Malaysia's Palm BioDiesel Development Chronology

RTP Bio-Oil As a Renewable Power Source

Renewable energy is a form of energy which comes from natural resources such as wind, rain, tides and geothermal heat, where the source of energy can be reproduced. It also can come from agricultural waste or feedstock which later can be converted into value-added products. A distinct example of renewable energy is bio-oil, a product that derived from oil palm biomass through a chemical process.

Bio-oil produced from RTP™ can economically replace the current transportation fuel, as it can be used to fuel a turbine and specific diesel engines to produce power. It also can replace natural gas, and/or coal in boilers, in either co-fired or sole fuel configuration. As a renewable energy product, it is economical without subsidy at today's fossil fuel prices. It can be referred as an economical RTP bio-oil, which can replace the current fuel based on similar characteristics to fuel machines.

To date, oil palm biomass has been major source in producing biofuel. Lots of research has been conducted in order to convert the biomass into biofuel, notably biodiesel. Not only the oil from the oil palm is used but fronds, empty fruit bunches and palm kernel shells harvested from oil palm plantations were proposed into conversion to renewable energy. By using both the biomass from the plantation as well as the processing residues from palm oil production (fibers, kernel shells, and palm oil mill effluent), bio-energy from palm plantations can have an effect on reducing greenhouse gas emissions.

By using palm biomass to generate renewable energy, fuels and biodegradable products, the balance of energy and greenhouse emissions is improved. Oil palm plantations incinerate biomass to generate power for palm oil mills. In efforts to reduce greenhouse gas emissions, scientists treat palm oil mill effluent to extract biogas which later can be used as energy source for various products.

After purification process, biogas can substitute for natural gas for use at factories. One example on biogas production is anaerobic treatment of palm oil mill effluent results in the production biomass degrading bacteria that produce methane, a form of biogas. It plays an important role in methane production which leads to the production of biogas as renewable fuel.

Conversion of waste into wealth has been garnering attention since it is economical and helps to solve environmental problems. Agricultural waste for example oil palm biomass has been used to create another source of energy, that is safer, cost-effective and efficient in terms of the performance. It also can reduce the cost of production since it is a continuous process.

Premium Renewable Energy (Malaysia) Sdn. Bhd., also known as PRE Malaysia focuses on the production of bio-oil from oil palm biomass as a source of green renewable energy.

Article Source: http://EzineArticles.com/5420299

Fundemental Process of BioDiesel

How Beneficial is BioDiesel..?

BioDiesel Process

BioDiesel from Palm Oil

100% CRUDE PALM OIL REFINED (RBD) PALM OIL PALM OLEIN & PALM STEARIN are EXCELLENT VEGETABLE OILs THAT CAN BE USED TO PRODUCE YOUR BIODIESEL!

Palm Oil Biodiesel is produced by a reaction of a palm oil or animal fat with an alcohol such as methanol or ethanol in the presence of a catalyst to yield mono-alkyl esters and glycerin, which is removed.

With the increase in awareness and importance attached to environmental issues such as global warming, more environment-friendly fuels are being developed as alternatives to fossil fuel. One such fuel, which has been gaining prominence in recent years, is biodiesel. Clean and renewable, biofuel has been touted as the answer to the issue of the diminishing of energy reserves.

The advantages of palm oil biodiesel, drawn from the field trials are no modification of the engines is required, good engine performance, cleaner exhaust emission and comparable fuel consumption in comparison with the petroleum diesel.

 

6 REASONS WHY PALM OIL IS BETTER FOR BIODIESEL:
(i) Abundantly available and stable supply.
(ii) Crude Palm Oil can be broken down into many more useful fractions.
(iii) Cheaper than all oils especially Soybean Oil Did I mention, CHEAPER!
(iv) Already being used domestically
(v) Reduces our dependency on petroleum diesel
(vi) Biodegradable Eliminates harmful emissions

What is Palm Oil biodiesel?
Palm Oil Biodiesel is the name of a clean burning alternative fuel, produced from Palm Oil. Palm Oil Biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel to create a biodiesel blend. It can be used in compression-ignition (diesel) engines with little or no modifications. Palm Oil Biodiesel is simple to use, biodegradable, nontoxic, and essentially free of sulfur and aromatics.

How is Palm Oil Biodiesel made?
Palm Oil Biodiesel is made through a chemical process called transesterification whereby the glycerin is separated from the Palm oil. The process leaves behind two products -- methyl esters (the chemical name for palm oil biodiesel) and glycerin (a valuable byproduct usually sold to be used in soaps and other products).

Is Palm Oil Biodiesel the same thing as raw vegetable palm oil?
No! Fuel-grade palm oil biodiesel must be produced to strict industry specifications (ASTM D6751) in order to insure proper performance. Palm Oil Biodiesel is one of the few biodiesels to have fully completed the health effects testing requirements of the 1990 Clean Air Act Amendments. Biodiesel that meets ASTM D6751 and is legally registered with the Environmental Protection Agency is a legal motor fuel for sale and distribution. Raw Palm Oil cannot meet biodiesel fuel specifications, it is not registered with the EPA, and it is not a legal motor fuel.

For entities seeking to adopt a definition of biodiesel for purposes such as federal or state statute, state or national divisions of weights and measures, or for any other purpose, the official definition consistent with other federal and state laws and Original Equipment Manufacturer (OEM) guidelines is as follows:

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Palm Oil Biodiesel is defined as mono-alkyl esters of long chain fatty acids derived from Palm Oil vegetable oils which conform to ASTM D6751 specifications for use in diesel engines. Biodiesel refers to the pure fuel before blending with diesel fuel. Biodiesel blends are denoted as, "BXX" with "XX" representing the percentage of biodiesel contained in the blend (ie: B20 is 20% biodiesel, 80% petroleum diesel).

Why should I use palm oil biodiesel?
Palm Oil Biodiesel is better for the environment because it is made from renewable resources, i.e. Palm Oil and has lower emissions compared to petroleum diesel. It is less toxic than table salt and biodegrades as fast as sugar. Since it is made from renewable resources i.e. Palm Oil, its use decreases our dependence on foreign oil and contributes to our own economy.

Where do I get Palm oil biodiesel?
It can be purchased directly from biodiesel producers and marketers, petroleum distributors.

What is biodiesel? 

Very often, a broad, general description is used to define biodiesel in a way that is easy to understand by the general public. However, when these broad descriptions are adopted by an authoritative body as a formal definition, they can include a wide range of experimental fuels that are not biodiesel. The term "biodiesel" has a specific, technical definition that has been agreed to through a painstaking process by members of industry and government which has received full approval by the American Society of Testing and Materials (ASTM), the premier standard setting organization for fuels and fuel additives. That definition is used for purposes such as alternative fuel designation, EPA registration, or other regulatory purposes. Nonetheless, this specific technical definition can be confusing to the general public.

General Definition of Biodiesel:
Biodiesel is a domestic, renewable fuel for diesel engines derived from natural oils like soybean oil, palm oil and which meets the specifications of ASTM D 6751.

Clarifying language to general definition:
Biodiesel can be used in any concentration with petroleum based diesel fuel in existing diesel engines with little or no modification. Biodiesel is not the same thing as raw vegetable oil. It is produced by a chemical process which removes the glycerin from the oil.

Technical Definition for Biodiesel (ASTM D 6751) and Biodiesel Blend:
Biodiesel, n-a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, and meeting the requirements of ASTM D 6751.

Biodiesel Blend, n-a blend of biodiesel fuel meeting ASTM D 6751 with petroleum-based diesel fuel, designated BXX, where XX represents the volume percentage of biodiesel fuel in the blend.

Clarifying language to technical definition:
Biodiesel, as defined in D 6751, is registered with the US EPA as a fuel and a fuel additive under Section 211(b) of the Clean Air Act.

Roundtable on Sustainable Palm Oil, RSPO

The Roundtable on Sustainable Palm Oil (RSPO) was formed in 2004 with the objective of promoting the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders. The seat of the association is in Zurich, Switzerland, while the secretariat is currently based in Kuala Lumpur with a satellite office in Jakarta.

RSPO is a not-for-profit association that represents stakeholders from seven sectors of the palm oil industry - oil palm producers, palm oil processors or traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation NGOs and social or developmental NGOs - to develop and implement global standards for sustainable palm oil.

Such multi-stakeholder representation is mirrored in the governance structure of RSPO such that seats in the Executive Board and project level Working Groups are fairly allocated to each sector. In this way, RSPO lives out the philosophy of the "roundtable" by giving equal rights to each stakeholder group to bring group-specific agendas to the roundtable, facilitating traditionally adversarial stakeholders and business competitors to work together towards a common objective and making decisions by consensus

The organization holds an annual meeting called RT or Round Table Meetings to bring together the various stakeholders to negotiate and deliberate on various issues affecting the industry. Such multi-stakeholder representation is mirrored in the governance structure of RSPO such that seats in the Executive Board and project level Working Groups are fairly allocated to each sector.

Some of the key achievements of the organization so far include:

• Establishment of the RSPO Principles & Criteria (P&C) for certification of mills and plantations;
• Formation of Working Groups on Green House Gases to address climate change issues;
• Smallholder Task Force to protect the rights of small farmers planting oil palm; and
• Biodiversity Technical Committee to work out biodiversity issues pertaining to sustainable production and biodiversity protection and conservation

Clean Development Mechanism: A Mechanism To Combat Climate Change

As growing concerns and public awareness continued throughout the 1980's, several United Nations General Assembly resolutions were adopted namely resolutions 44/228 of 22 December 1989, 43/53 of 6 December 1988, 44/207 of 22 December 1989, 45/212 of 21 December 1990 and 46/169 of 19 December 1991, urging for the protection of global climate for present and future generations of mankind.

The Second World Climate Conference on 7 November 1990 called for a framework of treaty and protocols on climate change. Thus on 9 May 1992, the environmental treaty, United Nations Framework Convention on Climate Change ("UNFCCC") was opened for members' signature. It entered into force on 21 March 1994. As of 11 April 2007, 191 countries and economic community have ratified the UNFCCC.

UNFCCC is concerned "that human activities have been substantially increasing the atmospheric concentrations of greenhouse gases, that these increases enhance the natural greenhouse effect, and that this will result on average in an additional warming of the Earth's surface and atmosphere and may adversely affect natural ecosystems and humankind."

UNFCCC's main objective is to achieve "stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Such a level should be achieved within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner."

The Kyoto Protocol ("the Protocol") an agreement made under the UNFCCC was adopted on 11 December 1997 and came into force on 16 February 2005. The Protocol provides for stronger and detailed commitments committing developed countries and countries under process of transition to a market economy to legally-binding targets to limit or reduce their greenhouse gas emissions (GHGs) (with the exception of Australia, Croatia, Turkey and USA, which have not ratified the Protocol. These countries and ultimately corporations within those countries are known as Annex 1 Parties. The Annex I Parties committed themselves to reduce their overall GHGs by at least 5% below the 1990 levels over the period between 2008 and 2012. Their GHGs reduction targets are specified in the Protocol and vary from country to country.

The GHGs identified in the Protocol are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). The Protocol allows the Annex I Parties to decide which of these gases will form part of their national emissions reductions strategy.

The Protocol provided three mechanisms to assist Annex I Parties in meeting their GHGs targets at a lower cost. The three mechanisms introduced are; (a) emissions trading, this allows Annex I Parties to trade parts of their emission allowances or assigned amount units ("AAUs") to other Annex I Parties - Article 17 of the Protocol; (b) joint implementation (JI), which allows Annex I Parties receive emissions reductions units ("ERUs") generate by emission reduction projects in the countries of other Annex I Parties. ERUs can be transferred through direct sale of ERUs or part of a return of investment in eligible JI projects - Article 6 of the Protocol; and (c) a Clean Development Mechanism (CDM), encourages joint projects between Annex I and non-Annex I (developing country) Parties. The non-Annex I Parties can create certified emissions reductions ("CERs") by developing projects that reduce emissions of GHGs thus achieving its national sustainable development goals. Annex I Parties finances these projects and purchase the CERs as a means to comply with its own reductions commitments - Article 12 of the Protocol.

Despite the agreement being approved in 1997, various negotiations were held thereafter to determine the proper operational details to implement the Protocol to enable the Protocol to function and accepted worldwide. Thus in 2001, the Marrakech Accords was signed that establishes detailed rules, procedures and modalities to implement the three mechanisms and stimulate active participation in the Protocol.

The Marrakech Accords laid down the eligibility criteria of a proposed CDM project; (a) it must be approved by the host country i.e. the Designated National Authority; (b) reduce GHG emissions to a baseline that is defined according to the CDM modalities and procedures; (c) contribute to the sustainable development goals of the host country (as defined by the host country). For Malaysia, her sustainable development goals cover the environment, social and economic aspects; (d) define exact, physical boundaries of project activities and consider leakage i.e. emissions occurring outside the project boundaries, related to the project activity; provide for stakeholder participation and consultation. Stakeholders are individuals, communities likely to be affected by the project such as local residents, non-governmental organisations and town councils; (e) exclude nuclear and large hydro technology; (f) prove that no resources are diverted from official development assistance (ODA). The term ODA applies to financial aid directed for other purposes must not be used to finance and support CDM projects; and (g) carried out only by countries that ratified the Protocol.

The high-level process of undertaking a CDM project include: (a) the completion of a project design document ("PDD") that describes the project activity, its purpose and the technology used; (b) submission of the PDD to a UNFCCC accredited operational entity ("DOE-A") for validation. If the project meets the validation criteria it will be registered by the CDM Executive Board. The operational entity is a third party that will assess the project design against the relevant UNFCCC and host country criteria. The important components of this are validating the baseline and checking that the project fulfils the additionality criteria. The concept of additionality is most directly captured by simulating the investment decision process, and confirming that a project would not be undertaken in the absence of payments for emission reductions. Such an analysis would require consideration not only of the potential returns to an investor, but also consideration of the riskiness of the returns [Ingmar Jurgens, Gustavo Best and Leslie Lipper 2004]; (c) implementation by the project participants of the validated plan by monitoring emissions reductions, collecting and reporting data; (d) periodic verification of emissions reductions by another UNFCCC accredited operational entity other that the one who validated the PDD ("DOE-B"); and (e) if the emissions reductions are verified and certified by the DOE-B then the CDM Executive Board will issue CERs which will be distributed to the national registries and accounts of the project participants.

Malaysia signed the UNFCCC on 9 June 1993 and ratified it on 13 July 1994. Malaysia ratified it the Protocol on 4 September 2002. The parties to the Protocol have agreed that renewable energy projects which are implemented as part of government policies to achieve sustainable development goals are eligible under the CDM.

This additional flexibility in the CDM rules not only reduce transaction costs for renewable energy projects, but also enable some smaller scale projects be recognized under the CDM. This flexibility is due to the high costs of renewable energy projects as compared to the conventional energy projects.

There are several types of project that qualify as CDM in Malaysia involving the renewable energy, energy efficiency improvement, forestry, waste management and transportation sectors.

As at 31 May 2007, there are 16 registered CDM projects in Malaysia and 31 projects with letter of approval provided by the Malaysian Designated National Authority. Not only CDM promotes investments from Annex I Parties, it also promotes the viability and increased use of renewable energy such as bio-diesel an alternative to diesel (derived from agricultural crops, wood, rice, sugar cane, empty fruit bunches, fibres and shells), biogas an alternative to natural gas (derived from plant and animal waste) and bio-ethanol an alternative to fuel (derived from agricultural crops, trees or grasses).

Malaysia considers the importance of having sustainable environment and has developed laws, national policies and plans towards achieving her sustainable development goals. Beginning from the Third Malaysia Plan (1976-1980), Eight Malaysia Plan (2001-2005), including the Outline Perspective Plan (OPP2 (1991-2000) and OPP3 (2001-2010) and thereafter the Fuel Diversification Policy introduced in 2001 recognises renewable energy ("RE") as the economy's fifth fuel after oil, coal, natural gas and hydro. The target was that RE contributes 5% of the country's electricity demand by 2005. Following the policy, the government granted tax incentives in the form of investment tax allowances, import duty and sales tax exemption until 2010.

The government also introduced the Small Renewable Energy Power Program ("SREP") aimed to promote RE as the fifth fuel. Other initiatives by the government through SREP include the Biomass Based Power Generation and Cogeneration for the Palm Oil Industry (BioGen) Project. The RM55.9 million BioGen project is funded by United Nations Development Programme, Global Environment Facility and the government. Among its goals are to reduce GHGs and to facilitate Malaysia's commitment to the Protocol.

RE projects not only reduce GHGs but also provide additional stream of revenue to the non Annex I Party through the sale of RE & CERs and allow technology to be transferred to the non Annex I Party.

With the presence of enabling laws, policies and tax allowances Malaysia has an enabling environment that is attractive to Annex I Parties looking to develop CDM projects in Malaysia.

CDM encourages developing countries like Malaysia to participate in the advancement of her sustainable development goals by placing CDM development as a priority and offering initiatives that are beneficial to the participants.

From Malaysia's perspective, CDM can: (a)attract investments for projects that can shift to a more thriving but less carbon-intensive industry; (b) allow active participation from private and public sectors ranging from various industries; (c) provide a mechanism to transfer technology if the investments from the Annex 1 countries are invested into projects that replaces inefficient fossil fuel technology or creates new technologies that are environmentally safe; and (d) help introduce new businesses in energy production.

Industrialization and modernization have led to the various consequences to the environment. However, with CDM beyond the financial benefits and technological assistance it may provide environmental benefits through carbon reduction benefits, reductions in air and water pollution, reduced fossil fuel use and the protection eco-systems.

In Malaysia, a substantial number of registered CDM projects come from the palm oil sector. There are several types of project that will contribute to better utilisation of technology in converting palm oil waste into fuel, extracting of gas from palm oil mill effluent retention ponds or water recycling of the palm oil mill effluent into treated water that will in turn improve the eco-system of the rivers.

On the social benefits, these projects would create employment opportunities in the target region thus progressing the social goals and address the environmental issues in the region.

In recent years, the demand for CER from developed countries has provided the opportunity of supporting CDM projects in developing countries. Since CDM projects is fairly new capacity building efforts need to be enhanced as many of the project developers are still understanding the CDM the process and the legal structure of the CDM projects. Not only project management is important, contract management is essentially important. The nature of the CER sale and purchase contract requires careful considerations as there are various important issues that may arise during the contract negotiations which may be a liability if not addressed carefully by both parties. Legal document structuring will provide the parties involved the basis support document that describes the risks and opportunities a CDM project can contribute to each party. A carefully chosen CER sale and purchase agreement models will provide parties the operational, strategic and legal advantages that will assist the parties in managing their relationship.