Malaysia lagging in palm biofuel research, says economist

Malaysia has not done enough research on palm oil derived biodiesel although Malaysian palm oil companies are well-poised to take advantage it, according to economist Jomo Kwame Sundaram.

Countries such as Cuba, Brazil, the US and European countries have each enacted policies to promote biofuels such as bioethanol derived from sugar cane and biodiesel derived from soybean oil, he said. These are a part of a broader move towards using renewable energy sources.

Similar progress is not being made with palm oil, although it is the cheapest vegetable oil, and Malaysians had already heard about it as far back as 30 years ago, he said.

In addition, Malaysia is also the second largest palm oil producer in the world.

"Malaysian palm oil companies are well placed to take advantage of this, but unfortunately the effort in terms of research, in terms of development, and in terms of discussing these issues much more creatively are not quite there," he told a public lecture organised by the Institute of Strategic and International Studies (Isis) in Kuala Lumpur today.

Jomo, who is the Tun Hussein Onn Chair of International Studies holder at the research institute, argued that success in promoting palm-oil derived biodiesel could deflect some of the criticisms leveled by environmentalists against Malaysian's oil palm industry.

"The whole situation could be turned around if Malaysia could show its major contribution, not only in renewable energy (through biofuels), but also sustainable development," he said during his lecture themed "Sustainable development in Malaysia?".

Not enough genetic research

During his talk, Jomo argued that the world needs to raise standards of living while simultaneously tackling climate change. This would make it necessary to take advantage of renewable energy sources in order to mitigate the effects of climate change.

To do so, among others, would need specific policies to promote renewable energy sources as done by other countries.

Other initiatives needed include the transfer of technologies from richer to poorer countries, as well as more flexible rules on intellectual property rights.

Meanwhile, chairperson of the oil palm plantation company United Malacca Bhd, Tan Siok Choo, said Malaysia is also lagging behind in genetic engineering research, where there is an interest in creating shorter oil palm trees.

She explained that although the trees could live between 80 and 100 years, the palm oil industry normally cuts them down at only 25 years old.

This is because the trees would otherwise grow too tall to be harvested with current methods.

Damaging to Malaysian vehicles only?

In Philippines and Indonesia however, the two countries had been able to genetically modify coconut trees to grow only up to seven feet (2.1 metres) tall.

"I have visited Indonesia's research institute and I asked them if they are also looking into oil palm, and they are," she said.

She added that Malaysia had barely started introducing biodiesel, and even then the effort was resisted by vehicle manufacturers over concern that it could damage their engines.

However, Indonesia is already introducing diesel fuels with 30 percent biodiesel content (B30), she said.

"So you may ask why our cars won't be able to use biodiesel, but not cars in Indonesia," she said.

Biodiesel is currently available in the B7 grade in Malaysia, whereas introduction of the B10 grade had been delayed over concerns of engine damage and increased palm oil prices.- mkini