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Economic Sustainability Assessment of Biofuels Production from Oil Palm Biomass

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Sustainability of Biofuel Production from Oil Palm Biomass

Part of the book series: Green Energy and Technology ((GREEN))

Abstract

The production of palm biofuels provides the prospects for new economic opportunities for most people in rural communities in developing countries. Oil palm cultivation and palm oil milling provide wide avenues for people in terms of job creation, investment opportunities, etc. In spite of all the benefits of palm biofuels, they are also found to cause negative socio-economic impacts to the society. The economic impacts of oil palm and palm biofuels production are elaborated in this chapter. Oil palm biomass is a cheap source of feedstock for palm biofuels compared to other feedstocks used for biofuel production. In this chapter, biodiesel production from palm oil and palm fatty acid distillate (PFAD) are found to be economically viable compared to fossil diesel and biodiesel from other oils. Bioethanol and biomethanol production from oil palm biomass are also found to be cost competitive compared to gasoline and other cellulosic ethanol. Other potential types of palm biofuels are assessed for economic sustainability and improvement options are also suggested in this chapter.

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Notes

  1. 1.

    The agricultural cost per tonne of oil palm fresh fruit bunch (FFB) from smallholders and big companies were US$46.99 and 22.32, respectively, according to the studies of Quintero et al. (2012).

  2. 2.

    The price of palm oil from a commercial mill that generates its own electricity from the palm wastes was US$92.50 (ex-factory price).

  3. 3.

    Scenario 1: Both smallholders and commercial producers; Scenario 2: Only commercial producers.

  4. 4.

    Palm biodiesel price is lower (US$1.33) than the prices of soybean oil biodiesel (US$1.42) (Quintero et al. 2012) and jatropha biodiesel (US$1.96) (Quintero et al. 2012).

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  1. School of Chemical Engineering Campus, Universiti Sains Malaysia, Seri Ampangan, Nibong Tebal, 14300, SPS Penang, Malaysia

    Keat Teong Lee & Cynthia Ofori-Boateng

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  1. Keat Teong Lee
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Correspondence to Keat Teong Lee .

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Lee, K.T., Ofori-Boateng, C. (2013). Economic Sustainability Assessment of Biofuels Production from Oil Palm Biomass. In: Sustainability of Biofuel Production from Oil Palm Biomass. Green Energy and Technology. Springer, Singapore. https://doi.org/10.1007/978-981-4451-70-3_6

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  • DOI: https://doi.org/10.1007/978-981-4451-70-3_6

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