The world’s first integrated palm biodiesel plant was opened in Malaysia in 2006

Expanding Malaysia’s palm oil product range
A traditional commodity is being adapted to a wide variety of uses with market potential

Rising global demand for biofuels and green products could radically change the way we view palm oil, a form of edible vegetable oil obtained from the fruit of the oil palm tree, of which Malaysia is the world’s leading exporter.

Malaysia is at the forefront of new pioneering industry research that is bringing palm oil products into new areas – not just in biofuels but many other green products.

A perfect growing climate for the plant, the Southeast Asian country is adding value to its sizeable palm oil production with investment in new downstream technologies. “We already have quite a few biodiesel plants owned by foreign entities from Australia, Japan etc,” says Peter Chin Fah Kui, minister of Plantation Industries and Commodities. “We have a very open policy to encourage foreign participation in our downstream industries.”

Research and development is an essential area that has received strong government backing. Mr Chin emphasises how important it is for Malaysia to move commodities like palm oil up the value chain.

Mohd Basri Wahid Director General of the Malaysian Palm Oil Board

“Selling the commodity in its crude form can only fetch so much in terms of price,” he says. “However, if you sell the whole value chain, then it becomes profitable. For instance, palm was known only for its oil in the early days. Now it is known for many products, like oleochemical, biofuels, cosmetics, detergent and food. Palm is as flexible as petroleum.”

At the heart of the research drive is the Malaysian Palm Oil Board (MPOB), whose Director General, Mohd Basri Wahid, says that a large portion of its work is geared towards R&D activities in areas such as processing, milling, refining, product development, environmental, quality and nutrition.

Extensive research on palm biodiesel started by MPOB in the early 1980s resulted in the development of technology for the conversion of palm oil into palm biodiesel, which has similar properties to petroleum diesel. In 2006, Malaysia opened the world’s first integrated palm biodiesel plant.

“Every year we go through the research findings and identify those technologies that are ready for commercialisation,” says Dr Mohd Basri. “These include value added products such as advanced carbon products, new fertiliser formulations, palm-based cosmetic and personal care formulations, and food products.”

Among the various research strands are biological research, engineering and processing, and advanced oleochemical technology, underlining the flexibility and adaptability of the product.

	Prime Minister Abdullah Badawi and Minister of Plantation Industries and Commodities Peter Chin launch Envo Diesel, a blend of 5% processed palm oil with 95% diesel petroleum

“From palm oil, we can develop polyurethane ceiling panels, Vitamin E, palm-based personal care products, agro-lumber and biofuels, to name just a few. There are lots of things we can do. The beauty of these products is that they are all environment-friendly.”

In line with this green mentality MPOB is helping producers strip every bit of value from what they grow, utilising palm oil waste and biomass for field mulching and commercial products such as pulp and paper, medium density fibre board, auto components and, of course, biogas for energy generation.

Dr Mohd Basri says that his organisation maintains strong links with scientists overseas including in the UK, where it has a London office. Biotechnology is a central focus right now, following huge strides made in genetic modification. “We must unravel the genes found in palm oil,” says the Director General. “We can either choose to activate or silence the gene depending on the results we want to derive.”

For the past 20 years Malaysian scientists have worked to identify the biochemical process for palm oil synthesis, with understanding now at an advanced stage.

A fully commercialised GM product is not likely until 2020, however, because of the need for extensive field trials and the long breeding cycle of palm oil.

“We are working with an institute in Germany to develop a new technology for gene insertion into the nuclei of oil palm. With that technology, we can even go into the pharmaceutical market. That is in the pipeline as well.”