Different palm oil production systems for energy purposes and their greenhouse gas implications

Abstract

This study analyses the greenhouse gas (GHG) emissions of crude palm oil (CPO) and palm fatty acid distillate (PFAD) production in northern Borneo (Malaysia), their transport to the Netherlands and their co-firing with natural gas for electricity production. In the case of CPO, conversion to biodiesel and the associated GHG emissions are also studied. This study follows the methodology suggested by the Dutch Commission on Sustainable Biomass (Cramer Commission). The results demonstrate that land use change is the most decisive factor in overall GHG emissions and that palm oil energy chains based on land that was previously natural rainforest or peatland have such large emissions that they cannot meet the 50–70% GHG emission reduction target set by the Cramer Commission. However, if CPO production takes place on degraded land, management of CPO production is improved, or if the by-product PFAD is used for electricity production, the emission reduction criteria can be met, and palm-oil-based electricity can be considered sustainable from a GHG emission point of view. Even though the biodiesel base case on logged-over forest meets the Cramer Commission's emission reduction target for biofuels of 30%, other cases, such as oil palm plantations on degraded land and improved management, can achieve emissions reductions of more than 150%, turning oil palm plantations into carbon sinks. In order for bioenergy to be sustainably produced from palm oil and its derivatives, degraded land should be used for palm oil production and management should be improved.