BY Nik Ahmad Faizul Abdul Malek
Puvaneswary Ramasamy

Palm oil has contributed to the world oils and fats supply and demand equation mainly due to its techno-economic advantages and versatility as well as some of the developments in the world in relation to security and supply, health, and environment. It is expected that the world palm oil consumption will increase from the current 38 million tonnes to 63 million tonnes in 2015 and further increase to 77 million tonnes in 2020 (Mielke, 2011).

Malaysia is the 2nd largest Crude Palm Oil (CPO) producer with 17.5 million tonnes of CPO in 2010 and it is expected to achieve 21.5 million tonnes. As of 2009, Malaysia has 4.7 million hectares of oil palm plantations, 416 mills, 43 crushers, 51 refineries, 18 oleochemical plants and 25 biodiesel plants. The industry is dominated by large plantation companies (Private- and Governmentlinked companies) which hold 60% total plantation land, with growing level of integration along the value chain (Table 1).

As a result of this, the residue/waste from palm oil plantation is known to a major contributor to biomass in the country. It is estimated to be more that 90 million tonnes per year largely derived from empty fruit bunches (EFBs), trunks, fronds, shell, and palm kernel cake (Table 2). Currently the dry biomass is being converted to low-value wood products, fertilizers, aggregates, and fuel pellets/briquettes. Some are burned at the mills to produce in-house energy supply (Figure 1). A considerable amount of our empty fruit bunches are also being exported out to other countries (such as Japan & EU) (Table 3) where value is created overseas. In addition to this palm-oil mill effluents (POME) are utilised to produce biogas which is then used to generate electricity. With the introduction of the feed-in-tariff mechanism, the effort to generate electricity from biomass is expected to gain momentum.

Recent findings have highlighted that palm-based biomass can be utilised for more valuable resources, such as the production of biofuels, biochemicals, phytonutrients and other high-value fine chemicals (Figure 2 & 3). These phytonutrients include Carotenes, Vitamin E, Sterols, Squalene, Co‐enzyme Q and Phospholipids. These phytonutrients are powerful antioxidants, but their value extends beyond antioxidant activity and free radical protection. They have also been shown to have extensive health benefits such cardiovascular benefits (Strandberg et al., 1989) and even anti-cancer properties. Biochemicals include sugar derivatives such as succinic acid which is now used within the food and beverage industry, primarily as a sweetener. Other high value fine chemicals include plasticizers such as levulinic acid, bio-isobutanol, and bio-n-butanol which can also be involved in the solvents, foam, coatings, and jet-fuel industries (Table 4).

In-light of this issue, biomass utilization is gaining popularity due to its considerable potential. It is renewable, and is already the fourth largest global energy resource after coal, oil, and natural gas. It has the capacity to penetrate all energy sectorial markets, although economic constraints still limit its general deployment. (bioMass.sp Newsletter Issue 1). In addition to this by enhancing and optimising the current usage of biomss to produce fine chemicals, biochemical, and biofuels, it can tap into a much more lucrative market and contribute significantly to Malaysia’s GDP while addressing environmental issues at the same time (Table 5). Thus it seems that Malaysia’s oil-palm biomass is the right champion to jump-start Malaysia into an era of Green Economy, hence towards a greener future.

The recently established Global Science and Innovation Advisory Council (GSIAC) by Malaysia’s Prime Minister, Datuk Seri Najib Tun Razak in New York has Malaysian Biomass Initiatives as one of the 3 quick-win projects.

Through the leading efforts of MIGHT as the Secretariat, various national parties1 were consolidated such as MOSTI, EPU, KeTTHA, NRE, UNIK, PEMANDU, Biotech Corp, MLSCF, bioMass.sp, MPOB, MDEC, MITI, MIDA, Green Tech Corp, ASM, Ensearch, WWF, and many others to formulate a plan for green futures for Malaysia. Through the GSIAC, the concerted efforts of MIGHT, and consolidation from other national parties in the spirit of 1Malaysia, the best framework to ensure the success of the Malaysian Biomass Initiatives (MBI) was created (Figure 4).

The MBI is based on public-private partnership (PPP) model and operated by an entity where sub-entities of the MBI (such as a Special Purpose Vehicle for Aggregation, Consortia etc.) will play the crucial role of long-term sole purchaser and supplier of palm waste biomass. Other responsibilities of the MBI and its sub-entities include ensuring the reliable and sustainable supply of biomass (from feedstock to off-takers), coordinating the optimization for quality and cost efficient processes, and integrating global technologies to provide fractionated biomass components. In addition to that, the MBI also has capacity-building elements whereby the GSIAC platform may serve to provide input to the related Centres of Excellence (COEs) in Malaysia especially where relevant technologies in the MBI are concerned. Thus, the MBI aims to be a clear, concerted and well-structured intervention solution for a sustainable and manageable initiative in catalysing and optimizing Malaysia’s ready supply of biomass towards realizing downstream economic opportunities in the oil-palm industry. The MBI, along with government intervention may accelerate the nation into greener economies by facilitating a vibrant and conducive environment.

A Malaysian delegation visit to US was headed by YAB Prime Minister from 25 to 30 September 2010 and one of the announcements made during the visit was the setting up of the Global Science and Innovation Advisory Council (GSIAC) for Malaysia in New York.

GSIAC is structurally chaired by the Prime Minister, with Dato’ Dr. Zakri Abdul Hamid (Science Advisor to the Prime Minister) and Ellis Rubinstein (President and CEO of the New York Academy of Sciences) being the Joint-Secretaries, while Mohd Yusoff Sulaiman (President and CEO of MIGHT) and Dr Karin Pavese (Vice- President, Innovation & Sustainability, NYAS) takes the role of the Joint-Secretariat Heads (Figure 5). GSIAC members also consist of highly-selected ministers, corporate leaders and academics – Malaysia & New York Academy of Sciences President’s Council Members (Table 6).

The objectives of the council include providing advice on Malaysia’s aspirations of being a high income country through wealth creation and societal well-being, benchmarking Malaysia’s ranking and competitiveness in Science and Innovation against technologically advanced countries and improving Malaysia’s capabilities in Science and Innovation. Last, and not least, the GSIAC (and its associated projects) also aim to generate and increase bilateral trade and investment value for short, medium, and longterm timeline.

Since the successful GSIAC inaugural meeting in New York on the 17th of May 2011, the GSIAC and its associated three endorsed projects (namely MBI, Smart-City Smart Village, and Capacity Building) have gained much publicity from local and international media and the interest momentum is expected to rise throughout the project timeline.

The Council is deemed a crucial added value to the efforts of the Malaysian Government to make a quantum jump from middle-income country to a high-income economy by the year 2020.

Malaysia’s oil-palm biomass is truly an untapped reservoir. Utilization of biomass can be both green and wealth-creating. Capitalizing on our abundant renewable resource and driven by the need to grow sustainably, The MBI is projected to generate an additional income of RM 100 billion or more to the Malaysian economy with the addition of creating highly skilled and semi-skilled jobs. The Malaysian Biomass Initiative, along with other projects such as the Smart City-Smart Village project is set to jump-start a vibrant green technology in Malaysia, and drive Malaysia into a new era of Green Economy, ultimately propelling the nation into a Green Future.

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