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Dwiyitno*)
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Abstract
Oil prices have climbed to unprecedented heights, and concerns about the environmental effects of
fossil fuel use are on the rise. Bioenergy appears to offer hope for addressing these concerns while
also providing new opportunities for poor people and farmers in developing countries. Providing
biofuel is clearly effective to reduce the dependence on fossil fuel supplies. Palm oil is known as the
most economical vegetable oil regarding to its oil yield. In term of energy balance, palm oil is also
highly profitable as biodiesel feedstock compared to any other vegetable oils. The increase demand
on biodiesel, mainly for EU market, makes some countries (chiefly Indonesia and Malaysia) position
some of their palm oil to be processed as biodiesel. Regarding the fact that around 20% of global
palm oil is utilized for non food purposes, switching it to biodiesel purpose may not affect significantly
on the food security, particularly the globally vegetable oil supply. However, exploration feedstock
from non edible sources is crucial in order to avoid the competition between food and biofuel.
Key words: bioenergy, biofuel, biodiesel, bioethanol, food security, palm oil
Introduction
The attention on renewable fuel as a new source of energy is considered rising as the increase
of world petroleum price. Responding the energy crisis in 1973, Brazil pioneered to produce a portion
of its sugar mills to ethanol, and in so recently became the leading producer worldwide. The
enthusiasm and interest on producing and using biofuel is thereafter not only limited to the developed
countries but also in many developing countries. While USA has produced and uses bioethanol since
1980s, many European countries have been producing and using biodiesel since the early 1990s.
Today, more than 20 countries all over the world have focused on producing first generation biofuels
in various capacities, chiefly bioethanol and biodiesel.
The promised benefit of biofuel generates the growing demand of biofuel for various purposes.
Demanding for ethanol and biodiesel derived from grains, vegetable oils, sugar and other crops has
risen sharply. Brazil and the United States are the largest producers of ethanol derived from sugar
cane and corn respectively. The production of bioethanol from these 2 countries are accounting for
about 90% of world production, while European Union, especially France and Germany, is the largest
producer of biodiesel, accounting for 88% of world production (Hazell & Pachauri, 2006). Recently,
few developing countries have sizable biofuel programs. The main players are China, Colombia, India,
and Thailand, while many others are interested in initiating (or have initiated) small pilot programs. In
2001 India launched programme in the production of bioenergy plantation, biodiesel, bioethanol,
hydrogen from biomass (DBT, 2007).
The three aspects of sustainability in biofuel production are environment, economics and
society (Ecosense, 2007). The focus of this article is to review the current trend on global biofuel
concern, the problems as well as its future challenges. As the main feedstock of bioethanol and
biodiesel production comes from food commodities such as sugar cane, maize, palm oil and soybean
oil, information on the commodity’s potential as well as the alternative commodities for biofuel
production is essential. Particular discussion is concentrated on the opportunity of biodiesel derived
from palm oil in accordance with the food security status, especially the globally vegetable oil supply.
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1st Generation 2nd Generation
BIOMASS
Pyrolysis
Plant oil Sugar
Synthesis
Refining
Esterification Fermentation
First-generation biofuels, made from food crops, can offer some CO2 benefits and can help to
improve domestic energy security. The two main types of first-generation biofuel used commercially
are ethanol and biodiesel. Conversely, since the second-generation biofuels are made from non-food
feedstocks, such as waste from agriculture and forestry, they could significantly reduce CO2
production without compete with food crops and some types can offer better engine performance.
When commercialized, the cost of second-generation biofuels has also the potential to be more
comparable with standard petrol and diesel. Used at 100% concentration, second generation biofuels
could reduce well-to-wheels CO2 production by up to 90% (Shell, 2007). However, second generation
biofuel has not been available in significant commercial quantities within 10 years (Refuel, 2007).
It is true that global biofuel contribution is still low in comparison to the fossil fuel consumption.
Total world biofuel consumption was only 8 Mtoe (0.4% of total transport consumption) in 2002, but
expected to more than quadruple by 2030, reaching 36 Mtoe (IEA, 2004). In contrast, the production
of fossil oil reached nearly 3,550 million tones (+ 80 million barrels/day), but projected to decline after
the peak production between 2010 and 2020 with capacity about 100 Mb/day (Langwell, 2002;
Laherrere, 2003) (Figure 2).
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hectoliters, of which 36% was in Brazil and 33% in the United Sates. Consumption of ethanol fuel in
the main American, European and Asian markets is expected to double between 2005 and 2010, from
roughly 400 to 800 million hectoliters (Total, 2007). Biodiesel, which until recently was produced
almost solely in the EU, is now gaining a more attention in many countries across the world. The
European Union, especially France and Germany, is the largest producer of biodiesel, accounting for
88% of world production, followed by the United States, which produces 8%. Nevertheless, biogas
comes third and has so far made a breakthrough with total EU25’s production was 4.27 Mtoe in 2004
compared to 3.91 Mtoe in 2003. The EU’s production of biofuels amounted to 2.4 million tones in
2004, approximately 0.8% of EU petrol and diesel consumption (EU, 2006).
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Most of the biodiesel produced today is done with the base catalyzed reaction for several
reasons: 1). low temperature and pressure, 2). yields high conversion (98%) with minimal side
reactions and reaction time, 3). directly converted to biodiesel with no intermediate compounds, and
4). no exotic materials of construction are needed (National Biodiesel Board, 2002). In the transport
sector, it may be effectively used either when blended with fossil diesel fuel or in pure form. Tests
undertaken by motor manufacturers on blends with diesel oil up to 2%, or at 20% and 100% pure
have resulted in guarantees for each type of use (Table 2). In the U.S., there are presently 105
companies that have invested millions of dollars into the development of biodiesel manufacturing
plants and are actively marketing biodiesel. The annual production capacity from these plants is 864
million gallons/ year.
Table 2. Average density and heating value of biodiesel and diesel fuel
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17 million m³ per year (Henke, et al., 2005). However, global biofuel production is still relatively minor
and produced in just a few countries (Table 3).
Table 3. The current status of selected countries on biofuel production
Current capacity Target (year)
Country Product Main Feedstock
(Mil m3/year) (Mil m3/year)
Ethanol 16.9 (2004) - Sugar cane
Brazil
Biodiesel - - Soy, Palm, Tallow
Ethanol 12.9 (2004) - Corn
USA
Biodiesel - - Soy
Biodiesel 1.5 (2004) 10.2 (2010) Rapeseed, palm, used oil
EU
Ethanol 0.4 (2004) 11.4 (2010) Wheat
Japan Ethanol 6 500
China Biodiesel 0.14 1.25 (2006) Used oil
India Ethanol 0.7 - Palm
Ethanol 0.02 0.35 Various
Australia
Biodiesel 0.015 0.14 (2007) Palm oil
Ethanol In progress - Corn
Argentina
Biodiesel 0.068 - Soy
New Zealand Biodiesel In progress - Tallow
Bioethanol - - Cassava
Thailand
Biodiesel - - Palm oil
Malaysia Biodiesel In progress 0.7 (2007) Palm oil
Indonesia Biodiesel In progress 0.12 (2008) Palm oil
Source: EurObserver (2005); Hale, et. al. (2006); Liu (2006)
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Table 4. Yield of various plant oils
Unused frying oil (UFO) is becoming common to be processed for biodiesel, particularly in
China. Historically, this waste had two purposes i.e. discharged into local sewage systems or covertly
reused in substandard kitchens that may contribute to frequent food-poisoning incidents. China’s
biodiesel production began in 2001 with the salad oil wastes used as feedstock and thereby expanded
to use animal fats and wild oilseed plants. By 2004, only 3 companies engaged in the fuel’s
production, with a total capacity of 40,000 tons/year, while in 2005, China manufactured 110,000–
120,000 tons of biodiesel fuel (Liu, 2006). Table 5 shows examples of feed stocks for bioethanol and
biodiesel production.
Table 5. Common feed stock for biofuel production
Bioethanol Biodiesel
Purposed crop: Purposed crop:
Crops (maize, sugar cane, sugar beet, wheat, Oilseeds (rapeseed, soya, sunflower, palm)
cassava) Jatropha curcas
Short rotation forestry (salix, eucalyptus) Algae (experimental scale)
Switchgrass, Miscanthus
By product: By product:
Whey Tallow
Crop residues (fruits, vegetables) Recycled cooking oil
Forestry residues
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Coconut 0.95 3.5
Olive 0.69 2.6
Palm Kernel 0.93 3.4
Total 26.9
Source: Thoenes (2006)
With regard to the trend of declining of global palm oil price, the new demand for vegetable oil
for biodiesel production has had a major influence on the recent strengthening of prices. In the mid of
2005, the average crude palm oil (CPO) price fell 13.4% because of the high stock. Although
strengthening along with the other oils, palm oil has remained the lowest priced vegetable oil. Initially,
palm oil can be burned directly as fuel, used as raw material for biodiesel production or employed in
various intermediary forms (Da Costa & Lora, 2007). Studies showed that biodiesel production
derived from palm oil has the highest energy balance, compared to rapeseed, corn, beetroot and
castor (Table 8). Therefore, producing biodiesel from palm oil is supposed more profitable in
comparison to the recent palm oil market.
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Table 8. Energy balance of biofuel production from different feed stocks
Conclusion
Biofuel production is essential due to the trend of increasing global oil price as a result of
increasing demand and the impacts of some international crisis. Providing biofuel is clearly effective to
reduce the dependence on imported oil and extend fossil fuel supplies. As more environmentally
friendly alternative to petrodiesel, biodiesel is a hope to reduce greenhouse gas (GHG) emissions
such as CO2, as well as CO, PM and HC emissions. Able to be used in existing diesel engines with
proper care and attention, biodiesel is also compatible with the existing fuel distribution infrastructure.
Furthermore, biofuel production is potential to help stimulate agricultural markets and reduce poverty
in rural areas by providing jobs for the poor. In comparison to bioethanol, global biodiesel production
is still very low.
Palm oil is known as the most economically vegetable oil regarding its oil yield/ha/year. In term
of energy balance, palm oil is also highly profitable as biodiesel feedstock compared to any other
vegetable oils. The trend of stagnation (or even declining) of palm oil price and the increase demand
on palm biodiesel oil, chiefly for EU market, make some countries (Malaysia, Indonesia, Brazil and
Colombia) position some of their palm oil production to be allocated for biodiesel. Regarding the fact
that around 20% of global palm oil is utilized for non food purposes, switching it to biodiesel purposes
may not affect significantly on the food security, particularly the globally vegetable oil supply. However,
exploration feedstock from non edible sources is crucial in order to avoid the competition between
food and biofuel.
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Dwiyitno
- Researcher at Agency for Marine & Fisheries Research, Jakarta
- European MSc Student on Food Science, Technology & Nutrition, Gent-Belgium
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