1. Palm Oil: A Success Story in Green Technology InnovationsKalyana Sundram,Yusof Basiron,& Yew Foong KheongMalaysian Palm Oil Council (MPOC)

2. PALM OIL PRODUCTION Planting Harvesting Palm oil mill Palm oil refinery 3. Palm Oils Contribution to World Supply14 7.818.6 28 31.2 Palm OilSoya Rapeseed SunflowerOthers 4. Net Importing & Exporting Countries forOils & Fats (2009) Malaysia, Indonesia & Argentina are major net exporters of oils and fats. IndonesiaMalaysiaArgentina BrazilSaudi Arabia Ukraine Canada Philippines Thailand Russia 5. Cultivated Area of Oil Seeds in the WorldLand Use Type Total AreaAs % of Area (million ha)Total Agricultural Land * 4267 100Oil Seeds ** 2334.69Soyabean ** 921.85Rapeseed ** 300.60Sunflower **230.46Oil Palm ** 110.22 ***Coconut **9 0.18Other Oil Seeds **681.37Malaysian Oil Palm 4.70.09Sources: * FAO ** Oil WorldPlanted on 4.7 million ha and produced 17.6 million tonnes of CPO production in2009. We also generate biomass, nearly 115 million MT.Palm Oil is only oil crop in world to have such a sustainability certifying system 6. Why did palm oil industry use greentechnologies? Responsible business entity Green technologies sustain basic land resources Government helped to spur growth of green technologies in some cases by putting legislations in place In return this is beneficial for the cultivation of oil palm Quantum leaps in green technology took place in last two decades Coincided with time of awareness of climate change when environment friendly technologies sought 7. Zero burning & Integrated Pest Management are Traditional Green Technologies Zero burning returns nutrients and organic matter to soil Result: Lower inputs of chemical fertilizers and saves costs 8. ABUNDANCE OF OIL PALM BIOMASSPALM KERNEL CAKE OIL PALM FRONDS SHELL, 5.5% FRESH FRUIT BUNCH EMPTY FRUIT BUNCH, 22%POME 10% oil OIL PALM TRUNK90% biomass FIBRE, 13.5% 9. Palm Oil A Choice Raw Material for BiodieselProduction Using Malaysian Patented Technologies Malaysia 1st Commercial PalmSime Darby Biodiesel Sdn. Bhd.Biodiesel PlantWinter-Grade Palm Biodiesel Plant,Carotino Sdn. Bhd., Johor. Home Grown MPOB Technology 10. The greenhouse-gas perspective EU Renewable Energy Directive requires reduction of GHG emissions by at least 35% compared with fossil fuels, so that one biofuel is classified as "sustainable" and therefore meets the objectives and requirements Palm Oil :Discriminatory element in RED - typical value ("state of the technology") vs. default value ("worst case scenario") in the "calculation" of GHG substitution: Biofuel / sourceTypical valueDefault value Ethanol / sugar-beet61%52%biodiesel / rapeseed45%38%biodiesel / sunflower oil 58%51%biodiesel / palmoil 36%19% (full methane capture) (62%)(56%) Adapted from Dr. Gernot Pehnelt, IPOSC 201010 11. As a raw material, the oil palm is more efficient than other oil crops:Typical yields of different oil crops (t/ha/a) Rape seedPalm oil5Yield of seed, fruits4.11 t/ha/a 19.5 t/ha/a4 Oil available from process 30%19% 3 Yield of plant oil 1.23 t/ha/a 3.85 t/ha/a* t/ha/a2Yield of biodiesel 1.19 t/ha/a3.63 t/ha/a1Gross energy of biodiesel 46.5 GJ/ha/a141.6 GJ/ha/a0 (biodiesel energy value: 39 GJ/t)soybeans groundnut sunflow er rapeseed coconutpalm(US)(US) (ARG) (EU) (PHI)(MAL) Source: Thoenes 2006Average oilcrop yields (tonnes/ha/year)6 5 Energy balance of palmoil better than other4 oil crops, e.g. rapeseed t/ha/a3 2 Palmoil lowest land use and lowest cost per1 output unit0 soybeans groundnut sunflow er rapeseed coconutpalm Thoenes 2007 Basiron 2007 Source: Basiron 2007, Thoenes 2007Adapted from Dr. Gernot Pehnelt, IPOSC 2010 12. US EPA: Palm Biodiesel LCA Analysis using GREET ModelGreenhouse Gas Emissions (GHG; g CO2e/MJ) HybridHybridCo-Product Method: DisplacementAllocationAllocation Palm Kernels, Co-Products Palm Kernels, Palm Kernels, Palm BiomassCredited GlycerinGlycerinGlycerinFarm Equipment 0.9 0.8 1.4Farm Chemicals 5.0 4.5 7.5Feedstock Transport0.7 0.6 1.0Oil Extraction 0.8 0.7 1.2POME methane 4.0 3.6 5.9Oil Transport0.3 0.3 0.3Transesterification5.2 5.2 5.4BD T&D 3.2 3.2 3.2Fuel Combustion4.4 4.4 4.4Palm Kernel Credit -3.6Glycerin Credit -21.5 Total Fuel Cycle24.523.35.3 Reduction from Diesel74.1% 75.4% 94.4%The Well To Wheel (WTW) analysis of palm biodiesel indicates that from a GHG perspective, a minimum 74.1% reduction in fuel cycle GHG savings are achieved compared to baseline California Ultra Low Sulphur Diesel is achieved . 13. Life Cycle Analysis of Palm Biodiesel: US GREET MODEL Including LUC GHG Emissions (g CO2 e / mmBtu) over 100 years5,000,000Fuel Production4,000,000Farm Inputs & N2O3,000,000 50% ReductionFuel & Feed Transport 2,000,000Tailpipe 1,000,000 iLUC excl N cycle0Palm Plantation LUC/dLUC -1,000,000Net Emissions in ese ldC elbayieyL Uslghll Ba ies e lhi oneseo d s esiaDi Bidie ala y lmoRFS2: Biodiesel with 50% GHG 005Pa Bi M 2 lm sel Reduction compared to Fossil DieselPaieB iod Qualifies As an Advanced Diesel lm Pa Palm Biodiesel Should Thus QualifySince it has greater than 50% reduction 14. Sustainability criteria: EU Directive Minimum 35% greenhouse gas emission saving compared to fossil fuel No conversion of land with high carbon stock since January 2008 (wetlands, continuously forested areas, peatlands) No raw material from land that had high biodiversity value from January 2008 (primary forest, biodiverse grassland, nature protection areas) (EU raw materials must meet EU rules on agro-environmental practices)There will be some further elements to report on Commission to determine them soon; no consequencesBased on presentation of Mr. Ewout DEURWAARDER (European Commission) 15. Developed countries should be fair to developing countries to use some forest to alleviate poverty70 % Forest605040302010 0 Average: 25.5% Average: 57% 16. The Carbon Cycle of a Palm Plantation includes Harvested Wood, Rootsand Other Biomass Products Apart from its Oil and Kernels.BranchesWood products Herbaceous vegetationLitterSoil CarbonDead woodRoots Palm plantations sequester carbon up to 5 tonnes C/ha/year or 110 tons C for the lifecycle of the plantation (25 years) . A natural forest sequesters a bit slower if starting also from scratch (around 1 tonne) but the stock is much higher. The iLUC and LUC for palm must be better integrated to accurately take into account these effects. Most current LUC models take into account the initial release from clearing land. However, the uptake from the palm tree and root systems is seldom accounted for. 17. The Wet Weight of Potential Oil Palm Biomass Available in Malaysia in 2009UnitSources of Oil Palm BiomassMillion tonnes per year Million cubic meter peryear Oil Palm Trunk (OPT)15.2 23.6 Oil Palm Frond (OPF) 83.0 - Empty Fruit Bunches (EFB) 17.5 - Total 115.723.6Total oil palm planted area = 4.7 million hectares 18. 1. EMPTY FRUIT BUNCHES37 tonnes per ha (dwb)17.5 mil tonnes (wet ) 65 % moisturePALM FIBRESFronds: 9.7 tonnes per ha (dwb) 11.3 mil. tonnes(wet) Moisture 42 % 19. Solid Fuel Conventionally combusted in mills Used by alternative industry Independent heat generation in industrial plants supplying energy to industries in vicinity Palm biomass briquettes 20. Palm Biomass Briquettes Treated EFB can be used as a raw material for the production of palm based biomass briquettes 100% Pulverized EFB Pulverized EFB + sawdust EFB Fibre + sawdust (PEFB)(PEFB+SD) ( 50:50)(FEFB+SD) (50:50) As a substitute raw material for commercial sawdust briquette industry Made either from 100% palm biomass or mixed with sawdust. 21. PRODUCTION OF COMPOST FROM EFBAND EFFLUENT Source : Asiagreen Sdn. Bhd. 22. Waste Management Treated palm oil mill effluent (POME) contains high level of plant nutrients that may replace inorganic fertilizers Treated POME applied to land improves the soil and increases yield22 23. Reduced Emissions = Sustainability Average 40 tonne/hr FFB Mill C02 e Removed in Covered Pond = 34,486 t/year Additional C02 e Removed when methane used for electricity = 8,966 t/yearTotal = 43,452 t/year less 5,431 site generated emissions = 38,021 t/year C02 e. Over 400 Mills this = over 15 million t/y Current CDM Value = RM800m/y 24. Gaseous Fuel (Biogas) 80% of palm oil mills deploy ponding system for POME treatmentPonds & Tank DigesterUP POME treatment system Gas Engine 25. 25 26. Renewable Energy to the Grid TSH Bioenergy Sdn. Bhd. 8 MW palm biomass based grid connected power plant Expected to supply a maximum of 7 MW electricity to the grid. Source: (FSDP Special Issue- Cogen3) 27. RESEARCH IN OIL PALM TISSUE CULTURE Solid culture system Liquid culture system Development of biomarkerExpression Profile of Embryogenic Markers Explant EgRLK1OPZE5EgRLK1EgRLK2EgRLK3EgRLK2OPZE3CallogenesisOPZE5 OPZE3 EgRLK3 Embryogenic calli(contains PEMs)Non-embryogenic calliEgPER1EgHOX1Selection of calli for initiation of suspensionOPHb1EgPK1 OPZE3 EgRLK3EgPER1EgHOX1 Suspension cultures EgNAC1OPZE5 EgRLK2EgRLK1OPHb1Proliferation of embryogenic calli/early stage embryosProgression of embryogenesis suppressed by auxins EgPER1Hormone-free medium EgPER1 Expression ProfileEgPER1 profile in AM12-14OPZE3 Rapid progression of embryogenesis OPZE5Pattern formation log10 rescaled norm expr EgNAC110 OPHb1Meristem establishment 1Transferred to solid media for embryoid maturation EgPER1(white & green embryoids) EgNAC1OPZE5 OPZE3 0.1 OPZE3Shooting EgRLK10.01EgRLK3 OPZE5 EgRLK2 T0T1dT7dT1m T2m T3m T3mA T4m T5mT6m T6mA T9m T9mA RootingstagesLOW AM12(L) ZERO AM13(0) HIGHAM14(H)Pre-nursery Courtesy: DG, MPOB 28. TISSUEOIL PALM CLONING PROCESS (SOLID MEDIUM) CULTURE Embryoid formationTaking of leaf cabbageCutting of young leaves Leaf explant cultureCallus formation/palm crown24 6 months9 monthsmonthsIn field nurseryAcclimatization of rametsRooting stageShoot Polyembryoiddevelopment stage multiplication stage 8-9 months3 -4 months 3 months4 months2 months (Field planting at 1 year old) Courtesy: DG, MPOB 29. TISSUECLONING OF PALMS WITH SPECIAL TRAITS CULTURE Palms with special traits from the fast- track breeding programme were cloned: High bunch index High vitamin E High carotene Long stalkHigh-bunch index dura of 0.68 (virescent High-bunch indextype) tenera of 0.58 Low height incrementLong stalk tenera (35.5cm) High-carotene oleiferaramets (4000 ppm) High vitamin E dura & tenera (1551 &1392 ppm, respectively) Courtesy: DG, MPOB 30. GENOME SEQUENCING Deli Dura 5 crosses 18 crosses Progeny Progeny testedtested in 3 trials in 3 trials DuraPisifera (Sh+Sh+)(Sh-Sh-) 0.212/700.182/77 Completed Genome Sequencing of 3 Palms 17.2 x - Oleifera genome 16.5 x - Pisifera genome 34.7 x - Dura genome68.4 x Total Deciphered the transcriptome of 17 Palm tissues (will complete another 13 palm tissues in 2010) Courtesy: DG, MPOB 31. GENOME ANALYSISRelative Genome Sizes Arabidopsis Moss Rice Sorghum Clover Tomato SoybeanElaeis oleifera CanolaOil Palm Genome AnalysisLoliumCorn Genome Size: est. to be > 1,710 MB Tobacco 93.4% of the genome in sequence contigs 95.4% of genetic markers in sequence contigs Wheat Courtesy: DG, MPOB 32. ROADMAP OF GENETICALLY MODIFIED OIL PALMIP auditing & RegulatoryapprovalScreening of D& P with Commercia transgenelization ofSelfing ofCrossing of GM oilprogenies w/oselected Dpalm bar gene&P Screeningw/o Bar gene Crossing GM X Non-GMScreenhousePlanting/Proof ofconcept 20102015 20202025 2030 2035 2040Courtesy: DG, MPOB 33. ASIAN INNOVATIONS AWARD, Far Eastern Economic Review, October 2001THE TECH MUSEUM, SAN JOSE,CALIFORNIA, HONOURED THISINVENTION AS A TECHNOLOGICAL BREAKTHROUGH BENEFITTINGHUMANITY THE TECH MUSEUM LAURATESAWARAD, 2002GOLD MEDAL, INVENTIONS AND EXPOSITIONS, GENEVA,SWITZERLAND, APRIL 2002 34. PATENTED TECHNOLOGY : RECOVERY OF PHENOLICANTIOXIDANTS FROM PALM OIL MILLING WASTE Plate heat exchangers for cooling Holding TankPOMEUpper oil Lower aqueous phase phase containingHolding PelletednutraceuticalsTank solids Palm oil mill Centrifugal system Phenolic FlavonoidAntioxidant rich filtrate Series of membrane systemsPatents granted in USA, Malaysia, Indonesia The follow-up R&D on biological properties of this phenolic antioxidant or Palm Fruit Juice has yielded additional 9 patents through collaborations between MPOB, CSIRO (Australia), MIT (USA), Brandeis (USA). Awaiting COMMERCIALIZATION 35. Capitalizing on Americas Fear of Heart Disease: Palm Oil is the major ingredient in the American Heart Associations (AHA) Recommended Diet 36. SMART BALANCE FAMILY OF FOODS Based on our Patents(Sundram et al. ) andthe Brand nameSMART BALANCE, aUS public listedcompany paid US$465million (RM 1.58 Billion)to acquire this business.Company trades on theNasdaq as SmartBalance Inc. - annualturnover of US250MillionPalm oil thus ticks evenin the mostsophisticated markets! AMAZING PALM OIL INDEED! 37. How and Why Has the Malaysian Palm Oil Industry Innovated How Industry is taxed through an Act of Parliament and pays RM11 per MT of CPO/CPKO produced for R&D and RM2 for promotion. This provides for at least RM200 million for R&D (MPOB) and RM36 million for promotional activities (MPOC). In addition we compete actively for government grants. We have created a reasonable pool of experts who are in great demand (and actively being fished by overseas producers).WHY We cannot afford to play second fiddle in the global oils and fats markets. We remain the prime movers and will hold this position for as long as possible!!! 38. THANK YOUwww.mpoc.org.my www.mpoc.org.my