Sustainable Value Chain Strategy for Palm Oil Industry in Malaysia

Transcription

1 Palm Oil Industry Sustainable Value Chain Strategy for Palm Oil Industry in Malaysia World Consumption for Major Fats and Oils palm kernel tallow grease 3% 3% lard 4% butter % others 11% palm 28% Palm Oil Production by Country (Metric tonnes) Prof Dr Denny K. S. Ng Centre of Sustainable Palm Oil Research (CESPOR) The University of Nottingham, Malaysia sunflower 6% canola 1% soybean 2% Colombia, 1,17,000 Thailand, Nigeria, Others, 2,300, ,000 4,94,000 Malaysia, 21,000,000 Indonesia, 3,000,000 (IHS, 2016) & (GlobalPalmOilProduction, 2016) 3 Outline of Presentation Palm Oil Industry Challenges of Palm Oil Industry Strategies for improvement of sustainability Processing Supply Chain Management Conclusions Oil Palm Planted Area by State (Dec 2014) Hectares (MPOB, 201) 2 4 1

2 Palm Oil Industry Palm Oil Milling Process Mesocarp FFB Sterilisation Kernel Shell Stripping Palm Kernel EFB Screw Pressing Nut/Fibre Separator Nut Cracker Kernel Crushing Clarification POME Palm Oil Purification PMF PKS Crude Palm oil Crude Palm Kernel Oil 7 Palm Oil Industry Crude Palm Oil Production (MPOB, 201) Oil Palm Frond (OPF) Empty Fruit Bunches (EFB) Palm Kernel Shell (PKS) HARVESTING OIL MILLING Oil Palm Tree Fresh Fruit Bunches (FFB) CPO/CPKO Oil Palm Trunk (OPT) Palm Mesocarp Fiber (PMF) Palm Oil Mill Effluent (POME) 8 2

3 Productivity of in a Palm Oil Mill (Husain et al., 2002) Challenges of Palm Oil Industry Climate change (insufficient water, temperature rise) Biomasses Expected generation per ton of FFB CPO 21% Pests (Rhinoceros beetle) CPKO 4 % PKS 6 7% Diseases (Ganoderma rot, CCCVd orange spotting) EFB 23% PMF 14 1% 9 11 Potential of palm oil biomass Biomass available from Palm Oil Industry % from FFB* Quantity (million tonnes) Empty Fruit Brunch (EFB) Mesocarp Fibre Palm Kernel Shell 6.4 Palm Oil Mill Effluent (POME) *Based on million tonnes FFB proceed in 2014 Challenges of Palm Oil Industry Mono-culture of oil palm High usage of chemical fertiliser Under-utilise biomass generated High concentrations of pollutants in wastewater Under-utilise the space between young and under old palms (1 million hectares)

4 Value Chain of Palm Oil Industry (agronomy & estate management) Processing (milling and refinery) Supply Chain Management (consumer and transportation) Sustainable Strategy Specific Objectives maximising the productivity of PO utilising wastes mitigating climate change on oil palm growth and yield minimising impacts on environment 13 1 Sustainable Palm Oil Industry Expected Outcomes Social Higher-value job and livelihood opportunities Enhanced quality of life of local communities Economic Increase the productivity of existing plantations will reduce pressure to convert pristine ecosystems into new plantations Increase PO contribution to Malaysia GPD to 8 9% Environment Reduce greenhouse gas (GHG) emissions from land use change. Reduce by 4 MM tons CO 2 equivalent per year Increase waste recovery rate of 80 90%

5 Adapting to the negative effects of climate change Return biofertiliser from palm oil processing Intercrops under-utilised crops with OP Ameliorate soil fertility, health and biodiversity Genetic modifications Return biofertiliser from palm oil processing Produce genotypes resistant to pests and diseases 18 1 month after transplanting using organic fertilizer 1 month after transplanting using CIRP 20

6 Integrated Waste Recovery & Regeneration (REGEN ) Biological control method for pests and diseases 21 Processing Process Flow Diagram Fully utilise the generated biomass in palm-based biorefinery Thermal Chemical Pathway (Gasification, Pyrolysis, etc.) Clean Gas Biomass (EFB, PKS, etc.) 23 POME High Value Products (Biofuels, Biochemicals, Biomaterials, etc.) Clear Water Generation EFB Water Polishing Biogas Combined Heat & Residuals Biogas Fiberizing Short Pellet fibre Production Bioenergy (Electricity) Process Plants (Mushroom, etc.) to Grid Pellet Fibre Mat Fibre Mat Dried Long Fibre Biological Pathway (Fermentation, Hydrolysis) 22 Boiler Ash Decanter Cake Biofertiliser Bio-fertiliser Animal Feed Plant Animal Feed 24 6

7 Biogas Generation Processing Expected Performance Convert wastewater into products (biogas, recycled water) Parameter Moisture Content Raw Biogas Gas Engine allowance Flaring system Unit 1 (30-100) or or 1 saturated g/m3 40 oc a b % a 4000 ppm a m3/hr Temperature Methane POME to Clear Water Quality H2S Biogas Wastewater before treatment Water quality during treatment After treatment2 aevent %v/v of failure; b<10% needs burner adjustment 27 POME Treatment Generation Expected Performance Parameter Treated Effluent Recovered DOE water Std. (2006) Drinking Unit Water Std. ph BOD 1-22 <6 20 6a COD <10 Nil 10a TSS Turbidity Nil < O&G ND ND 400 TN 0 TDS abased <1 NTU Product 0.3 Capacity (60 t/h FFB) 2200 kw Market price (as of October 2014) RM per kw 100 Color 1 TCU 1000 on raw water

8 Potential Generation for FiT Fiber Mat Export for FiT 6 Avg Nett Export (MWH) at 7000 hrs/yr FiT (MWH) 4 Avg Nett Export (MWH) at 420 hrs/yr 3 Designed Export Product Fibre Mat GSM 1000 g/m2 2 Moisture content < 1% +/- RM 2000 per tonne 1 Market price1 (as of May 2014) 1The market price quoted is freight-onboard (FOB) price, after utility cost excluding wear and tear Fiberizing Pelletizing Product Palm dried long fiber Palm short fiber2 Bulk density 300 kg/m3 Fiber length 40-4 mm 2 30 mm Moisture content 1 % - 3 % 1 % - 3 % Market price1 (as of May 2014) RM 00 per tonne RM 200 per tonne 1The 31 market price quoted is freight-on-board (FOB) price, after utility cost excluding wear and tear. 2 Palm short fiber is to be recover to pelletizing system for pellet production. Product Palm pellet Density 60 kg/m3 Heating value 4300 kcal/kg Moisture content < 10.% 1The market price quoted is freight-on-board (FOB) price, after utility cost excluding wear and tear. 8

9 Biofertiliser Palm-based Biorefinery Production of high value chemicals bioethanol, biobutanol, organic acids, etc. Biomass Product Biofertiliser C/N Ratio < 20 Organic Matter > 3 % Moisture content Total NPK < 30 % >% Market price1 (as of Oct 2014) RM 600 per tonne 1The market price quoted is freight-on-board (FOB) price, after utility cost excluding wear and tear. 33 Palm-based Biorefinery 3 Supply Chain Management Production of high value chemicals bioethanol, biobutanol, organic acids, etc

10 Conclusions To improve the sustainability of palm oil industry Overall all the current and future challenges Maximise productivity Reduce environmental impact Increase recovery Improve efficiency of supply chain Contact Details: Prof Dr Denny K. S. NG Acknowledgment University of Nottingham New Researcher Fund (NRF 021/A2RL32) Eureka Synergy Sdn. Bhd., Malaysia Havys Oil Mill Sdn. Bhd., Malaysia Ministry of Higher Education, Malaysia LRGS Grant (Enhancing Productivity and Sustainability of Palm Oil Milling Industry) LRGS Grant (Future Biorefineries: Unlocking the Potential of Fine Chemicals and Value Added Byproducts) 38 10