Options for sustainability improvement and biomass use in Malaysia : Palm oil production chain and biorefineries for non-food use of residues and by-products including other agricultural crops

The Division Biobased Products of the WUR institute A&F was approached by the Dutch Ministry of Agriculture, Nature and Food Quality with a policy support question about the potential of Bio-based economic developments in Malaysia. Malaysia is one of the major international trade partners of the Netherlands. Annually 4.500 – 5.000 million euro’s worth of goods are imported from Malaysia. The Netherlands are Malaysia’s most important trading partner within the EU. The volume of agricultural commodities and especially palm oil products are substantial and the use of biobased resources for the generation of energy or biofuel has created a fierce debate on the sustainability of expansion of use of the biomass resources. In the context of the international policy to support the transition towards a biobased economy the potential resources that can be used for production of materials, chemicals and energy needs to be indentified. This report is reviewing the options that the current Malaysian agro-forestry sector may provide for sustainable developments. The main conclusions are that especially the currently underutilized residues and polluting wastes from the palm oil production have big potential for value addition and technical product development that also could substantially contribute to the reduction of greenhouse gas emissions. Examples can be found in fermentation of residues and effluents to produce bio-gas / ethanol or bioplastics but also fibre boards and building materials. Demonstration on pilot scale of such technologies could create new business and bilateral interactions between Malaysia and The Netherlands.