PALM DOWNSTREAM TRIBUNE
Decoding Palm Oil: Essential Insights for Balanced and Informed Sustainability
Conversations Part I
Sustainability
Hydrotreated Vegetable Oil (HVO): A Sustainable Fuel Driving the Future of Transport
Palm
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Latest News Roundup A quick digest of the latest policies and market trends.
11-19
Knowledge Nugget
Decoding Palm Oil: Essential Insights for Balanced and Informed Sustainability Conversations Part I
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Malaysia: Echoes of The Past Remembering COVID-19 in the Plantation Sector: A Re ection on Business Continuity
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Malaysian Palm Oil Key Mid & Downstream Stakeholders: Ministry, Its Agencies And Related Associations
20-22
Sustainability
Hydrotreated Vegetable Oil (HVO): A Sustainable Fuel Driving the Future of Transport
23-24
Muar Ban Lee 1-2, 25
Next Chapter Media Back Cover Exploring Carbon Credits 29 9-10
Training Solutions Malaysia
Malaysia is strengthening collaboration with India on palm oil production, supporting India's research and development e orts. Malaysia is also prepared to meet India's growing demand for palm oil, working with companies like Emami Agrotech. During a recent visit to India, Prime Minister Anwar Ibrahim discussed expanding trade and investment with major Indian companies, including HCLTech and Tata Consultancy Services (TCS). HCLTech plans to expand its operations in Malaysia, focusing on AI and digital engineering, creating over 1,500 jobs. TCS is set to double its workforce and open an AI and Cyber Security Centre. Malaysia continues to attract digital investments, with nearly RM162 billion approved between 2021 and 2024. e visit resulted in potential trade agreements worth RM8 billion across various sectors.
Malaysia Ready to Meet
India’s Palm Oil Demand, Supports R&D Initiatives
Palm oil downstream industry in Sabah attracting Chinese
Sabah's palm oil downstream sector recently drew interest from three Chinese companies, which visited the state to explore investment and collaboration opportunities. Datuk Chan Foong Hin, Deputy Minister of Plantation and Commodities, noted the companies' focus on value-added processing, such as palm kernel cake (PKC) and biomass energy, including sustainable aviation fuel (SAF) from palm oil mill e uent (POME) and used cooking oil (UCO). Chan highlighted the potential for Sabah, Malaysia's top palm oil producer, to enhance its downstream industry and generate signi cant economic bene ts. e Chinese delegation toured the Sawit POIC Sandakan Industrial Park and engaged in discussions about investment incentives and opportunities.
(22 August 2024)
investors
(19 August 2024)
PETRONAS, Eni, and Euglena are jointly exploring the development of a biore nery at the Pengerang Integrated Complex (PIC) in Malaysia. e plant, expected to be operational by 2025, will focus on producing Sustainable Aviation Fuel (SAF) and Hydrogenated Vegetable Oil (HVO). It aims to process 650,000 tonnes of non-food raw materials annually, yielding up to 12,500 barrels per day of biofuels. e project highlights PETRONAS’ push into biofuels as part of its Net Zero Carbon Emissions by 2050 strategy, leveraging Eni’s re ning technology and Euglena’s biofuel expertise to decarbonise global transportation.
PETRONAS, Eni and Euglena to Explore Biore nery Opportunity in Malaysia
ailand to implement 1% SAF
(by Erin Voegele)
ailand's newly proposed National Energy Plan (NEP 2024) includes a sustainable aviation fuel (SAF) target of 1% by 2026, gradually increasing to 8% by 2036. e plan aims to cut greenhouse gas emissions, with biofuel consumption expected to hit 2.76 billion litres by 2037, of which 675 million litres will come from SAF. e shi re ects ailand's focus on electric vehicles and reduced ethanol and biodiesel targets. SAF production will rely on used cooking oil (UCO) initially, with alcohol-to-jet SAF expected as the blend rate grows. Bangchak Corp.’s SAF facility will start in 2025, producing 1 million litres daily.
Indonesia's Prabowo hopes to implement 50% palm-based biodiesel blending by 2025
JAKARTA, Aug 26 (Reuters) — Indonesia’s president-elect Prabowo Subianto aims to implement a mandatory 50% palm oil-based biodiesel blend (B50) by early next year. He believes this initiative will cut fuel imports by $20 billion annually. Currently, Indonesia plans to increase the blend to 40% in January 2025, up from the present 35%, as part of its e orts to reduce fuel imports and lower fossil fuel emissions.
Prabowo, who will take o ce in October, is poised to continue the e orts of the outgoing president, Joko Widodo. Widodo's administration had already directed the palm oil industry to prepare for the B50 blend, with preliminary tests underway. “We are at B35 now and will accelerate to B40, and then B50,” Prabowo stated late Saturday. “By achieving B50—50% biodiesel made from palm oil—by the end of this year or early next year, we can save USD$20 billion annually that would otherwise go overseas.”
However, Indonesia’s largest palm oil producers’ association, GAPKI, has expressed concerns about the feasibility of B50 by early 2025, citing a lack of su cient testing. e Indonesia Biofuel Producers Association (APROBI) has also highlighted the need for time to test the B50 fuel and scale up production capacity. Biofuel expert Tatang Hernas Soerawidjaja from the Bandung Institute of Technology warned that biodiesel's susceptibility to forming sediment could clog engine lters, necessitating new equipment and extensive testing. GAPKI estimates that B50 will require about 18 million metric tons of crude palm oil, compared to the 11 million metric tons needed for B35 this year. Since 2019, palm oil consumption in Indonesia has grown at an average rate of 7.6% annually, while production has increased by less than 1% per year. e expansion of the biodiesel mandate is expected to reduce export volumes. Achieving a 50% blend in the near term may be challenging due to the required trials, with even a 40% blend being a signi cant task, according to a Mumbai-based trader. Indonesia’s biodiesel mandate covers land transportation, trains, industrial machinery, and diesel power plants. In addition to its biodiesel programme, Indonesia is also developing palm-based jet fuel and has conducted ight tests, although the planned 3% biofuel blending for jet fuel by 2020 has been delayed.
As the world's largest palm oil producer, Indonesia's push to expand its biodiesel program aligns with its broader strategy to reduce fossil fuel dependence, support the agricultural sector, and mitigate carbon emissions. Since 2008, Indonesia has gradually increased its biodiesel blend from B2.5 (2.5% palm oil) to B35, with a goal of reaching B50 by 2029.
e programme aims to achieve several objectives: reducing reliance on imported fossil fuels, supporting palm oil farmers, and addressing climate change by cutting greenhouse gas emissions. However, this ambitious expansion raises concerns about potential impacts on global palm oil supply chains, food security, and environmental sustainability.
Indonesia’s dominance in the global palm oil market—accounting for 59% of global production—means that its biodiesel program could signi cantly a ect global supply. In 2023, the use of domestic biodiesel surpassed food consumption for the rst time, raising food security concerns. Furthermore, stagnant palm oil production since 2020 and rapidly growing biodiesel demand could lead to tighter export quotas or increased domestic production, potentially causing global supply shortages.
e expansion of palm oil production also faces criticism for environmental degradation and deforestation. To balance its renewable energy goals with economic and environmental considerations, Indonesia must manage its palm oil supply chain sustainably, ensuring that it meets its global commitments without causing ecological harm. Ultimately, Indonesia's success in advancing its biodiesel programme while navigating these challenges will determine its ability to lead in renewable energy and maintain its environmental commitments.
Import Duty Hike by India — Impact on FMCG and Palm Oil Industry
E ective 14th September 2024, India has implemented a signi cant increase in import duties on crude and re ned edible oils. is policy shi is part of the government’s strategy to protect farmers from oilseed prices falling below the minimum support price. is decision is set to in uence the prices of various fast-moving consumer goods (FMCG) , where palm oil and its derivatives are widely used.
Price Implications for FMCG
Personal care product manufacturers, reliant on palm oil and its derivatives, and snacking companies whose re ned palm oil (RPO) consumption is notably high bear most of the brunt as the ripple e ect from the duty hike is felt in their incomes. According to Gaurav Arora, Fund Manager at Equirus, while some companies have hedged their palm oil requirements in the short term, the medium-term outlook may force them to raise prices to defend their margins. "Margins may compress temporarily, but the impact should be manageable," said Arora.
Major FMCG companies are preparing for price adjustments:
· Hindustan Unilever (HUL): Sourcing palm fatty acid distillate (PFAD) locally, HUL may need to raise price by 1.6%, as PFAD accounts for 12-13% of its raw material cost.
· Biscuit maker Britannia will have to raise price by 2.5% as RPO accounts for 18% of its raw material.
· Nestle may increase prices by 1.5%, given that RPO constitutes 11% of its raw material.
Managing Consumer Impact
e increased import duties are expected to drive up consumer prices, though through the Ministry of Consumer A airs, Food and Public Distribution, the government has advised the industry to maintain current maximum retail prices (MRP) as long as stocks imported before a duty hike lasts.
Market Reactions and Adjustments
CIMB Securities said India's decision will raise costs for imported oils and reduce palm oil's competitiveness. As a result, this could lead to decreased demand in India and potentially lower CPO prices. For re ners in Malaysia and Indonesia, the impact is expected to be neutral. e re ning spread advantage for Indian re ners remains unchanged at 8.25 percentage points between the duties on crude and re ned edible oils.
Re ners Cancel Contracts as Prices Surge
e international surge in palm oil prices, coupled with the duty hike, led to the cancellation of 100,000 metric tons contracts for palm oil to be imported to India from October to December. According to trade o cials, re ners began cancelling contracts a er Malaysian palm oil futures reached their highest levels in over two months. is cancellation represents about 13.3% of India’s monthly palm oil imports.
“ e he y duty hike and the jump in Malaysian prices caught everyone o guard," said an Indian buyer. With higher prices in the o ng, re ners are now reaping higher margins and are abrogating contracts that are unfavourable to push more products to the market.
Demand Projections
Although there is short-term pressure on demand, demand for edible oils in the long run in India is still high. Market speculations expect a rise in the consumption of edible oil in the 2024 – 2025 marketing year to be between 2% and 3%. is will help to sustain demand even a er the prices are adjusted due to population and a uence growth. A glimpse of such optimism is exhibited by Sanjeev Asthana, the Chief Executive O cer of Patanjali Foods Ltd who expects demand from cooking oils to remain high as a result of the approaching festive season.
Palm oil stands as a testament to human ingenuity and agricultural excellence, ranking among the top ten vegetable oils traded globally. With a history spanning over 5,000 years, it is now a staple in 1 in 10 food products on grocery shelves worldwide. is versatile oil is a crucial yet o en overlooked component of our modern food systems.
In Malaysia, the oil palm industry is a source of national pride. Over the past 67 years since independence, Malaysia has become a global leader in palm oil production and export, driving socio-economic prosperity and ensuring political stability. e industry's growth has profoundly improved the lives of many, particularly in rural areas and among smallholders.
Despite these signi cant contributions, the full impact of Malaysian palm oil is frequently undervalued. e debate around oil palm o en swings between viewing it as a blessing or a detriment. As one of nature’s gi s, palm oil o ers the golden opportunity to provide a meaningful and positive impact on the global landscape.
In the pursuit of sustainable development, true progress must address not just environmental concerns but also social and economic dimensions.
e 1987 Brundtland Report, "Our Common Future," emphasises that sustainability involves a holistic approach integrating these three aspects. For developing countries, development should be central to sustainability discussions, ensuring that progress is both green and equitable.
e "Triple Bottom Line" of Planet, People, and Pro t is a popular sustainability framework but o en re ects the priorities of developed nations. For developing countries, especially those reliant on agriculture, a broader perspective is needed. Sustainability here means optimising limited land resources to boost livelihoods while protecting the environment. e cultivation of crops like oil palm in Malaysia illustrates how development and sustainability can co-exist.
Decoding Palm Oil: Essential Insights for Balanced
and Informed Sustainability
Conversations Part I
Palm oil, a key agricultural commodity in many tropical countries along the equator belt, shows how industry can foster economic growth while supporting environmental stewardship. In Malaysia, the palm oil sector has driven signi cant socio-economic progress, bene ting millions especially smallholder farmers. is success story highlights how responsible management can make agricultural industries engines of development.
e principle of Common but Di erentiated Responsibilities (CBDR), established at the 1992 Earth Summit, acknowledges the di erent capacities and responsibilities of nations. Developed countries, having industrialised earlier and contributed more to greenhouse gas emissions, face di erent expectations compared to developing nations. CBDR recognises that while all countries share environmental challenges, approaches should re ect their unique circumstances.
For developing countries, incorporating development into the sustainability model is crucial. e palm oil industry, when managed with a focus on both economic and environmental sustainability, can serve as a model for how emerging economies can thrive. Embracing and optimising such industries allows developing nations to advance sustainably, proving that economic progress and environmental care can go hand in hand.
e call to action is clear: We must support and amplify models that foster development while preserving our planet. As we re ect on the achievements of the Malaysian oil palm industry, we should ask: Does this sector exemplify a sustainable commodity aligned with our future vision of nation building and how to promote it? How can we further support and enhance such models to ensure they lead the way in achieving both national prosperity and sectorial sustainability?
Remarkable E ciency of Oil Palm as an Agricultural Species
e oil palm, botanically known as Elaeis guineensis is a prime example of e ciency and productivity in plantation landscapes, thriving along the equatorial belt within approximately 5 degrees north and south of the equator. It is the most productive oil-bearing crop, thriving with ample sunshine and generous rainfall. with one hectare yielding up to 8 times more oil than other oilseeds - over 3 tonnes annually. In contrast, soybean, rapeseed and sun ower crops produce only 0.46, 0.81 and 0.68 tonnes per hectare per year, respectively. is e ciency highlights the oil palm's potential to meet global demands while using land more e ectively than any other edible oil crop.
Malaysia, home to just 0.4% of the world's population, cultivates oil palm on 17% of its total land area. Despite representing only 0.1% of global agricultural land, Malaysia contributes 20% of the world’s exports of edible oils and fats. Malaysian oil palm growers achieved this without relying on farming subsidies typical in Europe and the US. Instead, they contribute signi cant taxes that support national development and infrastructure.
Oil palm cultivation's energy e ciency further underscores its environmental bene ts. MPOC highlighted that the energy balance, measuring output-to-input ratios, shows that oil palm is highly resource-e cient. Producing a tonne of oil palm requires fewer agrochemicals and fossil fuels compared to other oilseeds. With an energy ratio of 9.6, oil palm far surpasses rapeseed's 3.0 and soybean's 2.5. is e ciency reduces emissions and pollutants, preserving water, soil and air quality, and exemplifying sustainable agriculture.
Average Oil Yield (tonne/ha)
Soybean Oil Palm Sun ower Rapeseed
Source: Oil World (2022)
Palm Oil as Beacon of Socio-Economic Empowerment
Palm oil exempli es how human development and environmental stewardship can co-exist harmoniously. is remarkable crop not only excels in biological e ciency but also drives socio-economic progress, demonstrating that sustainable agriculture can bene t both people and the planet.
Providing for People
Sustainable oil palm cultivation addresses the challenge of balancing human needs with environmental protection. As the most biologically e cient edible oil crop, oil palm delivers the highest energy output per unit of input. It requires fewer pesticides, fertilisers and fuels compared to other oilseeds, making it a model of e ciency that minimises environmental impact while meeting global oil demands.
Source: Oil World & MPOB
Upgrading Livelihoods
Since the 1980s, the expansion of oil palm cultivation in Malaysia has signi cantly improved living standards, especially in rural areas. e sector provides direct and indirect employment to nearly 3 million workers across the supply chain, many from rural communities. Oil palm plantations are economic hubs, o ering jobs, entrepreneurial opportunities and also skills development. ey also provide essential services such as housing, clean water, electricity, healthcare, connectivity, education in plantation and places of worship, enriching countless lives in the plantation landscapes.
Economic and Social Bene ts
Malaysia’s advanced plantation management, bolstered by industry-funded research and development, has propelled the palm oil sector forward. Smallholders bene t from technological advancements through MPOB extension services and expert guidance from larger plantations. e palm oil industry’s downstream activities in processing, food and oleochemicals have spurred economic growth, creating jobs, generating wealth, and contributing billions of ringgits to national revenue. ese funds are reinvested to further economic development and improve social well-being.
Maybank Investment Bank’s report titled “ESG on MY Plantations: e ESG-friendly Side at Is O en Overlooked,” highlighted the plantation sector’s crucial role in Malaysia. Despite facing rising costs and reduced productivity, the sector proved to be a robust pillar, contributing over RM23 billion to government revenues through various taxes and levies. From 2020 to 2023 over Covid-19 pandemic, the plantation industry provided approximately RM6.1 billion in windfall pro t levies, RM3.7 billion in export duties, RM1.3 billion in MPOB cess, RM0.2 billion in Prosperity Taxes, over RM6 billion in Sabah and Sarawak sales taxes, and more than RM6 billion in corporate and individual taxes. ese contributions underscore the sector’s signi cance as a major tax contributor, with its revenue playing a vital role in sustaining the nation.
Poverty Alleviation
Perfomance of Malaysian Palm Oil Industry in 2023
e Federal Land Development Authority (FELDA), established in 1956 along with other government schemes, exempli es how palm oil can be a powerful tool for poverty alleviation. FELDA’s initiatives include developing land schemes, improving infrastructure, and providing land and management services to small farmers. According to MPOC, with 0.72 million hectares of oil palms bene ting around 90,511 settlers and their families, this model has become an inspiration for other developing countries aiming to combat poverty. e success of FELDA highlights palm oil's potential to transform lives and upli communities.
Global Food Security
Palm oil is competitively priced against other edible oils. It is vital to global food security,, with Malaysian exports reaching over 3 billion people across more than 150 countries (MPOC). As populations grow and arable land shrinks, palm oil's a ordability, high yields and nutritional bene ts make it an essential resource in combating global hunger.
E orts to boycott or eliminate palm oil from the food supply are not only misguided but could have dire consequences. Palm oil's e ciency and widespread use make it a cornerstone of food systems worldwide. Removing it could destabilise economies, disrupt supply chains and worsen food insecurity, particularly for vulnerable populations. Ignoring its role undermines economic stability and risks in ating food costs, impacting millions.
Additionally, the importance of palm kernel oil (PKO) during the recent global Covid-19 pandemic was o en overlooked. Alike Cinderella, PKO was crucial in producing personal care, sanitising and cleaning products, highlighting its role as more than just a commodity. During a critical period, PKO proved to be a lifeline for public health and safety, demonstrating its signi cance beyond the food industry.
Time-Tested Ally for Health and Nutrition
Leading a healthy lifestyle involves making conscious choices, including a balanced diet and regular exercise. Palm oil, a revered fruit oil, is central to this balance, o ering numerous dietary bene ts and having been valued for centuries.
Palm oil is unique among cooking oils because it has a balanced mix of di erent types of fats. It contains roughly equal amounts of unsaturated fats, which are generally considered healthier, and saturated fats. e unsaturated fats in palm oil are mainly oleic acid, a type of monounsaturated fat that's good for your health. On the other hand, the main saturated fat in palm oil is palmitic acid. Unlike some other saturated fats, palmitic acid doesn't raise cholesterol levels in your blood. is is di erent from other saturated fats, like myristic acid, which can increase cholesterol.
In a market saturated with oils containing trans fats and other unhealthy additives, palm oil is a trans-fat-free alternative that supports a balanced diet. By incorporating palm oil into your meals, you bene t from a time-tested product that delivers essential nutrients and supports overall health, proving that wisely chosen dietary fats are essential for well-being. 6700 5000
Health experts agree that fats are vital for a balanced diet, enabling the absorption of essential fat-soluble vitamins - A, D, E and K. Despite scepticism about fats per se, they are crucial for optimal health. Palm oil stands out for providing a balanced ratio of both unsaturated and saturated fatty acids. It is particularly noted for its heart-healthy bene ts, as research shows it can help raise bene cial HDL-cholesterol levels, crucial for cardiovascular health.
Both processed and unprocessed palm oil are nutritional powerhouses, rich in tocopherols and tocotrienols, forms of vitamin E known for their antioxidant properties. ese compounds help ght chronic diseases by neutralising harmful free radicals that can damage cells and tissues.
Also to note that crude palm oil is especially high in carotenoids, which are precursors to vitamin A. Vitamin A supports healthy vision and acts as a potent antioxidant, further enhancing palm oil's role in combating oxidative damage. Red palm oil, with its high carotenoid content, may even o er additional heart protection by reducing oxidative stress. Palm oil also excels in cooking due to its stability under heat. It maintains its nutritional integrity during frying and other high-heat methods, unlike some oils that can degrade and also produce harmful compounds at high temperature.
Matchless Palm Oil’s Versatility and Essentiality
Palm oil stands out for its exceptional versatility, unique properties and widespread availability, making it a critical ingredient across multiple sectors. Its unparalleled adaptability makes it indispensable in food, cosmetics, personal care and industrial applications. In the cosmetics and personal care sectors, palm oil is a key component in products such as soaps, shampoos, lotions and makeup. Its natural properties enhance the texture and e ectiveness of these items.
21; Banana: 50; Tomato: 130;
Knowledge Nugget
In the food industry, especially in Asia, palm oil is integral to a broad array of products, including baked goods, snacks, and beverages. Its distinct functionalities, such as stability at high temperatures and resistance to oxidation, make it nearly irreplaceable compared to other edible oils.
One of palm oil's standout features is its ability to be separated and blended for diverse uses. It can be tailored for speci c applications, such as palm-based fats in baking, confectioneries, and cheese analogues. is adaptability makes palm oil a top choice for food manufacturers who require a versatile and functional fat. Being semi-solid at room temperature, palm oil is particularly advantageous for products like margarine. In contrast, oils such as soybean, sun ower, and rapeseed require hydrogenation—a costly process but also introduces harmful trans-fats into the nal products. Palm oil is also slower to oxidation, has a neutral avour, is less gummy, and can withstand high temperatures.
e versatility of palm oil is further ampli ed through fractionation, a process that separates palm oil into two main components: olein (a liquid portion) and stearin (a solid portion). Olein is commonly used as cooking oil, while stearin is utilised as a solid fat. Further fractionation of these components yields many other specialised products such as super olein, palm mid-fraction, super stearin and mid-stearin, each with unique physical characteristics and applications.
is extensive range of applications highlights why palm oil remains a preferred ingredient in the food industry, o ering both versatility and functionality that other oils cannot easily replicate. Needless to say, for those consumers concerned about GMO foods and seeking halal options, it is important to note that palm oil meets both of these criteria.
Cooking Oil
Frying Fats
Shortening/Dough Fats
Vegetable Ghee
Margarine
Specialty Fats for Coatings
Ice Cream Fats
Chocolate Fats
Milk Fats Replacers
Butter Oil Substitutes
Confectionery Fats
Non-dairy Creamer
PMF: Palm Mid Fraction; PS: Palm Stearin
Source: Malaysia Palm Oil Council (1995a)
Hydrotreated Vegetable Oil (HVO): A Sustainable Fuel Driving the Future of Transport
Hydrotreated Vegetable Oil (HVO) is a renewable diesel fuel derived from various feedstocks, including palm oil. Produced through catalytic hydrogenation or hydrocracking, HVO is a high-quality, para nic biofuel with a chemical structure similar to conventional diesel but free from sulfur, oxygen, and aromatic hydrocarbons. It o ers high cetane numbers and meets diesel standards such as EN 15940:2016. It o ers a sustainable alternative to conventional diesel, signi cantly reducing emissions while being compatible with existing diesel engines and infrastructure.
Market Trends and Bene ts
e HVO market, valued at USD 16.27 billion in 2022, is projected to grow to USD 35.19 billion by 2030, at a CAGR of 12.95%, according to Fortune Business Insights. is expansion is driven by increasing demand for green fuels and stringent environmental regulations aimed at achieving net-zero emissions by 2030. HVO supports these goals by reducing NO and CO2 emissions by up to 6% and 90% respectively compared to traditional diesel. Additionally, HVO can result in a 37% reduction in smoke and a 6% decrease in speci c fuel consumption (SFC).
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With the aviation sector also moving towards sustainable practices, supported by initiatives such as the Federal Aviation Administration's (FAA) biofuel policies, HVO is set to play a signi cant role in lowering greenhouse gas emissions across various industries. Its ability to deliver substantial environmental bene ts without requiring major infrastructure changes further enhances its market appeal.
Global Hydrotreated Vegetable Oil Market Share by Application in 2022
Sustainability
Gatwick Airport Powers 85% of Fleet with HVO for Sustainability
Gatwick Airport now uses HVO for 85% of its diesel vehicles. Successful trials con rmed HVO had no impact on performance, saving 950 tonnes of carbon emissions annually and supporting their sustainability plan. is move is part of their sustainability plan, Decade of Change, as they transition to electric vehicles.
Hong Kong International Airport Launches HVO Pilot for Ground Services
Hong Kong International Airport (HKIA) pilots HVO for ground services, aiming to reduce greenhouse gas emissions by 87%. e pilot project was launched in collaboration with Hong Kong Air Cargo Terminals Limited (HACTL) and Shell Hong Kong Limited.
Belfast International Airport Cuts Carbon Emissions by 90% with HVO
Belfast International Airport switches to HVO for its vehicles and emergency generators, reducing carbon emissions by 90% annually. A successful 2023 trial showed HVO had no impact on vehicle performance, including re engines, supporting VINCI Airports' net zero emissions goal by 2050.
Graz Airport Transitions Entire Fleet to HVO 100, Saving 210 Tons of CO2
Graz Airport will switch its diesel eet to HVO 100 starting in August, saving over 210 tons of CO2 annually. A successful trial phase con rmed that HVO 100 performs well in large vehicles, supporting the airport’s goal of CO2 neutrality by 2030.
Dublin Airport Cuts Carbon Emissions by 90% with HVO, Trial Proves Success
Dublin Airport reduces carbon emissions by 90% using HVO for 46% of its airside vehicles. A successful trial showed signi cant bene ts, including saving 400 tonnes of CO2 annually and enhanced winter performance. e airport aims for two-thirds of its eet to use HVO by year-end.
Farnborough Airport Adopts HVO for Diesel Vehicles to Cut Emissions
Farnborough Airport transitions its diesel vehicles to HVO, which can cut net greenhouse gas emissions by up to 90%. e switch is part of broader sustainability e orts, following their carbon-neutral recognition and recent SAF introduction.
WFS Trials HVO Biofuel at Heathrow for Sustainable Airside Fleet
Heathrow Airport supports Worldwide Flight Services (WFS) in a three-month trial of HVO biofuel from Airport Energy for two airside vehicles. If successful, WFS will expand HVO use across their 77-vehicle eet, aiding Heathrow’s zero-emission goal by 2030.
Sustainability
Newcastle International Airport Adopts HVO to Cut Emissions by 90%
Newcastle International Airport transitions its eet to HVO, aiming for Net Zero by 2035. is switch will save 329 tonnes of CO2 annually and enhance air quality, building on their 31% carbon reduction since 2019.
Swedavia Extends HVO Incentive at Stockholm Arlanda and Göteborg Landvetter
Swedavia extends its HVO incentive at Stockholm Arlanda and Göteborg Landvetter airports until end-2024, o ering HVO at a reduced price compared to diesel. is initiative supports the transition to fossil-free operations and helps external companies adopt renewable fuel.
Tri Petch Isuzu Tests HVO Fuel with 30% CO2 Reduction
Tri Petch Isuzu and PTT Plc are testing HVO fuel in Isuzu ELF trucks with real-life usage by Mon Transport Ltd, a leading logistics operator, covering 5,000 km. No problem or abnormality has been found; trials conclude February 2025.
Edinburgh Airport Shi s 34 Vehicles to HVO for Reduced Emissions
Edinburgh Airport transitions 34 vehicles to HVO, cutting up to 90% of carbon dioxide emissions and reducing other pollutants. An HVO pump supports further eet conversion and campus decarbonisation e orts.
Certa Ireland Expands HVO Availability
Certa Ireland now o ers HVO at 10 out of 49 forecourts, aiming to increase accessibility of this diesel alternative. e company plans to expand its HVO pump network throughout the year.
Copenhagen Malmö Port Goes Green with HVO100
Copenhagen Malmö Port (CMP) will switch to Hydrotreated Vegetable Oil (HVO100) in November, using it in new machinery to cut diesel use by 60,000 litres and CO2 emissions by 130 tons annually.
DB Cargo UK Trials HVO Fuel
DB Cargo UK has successfully trialled HVO as a green alternative to diesel. Tests showed no adverse e ects on locomotive performance, with plans for further on-track trials to reduce carbon emissions.
2024 EVENTS
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14 - 16 July
MPO B I nterna tiona l Pa lm O il
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Remembering COVID-19 in the Plantation Sector: A Re ection on Business Continuity
As the world contends with a new health threat, MPOX, spreading rapidly through asymptomatic carriers in the Congo, it’s crucial to remember the profound impact of COVID-19.
e pandemic, which began in March 2020, brought unparalleled challenges to every sector, including Malaysia’s oil palm industry, especially in Sabah. While the sacri ces of the frontline warriors remain paramount in our hearts and minds, it is also vital to recall the pivotal role played by the oil palm sector in upholding global food security, sustaining employment opportunities and nurturing public health. is re ection on the pandemic’s e ect on the plantation sector underscores both its trials and triumphs. Lest we forget.
(by Joseph Tek)
Malaysia: Echoes of The Past
Onset of the Pandemic
March 2020 marked a turning point as Malaysia enacted a nationwide Movement Control Order (MCO) to curb the surging COVID-19 cases. Initially, the MCO was followed by the Conditional Movement Control Order (CMCO) in May and the Recovery Movement Control Order (RMCO) in June. However, setbacks like the Sabah state election and factory outbreaks led to a third wave, reinstating CMCO restrictions. e situation escalated, with the MCO returning in January 2021, followed by a state of emergency until August. e introduction of vaccinations aimed at transitioning to endemic status by October 2021 was met with a h wave in 2022, driven by the Omicron variant. Despite this, by April 2022, Malaysia had vaccinated over 80% of its population, demonstrating a signi cant public health achievement.
Navigating Shutdowns and Supply Chain Disruptions
Sabah’s shutdowns a ected plantations in multiple districts, which were crucial for the state's palm oil production and employment. e impact was severe, a ecting 65% of Sabah’s planted hectares and 75% of its production. e shutdown disrupted the livelihoods of around 100,000 workers and caused ‘confusion’ among local authorities. e industry argued for the continuation of operations, emphasising the perishable nature of oil palm crops and the need for stringent safety measures.
Crucial Role of the Plantation Sector
roughout the pandemic, the plantation sector played a vital role in maintaining global food security, supporting employment, and enhancing public health. e sector was pivotal in advocating for its classi cation as an essential economic activity. is e ort was particularly crucial during the shutdowns and disruptions experienced, especially in Sabah following the state election.
According to Maybank Investment Bank’s Plantation Report by Ong Chee Ting, the plantation sector’s resilience and contributions during the pandemic were signi cant. Despite rising costs and decreased productivity, the sector contributed over RM23 billion to government revenues through taxes and levies between 2020 and 2023. ese included RM6.1 billion from windfall pro t levies, RM3.7 billion in export duties, RM1.3 billion in MPOB cess, and substantial amounts in sales and corporate income taxes. is nancial input was critical for the country’s development and social welfare programmes, including funding for COVID-19 vaccinations and assistance for the needy.
Palm oil, which represents over 50% of the global vegetable oils trade, was a cornerstone during the pandemic. Beyond its direct applications, palm kernel oil (PKO) was crucial for personal care and sanitising products, highlighting its underestimated importance. While o en overlooked, PKO's role in combating the pandemic underscored the oil palm industry's broader value.
Support and Adaptation During the Crisis
Amid the ravages of the Covid-19, countless individuals faced unemployment and nancial ruin. Yet, amid the turmoil, the plantation sector remained a steadfast beacon of support. With social distancing ingrained within the very fabric of estate operations, workers found solace and security within the sanctuary of their workplace. ey not only received free COVID testing and vaccinations but also the assurance of a secure livelihood, shielded from the economic fallout that plagued so many others. Even as borders shuttered and uncertainties loomed, foreign workers remained steadfast in their duties, earning wages that provided for their families back home who were equally a ected by the pandemic.
e pandemic forced the plantation sector to adapt swi ly. Shutdowns, especially in Sabah, and subsequent challenges revealed the industry's resilience and the importance of sectorial solidarity. Initial shutdowns by both federal and state governments caused signi cant disruptions. On 18 March 2020, the sector faced a nationwide shutdown, which was reversed the following day a er intense advocacy. Sabah’s state shutdown on 24 March 2020 further strained the sector, especially when the election exacerbated the crisis with a surge in cases.
Efforts to Resume Operations
On 10 April 2020, a er persistent advocacy, Sabah allowed plantation operations to resume under strict conditions. is decision was a relief, though challenges persisted, such as the shutdown of private jetties on 17 April 2020, which disrupted the supply chain. e sector’s persistent appeals for resuming operations at these jetties were eventually successful.
e pandemic also intensi ed challenges related to environmental regulations and workforce shortages. e sector faced deadlines for air pollution control measures amid restrictions on international travel, complicating compliance e orts. In June 2020, the Human Resources Ministry froze new foreign worker intakes, compelling the industry to seek exemptions and recruit local talent. Despite recruitment drives, local interest remained low, and the sector continued to struggle with labour shortages.
Impact of SOPs
New Standard Operating Procedures (SOPs) further impacted operations. Businesses, including plantations, were limited to 50% workforce capacity and restricted working hours. In Sabah, these SOPs resulted in signi cant revenue losses, estimated at RM900 million monthly. e industry’s appeals for exemptions were based on the unique nature of plantation work, which was already operating with reduced workforce numbers.
CSR
and Community Support
roughout the pandemic, the plantation sector demonstrated solidarity through CSR philanthropy. Plantation associations established a COVID-19 fund, raising funds to support healthcare facilities with medical supplies and mobilised resources to aid a ected communities in Sabah, overcoming logistical challenges to deliver essential supplies.
By September 2021, vaccination initiatives extended to youths within plantation areas, promoting herd immunity. Mobile vaccination units and in situ PPVs helped ensure safe vaccination coverage, mitigating risks within estates.
Unsung Heroes
Amid the recognition of important frontline workers, there were unsung heroes from the oil palm sector who emerged as advocates for business continuity for the plantation during the pandemic. e advocates navigated legal boundaries and implementing out-of-the-box solutions to ensure the industry's survival until vaccination was deemed successfully administered. is involved close collaboration with industry stakeholders, government agencies especially MPOB and health authorities to establish protocols for social distancing, sanitation and quarantine measures then mandatory swab testing and climaxed with the vaccination programme. is showcased the power of collective action together in times of crisis.
Looking Ahead
As the sector began recovering in 2022, it faced ongoing challenges, including a severe shortage of foreign workers that impacted productivity and led to an estimated RM20 billion revenue loss. By February 2023, Malaysia had recorded over 5 million COVID-19 cases, nearly 40,000 deaths and over 66 million tests, with signi cant impacts on public health and the economy. Re ecting on the period from 2020 to 2022, the oil palm industry’s experience underscores the critical role of resilience, adaptability, and collective action in navigating unprecedented crises.
Key Challenges / Trials
Workforce Shortages: Freeze on new foreign worker intakes.
Supply Chain Disruptions: Sabah shutdowns, jetty closures.
Environmental Compliance: Deadlines for air pollution control measures.
Revenue Impact: RM900 million monthly losses due to SOPs.
Sector Resilience / Triumphs
Adaptation: Rapid response to shutdowns, SOPs.
Support: CSR e orts, vaccination drives, in situ PPVs.
Ongoing Recovery: 2022 worker shortages, RM20 billion revenue loss.
Unlocking
