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Last Updated: 13 May 2024

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PALM oil waste in Malaysia represents a significant environmental and management challenge, as the country is one of the world’s largest producers of palm oil. 

The industry generates substantial amounts of waste — including empty fruit bunches (EFBs), palm oil mill effluent (POME) and palm kernel shells (PKS). 

There are ongoing efforts to manage these wastes more effectively and sustainably. 

For instance, converting waste into bioenergy or incorporating it into building materials not only helps reduce the environmental impact but also adds economic value to the palm oil industry. 

BioLoop Sdn Bhd co-founder and CEO Mah Jun Kit said the strategy involves utilising biotechnology and Black Soldier Fly Larvae (BSFL) to divert substantial quantities of organic waste from landfills and transform it into valuable products. 

The method is significantly faster than traditional waste management processes and leads to reduced greenhouse gas (GHG) emissions. 

He shared that overall, Malaysia produces a substantial amount of waste, including significant quantities of food and agricultural waste. 

In 2022, the total waste generated was approximately 7.4 million tonnes, and he believes this figure will increase in 2024. 

“Every two weeks, the KLCC could be filled from floor to ceiling, or every day, an Olympic-sized pool could be filled — very unsustainable,” he said, illustrating the scenario to The Malaysian Reserve (TMR). 

Mah emphasised the particular scrutiny Malaysia has faced recently due to environmental, social and governance (ESG) issues, along with concerns regarding the cleanliness of its palm oil industry, all of which have contributed to a negative perception. 

To combat this, he said altering the narrative around palm oil involves making the supply chain more environmentally friendly and ensuring byproducts are used sustainably. 

One method is repurposing palm oil byproducts, which are typically discarded or left on estates, using them as feed for larvae. 

BioLoop uses palm kernel expeller and palm kernel cake to nourish larvae, which subsequently produce both protein and fertiliser. 

The approach not only adds value to the byproducts but also significantly bolsters the sustainability narrative of palm oil mills. 

Apart from that, converting waste into valuable resources such as protein and fertiliser, which can then be reintegrated into the economic system, has the potential to greatly improve global environmental sustainability by fostering a more effective and circular economy. 

This practice could also reduce the need for land currently used for soybean and maize production, particularly in countries such as Brazil and the US. 

Additionally, the approach could decrease the reliance on fishmeal in animal feed, which is often sourced from overfishing, which not only degrades marine biology but also diminishes the diversity of marine life. 

By reducing the demand for fishmeal, the solution could contribute to healthier ocean ecosystems, potentially allowing fish populations to rebound and marine biodiversity to improve. 

Mah said the government is encouraging local municipalities to adopt BSF technology for food waste management and has even provided grants to support these initiatives. 

Optimising Palm Oil Waste 

Traditional palm oil waste disposal methods typically involve leaving waste on the estate as compost or selling it as low-value feedstock to fisheries and cattle farms. 

While these methods are beneficial, it does not fully capitalise on the waste’s potential value. 

BioLoop leverages the waste in a more innovative way by using it to cultivate larvae, which are extremely rich in protein and subsequently produce high-quality organic fertiliser. 

It also strategically forms joint ventures with companies along its value chain to ensure a sustainable, long-term source of waste and offtake, which is critical from a business perspective. 

The company currently participates in a joint venture with a leading biogas technology provider, aiming to establish a comprehensive solution for palm oil waste management. 

BioLoop plans to extend its operations to East Malaysia, capitalising on the high volume of palm oil waste that is currently underutilised. 

The next step involves replicating the model in Indonesia, focusing primarily on palm oil waste, a staple of their business model, with potential future applications in managing food waste. 

In contrast to Malaysia — where the market is relatively unified across both West and East Malaysia — Mah said Indonesia presents a more fragmented landscape with scattered palm oil industries. 

The segmentation necessitates the formation of local partnerships to facilitate expansion and leverage business opportunities effectively. 

Despite the presence of several BSFL companies in Indonesia, Mah said Malaysia’s palm oil technological innovations are increasingly recognised and adopted across the region, setting the stage for BioLoop’s ambitious long-term growth and sustainability initiatives. 

Currently processing approximately 20 tonnes of waste daily, the company is looking to expand its capacity to a medium-term goal of handling 100 tonnes per day within the next three to four years. 

A key strategy in achieving this involves forming a partnership with the biogas facility to create co-located sites, which entails establishing operations directly adjacent to palm oil mills. 

While initially considering a centralised model where all waste would be transported to a single location, the approach was deemed impractical and costly due to the scattered nature of the mills across Malaysia and the logistics involved. 

“We are currently implementing a new project and plan to use this successful model as a showcase to other palm oil mills, inviting them to see our operations and consider a similar setup,” he said. 

Challenges and Changes in the Industry

The influx of new companies poses both a risk and an opportunity. 

For instance, customers often perceive BSF protein as expensive due to high production costs, leading farmers to disregard it as an option. 

The perception prevents them from presenting their product effectively, a barrier BioLoop aims to overcome by promoting BSF as both sustainable and affordable. 

Another significant challenge is maintaining product consistency amid clients’ demand for a consistent product, but variables like using different food wastes can alter the nutrient content of the larvae on a daily basis. 

Feed millers require stable protein and fat levels, necessitating rigorous testing and standardisation of its feedstock to ensure uniformity. 

For this, Mah said BioLoop strives to perfect its formula using consistent palm-based byproducts to meet these needs, addressing the issue of variability and reinforcing the idea that BSF is not inherently expensive. 

“We often hear the government discussing the inclusion of new alternative proteins in local animal feed.

Historically, subsidies for chicken and eggs have solidified the poultry supply chain, while major companies have maintained control over the feed supply. 

“We aim to address this by advocating for local policies that mandate a small percentage, perhaps 1% or even 0.5%, of protein in feed to be sourced locally. 

“Although 99% could still be imported, this small local quota could significantly benefit domestic producers due to the large scale of the industry. The protein source for this quota does not necessarily need to be BSF; any local source would suffice, providing us with an opportunity to compete,” he added. 

Historically, subsidies have focused on supporting the poultry industry. 

However, shifting some of these subsidies to alternative protein sources such as BSF could significantly help the company expand its operations more efficiently in Malaysia. 

Nevertheless, Mah ultimately believes that with or without government intervention, BSF is here to stay and while intervention could accelerate the maturity of this industry, companies will find a way to make it work. 

Policies in Malaysia Regarding Palm Oil Waste

The Malaysian Palm Oil Board (MPOB) told TMR that its collaboration with the Ministry of Plantation and Commodities (KPK) and industry stakeholders, has developed the National Agricommodity Policy (DAKN 2030) which aims to address various aspects of managing palm oil waste, with a specific focus on reducing its environmental impact. 

Key strategies outlined in the policy include the utilisation of biomass and biofuels derived from the palm oil sector. 

Moreover, several other pertinent regulations are in place to govern the management of palm oil waste. 

These include the National Renewable Energy Act, which provides a framework for promoting renewable energy sources, and the Environmental Quality (Prescribed Premises) (Crude Palm Oil) Regulations of 1977, which stipulate wastewater treatment standards to control biochemical oxygen demand levels. 

Notably, as of Jan 1, 2014, new mills and existing mills seeking throughput expansion are mandated to install full biogas trapping or methane avoidance facilities, further emphasising the commitment to sustainable waste management practices in the palm oil industry. 

To contrast Malaysia’s waste management practices in the palm oil industry with those of other significant palm oil-producing nations, MPOB DG Datuk Dr Ahmad Parveez Ghulam Kadir said the waste management within the industry is subject to strict regulations, with the sector demonstrating a high level of adherence to these standards. 

“Comparatively, waste management practices in other major palm oil-producing countries vary. Some countries may have similar regulatory frameworks and compliance levels, while others may face challenges in enforcing regulations or implementing effective waste management practices. 

“It is important for all palm oil-producing countries to continuously improve their waste management practices to mitigate environmental impacts and promote sustainability,” he said in a written statement to TMR. 

Technologies or Practices to Enhance Sustainability in the Industry

MPOB is actively promoting new technologies and practices aimed at bolstering the sustainability of waste management in the palm oil industry including: 

i. Biogas capture and utilisation and methane avoidance

Currently, around 30% of palm oil mills are equipped with facilities for trapping biogas, which is generated from POME (wastewater). 

This captured biogas serves as a renewable energy (RE) source and can be utilised in various ways, including co-firing in biomass boilers within the mills, generating electricity for grid connection or external users and supporting rural electrification efforts. 

Leveraging biogas from palm oil mill effluent has the potential to significantly mitigate environmental impact, with an estimated annual reduction of approximately 5.5 million tonnes of CO2 equivalent through biogas capture and methane avoidance. 

This underscores the substantial contribution of biogas utilisation to GHG emissions reduction and underscores its importance as a sustainable energy source within the palm oil industry. 

ii. Biomass to energy conversion 

Biomass energy conversion offers a promising solution to reduce reliance on fossil fuels, utilising palm oil and oil palm bio-mass as primary sources. 

While palm biodiesel adoption gains traction due to national policies like the phased implementation of B20 biodiesel in Malaysia from February 2020, challenges persist in biomass energy development under existing regulations. 

Despite biomass contributing less than 2% to Malaysia’s energy mix in 2014, pilot projects for biomass cogeneration and pellet production are underway. 

Solid biofuels such as pellets find increasing use in power plants and cogeneration systems, with potential export markets emerging such as Japan and Korea. 

While direct biomass utilisation is feasible for dry feedstock, pre-treatment is needed for densification. 

Advanced biofuels require more complex processes, highlighting the importance of cost-effective technologies. 

Leveraging oil palm biomass and other resources offers significant environmental advantages over fossil fuels, given their renewable nature. 

Integrating biomass as a nutrient and energy source throughout the oil palm supply chain can substantially reduce GHG emissions. 

iii. Hydrotreated Vegetable Oil (HVO) 

Hydrotreated Vegetable Oil (HVO) is produced by converting waste oil and biomass into renewable diesel and biojet fuel through biochemical processes. 

This can be achieved by integrating existing refinery and petrochemical operations to produce HVO and sustainable aviation fuel (SAF) using various feedstocks such as used cooking oil, palm fatty acid distillates, sludge palm oil and even microalgae oil. 

Successful implementation relies on systematic feedstock sourcing and multifaceted production of both fuel and chemicals. 

iv. Biomass into value-added products 

The utilisation of solid oil palm biomass has led to the creation of a diverse array of value-added products, spanning from solid fuels and fertilisers to wood products, biocom- posites and pulp and paper materials. 

Other than that, it is also used to create eco-friendly materials such as bioplastics and bio-based polymers, offering sustainable alternatives to conventional plastics in various industries. 

Integrated biorefinery platforms maximise biomass usage, converting it into diverse products through different technologies. 

Additionally, by-products such as palm kernel cake and palm press fibre serve as nutritious animal feed supplements. 

v. Technology for wastewater treatment 

MPOB has developed and implemented technology for wastewater treatment, offering tailored solutions for various contaminants, flow rates and discharge standards based on specific wastewater characteristics and regulatory mandates. 

By integrating multiple treatment processes within treatment plants, efficiency can be optimised, ensuring compliance with stringent environmental regulations. 

Collaboration With Industry Players

Nevertheless, MPOB actively engages in collaborations with both local and international organisations to elevate waste management practices within the oil palm industry. 

These partnerships are geared towards promoting sustainable waste management, generating income and cultivating a circular economy within the industry. 

One notable outcome of the collaborations is the dissemination of waste management technologies to stakeholders in the oil palm sector. 

“Currently, approximately 30% of the technologies developed by MPOB in collaboration with local or international companies have been successfully commercialised. 

“This indicates a significant impact in terms of implementing effective waste management practices and creating economic opportunities within the industry,” Ahmad Parveez said. 

Future Plans to Enhance Waste Management Techniques

MPOB is strategically focused on advancing waste management techniques in the palm oil industry through the development of biomass and bioenergy sectors. 

Recognising the abundant biomass resources available and the imperative to diversify energy sources amid petroleum scarcity, Ahmad Parveez said MPOB’s future plans for enhancing waste management techniques in the palm oil industry focus on the development of the biomass and bio-energy sectors. 

It includes next-generation biofuels and hydrocracked fuels, facilitated by the adoption of disruptive and upgrading technologies for biomass-to-energy conversion within palm oil mill complexes. 

By harnessing solid, liquid and gaseous fuels as part of a biorefinery value chain, MPOB aims to maximise resource utilisation and minimise waste generation. 

Furthermore, MPOB intends to champion the biorefinery concept in the oil palm industry, leveraging various biomass components such as EFBs, PKS and mesocarp fibres to produce value-added products, biofuels and biochemicals. 

Integrating biorefinery processes with existing palm oil mills holds the potential to enhance resource efficiency, foster sustainability and promote circular economy principles within the industry. 

In brief, palm oil waste poses a significant challenge in Malaysia, but innovative approaches such as those offered by Bio-Loop are a step forward in addressing the issue — benefitting both the environment and the economy. 

Moreover, collaborative efforts between companies and government bodies, such as the MPOB are also enhancing waste management practices. 

Looking ahead, continued improvement in waste management techniques and the promotion of bioenergy are crucial for advancing the sustainability of the palm oil industry. 

https://themalaysianreserve.com/2024/05/09/innovative-solutions-address-malaysias-palm-oil-waste-challenge/

Sumber : The Malaysian Reserve

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Last Updated: 13 May 2024

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KLANG: The adoption of three advanced technologies have been identified as methods to enhance the country's palm oil industry and reduce the reliance on foreign labour.

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said that these technologies – mechanisation, automation and digitalisation – could efficiently and effectively boost palm oil production.

He said government-linked company Sime Darby Plantation Bhd was currently implementing these technologies and had seen impressive results.

"The technologies being developed by Sime Darby Plantation aim to advance work mechanisation with the goal of reducing foreign labour in the future.They have invested significantly in mechanisation technology.

"For example, one worker is now required to manage every eight hectares of plantation. However, Sime Darby has increased this to 12.5 hectares, which is higher than our current ratio.

"The labour force used in our plantations, as we all know, is a significant contributor to our economy," he said after accompanying Prime Minister Datuk Seri Anwar Ibrahim on a visit to a Sime Darby Plantation site in Pulau Carey here today.

Johari said Anwar had expressed concern about the nation's palm oil industry's ability to meet demands and production.

Therefore, he said the innovative technologies developed by Sime Darby Plantation should serve as an example to achieve similar goals.

"The prime minister is very concerned about ensuring that our oil palm industry is able to continuously meet demands.

"We don't want to cut down our forests anymore. We want to stick to what we have, so we aim to enhance our abilities by using technology and reducing reliance on foreign labour."

He added that he would ensure that the Malaysian Palm Oil Board (MPOB) and other industry players adopted these technologies.

"They have already implemented some of these technologies, and others are still in the prototype stage.

"I believe that if they can successfully achieve each of these technologies and mechanisms, then I will ensure that the MPOB adopts and introduces them to everyone."

Johari also said the government would support successful start-ups in introducing new technologies.

"Anwar emphasised the importance of start-ups in introducing such technologies. When they succeed, we want to ensure they can sell their technologies to industry players," he said.

https://www.nst.com.my/news/nation/2024/05/1048930/3-technologies-identified-boost-palm-oil-production-cut-reliance-foreign

Sumber : New Straits Times

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Last Updated: 03 May 2024

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KUALA LUMPUR, April 30 (Reuters) -Malaysian palm oil futures fell on Tuesday after gaining for two consecutive sessions, as weaker crude oil prices weighed ahead of cargo surveyors' exports estimates for the month.

The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange slid 79 ringgit, or 2.02%, to 3,836 ringgit ($804.19) during early trade.

The contract lost 0.69% in overnight trade.

FUNDAMENTALS

* Cargo surveyors are expected to release Malaysian palm oil exports estimates for April later on Tuesday.

* Oil edged down in early trade after Israel-Hamas ceasefire talks in Cairo helped quell market fears of an expanded conflict in the Middle East, while worries about the outlook for U.S. interest rates weighed on the market.

* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.O/R

* Dalian's most-active soyoil contract DBYcv1 lost 0.65%, while its palm oil contract DCPcv1 slipped 1.51%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 1.44%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* The Malaysian ringgit MYR=, palm's currency of trade, weakened 0.1% against the dollar, making the commodity less expensive for buyers holding the foreign currency.

* Palm oil may revisit its April 25 low of 3,817 ringgit per metric ton, as it failed twice to break resistance at 3,942 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian stocks inched higher on Tuesday as investors awaited a slew of economic data, corporate earnings and the U.S. Federal Reserve's policy meeting, while the yen was slightly weaker a day after suspected intervention rescued it from 34-year lows. MKTS/GLOB

https://www.xm.com/research/markets/allNews/reuters/palm-oil-opens-2-lower-ahead-of-malaysia-export-estimates-53825450

Sumber : XM Global (FSC)

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Last Updated: 03 May 2024

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KUALA LUMPUR: Malaysian palm oil futures opened lower for the second straight session on Thursday after the Labour Day holiday, tracking weakness in Chicago soyoil.

Malaysian palm oil futures drift lower

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was down 9 ringgit, or 0.24%, at 3,809 ringgit ($798.70) per metric ton at 0236 GMT.

Fundamentals

Malaysian palm oil exports fell between 9% and 11.5% in April from a month earlier, cargo surveyors Intertek Testing Services and Amspec Agri said.

Indonesia, the world’s biggest palm oil exporter, maintained its palm oil export tax and levy unchanged for May at $52 per ton and $90 per ton, respectively.

Indonesia’s February palm oil shipments tumbled by a quarter as buyers switched to cheaper rival vegetable oils.

Soyoil prices on the Chicago Board of Trade were down 0.25%. The Dalian Commodity Exchange is closed until May 5 for International Labour day holidays.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil FCPOc3 may test support at 3,787 ringgit per metric ton, a break below which could open the way towards the 3,744-3,760 ringgit range.

https://www.brecorder.com/news/40301381

Sumber : Business Recorder