Oil Palm & The Environment (updated Dec.

2012)
CONTENTS

Introduction Upstream

Growth of the Industry with Global Initiatives of Business Sustainability with Local Effort Meeting the World's Demand for Oils and Fats Biodiversity Carbon Dioxide Balance and Plantation Practices Nutrient Recycling Fertilizer Requirement Energy Balance Downstream

Mill Effluent Environmental Quality Regulations By-Products of Milling Conclusion

Introduction
The development of oil palm in Malaysia has been remarkable. Starting off as ornamental, the crop has developed into a multibillion ringgit industry. In Africa, the crop originally existed wild in the groves and various constraints were faced in the efforts towards domestication. It is in Malaysia that much of the crop's full potential has been exploited. This transformation from the wild to being domesticated, where it is grown in neat rows in well-managed plantations, has not been without cost. A lot effort has gone into understanding this 'new' crop, and the means of fitting it to its new home.

It has been during the development of this crop that more has been learnt about its interaction with the environment. Success in developing the crop in plantations has led to a new challenge i.e. in the processing technology. Again, being the pioneer, Malaysia has had to take the lead in this new endeavour. Technologies both upstream and downstream, including those related to the environment were developed and were continually improved.

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Upstream
Growth Of The Industry With Global Initiatives Of Business Sustainability Of The Industry With Local Effort

Hectarage of oil palm in Malaysia Year 1871-1910s 1920 1930 1940 1950 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2011 Hectarage <350 400 20 000 31 400 38 800 54 838 96 945 261 199 641 791 1 023 306 1 482 399 2 094 028 2 540 087 3 376 664 4 051 374 4 853 766 5 000 109 % Change 0.0 77.4 169.4 145.7 59.4 44.9 41.3 21.3 32.9 20.0 19.8 3.0

The growth of the palm industry in Malaysia has been phenomenal. From a mere 400 hectares planted in 1920, the hectarage increased to 54 000 hectares in 1960. Since then many more areas have been opened up for oil palm cultivation, either from virgin jungles, or from the conversion of plantations that originally supported rubber or other crops. This increase in hectarage is a direct consequence of the government's policy on crop diversification. By 1996, the hectarage under oil palm stood at a staggering 2.6 million hectares. By 2005 and 2010 the percentage change in the areas under oil palm was around 20% for each five-year period. In 2011, the hectarage reached 5 million hectares, and the change in area in 2011 was only three percent as compared to 2010. This rapid growth in oil palm planting has been seen in five-year period 1965 1970; 1970 1975, and even in 1975 1980, due to the crop diversification programme. It also saw a corresponding growth in the milling and refining sectors. Encouraged further by the governments incentive to exploit the country's rich agro-based resources, oleochemical processing from palm oil and palm kernel oil began to gain prominence in 1980's. A rapid increase in both downstream and upstream activities would normally have resulted in significant environmental pollution. This however was not the case with oil palm. In the early years of oil palm development, certain practices such as open burning and pollution of water ways by oil palm mill had an impact on the environment. Nonetheless the industry has moved ahead and has greatly improved its environmental friendliness. Laws and regulations have been enacted to this effect, in order to prohibit and control such activities. As an industry, oil palm takes pride in its initiatives to improve its environmental friendliness. Since the talk on the climate started in Rio de Janeiro, Brazil at the Earth Summit in 1992 and again in Rio de Janeiro, Brazil in June 2012, dubbed as the Rio+20 Review, the focus has been on sustainability. Sustainable development is taken to mean equal effort being devoted to economic growth and social welfare, as well as to environmental outcomes. In other words sustainable growth with equity would mean eradicating poverty, as well as preserving the environment, as underlined by the outcomes of the Rio+20 Conference. This shows that the R&D effort of the Malaysian Palm Oil Board (MPOB) has not slowed down, but has been strengthened by adhering stringently to the outcomes of the annually held United Nations Framework Convention on Climate Change (UNFCCC) negotiations. This requires the palm oil industry to tackle the challenges in meeting the growing worldwide demand for palm oil as food, while at the same time has to demonstrate the sustainability of its products and operations. Sustainability has more than just environment to deal with. Its ambit of influence can also reach out to businesses, treat their employees and relate to the communities in which they operate.

(Source: MPOB, Malaysian Oil Palm Statistics) Number Palm Oil Mills in Malaysia Year 1980 1985 1990 1995 Capacity (Million Tonnes FFB/year) 149 229 261 281 13.33 21.43 31.03 42.20

2000 2005 2010 2011

350 395 421 426

65.95 84.11 97.38 99.85

(Source:MPOB, Malaysian Palm Oil Statistics, 2012)

Palm Oil Refineries in Malaysia Year Number Capacity (Million tonnes CPO/yr) 1980 1985 1990 1995 2000 2005 2010 2011 45 38 37 41 46 48 51 56 2.84 5.35 10.45 10.15 14.60 17.31 22.89 24.97

(Source: MPOB, Malaysian Palm Oil Statistics)

back to top Meeting the World's Demand for Oils & Fats

The world's demand for oils and fats is being met by 17 major sources. Palm oil, is the largest, in terms of total production and is the number one player in the oils and fats trade. In 2011/12, it controlled 57.7% of the export market share. The most efficient among the oil crops is oil palm which commands a yield/ha that is almost 10 times higher than that of soya bean; 6.9 times than sunflower seed and 6.3 times than that of rapeseed. These four sources accounted for 72% of the vegetable oil produced in 2011/12. Oil palm, without question, hectare for hectare, is the most efficient in terms of having the highest yield per hectare. Moreover, being a perennial, the supply of palm oil is reliable, as the crop is not easily affected by the vagaries of the weather and other calamities.

back to top Biodiversity

Malaysia can boast that 56% of its land mass of 32.86 million hectares is under permanent natural forest cover. This exceeds that of many other developed countries, which have less than 30% forests. Thus, in terms of wild life conservation, there are ample forests to protect and conserve wild life. There is no denying the fact that the conversion of virgin forests to any commercial venture, (oil palm cultivation included), would in one way or another have an impact on the

environment. Perhaps of greatest concern is the loss of biodiversity, in relation to species composition of both plant and animal populations. This is especially true for a monoculture system such as oil palm, where the diversity of flora and fauna is severely restricted. Realizing the danger of the possible loss of biodiversity and in being committed to the preservation of the myriad of rich flora and fauna, the government has taken steps to set aside 2.1 million hectares of the 19.37 million hectares, under forest, for nature parks, wildlife reserves, bird sanctuaries and marine parks. These areas, well spread out throughout the country and protected by law, ensure the preservation of biodiversity unique to Malaysia. During the period 2004-2010, MPOB conducted a full life cycle assessment (LCA) of the Malaysian palm oil from the nursery to palm biodiesel. It was a cradle-to-grave analysis starting from the oil palm seedling, to the production and use of palm biodiesel. It has been demonstrated that the total greenhouse gas (GHG) saving with biogas capture is about 76%, which far exceeds the 2018 requirements of 60%, set by Renewable Energy Directive (RED) of the European Commission (EC).

back to top Carbon Dioxide Balance & Plantation Practices

Carbon Dioxide Balance Oil palm cultivation per se, constituting 16% of the 32.86 million hectares of the total land mass of Malaysia, is generally of little threat to the environment. The oil palm plantation, a perennial with closed canopy, also stores carbon, both above and below the ground. Playing no small role in carbon dioxide (CO2 ) balance and carbon fixation, a plantation may accumulate 100-120 tonnes of biomass per hectare by maturity. Over the whole supply chain, it has been demonstrated by the full LCA study, that for every tonne of palm oil produced the amount of Green House Gas (GHG) emissions expended is about half a tonne; indicating that the palm oil industry is that of a low carbon economy. All these savings in GHG emissions have been due to the implementation of the best practices. To be sustainable, MPOB has been guiding the industry to experiment with the following mixture of

best practices listed below.

and

new

approaches.

These

innovations

are

Plantation Best Practices The aim is to farm, in harmony with nature, rather than against it. Invariably with this approach, there would be better returns with negligible impact on the environment. The positive intrinsic attributes are further enhanced by commendable plantation practices sensitive to environmental conservation. The adoption of zero burning during replanting ensures not only an environment free from smoke pollution, but also one capable of returning the organic matter to the soil. The planting of cover crops, the construction of terraces and silt pits, the correct placement of frond piles, and mulching with empty fruit bunches are additional practices aimed at minimizing environmental degradation. Evidences are aplenty where such practices have been shown to drastically reduce erosion, leaching and runoff. As shown in an earlier section, the conservation of biodiversity through the protection of wild life on the ground has been emphasised. In actual fact, the focus should be on the biodiversity in the soil, which is greater than those on and above the soil. Any increase in soil fertility will help reduce input such as fertilisers and chemicals. This again is a better approach, if we focus on increasing soil biodiversity. By increasing the biodiversity in the soil, it is likely that the ecosystem function and services of the environment will be vastly improved, where the palm is grown.
back to top Nutrient Recycling & Fertilizer Requirement

Nutrient Recycling Nutrient recycling provided by cover crops, cut fronds, empty fruit brunches and palm oil mill effluent (POME) has already been well documented (for example, one tonne of pruned fronds can return an equivalent of 7.5 kg nitrogen, 106 kg phosphorus, 9.81 kg potassium and 2.79 kg magnesium to the soil. A total of 10 tonnes pruned fronds are produced per hectare per year.) This practice of biomass recycling not only saves on fertilizer cost, but more importantly goes a long way towards environmental conservation, by reducing dependence on fossil fuel required for the manufacture of inorganic fertilizer.

Fertilizer Requirements Though the nutrient requirement is partly provided by the recycling of biomass, oil palm undeniably also requires inorganic fertilizers. This is true to all crop plants. Being a very expensive management input, fertilizer application in an oil palm plantation has to be carried out judiciously. In preparing fertilizer recommendations, the soils, plant and environment factors have to be taken into consideration. This is to ensure optimum dosage. Backed by many decades of research findings, the nutrient need for oil palm has been well worked out. Indeed, the nutrient requirement for oil palm compares favourably with other crops such as wheat, barley, winter rape, sugar beet and grape.

back to top Energy Balance

Oil palm leads many other crops in terms of energy balance. From a total input energy of 19.2 GJ/ha/year, oil palm gives products with total energy of 182.1 GJ/ha/year. This high output: input ratio of 9.5 times is achievable by only a few other agricultural systems. For comparison, similar ratios for soya bean and rapeseed are only 2.5 and 3.0 respectively. This high energy balance reflects both crops efficiency and reduces reliance on fossil fuels, a big step towards environmental conservation.

Besides fertilizers, other chemicals such as pesticides, herbicides and rat baits consume very little total energy input. The integrated management of pests, diseases and weeds combining both biological and cultural practices put reliance on these chemicals to a minimum.

Examples include the use of livestock to control weeds; biological control of insect pests with predators and parasitoids; disease control through cultural management; rat control with barn owls and accepted practice of allowing soft weeds to thrive in the plantation.

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Downstream
Mill Effluent

CHARACTERISTICS OF POME Parameter* Mean pH 4.2 Biological Oxygen Demand Chemical Oxygen Demand Suspended Solids Volatile Solids Oil and Grease Ammoniacal Nitrogen Total Nitrogen Range 3.4 - 5.2

25000 10250 - 43750

The processing of oil palm fresh fruit bunches (FFB) primarily for palm oil also results in the production of wastes, in the form of palm oil mill effluent (POME), empty fruit bunches, mesocarp fibre and shell. When the industry was at its infancy in the 1960's, ignorance compelled us to dispose POME into the waterways or to adopt other methods at our convenience. The problem of pollution accruing from a mere 92,000 tonnes of production by only 10 mills was not apparent then. The environment could somehow absorb these wastes.

51000 15000 - 100000

Total Solids 40000 11500 - 79000 18000 34000 6000 35 750 5000 - 54000 Effluent Treatment Plant 9000 - 72000 130 - 18000 4 - 80 180 - 1400
This lackadaisical attitude did not last long. By the 1970's the growth of the industry was literally exponential, bringing along with it pollution, which the waterways could no longer handle so much so that palm oil processing became synonymous with POME pollution. Tonne for tonne, the oxygen depleting potential of POME is 100 times that of domestic sewage. The industry thus faced a major problem, as it virtually lacked any proven technology to treat POME.

*Units in mg/l except pH

Anaerobic Tank Digesters Aerobic Ponds with Surface Mechanical Aerators

In being committed to overcome the problem, the government and the industry worked together to source for treatment technologies that were environmentally and economically sound. Unfortunately, none was available anywhere in the world then, to specifically treat POME. The government-industry synergy towards a common goalpollution abatement therefore paid off handsomely. Systems for the treatment of organic industrial wastes were successfully adapted for POME treatment. The three most commonly used systems were the ponding system, open tank digester and the extended aeration system, and the closed anaerobic digester and land application systems.

An Effluent Pond

back to top Environmental Quality Regulations

PALM OIL MILL EFFLUENT DISCHARGE STANDARDS Parameter* pH Biological Oxygen Demand Chemical Oxygen Demand Total Solids Suspended Solids Oil and Grease Ammoniacal Nitrogen Total Nitrogen Temperature (C) Std A Std B Std C Std D Std E Std F 1/7/78 1/7/79 1/7/80 1/7/81 1/7/82 1/7/84 5-9 5-9 5-9 5-9 5-9 5-9 5000 2000 1000 500 250 100

The year 1978 witnessed the enactment of the Environmental Quality Regulations detailing POME discharge standards. BOD was the key parameter in the standards. From the initial BOD of 25 000 ppm of the untreated POME, the load was reduced to 5 000 ppm in the first generation of discharge standard, down to the present BOD of 100ppm.Efforts are in progress to move down to 50ppm, and in places where discharge into water ways is needed, R&D is actively pursued to reduce the BOD load to 20ppm.

10000 4000 2000 1000 4000 2500 2000 1500 1200 150 25 200 45 800 100 15 100 45 600 75 15 75 45 400 50 10 50 45

400 50 150 45

400 50 100 45

*Units in mg/l except pH and temperature

back to top By-Products of Milling

The bold step taken by the industry has paid dividends in two distinct ways: firstly, the unequivocal pollution abatement culminated in cleaner waterways, and secondly, the emergence of various by-products has resulted from the treatment systems. POME, either in its raw or treated forms, contains a high level of plant nutrients. When the BOD level is brought down to below 5,000 ppm, the digested POME is allowed for land application. Studies by various groups have demonstrated that such an application has been beneficial to oil palm, besides the saving on fertilizer cost extensively. Long term studies have also established that water quality of the applied area has not been affected.

Flaring of Biogas

Biogas Storage

The advancement in treatment technology has also seen the introduction of the decanter-drier system. This system has reduced the volume of clarification sludge by 75%, while at the same time solid from POME using a rotary drier has also been harnessed. The drier obtained its heat from the boiler exhaust gas. The system, while reducing the volume of effluent has also helped reduce the problem of air pollution. The dried solids have been used as soil conditioners and animal feeds.

Application of Treated Effluent

Empty fruit Bunches

The anaerobic digestion of POME produces another valuable product, that is biogas. It is estimated that about 20 000 cubic meters of biogas can be obtained per day from 60 tonne FFB per hour mill operating for 20 hours. The biogas has a calorific value of 53 000 kcal per cubic metre. Substantial savings on fuel can be obtained when the biogas is harnessed for heat and electricity generation. Other solid wastes such as mesocarp fibres and shells are the main sources of energy in the palm oil mills. Together, they can produce sufficient energy to meet the mills energy requirements.

ANNUAL FERTILIZER EQUIVALENTS OF DIFFERENT TYPES OF POME PRODUCED BY A 60 TONNE FFB/hr MILL -Fertilizer Ammonium Sulphate Rock Phosphate Raw Effluent Tonnes RM Digested Effluent Tonnes RM Ditch Supernatant Tonnes 343 71 RM 120 050 17 395

761 266 350 292 71 540

685 239 750 221 54 271

Muriate of Potash Kieserite Limestone Dust -

713 249 550 563 212 814 220 11 660 - 811,914

563 197 050 446 168 784 188 9 994

375 272 98 -

131 250 102 816 5 194 376,705

- 669,849

TYPES OF POME AVAILABLE AND THEIR CHEMICAL COMPOSITION Type of POME Raw a. Stirred Tank b. Supernatant (Ditch) c. Botton (Tank) Slurry BOD 25000 1300 450 1000 3000 100 150 - 300 N 948 900 450 3552 P 154 120 70 1180 K 1958 1800 1200 2387 Mg 345 300 280 1509

Digested (Anaerobic)

Digested (Aerobic) a. Supernatant b. Bottom Slurry 52 1495 12 461 2300 2378 539 1004

Units in mg/l

The empty fruit bunches (EFB), have traditionally been burnt and their ash recycled into the plantation as fertilizer. However, due to the pollution problem, the incineration of EFB has been discouraged. Instead EFB is returned to the field to act as mulch.

Palm Fibres

Palm Shell

back to top Conclusion

It is apparent that the oil palm industry is eco-friendly in every aspect of its activities. There may be occasional reports of incidences of environmental transgressions, but when this happens, perpetrators will be subjected to legal action. The achievement in controlling POME pollution bears testimony to the seriousness of both the government and the private sector to see a greener Malaysia. Together they have formed a synergistic teamwork that tackles the problem in record time. Indeed, the solution to the POME problem has paved the way for the growth of the industry to what it is today.