testing and field trial (1985-1995)**
**Most exhaustive field trial was conducted with Mercedes Benz **
**	****(1990-1994)**
**Palm biodiesel (B100) tested as fuel for passenger trains in Europe **

## Each bus covered 300,000km

**Each bus covered 300,000km**
**Fuel Tested:**
**           ****B100 & B50**
**           ****100% Petroleum Diesel (Control)**
**Cleaner emissions, no technical    problems**

## MPOB COMMERCIAL PALM BIODIESEL PLANTS

**Three (3) demonstration plants were built using MPOB Technologies**
**Each plant consists of a 60,000 TPA normal biodiesel plant and a 30,000 TPA winter fuel plant.**

## MPOB BIODIESEL TECHNOLOGY COMMERCIALISATION

**Engineering Design Drawings for  Scaling Up Completed in 2005**
**Scaling design for both normal biodiesel and winter grade biodiesel completed**
**Technology licensed to two Malaysian Companies, Lipochem Sdn. Bhd. and Oiltek Sdn. Bhd.**

## OTHER PLANTS USING MPOB TECHNOLOGY

- ENERTECH Co. Ltd.
- Pyeongtaek, SOUTH KOREA
- Capacity: 60,000 tonnes/year
- Status : Commissioned

- Pulau Indah, Klang, Selangor Darul Ehsan
- Capacity : 120,000 tonnes/year
- Pasir Gudang, Johor Darul Takzim
- Capacity : 120,000 tonnes/year

- Surat Tani, Thailand
- Capacity: 60,000 tonnes/year

## WINTER GRADE PALM BIODIESEL PLANT(Capacity: 30,000 mt per year)

**WINTER GRADE PALM BIODIESEL PLANT****(Capacity: 30,000 mt per year)**

**Three Plants built**
**CFPP UP TO -21****o****C**

## MPOB-Carotino Winter Grade Plant   is  in commercial production.

Winter grade palm biodiesel has been sold to temperate countries.

**Winter grade palm biodiesel has been sold to temperate countries.**

## MPOB PALM BIODIESEL PLANT : OVERALL PLANT PERFORMANCE

**Overall Yield (Biodiesel) :  98% (promised 96.5%)**
**Products meeting full EN 14214 and ASTM D6751 specifications**
**Commissioning time : Full EN and ASTM specs. may be achieved in less that 24 hours of feeding in RBD palm oil**

## FUEL PROPERTIES OF PALM BIODIESEL  vis-à-vis EN14214 & ASTM D6751

| Properties  | Unit | EN 14214 |  | ASTM D6751 |  | Palm Biodiesel |
| --- | --- | --- | --- | --- | --- | --- |
|  |  | Min | Max | Min | Max |  |
| Ester Content | % mass | 96.5 | - | - | - | 98.5 |
| Density at 15C  | g/cm3 | 0.860 | 0.900 | - | - | 0.8783 |
| Viscosity at 40 °C  | cSt | 3.5 | 5.0 | 1.9 | 6.0 | 4.415 |
| Flash Point | C  | 120 | -  | 130 | - | 182 |
| Sulphur Content  | % mass | - | 0.001 | - | 0.0015 | <0.001 |
| Carbon Residue 
(on 10% distillation residue)  | % mass | - | 0.3 | - | 0.05 | 0.02 |
| Cetane Number  | - | 51.0 | - | 47.0 | - | 58.3 |
| Oxidative Stability, 110C  | hours | 6.0 | - | - | - | >6 |
| Copper Strip Corrosion
(3h at 50 °C)  | rating | 1 | - | - | 3 | 1a |

**FUEL PROPERTIES OF PALM BIODIESEL  ****vis-à-vis EN14214 & ASTM D6751**

**EN14214: European Standard for Biodiesel   ****	**
**ASTMD6751: ****Standard Specification for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels**** **

## FUEL PROPERTIES OF PALM BIODIESEL vis-à-vis EN14214 & ASTM D6751

| Properties  | Unit | EN 14214 |  | ASTM D6751 |  | Palm Biodiesel |
| --- | --- | --- | --- | --- | --- | --- |
|  |  | Min | Max | Min | Max |  |
| Sulphated Ash Content | % mass | - | 0.02 | - | 0.02 | <0.01 |
| Basic Sediment and Water | % mass | - | 0.05 | - | 0.05 | <0.05 |
| Acid Value | mg KOH/g | - | 0.5 | - | 0.8 | 0.08 |
| Pour Point | C | Report |  | Report |  | 15 |
| Iodine Value | - | - | 120 | - | - | 52 |
| Content of Linolenic Acid Methyl Esters | % (m/m) | - | 12 | - | - | <0.5 |
| Content of Polyunsaturated Methyl Esters (more than 3 double bonds) | % (m/m) | - | 1 | - | - | <0.1 |

**FUEL PROPERTIES OF PALM BIODIESEL ****vis-à-vis EN14214 & ASTM D6751**

**EN14214: European Standard for Biodiesel   ****	**
**ASTMD6751: ****Standard Specification for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels**** **

## FUEL PROPERTIES OF PALM BIODIESEL vis-à-vis EN14214 & ASTM D6751

| Properties  | Unit | EN 14214 |  | ASTM D6751 |  | Palm Biodiesel |
| --- | --- | --- | --- | --- | --- | --- |
|  |  | Min | Max | Min | Max |  |
| Methanol Content  | % (m/m) | - | 0.2 | - | - | <0.2 |
| Monoglycerides  | % (m/m) | - | 0.8 | - | - | <0.4 |
| Diglycerides  | % (m/m) | - | 0.2 | - | - | <0.2 |
| Triglycerides  | % (m/m) | - | 0.2 | - | - | <0.1 |
| Free Glycerol  | % (m/m) | - | 0.02 | - | 0.02 | <0.01 |
| Total Glycerol | % (m/m) | - | 0.25 | - | 0.24 | <0.01 |

**FUEL PROPERTIES OF PALM BIODIESEL ****vis-à-vis EN14214 & ASTM D6751**

**EN14214: European Standard for Biodiesel   ****	**
**ASTMD6751: ****Standard Specification for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels**** **

## IMPROVEMENT TO MPOB PALM BIODIESEL PROCESS

**Transesterification**

**Phase Separation**

**Methanol-Recovery**
**Glycerol **
**Phase**

**Drying**

**Methanol-Recovery**
**Ester Phase**

**Adsorbent**
**Treatment**

**Palm**
**Biodiesel**

**Crude Glycerol**

**Crude Palm Oil (CPO)**

**RBD Palm Oil**
**RBD Olein**

**Catalyst**

**Esterification**

**Methanol**

**Glycerol **
**Treatment**

## VALUE-ADDED PRODUCTS FROM PALM OIL METHYL ESTERS

**One (1) tonne of methyl esters contains:**
**0.6 kg ****	****Carotenoids**
**0.8 kg ****	****Vitamin E**
**0.5 kg ****	****Phytosterols**
**0.4 kg ****	****Squalene**
**0.05 kg ****	****Coenzyme Q**
**0.06 kg ****	****Phospholipids**

**Worth ~ US 970**
**(RM 3,400)**

## MPOB PHYTONUTRIENTS TECHNOLOGIES

**CPO**

**NPO**
**RBDPO**

**Esterification**

**Transesterification**

**Crude Methyl Esters**

**Fractional distillation**

**Integrated Process**

** ****C16:0 – ********-SME**
** ****C18 mixed – low pour point biodiesel**
** ****Vitamin E, sterols and squalene**

** ****Distilled methyl esters**
** ****High purity phytonutrients**
**     ****e.g. Carotenes >30%**
**             ****Vitamin E >70%**
**             ****Squalene >70%**
**             ****Sterols >95%**
** ****Fine chemicals**
**  **

## STRATEGIC THRUSTS

**STRATEGIC THRUSTS**

**THRUST 1 :  USE OF BIOFUEL FOR TRANSPORT**
**THRUST 2 :  USE OF BIOFUEL FOR INDUSTRY**
**THRUST 3 :  DEVELOPMENT OF HOME GROWN BIOFUEL TECHNOLOGIES**
**THRUST 4 :  PRODUCTION OF BIOFUEL FOR EXPORT**
**THRUST 5 :  BIOFUEL FOR CLEANER ENVIRONMENT**

**National Biofuel Policy released 21 March 2006**

## NEW BIODIESEL PLANTS - STATUS

**92 licences to set up biodiesel plants approved.**
**Current freeze on new licenses**
**Currently 4 plants in operation 300,000 tonnes/annum capacity**
**Another 4 plants under production trials 272,000 tonnes/annum capacity**

## BIODIESEL PRODUCTION - CHALLENGES

**Rise in palm oil prices RM1400 in 2006 to RM2850**
**Margins have thinned, in fact become negative**
**	****  ****RBD Palm Oil  ****≈****  USD750 - 850 per tonne**
**	****  ****Palm Biodiesel ****≈**** USD850 per tonne**
**	****  ****F.O.B (Malaysia)**
**	****  ****Cost of Production ****≈****  USD120 per tonne**

## LOCAL BIOFUEL USE

**Local use of biodiesel blended with diesel still not commercially implemented**
**Government still has not decided on type of biofuel, whether RBD Palm Olein or Methyl Ester**
**Trials using blend of 5% RBD Olein and 95% diesel still on-going on government vehicles, commercial buses and fishing boats**
**No technical breakdown on vehicles reported so far**
**No-Harm Tests with Petroleum Research Institute on-going.  Results expected end of 2007**

## LEGAL  FRAMEWORK

**Malaysian Biofuel Industry Act 2006 passed by Parliament in 2007**
**Contains provision to mandate blending of biofuel with diesel through regulations made by Minister**
**Drafting of regulations under way**
**No decision yet on implementation.  Need to consider type of biofuel, percentage, subsidies required etc.**

## ENVIRONMENT

**Environment consideration one of the Thrusts for Malaysia’s Biofuel Policy**
**GHG reductions for palm oil reportedly relatively good**
**	****	****Palm Oil (Malaysia/Indonesia)****	****60 - 80%**
**	****	****Corn (USA)****	****	****	****	****  5 - 30%**
**	****	****Sugar Beet (EU)****	****	****	****22 - 50%**
**	****	****Wheat (EU)****	****	****	****	****22 - 68%**
**	****	****Rapeseed (EU)****	****	****	****43 - 58%**
**	****	****Sugar Cane (Brazil)****	****	****85 - 95%**

## ENVIRONMENTALCHALLENGES

**Threats, especially from EU questioning sustainability of palm oil production for biodiesel**
**Allegations of destruction of orang utans, rainforests and loss of biodiversity**
**Allegations that development of peat land gives net emission of GHG**

## CURRENT ACTIONS ON ENVIRONMENT

**Awareness campaigns and actions by MPOC on sustainability**
**Life Cycle Assessment on  whole  value chain**
**Establishment of Tropical Peat Research Institute**
**Establishment of Oil Palm Wild Life Conservation Fund**

## NEXT GENERATION OF TECHNOLOGY

**OIL PALM BIOMASS CONVERSION**

**Bioethanol from oil palm biomass**
**Oil palm biomass to gas**
**Oil palm biomass to liquid**

**Pursuing R&D**

**Felled Oil Palm Trunks (OPT)**

**Pruned Oil Palm Fronds (OPF)**

**Empty Fruit Bunches (EFB)**

## Thank You