KUALA LUMPUR (Nov 20): Malaysia aims to start producing palm oil-based biojet fuel within five years and is in talks with several potential partners about setting up a plant, the head of the industry's marketing board said on Wednesday.
Malaysia, the world's second biggest producer of palm oil, is looking for new markets to boost demand for the vegetable oil, widely used in everything from soap to lipstick to snack foods.
Ahmad Parveez Ghulam Kadir, director general of the Malaysian Palm Oil Board (MPOB), said Malaysia is exploring "all possibilities" with potential investors, as it expects demand for biojet fuel to grow in the coming years.
Last month, Malaysia allocated funds in its 2020 budget to study the use of palm oil-based biojet fuel.
"In five years, we hope we can have our first biojet production in Malaysia," Ahmad Parveez told Reuters in an interview on the sidelines of an industry conference called International Palm Oil Congress and Exhibition (PIPOC) 2019. MPOB is a state agency responsible for the promotion and development of palm oil. Ahmad Parveez did not name the potential investors or say who would fund a plant.
In April, the Malaysian Palm Oil Council in Beijing signed a memorandum of understanding with Chinese industry body, the China Chamber of Commerce of Foodstuffs and Native Produce, which would see China invest at least 2 billion ringgit (US$480 million) in a Malaysian biojet fuel plant. However, Ahmad Parveez said on Wednesday that was not a final agreement and that discussions with all potential partners were at a preliminary stage.
Malaysia's interest in producing biojet fuel comes as global airlines look to reduce emissions from flying, so as to comply with a plan by the International Civil Aviation Organization (ICAO), the U.N. body that sets standards for international air travel.
The plan, known as Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), looks to cap CO2 emissions from air travel at 2020 levels, mitigating the environmental impact of flying, even as passenger traffic is forecast to grow.
Indonesia, the top producer of palm oil, is also eyeing aviation as a new market for palm oil. Indonesian president Joko Widodo in August asked his ministers to study further the possibility of mixing palm oil-based fuel with jet fuel.
MPOB's Ahmad Parveez also said Malaysia's palm oil production will not exceed 20 million tonnes in 2019 and 2020, compared with its 2018 output of 19.5 million tonnes.
Indonesia and Malaysia will both see little growth in output next year, potentially leading to a supply deficit and higher prices, leading industry analyst James Fry said on Wednesday.
(US$1 = 4.1640 ringgit)
Wednesday, November 20th, 2019 at , Business | News
By DASHVEENJIT KAUR / Pic By MUHD AMIN NAHARUL
LEGAL actions will be taken against non-Malaysian Sustainable Palm Oil (MSPO)-certified oil palm estates above 40 hectares from Jan 1, 2020 onwards.
Primary Industries Minister Teresa Kok said any violations in meeting MSPO’s terms will result in the revocation of such operational licences.
“This signifies the high level of commitment by Malaysia in ensuring the sustainability of its palm oil industry,” she said in her opening address at the Malaysian Palm Oil Board (MPOB) International Palm Oil Congress and Exhibition (PIPOC) 2019 in Kuala Lumpur yesterday.
To date, 60% of the total oil palm planted area is MSPO-certified as of October this year, with 328 palm oil mills or 72.6% of the total 448 mills in the country.
“This is indeed a commendable achievement for a developing country like Malaysia, whereby 40% of its oil palm plantations are under the management of smallholders.
“It is not an easy task considering the short time frame since the requirement was first announced in February 2017, and the fact that smallholders’ landholdings are geographically dispersed and not contiguous,” she added.
Considering smallholders’ financial constraints, the government has provided monetary support and infrastructure requirement to alleviate the cost of certification borne by them.
“Also, the issues of land parcels, transportation and even understanding the benefits of certification can be major roadblocks. Our efforts would have been easier if importing countries recognise and support our national certification scheme, which is geared towards sustainable practices, instead of constantly discriminating our palm oil.
“In fact, smallholders keep asking me why they are forced to get certified when the European Union (EU) keeps discriminating us and not supporting our efforts,” Kok said.
The palm oil industry is currently governed by over 60 national laws and regulations including the stringent licensing requirements by MPOB throughout the supply chain.
“We are confident that through MSPO, which also advocates good agricultural practices, we will eventually improve the income of smallholders. The government is also encouraging smallholders to venture into mixed farming to diversify their income, particularly during low commodity prices,” Kok said.
She also highlighted that the government will enforce regulations to ensure that by 2021, Malaysia’s palm oil meets new food safety standards under consideration by the EU.
“The palm oil industry in Malaysia has been instructed (by the government) to adhere to the EU-prescribed level of 3-MCPD of 2.5 milligramme/kg for food products by 2021.
“While acknowledging the richness and the benefits of palm oil in terms of its properties, Malaysia also emphasises on the importance of the quality of the oils produced and will be addressing the concerns with regard to food safety,” she said during a press conference at the PIPOC 2019.
The EU has imposed a limit for glycidyl esters and will soon impose a limit for 3-MCPD esters in palm oil.
The European Food Safety Authority said the two contaminants raise potential health concerns.
“Rounds of consultations with our industry players were held and we are now in the process of enforcing several regulations to ensure that the palm oil produced meets the acceptable safety level for 3-MCPD,” Kok said.
She, however, noted that despite all these benefits and measures, the palm oil industry continues to receive negative publicity, where disturbing false allegations from non-government organisations who label the industry as damaging, destructive and unsustainable.
The EU earlier this year introduced a law to phase out palm oil from renewable fuel by 2030 due to deforestation concerns.
Kok reiterated that the Cabinet led by Prime Minister Tun Dr Mahathir Mohamad will deliberate a proposal to bring a suit to the World Trade Organisation (WTO). “Malaysia and Indonesia share the plan to challenge the law at the WTO, but will do so separately,” she said.
KUALA LUMPUR (Nov 19): Prime Minister Dr Mahathir Mohamad on Monday launched Malaysian Palm Oil Board (MPOB)’s world-class technology for harnessing oil palm phenolics.
Developed by scientists in MPOB and unveiled at the PIPOC 2019 today, oil palm phenolics are powerful water-soluble bioactive compounds.
“Studies by MPOB have proven that oil palm phenolics have potent multiple health benefits including antioxidant, anti-diabetic, anti-hypertensive, neuroprotective and anti-inflammatory activities.
“Pre-clinical and clinical trials have confirmed that they are powerful in protecting brain and heart health. Hence, oil palm phenolics have wide applications in the health and wellness sector, including nutraceutical, cosmeceutical, functional food and beverage industries,” director-general Dr Ahmad Parveez Ghulam Kadir said in a statement.
He said the technology has been licenced to Phenolaeis Sdn Bhd which has strong links to Massachusetts Institute of Technology (MIT), a collaboration partner of MPOB.
In December 2017, Phenolaeis entered into a partnership with two Mexican firms, namely, Industrias AlEn and Agroindustrias Unidas de México (AMSA)/ ECOM Agroindustrial Corp to construct the world’s first commercial oil palm phenolics production plant, based on a completely Malaysian technology, in Palenque, Chiapas, Mexico.
This significant foreign capital investment in the commercialisation effort indicates confidence in the Malaysian intellectual capital and innovation capacity, and serves as a model for commercialisation of Malaysian technologies into global businesses, he said.
The first batch of commercial products, trademarked Palm Fruit Bioactive ComplexTM (PFBc), was rolled out as a bulk ingredient in the United States in June 2019 and is now available for worldwide distribution.
Amare Global, a leading mental wellness company in the US, launched the first product formulated with PFBc, trademarked MentaHeartTM, in California, United States, in September 2019.
Several large well-established international companies including Xymogen, Shaklee and Givaudan, have signed letters of intent to market and distribute the product and Malaysian companies have the opportunity to be part of the exciting commercialisation effort. — Bernama
November 20, 2019 02:27 am +08
KUALA LUMPUR (Nov 19): India will always be dependent on Malaysia for palm oil, as it is the cheapest edible oil in the world.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said India is 74% dependent on edible oil imports, as the country is heavily dependent on rainwater for the irrigation of its agricultural sector.
“In India, only 37-40 per cent of the agricultural land is irrigated, while this year, the country is expected to produce only nine million tonnes of soybeans from the expected 12 million tonnes due to the late arrival of the monsoon,” he said.
Sathia said this in his presentation titled, ‘Palm Oil Driver of Economic Sustainability’ at the Malaysian Palm Oil Board International Palm Oil Congress and Exhibition 2019 (MPOB PIPOC 2019) here today.
Hence, demand wise, he said the main growth market for palm oil would still be India and China, while in the next 10 years, the main growth markets would be India, Indonesia and China.
“China will use the mix of edible oils from Malaysia, as the country is heavily short of soybean oil due to lower crushing of soybean hurt by the recent African swine fever outbreak.
“One thing for certain is that China will depend less on coal for energy generation and move towards ethanol and biodiesel,” he said.
As for European Union (EU), he said palm oil demand would be less due to the palm bio-fuel phase-out plan in the continent.
Overall, he expected Malaysia palm oil production to rebound 4.6% to 20.3 million tonnes in 2019, while production growth for 2020 would slow by three to 3.5% to 21.0 million tonnes.
“While Malaysia is the second largest palm oil producer in the world after Indonesia, long term growth wise, if there is no faster pace of replanting, production will slow down,” he said.
As for the year-end stocks level, he anticipated it to stand at 2.8 million-3 million tonnes and fall to below two million tonnes in the fourth quarter of 2020. — Bernama
19 NOV 2019 / 13:20 H.
KUALA LUMPUR: Oil palm landowners with land over 100 acres risk getting their license revoked if they fail to secure the Malaysian Sustainable Palm Oil (MSPO) Certification from next year onwards, says Primary Industries Minister Teresa Kok (pix).
She said the move was to show the government’s seriousness about the implementation of the MSPO certification.
“As of October 2019, 328 palm oil mills, or 72.6% of the total 448 palm oil mills are MSPO certified,” she told a press conference after officiating the Malaysian Palm Oil Board’s International Palm Oil Congress and Exhibition (MPOB PIPOC) 2019 here, today. — Bernama