31/01/2009 (The Star Online) - THE expected decline in the supply of non-renewable oil and gas liquid should compel Governments to look for a sustainable and renewable source of energy.

One option is to promote the use of biofuels, which can serve to reduce the current over-dependence on fossil fuel for energy, as concluded by a recent media roundtable on bioenergy fuel.

Adding fuel to such calls is the high volatility of oil prices seen last year which saw prices peaking at US$147 per barrel just before they corrected to below US$50 a barrel in recent months. But while the current oil price presents a respite for most companies, utility analysts expect prices to surge again in the medium to long term; more so, when the global economic downturn gradually makes room for recovery.

“The surge in the oil price is not a case of if but when. So be ready with alternative sources of energy when the time comes,” an analyst says.

Industry players present at the roundtable, organised by Asia Bioenergy Technologies Bhd, concur that biofuel could significantly resolve the energy crisis as it is a sustainable source of energy with minimal carbon emission, compared with other alternatives, including fossil fuel.

On the other hand, renewable energy can be tapped from several sources like wind, thermal, solar and biofuels.

Biofuels can be derived from rapeseed, palm oil, coconut, Jatropha, soybean, sugar cane, molasses, cassava, algae and other biodegradable products.

The question is: Which of these biofuels ought to be commercialised to produce energy? That would very much depend on several factors such as availability of biofuel as feed stock, ease of extraction, investments cost (in equipment/plant) and efficiency. In addition, every country has its own comparative advantage in the production of specific biofuels.

Asia Bioenergy executive director Looi Kem Loong says that in the West, rape seed is found in abundance, while sugar cane is plentiful in Brazil. Asia Bioenergy specialises in providing incubation services to companies that have green and viable technology by availing to them the necessary platform to grow and compete with the rest of the world.

Looi, who was a speaker at the media rountable, says in the case of Malaysia, energy can be derived from palm oil and distilled palm fatty acid, a by-product of palm oil, and sold as a commodity.

The company has developed a technology to process palm oil and its fatty acids to produce renewable energy, Looi says, adding that other renewable energy sources explored in Malaysia include Jatropha and algae.

“But the experiments on such biofuels are at the development stage,” he adds.

Garisan Etika Sdn Bhd senior general manager M. Umakanthan says biomass from Malaysia’s oil palm plantations, mainly empty fruit bunches (EFB), could be used to produce significant renewable energy to power the operational requirements of the oil palm plantations, hence reduce the energy bills.

Grand Inizio Sdn Bhd marketing director Dr Beh Seng Kee points out that there is a need to first select a suitable biodegradable product that can be found in abundance and second, that can be easily processed. Grand Inizio is a specialist in the engineering and construction of medium to large biodiesel plants.

“We need to look at the logistics aspects as well,” says Beh, adding that some may not be suitable as they may be too heavy to transport to a processing plant.

An analyst says power generated especially from hydro or wind is mainly used to produce electricity, while biofuels are mainly converted to biodiesel to power vehicles and boilers.

“One of the main problems in tapping energy from solar or wind is that one could never be sure of its availability. There is a need to ensure that we can harness energy consistently from a source and with wind and solar this could be an issue,” he notes.

In addition, oil palm plantation owners that have sufficient palm oil-based extracts or EFB are able to develop alternative and renewable energy sources for their operations and may not have to rely on Tenaga Nasional Bhd. This will help them reduce their energy costs and mitigate the impact of the high fuel price volatility.