IN the mid-1980s, as a young auditor during my first audit of a palm oil mill, I was taken on tour of the mill.
One particular aspect caught my eye, although it had little to do with internal controls and accounts, was the treatment of effluent to generate methane to supplement the mill's power needs.
Fast forward to the present-day, biomass has gained increased prominence as a potential clean energy source. It will likely replace fossil fuels to reduce carbon emissions – in turn mitigate climate change – in future.
Climate change is a clear and present danger to the human race. It has caused severe weather conditions and attendant devastations. The 21st Conference of the Parties (COP21) acknowledged the existential threat in December 2015.
About 196 parties at COP21 adopted the Paris Agreement – "to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels" – on December 12, 2015.
It came into force on November 4, 2016 following ratification by at least 55 Parties; they account for an estimated 55 percent of the total global greenhouse gas emissions.
The Paris Agreement is ratified by 190 Parties as of January 2021. Malaysia being a party to the Paris Agreement has pledged to reduce its greenhouse gas emissions intensity by 45 per cent by 2030 relative to the emissions intensity of GDP in 2005.
The Prime Minister said: "Malaysia is committed to its target of becoming a carbon-neutral nation by as early as 2050".
To this end, the nation can make significant contributions to efforts in combating climate change leveraging our natural endowments; For instance, being located in the equatorial zone we are blessed with an abundance of sunlight year-round from which clean solar energy can be harnessed.
Also notable, Malaysia is the second largest oil palm producer in the world which affords a substantial amount of oil palm biomass that can be converted as an alternative source of clean energy.
Palm oil biomass is a sustainable alternative to producing cleaner green energy as an alternative to fossil fuels. Commercialisation efforts are already progressing through a tripartite venture.
Sime Darby, FGV and a renewable energy company have agreed to jointly produce bio compressed natural gas (BioCNG) from waste biogas generated from palm oil mill effluent. The BioCNG will initially be marketed to the local industrial and transportation sectors with export planned for the medium to long terms.
Microalgae is another potential source of alternative energy that has received recent close attention and for which cultivation Malaysia's climatic conditions is eminently suitable. To underscore its significance, in August 2021, the US Department of Energy announced funding of almost US$34 million for research and development into advance waste and algae bioenergy technology.
Microalgae produces lipids that are suitable for further development into biofuel as well as other food supplements; for instance, Spirulina, Corella and Kombu are all microalgae derived.
Like plants, microalgae are photosynthetic organisms that takes in water, CO2 and sunlight to produce biomass. This immediately brings to mind the use of carbon sink potential of microalgae in relation to the absorption of CO2 produced from burning fossil fuels for power generation and from downstream petroleum refining.
Microalgae cultivation may prove to be a game changer given that Malaysia's climate conditions are well suited for mass cultivation with year-round uninterrupted availability of sunlight enabling continuous, unhindered growth.
Microalgae can also grow in wastewater alleviating the competition with land for cultivation. It takes in nitrogen and phosphorus – essential nutrients for photosynthesis – from the wastewater and in the process produces oxygen and water. This indeed is a potential clean mechanism for "treating" the wastewater. More research will be needed on microalgae's wastewater treatment
capability, efficiency and cost effectiveness.
Just as compelling, microalgae, not being part of the food chain, does not disrupt this chain nor contribute to food insecurity. This is the added advantage. Research into the potential of some microalgae strains for instances Botryococcus braunii, Chlorella vulgaris and Euglena gracilis for bioenergy have yielded positive results.
In the case of Euglena gracilis, biofuel for land transport is already used by cars and busses on public roads throughout Japan. Moreover, a demonstration plant for mass production of Euglena based biofuel for aviation has been established; and biofuel produced at the plant in Yokohama has been formally approved for use in Japan in 2020. Incidentally, Euglena derived health supplements and cosmetics are already marketed internationally.
The foregoing suggests that microalgae present significant commercial potential for Malaysia. It is noteworthy to underline its extensive range of applications not least of which is the potential to produce green biofuel.
Importantly, the ability to absorb CO2 through photosynthesis and the accompanying vital release of oxygen in the process, indeed will contribute to reducing our carbon footprint. Consequently, it supports the nation to achieve above her pledge in the Paris Agreement.
As with all innovations, deeper feasibility research will need to be conducted especially in effective mass cultivation, oil extraction efficiency, quality and compatibility as a fossil fuel alternative. Just as important, the method must be cost effective in mass production and commercialisation.
There are also contentious issues, like determining suitable locations for cultivation where ideal conditions are available but might compromise existing agricultural value and biodiversity, that need to be addressed.
That said, however, the substantial amount of research already conducted on microalgae across various aspects points to a wealth of knowledge that can be leveraged for success.
The writer is a Certified Public Accountant and former Managing Partner, Global Business Services, IBM Malaysia