The Malaysian Reserve (17/04/2025) - To reduce reliance on petroleum-based polyol, palm-based biopolyol has emerged as a highly promising innovation 

POLYURETHANE is a highly versatile polymer widely used across industries such as automotive, packaging and construction, with its global market value projected to surpass US$100 billion (RM442 billion) by 2030. 

Its production relies on polyol, a key chemical compound that is predominantly derived from petroleum, despite the availability of sustainable bio-based alternatives made from vegetable oils. 

In Malaysia, the polyurethane industry, comprising over 200 manufacturers, relies heavily on petroleum-based polyol. On average, a single company consumes around 10 tonnes of polyol per day, underscoring the significant demand for this petroleum-derived compound. 

However, this heavy dependence on petroleum-based polyol poses several challenges. It is not only costly but also has adverse environmental effects due to its production process. 

Additionally, Malaysia fully imports this product from countries such as China, Australia, Germany and Japan (Mitsui), further exacerbating the nation’s financial burden. 

This reliance persists because Malaysia has yet to develop its own polyol production infrastructure, despite its abundant petroleum resources. Establishing a polyol manufacturing industry requires cutting-edge facilities, efficient waste management systems and a highly skilled workforce. 

Furthermore, fluctuations in global petroleum prices directly impact the competitiveness of the local industry, making it vulnerable to market instability. 

Environmentally-friendly Alternative

To reduce reliance on petroleum-based polyol, palm-based biopolyol has emerged as a highly promising innovation. 

Derived from palm oil and its derivatives, such as palm kernel oil, it offers a sustainable, eco-friendly alternative that leverages renewable resources while significantly lowering carbon footprint. 

In Malaysia, research on palm-based biopolyol began in 1999, spearheaded by Universiti Kebangsaan Malaysia (UKM) Faculty of Science and Technology Department of Chemical Sciences senior lecturer Dr Khairiah Badri. 

Through her research Khairiah successfully produced around 500kg of palm-based biopolyol at a pilot plant in 2014, following multiple stages of validation and market feasibility studies. 

Sharing her findings, Khairiah revealed that one of the major challenges in the early stages was stabilising the chemical structure of palm-based biopolyol to ensure its suitability for polyurethane production. 

“After extensive testing and refinements, the palm-based biopolyol we have developed now exhibits properties comparable to petroleum-based polyol,” she said. 

Additionally, Khairiah pioneered the production of biopolyol using a one-pot process, which completes in less than three hours. 

“The distinctive advantage of palm-based biopolyol lies in its fire-resistant properties, making it an ideal material for polyurethane applications such as building insulation and safety cushions. Its specialised formulation produces polyester biopolyol with flame-retardant characteristics, providing a safer and more sustainable alternative,” she said. 

Beyond that, palm-based biopolyol also holds significant potential in the synthetic leather industry, particularly for furniture accessories and vehicle components. Its durability and flexibility make it an ideal choice for high-quality products that align with global sustainability standards. 

She said the production cost of palm-based biopolyol is one-third lower than petroleum-based biopolyol, where the latter is sold at RM12 to RM15 per kg, thereby reducing the need for petroleum polyol imports. 

To develop a reaction reactor for large-scale palm-based biopolyol production, an initial capacity of at least two tonnes is required, along with specifications for biopolyol and rigid polyurethane foam products that comply with international standards. 

The development of palm-based biopolyol has the potential to enhance Malaysia’s palm oil downstream industry, while also creating new job opportunities in the green chemistry sector, she added. 

Strengthening Domestic and Global Economy 

According to Khairiah, palm-based biopolyol is now emerging as a sustainable alternative in the coating, adhesive, sealants and elastomers industries. For example, in coating applications, biopolyol serves as a waterproof layer for particle boards and panel boards, enhancing their durability. 

“In adhesive applications, the industry often relies on conventional glue or epoxy to bond substrates such as metal, plastic or wood. However, epoxy contains volatile solvents that release toxic gases, posing health risks. Biopolyol offers a safer, odourless alternative with stronger adhesion. 

“This technology not only addresses the shortage of specialised adhesives but also reduces dependence on hazardous chemicals,” she added. 

A key advantage of palm-based biopolyol is its stability across various temperatures, making it suitable for international markets, including cold-climate countries. 

“Crude palm oil and palm kernel oil typically solidify at room temperature, but once processed into biopolyol, they remain in liquid form, consisting of 95% active fatty acids and only 5% additives,” she said. 

Additionally, biopolyol can now replace rubber-, cement- and wood-based materials, including in the production of wainscoting, wall decorations such as cornices, and other architectural components. Compared to cement plaster, which is heavy and prone to cracking, biopolyol provides a lighter, more durable and easy-to-install alternative. 

The unique properties of palm-based biopolyol also open new opportunities in the handicraft industry, such as in the creation of Arabic calligraphy (“khat”) carvings. By enabling faster engraving processes through moulding techniques, biopolyol helps improve production efficiency, she shared. 

Challenges and Commercialisation Potential 

Despite its vast economic potential, Khairiah noted that the commercialisation of palm-based biopolyol faces several challenges, including the high initial capital investment required to develop the reaction vessel — a critical component in the production process — and the need to meet international standards. 

To ensure the successful commercialisation of palm-based biopolyol, she emphasised that several strategies must be considered, including increased investment in large-scale production facilities to meet both domestic and international demand. 

“Additionally, efforts must be intensified to obtain international certifications such as the Registration, Evaluation, Authorisation, and Restriction of Chemicals in Europe, the Toxic Substances Control Act and the Environmental Protection Agency regulations in the US. 

“In 2022, palm-based biopolyol was recognised by Betalab USA as a USDA Certified Biobased Product,” she said. 

She also highlighted the importance of strengthening collaboration between universities, industries and government agencies to accelerate technology transfer and the development of biopolyol-based products. 

Currently, a pilot plant operated by a UKM start-up in Bangi Lama, Selangor, can produce one tonne of palm-based biopolyol per day. The company is working on scaling up production to four tons per day with funding from the Innovathon Business Development Fund by CradleFund Sdn Bhd, supported by the Ministry of Science, Technology, and Innovation. 

On the local market potential, Khairiah revealed that the rigid polyurethane foam segment alone requires approximately 80,000 tonnes per month, not accounting for other industries that may demand even greater volumes. 

“Our plant currently fulfils only a portion of the needs of local rigid polyurethane product manufacturersers who are interested in the benefits of our palm-based biopolyol. 

“For instance, a local company in Taman Perindustrian Pak Chun, Shah Alam, Selangor, which produces thermal insulation panels for cold storage rooms, was impressed by how palm-based biopolyol is fire-resistant and requires less material during processing compared to petroleum-based polyol. 

“Similarly, a roof insulation manufacturer in Bukit Beruntung, Rawang, Selangor, believes that it is time for Malaysia to establish its own biopolyol production plant, as it found that polyurethane products made with our biopolyol are easier to process due to their lower viscosity compared to petroleum-based polyol,” she said. 

She expressed confidence that palm-based biopolyol could capture at least 5% of the local market by 2030. 

“Our future plans include scaling up production and expanding applications into other fields such as adhesives, coatings and flexible foams. We welcome more investors to help achieve this mission,” she added. 

If developed strategically, she believes Malaysia has the potential not only to replace petroleum-based polyol in the domestic market but also to expand exports globally. This initiative would solidify Malaysia’s position as the leading hub for palm-based biopolyol production in ASEAN. 

“Therefore, Malaysia must establish large-scale biopolyol processing facilities to support export activities. This step will not only safeguard intellectual property rights but also position Malaysia at the forefront of the green chemical industry in the region,” she added. 

Global Green Industry Leader

The adoption of palm-based biopolyol aligns with Malaysia’s commitment to the Sustainable Development Goals, particularly in promoting eco-friendly industries and reducing greenhouse gas emissions such as carbon dioxide. 

In the long run, this initiative supports the nation’s goal of achieving net-zero carbon emissions by 2050. 

According to UKM Faculty of Science and Technology dean Prof Dr Ishak Ahmad, palm-based biopolyol is not just an alternative but a significant opportunity for Malaysia to lead in global green technology. 

“We want people to see palm oil not merely as a raw commodity but as a foundation for high-tech products that can compete on the international stage,” he said. 

He believes that with strong policy support, increased investment in research and development, and strategic collaboration between the public and private sectors, Malaysia is on the right track to becoming a leader in palm-based green materials. — Bernama

Read more at https://themalaysianreserve.com/2025/04/17/malaysia-eyes-leadership-in-palm-based-green-technology/