“Climate change mitigation & adaption in Thai Palm Oil

Sustainable Palm Oil Production for Bio-Energy

“Climate change mitigation &

adaption in Thai Palm Oil Industry”

Aug 19, 2011

Presented by

Mr. Daniel May

(Project Director)



Content

Overall framework

GHG emission results

Recommendations

GHG mitigation

GHG adaptation

2Aug 19, 2011


Overall framework

Main objectives are :

1. Development of GHG calculation methodology to

promote consistency and good practice

2. Development of emission factors for various stages

of a whole palm oil life cycle

3. Development of recommendations on GHG

reduction options

4. Recommendations for policy makers

3Aug 19, 2011


Overall framework

A cooperation of :

4Aug 19, 2011


Overall framework

5Aug 19, 2011


Land use change• Land use change scenarios were

chosen from data collected from 52

farmers in various parts of Thailand

• GHG calculations were done with

literature default values and

equations based on the farming

practices.

• IPCC’s 2006 Guidelines for National

Greenhouse gases Inventory

– Stock-Difference method is

chosen for the study

Aug 19, 2011 6


Land use change scenarios

• Cropland converted to cropland

– Rubber to Palm

– Crop farm to Palm

– Fruit orchard to Palm

– Paddy rice to Palm

• Land converted to cropland

– Forest to Palm

– Unused land to Palm

Land use

change

Change in biomass C

stock

Change in soil C stock

Non-CO2

GHG emissions from LUC

Change in DOM C stock

Aug 19, 2011 7


GHG balance comparisonCase example GHG balance (Ton CO2eq ha-1 yr-1)

First approach1 Second approach2

Rubber 8.72 -2.16

Field crop -17.55 -2.67

Fruit orchard -12.82 0

Paddy field -17.69 -1.79

Forest 8.51 24.41

Unused land -18.89 -2.98

Note: 1. Consider crop biomass and dead organic matter as ‘carbon stock’

2. Not consider crop biomass and dead organic matter as ‘carbon stock’

8Aug 19, 2011


System boundary

Active Ingredient

Production

Process

N-Fertilizer

Production

Process

P-Fertilizer

Production

Process

K-Fertilizer

Production

Process

Boron-Fertilizer

Production

Process

Kieserite

Production

Process

Transportation

To Thailand

Ports

Transportation

To Thailand

Ports

Transportation

To Thailand

Ports

Transportation

To Thailand

Ports

Transportation

To Thailand

Ports

Transportation

To Thailand

Ports

Mixed Fertilizer

Production Process

Oil Palm Seed

Production Process

Organic Fertilizer

Production Process

Transportation From

Suppliers To

Cultivation Fields

Transportation From

Suppliers To

Cultivation Fields

Transportation From

Suppliers To

Cultivation Fields

Oil Palm

Cultivation

Process

Agro-Chemical

Production Process

Transportation From

Suppliers To

Cultivation Fields

Local

Transportation

To Plant

Local

Transportation

To Plant

Local

Transportation

To Plant

Local

Transportation

To Plant

Local

Transportation

To Plant

Local

Transportation

To Plant

Electricity

Production

Fuel

Production

Import

FFB

Cultivation

Aug 19, 2011 9


Upper Southern

Phetchaburi, Prachuapkhirikhan

Eastern

Chonburi, Trat, Rayong, Chanthaburi, Prachinburi, Sakaeo, Chachoengsao

Eastern-Lower Southern

Chumphon, Suratthani, Nakhonsithammarat, Songkhla, Phatthalung, Yala, Pattani, Narathiwat

Western-Lower Southern

Ranong, Phangnga, Krabi, Trang, Phuket, Satun

Classified by amount of rainfall annually

Data Collection

Aug 19, 2011 10


Methodology

Functional unit

• 1,000 kg of FFB

Data Allocation

• none

Data Cut-off

• Emission factor of seed production

Data substitution

• none

Aug 19, 2011 11


Aug 19, 2011

Palm oil mill

FFB

Chemical

Fuel

Electricity

Transport

Transport

Transport

CPO Process:

Fuel

combustion

CPO

PK

EFB

Shell

Fiber

Wastewater Treatment Plant

Decanter cake

Data collected from14 participating mills (10 mills with BG

capture and 4 mills w/o BG capture) ⇨ ~32% of total capacity in Thailand

Product

By-Product

Waste

System Boundary12


Methodology

Functional unit

• 1,000 kg of CPO

Data Allocation

• Energy

Data Cut-off

• None

Data substitution

• None

13Aug 19, 2011


Palm oil refinery

Palm oil refining

RBDPO PFAD

RBO Stearin RBO Olein

Fractionation

CPO

1

2

Data collected from 6

participating factories

⇨ ~63% of total

capacity in Thailand

System boundary

Aug 19, 2011 14


Functional unit • 1,000 kg of each product

Data Allocation• By energy

Data Cut-off

• None

Data substitution

• None

Methodology

Aug 19, 2011 15


Biodiesel production

CPO

Palm Stearine

RBDPO

Methanol

KOH

H2SO4

NaOH

HCl

H3PO4

Fuel oil

Oil palm sheel

LPG

Harbour

Foreign

Data collected from 7

participating factories

⇨ ~87% of total capacity

in Thailand

Product

B100

By-product

Glycerin

System boundary

Biodiesel production

Aug 19, 2011 16


Methodology

Functinal unit

• 1,000 kg of B100

Data Allocation

• Energy

Data Cut-off

• None

Data substitution

• Emission factor of Additives => substituted by the highest

EF of phenolic group

Aug 19, 2011 17


Content

Overall framework


Recommendations

GHG mitigation

GHG adaptation

18Aug 19, 2011


1. Avg/W biogas

. Avg./WO biogas

. Avg. Thailand

4. Best observation

Thailand [

South East Asia [

Malaysia (WO /biogas)[

Malaysia (W/ biogas) [

Brazil [

China [

US [

Australia [

France [

Europe [

Japan [

Oil

pal

m (T

his

stu

dy)

Oil

pal

mSo

ybea

nR

apes

eed

Cultivation Palm oil mill Palm oil refining Biodiesel production

GHG emissions

232

329

298

318

155

347

684

466

36

105

133

108

121

157

157

157

Aug 19, 2011 19

Kg CO2 / Ton B100

Note: GHG emissions w/o Land Use Change


0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08

1. Avg/W biogas

2. Avg./WO biogas

3. Avg. Thailand

4. Best observation

Thailand [1]

South East Asia [2]

Malaysia (WO /biogas)[3]

Malaysia (W/ biogas) [3]

Brazil [4]

China [5]

US [4]

Australia [6]

France [7]

Europe [4]

Japan [8]

Die

sel

Oil

pa

lm (

Th

is s

tud

y)

Oil

pa

lmS

oy

be

an

Ra

pe

see

d

Cultivation Palm oil mill Palm oil refining Biodiesel production

% GHG reduction

EU-RED requirement50% (2017)60% (2018) 35% (2012)

Aug 19, 2011 20

Kg CO2 / MJ B100

68%

57%

64%

81%


Reference

Aug 19, 2011 21

Feedstock Symbol Research topic Location Institute Year

Oil palm

[1]

Technical, Economic and Environmental

Evaluation of Biofuel Production in

Thailand.

Thailand FAO 2010

[2]GHG Accounting Methodology and

Default.South East Asia IFEU 2008

[3]

Determination of GHG contributions by

subsystems in the oil palm supply chain

using the LCA approach.

Malaysia Yuen May Choo,et al 2010

Soybean

/ Rapeseed[4]

Final Report Eco-invent 2000,” SimaPro

7.0, Amersfoort.EU, Brazil, US Pre consultant 2003

Soybean

[5]

Life cycle energy, environment and

economic assessment of soybean-based

biodiesel in China.

China Tongji University 2008

[6] Comparison of transport fuels. AustraliaAustralia Greenhouse

office2009

Rapeseed

[7]Energy and greenhouse gas balances of

biofuels production chains.France

French Environmental

and Energy Management

Agency

2002

[8]

Well-to-Wheel Analysis of Greenhouse

Gas Emissions of Automotive Fuels in

the Japanese Context

Japan Toyota 2004


Content

Overall framework


Recommendations

GHG mitigation

GHG adaptation

22Aug 19, 2011


GHG mitigation - I

Aug 19, 2011 23

1. Increase productivity and quality (%OER)

2. Optimize fertililzer consumption through:

• Leaf & soil analysis ⇨ Apply fertilizer in

the right time at the right amount

• Use slow release (osmocote) N-fertilizer

• Substitute synthesis N-fertilizer by high

N- organic fertilizer

1. Sourcing FFB from the nearest source

2. Wastewater management

• Install biogas system

• Using air stripping tower to reduce Temp

• Upgrading the open pond to be the cover

pond

• Enhance the performance of biogas

system

• Changing stabilization pond to aerated

lagoon

54%

N2O from N-fertilizer

27%

Production of

N-fertilizer

7%

Transportation of raw mat.

to plantation

57%

CH4 from

Wastewater

60%

open pond

16%

biogas plant

24%

stabilization pond41%

Prod. & Trans.

of FFB


GHG mitigation - II

Aug 19, 2011 24

• Sourcing CPO from the mill with

biogas capture.

• Substitute dirty fossile fuel (crude oil,

diesel) by cleaner fuel (NG) or

renewable energy (biomass, biogas)

• Improve logistic system by selecting

the nearest suppliers, transported by

marine, full loading truck, and etc.

• Subtitute systhesis Methanol by

Bioethanol or Biomethanol

• Install biogas capture system ⇨generate electricity

• Use cleaner fuel instead of dirty fossil

fuel

• Apply Co-generation technology (heat

exchanger) ⇨ maximize energy efficiency

73%

Chemical substance

11%

Production

of energy

10%

CO2 from combustion

6%

Transportation

Raw material

95%

CO2 from combustion

2%Electricity

3%


Adaptation• Integrated analysis to evaluate impact of climate

change on oil palm

• Research and dissemination of crop varieties and

breeds adapted to changing climatic conditions

• Improving local farmer or stallholder knowledge on good farm management practice ⇨ these

practices are identified reducing GHG emissions

Aug 19, 2011 25

The project’s

support


Capacity building : smallholders

Aug 19, 2011 26

Increase FARM PRODUCTIVITY

Improve FRESH FRUIT BUNCH QUALITY

Internalize SUSTAINABILITY

Best Practices to comply with

standard (Socio, Eco. Environ.)

Farmer group &

institutional development

Database management

system (record book, GPS)

Internal Control System

Mutual interest, benefit &

information sharing

Long-term relationship &

interdependence

Training & technical support: Fertilizer Management,

Leaf & soil analysis, Oil palm farm management

Farm inputs coordination: seedling, fertilizer, EFB

Price premium based on

quality

Grading system

Harvesting and fruit

handling guidelines/training

Technical Support, Capacity Building, Value Chain Coordination, etc…


Contact Info:

Mr. Daniel May E: [email protected]

Ms. Kanokwan Saswattecha E: [email protected]

Aug 19, 2011 27


mailto:[email protected]

mailto:[email protected]

Documents

“Climate change mitigation & adaption in Thai Palm Oil