Economic Sustainability Assessment of Biofuels Production from Oil Palm Biomass

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.