How to mitigate greenhouse gas emissions by using co-products arising from palm oil production

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1 ifeu Institut für Energie- und Umweltforschung Heidelberg How to mitigate greenhouse gas emissions by using co-products arising from palm oil production Nils Rettenmaier, Heiko Keller & Guido A. Reinhardt 8 th annual World Biofuels Markets Congress and Exhibition Malaysian Palm Oil Council Workshop Rotterdam, 12 March 2013

2 Oil palm biomass use Co-product use Plantation Trunks Wood products Use as furniture Wood chips Energy use FFB Palm kernels Palm kernel oil Cosmetics Mesocarp fibre Palm oil mill Palm kernel shells EFB Energy Export of surplus Crude palm oil POME Transport Glycerine Use in chemical industry Processing Biodiesel process Carotenes Tocotrienols Phytosterols Use in food industry Biodiesel Legend: Use in food industry Use as transportation fuel Main product use Product Process

3 Oil palm biomass use Replanting of plantations: Using oil palm trunks

4 Oil palm biomass use Conceptual trend of oil palm biomass utilisation Source: Ng et al. (2012): Waste-to-wealth: green potential from palm biomass in Malaysia. Journal of Cleaner Production 34,

5 Oil palm biomass use Products from oil palm trunks With courtesy of MPOC

6 Oil palm biomass use Phytonutrients Vitamin E (tocotrienols) Vitamin A (carotenes) Phytosterols With courtesy of MPOC

7 Project background Greenhouse gas balance of selected optimisation strategies along the palm oil chain Oil palm trunk use Phytonutrient extraction and use

8 Outline Oil palm biomass use Studying environmental impacts Selected optimisations 1. Oil palm trunk use 2. Extraction of phytonutrients Conclusions & Recommendations

9 Environmental impacts Environmental advantages and disadvantages: + CO 2 neutral Save energetic resources Organic waste reduction Less transport etc. Land use Eutrophication of surface water Water pollution by pesticides Energy intensive production etc. Total: positive or negative?

10

11 Life cycle assessment (LCA) ISO & Goal and scope definition Inventory analysis Interpretation Impact assessment

12 LCA: Life cycle comparison Crude oil Palm oil Fertiliser Credits Fuel Pesticides Resource extraction Raw material production Agriculture Reference system Transport Processing Co-products Equivalent products Utilisation

13 Life cycle assessment (LCA) ISO & Goal and scope definition Inventory analysis Interpretation Impact assessment

14 LCA: Inventory analysis Inputs Outputs e.g.: - natural gas - crude oil - brown coal - hard coal - uranium - water Crude oil Resource extraction Raw material production Transport Processing Utilisation Palm oil Fertiliser Fuel Pesticides Agriculture e.g.: - CO 2 - SO 2 - CH 4 - NO X - NH 3 - N 2 O - HCl - CO - C 6 H 6 - VOC

15 Life cycle assessment (LCA) ISO & Goal and scope definition Inventory analysis Interpretation Impact assessment

16 LCA: Impact assessment Impact category Parameter Substances (LCI) Resource depletion Sum of depletable primary energy carriers Crude oil, natural gas, coal, uranium, Mineral resources Lime, clay, metal ores, salt, pyrite, Water Water Greenhouse effect CO 2 equivalents Carbon dioxide, dinitrogen monoxide, methane, different CFCs, methyl bromide, Ozone depletion CFC-11 equivalents CFC, halons, methyl bromide, dinitrogen monoxide Acidification SO 2 equivalents Sulphur dioxide, hydrogen chloride, nitrogen oxides, ammonia, Terrestrial & aquatic eutrophication PO 4 equivalents Nitrogen oxides, ammonia, phosphate, nitrate Summer smog C 2 H 4 equivalent Hydrocarbons, nitrogen oxides, carbon monoxide, chlorinated hydrocarbons,

17 Methodology for LCA experts Screening greenhouse gas (GHG) balances Largely following ISO standards and on product life cycle assessment (LCA) Carbon footprint study as a first step towards a more comprehensive sustainability assessment Co-product handling Substitution approach (EU Renewable Energy Directive stipulates allocation approach for biofuel GHG balances)

18 Outline Oil palm biomass use Studying environmental impacts Selected optimisations 1. Oil palm trunk use 2. Extraction of phytonutrients Conclusions & Recommendations

19 Oil palm biomass use Co-product use Plantation Trunks Wood products Use as furniture Wood chips Energy use FFB Palm kernels Palm kernel oil Cosmetics Mesocarp fibre Palm oil mill Palm kernel shells EFB Energy Export of surplus Crude palm oil POME Transport Glycerine Use in chemical industry Processing Biodiesel process Carotenes Tocotrienols Phytosterols Use in food industry Biodiesel Legend: Use in food industry Use as transportation fuel Main product use Product Process

20 Oil palm trunk use: Goal & scope Evaluation of the use of oil palm trunks for Furniture and Bioenergy as compared to the conventional practise (push-felling, chopping and in-situ decay) in terms of greenhouse gas emission savings Challenge: Difficult material properties of oil palm wood (e.g. high moisture content) and relatively high energy demand for wood drying

21 Oil palm trunk use: Furniture Palm trunk harvest Transport Sawing Impregnating & Drying Moulding & Sizing Boards, shelves

22 Oil palm trunk use: Furniture Production of furniture from oil palm trunks Conventional practise Wood products from oil palm trunks Managed forest Palm trunk harvest Rotting of palm trunks Fertiliser Spruce wood Oil palm trunks Transport Natural gas Combustion (for energy) Woodworking industry Sawing Impregnating & Drying Sawdust wet Residue wood Energy provision Landfill Oil / gas Power Moulding & Sizing Sawdust dry Pelleting Boards, shelves Boards, shelves Animal bedding Straw Transport Transport Legend: Usage Usage Product Natural gas Combustion Combustion Natural gas Process Reference system

23 Oil palm trunk use: Furniture Greenhouse gas emissions from furniture production Advantages Furniture production Disadvantages Palm Conventional Net Inefficient heat gen. Steam Diesel in factory Other inputs Credit energy from unused spruce wood Compensation fertiliser Net total kg CO 2 eq. / t fresh palm trunks High GHG emissions due to drying Electricity Transports Credit energy from used palm wood furniture Entire life cycle of spruce wood furniture Rotting of saw dust Net over all IFEU 2013

24 Oil palm trunk use: Furniture Production of furniture from oil palm trunks Conventional practise Wood products from oil palm trunks Managed forest Palm trunk harvest Rotting of palm trunks Fertiliser Spruce wood Oil palm trunks Transport Extra trunks for heat Natural gas Combustion (for energy) Woodworking industry Sawing Impregnating & Drying Sawdust wet Residue wood Energy provision Landfill Oil / gas Power Moulding & Sizing Sawdust dry Pelleting Boards, shelves Boards, shelves Animal bedding Straw Transport Transport Legend: Usage Usage Product Natural gas Combustion Combustion Natural gas Process Reference system

25 Oil palm trunk use: Furniture Greenhouse gas emissions from furniture production Advantages Furniture production Disadvantages kg CO 2 eq. / t fresh palm trunks Palm Conventional Net Palm Conventional Net Net over all Inefficient heat gen. Extra trunks for heat Palm Efficient Conventional heat gen. Net Palm Combined Conventional heat / Net power GHG emission savings if process energy is produced efficiently from oil palm wood Steam Electricity Diesel in factory Transports Other inputs Credit energy from used palm wood furniture Credit energy from unused spruce wood Entire life cycle of spruce wood furniture Compensation fertiliser Rotting of saw dust Net total Net over all IFEU 2013

26 Oil palm trunk use: Bioenergy Production of bioenergy from oil palm trunks Oil palm plantation Rotting of palm trunks Fertiliser Palm trunks Chipping Power Pre-drying Combustion Heat Drying Dry wood chips Legend: Transport Product Process Combustion Power Power Natural gas Reference system Heat Heat Natural gas

27 Oil palm trunk use: Bioenergy Greenhouse gas emissions from bioenergy production Advantages Disadvantages Bioenergy production Palm Net Palm Net Palm Net Inefficient heat gen. Efficient heat gen. Combined heat / power Net over all kg CO 2 eq. / t fresh palm trunks Steam Electricity Transports Credit energy from palm wood chips Compensation fertiliser Net total Net over all IFEU 2013 GHG emission savings, especially if drying is efficient

28 Oil palm trunk use: Comparison Sensitivity analyses for most important parameters Advantages Disadvantages Furniture production Bioenergy production Standard scenarios Heat / power drying + 30 % Heat / power drying - 30 % Transports by truck + 30 % Transports by truck - 30 % Power mix EU: coal No methane from wet saw dust Standard scenarios Heat / power drying + 30 % Heat / power drying - 30 % Transports by truck + 30 % Transports by truck - 30 % Power mix EU: coal kg CO 2 eq. / t fresh palm trunks IFEU 2013 Results relatively robust; heat for drying decisive

29 Oil palm trunk use: Future potential Aim: Exemplifying the large-scale use of oil palm trunks Basic idea: export of furniture or wood chips to existing markets for such products made from wood Taking Malaysia as an example, but results are transferable to other parts of the world (at least as a realistic estimation) Boundary conditions for this scenario calculation 20 million palm trees felled per annum Recovery rate: % due to geography and logistics Moisture: 67 % Results expressed per inhabitant equivalent 1 inhabitant equivalent = per capita (GHG) emissions of one Malaysian citizen during one year

30 Oil palm trunk use: Future potential Potential annual greenhouse gas emission savings in Malaysia 1000 t CO 2 equivalents Furniture production Bioenergy production inhabitant equivalents Inefficient heat gen. using 30% of trunks Efficient heat gen. using 50% of trunks Comb. heat / power using 70% of trunks Inefficient heat gen. using 30% of trunks Efficient heat gen. using 50% of trunks Comb. heat / power using 70% of trunks IFEU 2013 Large future potential in all CPO-producing countries

31 Outline Oil palm biomass use Studying environmental impacts Selected optimisations 1. Oil palm trunk use 2. Extraction of phytonutrients Conclusions & Recommendations

32 Oil palm biomass use Co-product use Plantation Trunks Wood products Use as furniture Wood chips Energy use FFB Palm kernels Palm kernel oil Cosmetics Mesocarp fibre Palm oil mill Palm kernel shells EFB Energy Export of surplus Crude palm oil POME Transport Glycerine Use in chemical industry Processing Biodiesel process Carotenes Tocotrienols Phytosterols Use in food industry Biodiesel Legend: Use in food industry Use as transportation fuel Main product use Product Process

33 Phytonutrients: Goal & scope Evaluation of an innovative palm oil biodiesel process (including the extraction of phytonutrients) and comparison to conventional palm oil biodiesel process in terms of greenhouse gas emission savings Net impact per tonne of CPO Potential impact on GHG balance of palm oil biodiesel Challenge: counteracting effects Positive: Credits for additional co-products Negative: Higher process energy demand Negative: Less biodiesel output

34 Extraction of phytonutrients Conventional biodiesel process Innovative biodiesel process CPO CPO Legend: Product Process Reference system Pretreatment Pretreatment Fossil fuel Combustion (for energy) PFAD Deodorisation Deodorisation PFAD Combustion (for energy) Fossil fuel Mineral oil Equivalent chemicals Glycerine Transesterification + separation Glycerine Carotenes Equivalent chemicals Transesterification Tocotrienols Tocotrienols Carotenes Mineral oil Mineral oil Mineral oil Phytosterols Phytosterols Soy oil Mineral oil Diesel Palm oil biodiesel Palm oil biodiesel Diesel Mineral oil

35 Extraction of phytonutrients Greenhouse gas emissions from phytonutrient extraction Credits Expenditures Innovative, standard vs. conventional Advantages Disadvantages Innovative, standard vs. conventional -0,1 0 0,1 0,2 0,3 t CO 2 eq. / t crude palm oil Higher electricity consumption and less biodiesel output potentially lead to additional GHG emissions But: specific design of extraction process decisive Steam Power Methanol Other inputs Credit biodiesel Credit glycerol Credit tocotrienol Credit carotinoides Credit sterols Other credits Net total IFEU 2013

36 Extraction of phytonutrients Greenhouse gas emissions from phytonutrient extraction Innovative, high Credits Expenditures Innovative, standard Innovative, low Conventional process Difference, high Difference, standard Difference, low Advantages Disadvantages t CO 2 eq. / t crude palm oil General statement on GHG emissions is impossible Impact on biodiesel GHG balance: up to 3% improved Steam Power Methanol Other inputs Credit biodiesel Credit glycerol Credit tocotrienol Credit carotinoides Credit sterols Other credits Net total IFEU 2013

37 Outline Oil palm biomass use Studying environmental impacts Selected optimisations 1. Oil palm trunk use 2. Extraction of phytonutrients Conclusions & Recommendations

38 Oil palm trunk use Conclusions Greenhouse gas emission savings - unless external energy is used - both in case wood products (furniture) or bioenergy (wood chips) are produced from oil palm trunks Critical optimisation parameters: Efficient process energy provision from oil palm trunks Efficient wood drying units Even better than export: local use of wood chips in CHP plants Extraction of phytonutrients Potentially higher greenhouse gas emissions, but general statement impossible since results are largely dependent on specific design of extraction process Critical optimisation parameters: Energy required for purification Minimisation of biodiesel losses

39 Recommendations Implement oil palm trunk use Further develop material use (furniture, plywood etc.) while aiming at optimum process design Efficient energy provision and wood drying No bulk landfilling of sawdust Start lighthouse projects for bioenergy Efficient energy provision and wood drying Use synergies with palm oil mills Surplus energy from palm oil mill residues, especially from palm oil mill effluent (POME) Logistics Prices (otherwise dependencies) Full sustainability assessment before going large-scale

40 Thank you for your attention! Nils Rettenmaier Acknowledgements: We are deeply grateful to: Contact: / - 24 Downloads: Dr Kalyana Sundram and Dr Yew Foong Kheong (both Malaysian Palm Oil Council, Malaysia) for having re-ceived excellent cooperation, fruitful discussions and provision of numerous data and information Our colleagues at IFEU, Germany, for valuable fruitful discussions as well as for an internal quality control and review

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