the fat express

www.fathopesenergy.com

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FAT EXPRESSAsia2011

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In December of 2009, Malaysian Prime Minister Dato’ Sri Najib Tun Razak commit-ted the nation to a voluntary Carbon Intensity Reduction of 40% by the year 2020, at the United Nations Climate Change Conference that year.

While undoubtedly ambitious the target is still a realistic goal, should the widespread adoption of renewable, organically derived, non-fossil biofuel be realised in the country. According to current trends, Malaysia’s industrial dependence on conventional fuels

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ASSESSING BIOFUELS Climate change, together with an increas-ing demand for energy, volatile oil prices, and energy poverty have led to a search for alternative sources of energy that would be economically efficient, socially equitable, and environmentally sound. One option that has raised enormous public and private interest is biofuels. Farmers seek additional income and bio-fuels may have the potential to promote rural development and access to energy in poorer countries. As a ‘readily available’ alternative, biofuels offer to continue business as usual in the transport sector. Encouraged by research indicating that bi-ofuels could provide substantial energy while mitigating climate change, governments have supported production aimed at increasing biofuel use in many countries. Industry has invested significantly in production and tech-nology development. However, concern has been growing about negative implications of growing biomass for biofuel production. Current biofuels are often made from feedstock crops that also serve as food. Hence, there is a potential risk for com-petition between food and fuel, and conse-quences on food prices as a result. However, through the application of sustainable prac-tices, these effects can be avoided. Another risk identified is expansion of biofuel feedstock production into areas that provide valuable ecosystems that support

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FHE’s MD welcomes Minister of Energy, Green Technology and Water Dato’ Sri Peter Chin Fah Kui to IGEM 2010.

high biodiversity and services that are crucial to our economies and human life. Moreover, as a consequence of land use change associated with expanding agricul-ture, the envisaged positive effects on cli-mate mitigation could turn out to have the opposite effect. To deal with these issues, several initiatives have been started by gov-ernments, industry players and civil society to develop criteria for sustainable production of biofuels. Countries have started to set minimum standards for biofuels, in order to guarantee a net benefit for climate change mitigation and to avoid side effects of land use change. These approaches, however, are aimed at the product or project level and are therefore not necessarily sufficient to avoid displacement

of feedstock production and problem shifting to other areas. The Biofuels Working Group of the In-ternational Panel for Sustainable Resource Management (IPSRM) aims to improve the analytical basis for decision making towards sustainable production and use of biomass for energy purposes (biofuels), at the nation-al, regional and international level. Applying a comprehensive systems per-spective, the group has developed an analysis encompassing the overall effects of biomass use for food, fibre and fuel, in particular on land and water use and resulting environ-mental impacts such as greenhouse gas emis-sions, biodiversity loss, and nutrient pollu-tion. The focus is on the environmental effects of so-called “modern bioenergy” or biofuels, while considering their economic aspects and social concerns, especially with regard to rel-evant side effects and potential synergies. An integrated view of supplying both ma-terials and energy for enhanced service pro-vision for households and industry will lead to wider potentials and allow better choices to increase sustainability of resource use. Improved systems technologies will enhance overall resource efficiency, while more effec-tive management instruments can adjust the demand for biofuels to sustainable levels. This publication strives to showcase inno-vative, environmentally compliant methods and practices that can help overcome any ob-stacles that may lie in the path to sustainable biofuel utilization.

such as diesel, to run machinery and drive transportation, vastly contributes towards the bulk of carbon emissions in our atmos-phere. Apart from compounding the locally felt effects of climate change and global warming, this, in turn, deters the progress of the nation as a whole, towards achieving the Prime Min-ister’s international commitment. Non-fossil biofuel alternatives that are currently available, such as biodiesel and bioethanol present viable, one-for-one re-placements to the highly polluting counter-parts that are in broad use at the moment.In contrast, biodiesel is known to produce at least half of all carbon monoxide, carbon di-oxide and particulate matter released in the burning of the fuel, when compared to con-ventional petroleum-based diesel. It has also been found that the usage of biodiesel releases dramatically reduced amounts of unburned hydrocarbons, which otherwise contribute to the formation of ozone and can be seriously detrimental to human health. Specifically, the unchecked release of un-

burned hydrocarbons into the atmosphere has been linked to a marked spike in the num-ber of people put into direct risk of contract-ing cancer as a result. Perhaps the most unfortunate part of these developments is that cleaner, more environmentally compliant fuel sources are actually already here and accessible to the conscientious energy consumer. These energy alternatives are proving to not only be better for the environment, but also make better financial sense for the user – especially when taking into account the wild-ly escalating costs of fossil fuel extraction for energy production. Finally, business models surrounding the propagation and capitalisation on renewable Green fuels have been found to be far more sustainable than conventional options, as they are not reliant on finite fuel sources. The energy entrepreneur of the future will be exclusively concerned with the growing of biofuel-yielding feedstock crops, ultimately freeing them from limitations that would oth-erwise determine the extent of profitability.

BIOFUELS: A CATALYST TO CHANGE

The Fat Express 2011


At one school, SMK Subang Utama in Sub-ang Jaya, Selangor, the used oil recycling scheme is a pet project of a group of Form 2 students. To encourage students’ support, a competition is held; a prize awaits the class that brings in the most used oil. “The amounts are recorded and the la-belled containers are returned to the students to be reused for the next round of collection,” says student Sunny Foo. Some 80 litres have been brought in so far and will soon be sold to FatHopes Energy. At the canteen, posters and banners - made by the students - describe the health risks of consuming stale oil and pollution caused by wanton dumping. Chadric Yeo has contributed 500ml of used oil to the school so far. “What’s the point of throwing the oil away? If we do that, marine life will be affect. One litre of cook-ing oil can contaminate one million litres of clean drinking water. And cooking oil, after being used three times, can cause heart dis-eases and cancer,” he says, sharing informa-tion which he had gleaned from the internet. Darshan Poopalan chips in: “Oil can clog drains and if poured into rivers, can cover the water surface and prevent oxygen from get-ting in, so killing aquatic life.” The 14-year-old says he once observed a kuih seller at SS19, Subang Jaya, emptying a huge wok of oil into a drain. “if six or seven people do this,

SECTOR 0 Incubation

Used vegetable oil is deemed by many as one of the best feedstocks for producing biodiesel. For one, waste will be recycled into new - and green - fuel. And as the price of crude palm oil escalates, waste oil becomes an even more attractive alternative for making biodiesel. Furthermore, making biodiesel from waste oil - instead of virgin palm oil - allays fears of a food source being into fuel.

But there is a snag: used cooking oil is sought after for other uses, too. Biofuel producers have to compete with not only traditional users of the waste oil - soap, candle and animal feed manufacturers - but also those who recycle it into fresh cooking oil.

“Many collectors prefer to sell the collected oil for recycling into cooking oil rather than for biodiesel production, as they get better prices,” says Vinesh Sinha, managing director of FatHopes Energy which

LIQUID GOLD

the drain will be clogged and the water will pollute rivers. Imagine how many fish will die because of this.” Ashwathy Balakrishnan says her mother was initially not keen on her taking used cooking oil to school for fear that it would be messy. “But I explained to her, not only are we getting money for the school fund (FatHopes pays them 70 sen per litre), we’re also saving the environment. It is very easy to protect the Earth. What is needed are small actions by may people,” she says. Although they initiated the oil collection as part of a green project competition which they are participating in , the students are eager to make it a permanent - and bigger - school activity. “We plan to collect used oil from restaurants nearby. We’re also telling friends and relatives about what they can do with used cooking oil,” declares Munirah Ayoob. FatHopes Energy is also recycling fryer oil from MJ Cafe in Jaya 33 mall and Casa Tropicana condominium in Petaling Jaya, into biodiesel. Owner of the restaurants, Ken Lee, says the 14kg drums in both establishments are picked up by FatHopes when they are filled up, which is every two to three weeks. “We don’t pour the oil down the sink as it will clog the drainage systems and cause major problems. We might need to spend as much as RM10,000 to clear the pipes.” Lee says getting rid of used oil was never

a problem as there are numerous collectors but now, he only gives it to FatHopes. “I don’t really know what the other collectors do with the oil but they say it is used in engines and machinery. At lease with FatHopes, I know what they do with the oil. What they’re doing is more environment-friendly and I prefer to support green causes.” Lee used to get RM60 to RM80 for a 14kg drum of oil from other collectors but with FatHopes, he has opted to instead get soap and detergent made from the glycerine that is a byproduct of processing the waste oil. “The money for the used oil is not much. Exchanging it for soap and detergent is a better deal as we spend more than RM100 on that each month for all our cleaning and washing,” he says. Over at the certified green building, GTow-er along Jalan Ampang in Kuala Lumpur, used cooking oil is also being put to good use.

Some 400 litres have gone to FatHopes since last August. Since the building opened last March, waste oil from restaurant kitchens has been collected fro proper disposal, says Melessa Hon, Marketing Communications Manager of Goldis Berhad. “Being a new building, we could afford the pre-planning and organisation of such initia-tives without having to dispose of our waste oil irresponsibly, such as throwing it down the drain or selling it to waste oil collectors. We wanted to showcase and highlight that going green and being green wasn’t a difficult en-deavour. All it takes is a little rethinking and a willingness to commit towards looking at reducing a building’s impact on the environ-ment,” says Hon. The building management has also opted to receive soaps in return for the used oil but to date, has not gotten any yet from FatHopes.

YOUNG GREENIES

Used cooking oil is in high demand -Star Two, Tuesday 1 March 2011

processes used cooking oil into biodiesel.The problem, he says, stems from

government subsidies which cap diesel price at RM1.80 a litre. To compete with normal diesel, biodiesel has to be sold cheap, too. He cannot afford to pay high prices for used cooking oil and offers between 80 sen and RM1 per litre.

He is also faced with an erratic supply of used oil. “Some people ask for 10sen more despite having agreed on the price. Sometimes when my workers go to the restaurant, they find that the oil has been collected by someone else claiming to be from my company.”

Due to the inconsistent local supply, he plans to import used cooking oil for the new biodiesel plant that he is planning to open in Telok Gong Klang.

Ja’afar Abdullah of CGV Industries, another used cooking oil collector, is in a similar predicament. He cannot get enough

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FatHopes Energy Sdn. Bhd. (FHE) was founded with the key pillars of sustainabil-ity as a solid business foundation. Among the pillars of sustainability, it prioritizes the economic first, then the social and the envi-ronmental. By consistently revising its poli-cies and guidelines, the company is allowed to continuously produce goods and deliver services of high environmental compliance. In line with their core principles, FHE holds true to producing high quality products with

strong commitment integrity. FHE monitors all aspects of operations, inline with strict and regimented internal carbon emissions reduction policies. Apart from its products being low in carbon emis-sions, the collection, filtration and produc-tion stages of their process emit negligible amounts of carbon. All biodiesel produced within FHE’s facilities is also guaranteed to be waste-derived; primarily used cooking oil and/or contaminated vegetable oil. Materials utilized throughout the process are predominantly reclaimed or recycled, pre-senting a cheaper and more environmentally compliant alternative. By seeking out strate-gic partnerships and R&D in Asia and globally, FHE has significantly expanded the range of

-Star Two, Tuesday 1 March 2011

waste oil to supply customers who run biodiesel plants. He too, says waste oil is being recycled into new cooking oil.

“Many traders are exporting used cooking oil as they can get lucrative prices for it. So they can also offer higher prices for the used oil, and I cannot compete. All the collectors say the oil will be used to make soap and candles but if you ask where the factory is, they cannot tell you. They’re willing to pay more than RM2 per kg for the used oil. It is not

financially viable bio-energy technology that is available. FHE was conceived and founded in the last quarter of 2009 by founders Vinesh and B.K. Sinha. They were approached for assis-tance in a social issue with a local logistics company. While providing voluntary sustain-able consultancy, the idea blossomed into an avenue for a multiple bottom line business model, which has now become the core motto of FHE: Waste to Wealth Conversion. FHE is the sole distributor in Asia for a range of technologies, and has quickly grown into one of Malaysia’s leading biodiesel equipment distributors while remaining fo-cused on cementing its position in regional markets. The technology has since reached

the shores of most regional countries like Vi-etnam, Korea, India and Singapore. Boasting an impressive range in processor technologies, FHE’s machinery and equip-ment is currently capable of handling any capacity between one and 100 tons per day. The USP of the technology lies in the essen-tialities of time, minimal hands-on time and the dry wash system. In meeting the everyday demands of biodiesel markets, FHE maintains its characteristic enthusiasm in the potential of leveraging new technologies for triple bot-tom line benefits.The company is confident that the latest developments and technolo-gies will continue to redefine the standards that their products and services are held ac-countable to.

logical to pay so much if it is just to make soap and candles. I can only offer between 80 sen and RM2. The government should stop the export of used cooking oil. Then we’ll have enough feedstock to produce biodiesel.”

Ja’afar now collects used oil from food premises in the Klang Valley as well as from Kuantan, Johor Baru, Ipoh, Penang and Alor Setar. His monthly collection of approximately 200 tonnes is sold to Unigreen, a company which processes the oil to yield fatty acids, fatty alcohol and glycerin.

“I sell to Unigreen as it does not recycle the oil into new cooking oil,” says Ja’afar. Recycled cooking oil poses health risks because it is bleached with chemicals before being blended with virgin oil. He recently tied up with Alam Flora and Putrajaya Corporation to start an oil collection scheme at the recycling centre in Precinct 9 in Putrajaya. About 230kg of used fats has been collected since a drum was placed there on Feb 1. Residents are paid 80 sen per kg of used oil.

To expand the collection of used cooking oil, he suggests that hypermarkets such as Tesco and Giant, which already have drop-off centres for recyclables, also collect used oil.

In order to collect used cooking oil, he says, one must obtain a license from the Malaysia Palm Oil Board.

GREENGROWTH



why I’m participating. Turning the oil into bio-diesel is better as the used oil will then not be recycled into cooking oil again. Highrise dwellers should do this, as the collection will be easier compared with (dispersed) landed properties,” says Varghese.

Waste oils from residences have so far been ignore by used oil collectors who source for the grease only from major generators such as restaurants. The gap is now filled by FatHopers Energy, which collects fryer oil from highrise condominiums, hospitals, eat-eries and one school, all within the Klang Val-ley. The endeavour recycles a troublesome waste that too often ends up in sewers, and transforms a waste into green fuel. Biodiesel emits 70% less carbon dioxide than conven-tional diesel, according to FatHopes manag-ing director, Vinesh Sinha. Turning used oil into biodiesel, he adds, also prevents it from being recycled into new cooking oil, a product that poses health risks because of the chemi-cals used to bleach and process the waste oil.

The monthly production of 40 tonnes of biodiesel at his plant in Jalan 227, Petaling Jaya, is taken up by tour agency in Penang (to

run its buses), a developer (for its construc-tion vehicles and machinery) and a fast food factory (for machinery and vehicles).

FatHopes collects about 1.3 tonnes of

SECTOR 0Incubation

With his six McDonald’s outlets located in Kota Kinabalu, Harry Teo could not send waste oil from his eateries to FatHopes Ener-gy for recycling. So instead, he is purchasing the machinery that will convert the oil to bio-diesel. Teo has, for years. been searching for ways to deal with used oil and finally found a solution at a green technology exhibition in Kuala Lumpur last year, where FatHopes was one of the exhibitors. Ever since he received the McDonald’s franchise 12 years ago, Teo has been accumulating used cooking oil and now has an estimated 90,800 litres stored in a warehouse. “Under the franchise rule, I cannot sell used cooking oil to a third party without knowing what it will do with the oil. It is diffi-cult to monitor them. We’ve heard about used oil being recycled into cooking oil. We cannot let that happen. So I decided to store the oil until I find a solution. “Initially when I only had one restaurant, there was not a lot of oil so I gave it to a friend who turned it into animal feed. As the number of restaurants grew, I was left with more and more oil,” says Teo. He believes the equip-ment to be supplied by FatHopes will meet his needs as they are small-scaled. He expects to start recycling waste oil in a few months’ time after his staff receives training to run the ma-chinery. He will use the biodiesel to run his company’s fleet of trucks. “As fuel cost is growing, recycling our cooking oil will reduce our overheads. It is also for a good cause and we will release less carbon.”

Capacity Building

FROM WOK TO FUEL TANKHousewives, students and restaurateurs are saving up their used cooking oil - for a good reason-Startwo, Tuesday 1 March 2011

FatHopes Energy Sdn Bhd (FHE) an exhibi-tor in IGEM2010 showcased its first imported Biodiesel processor called Freedom Biofuels Equipment from the United StatesThat uses recycled cooking oil to convert to biodiesel. Minister of the Women, Family and Com-munity Development, Datuk Seri Shahrizat Abdul Jalil who was present at the exhibition, expressed amazement at the highly reward-ing yet simple biodiesel processor brought in by FHE. FHE has developed a variety of campaigns and events that are in the pipeline to pro-mote this product at the grassroots level and schools. Mothers of Mother Earth campaign targets householders especially the women

folk to make a difference. Women will be exposed to information on the benefits of recycling used cooking oil. Used cooking oil contains carcinogenic prop-erties that allows for FHE to be converted to biodiesel. This is surely an interesting way to garner the participation of the women folk in con-verting waste to wealth and ultimately reduc-ing our national carbon emissions. Furthermore, such an initiative allows for women to act as catalyst in spreading the green message and this in turn creates a con-ducive environment for the family unit to be-have sustainably. FHE managing director Vinesh Sinha said, “We truly believe that sustainability at an in-dividual level is the only permanent solution

to the current global environment pandem-ic.” Minister of Energy, Green Technology and Water Datuk Seri Peter Chin who made his visit to FHE’s booth in IGEM2010 showed great interest in discussing possibility of implementing these processors at local bor-oughs especially in Bandar Baru Bangi. He also mentioned that the price of the processor is reasonable and as such is afford-able for any small entrepreneur. This can help them generate income from the upcoming green industry. FHE has also teamed up with DSI Interna-tional of Denmark in a collaborative effort to produce renewable energy from solar panels as well as regenerative energy from UCO to biodiesel.

SMEs and women can generate green money by recycling cooking oil

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WASTE TO FUEL

FatHopes Energy (FHE) has a deep-rooted passion for and commitment to Malaysian capacity building. The company coaches in-terested individuals and entities in develop-ing sustainable biofuel manufacturing busi-nesses across Asia. It takes pride in creating sustainable business models customized spe-cifically for individual markets. To date, FHE has developed biofuel business models in In-donesia, Singapore, Vietnam, Philippines and Malaysia. Currently, the most difficult market for biofuel production, specifically biodiesel, has been Malaysia. This is caused by low fuel prices to consumers due to heavy subsidies by the government. Having developed a suc-cessful biodiesel business model in Malaysia, regional markets appear less challenging, as fuel prices are far higher compared to Ma-laysia. Due to cheap fuel prices, there are far more petrol vehicles compared to diesel, set-

-Malaysia SME Magazine November 20 - December 3, 2010

-Star Two, Tuesday 1 March 2011

Instead of pouring fryer oil down the sink like she used to, Sheila Varghese now dutifuly tips the stale fats into an old water bottle. And once that is full, she heads to the central rubbish disposal shed at her condo in Petaling Jaya, Selangor, and empties it into a huge drum. This has become a common prac-tice among the residents of Armanee Terrace. The grease collection drive is a green move among the condo residents and management to recycle used cooking oil into biodiesel.

“If we don’t do this, all the oil ends up in pipes and grease traps,” says Varghese. “Not all the oil is removed, so the grease still goes into the sewerage system. This makes water treatment to remove the oil more difficult. So the oil eventually ends up in our water supply and comes back to us. If all of us prevent oil from entering drains and rivers, then we’ll be helping ourselves and reducing the mainte-nance cost of our condos’ grease traps.”

Hers is one of several condo projects in the Klang Valley that is giving used oils to FatHopes Energy, a company which processes the grease into biodiesel.

“This scheme has good intentions, that is

used oil each week from Armanee Terrace. Since the collection of used oil started last August, there has been less build-up of sludge in the grease traps.

For resident Sujata Narendra, clogged pipes is a thing of the past since she started giving away waste oil for recycling. “I always had clogged pipes as my maid has this habit of dumping oils down the sink. I no longer have that problem. When I heard about the project, I wanted to take part. We’re reusing something that is going to be thrown anyway and making better use of waste oil.”

The oil collection drive proved so popular that it was introduced in a neighbouring con-domimium, Perdana View Boutique, late last year.

“If we don’t give the oil away, we’ll just pour it into the sink and it goes into the grease trap,” says resident Joy Kumar.

He said some building owners, to avoid the high cost of cleaning grease traps, cre-ate outlets that lead directly into drains. And some, after emptying the grease trap, just chuck the sludge into drains.

“We leave the bottles of used oil outside our apartments, and the cleaners take them down to the central rubbish depository.”

As the scheme is still fairly new, only about one-fifth of the over 500 condo own-ers or tenants is taking part. Kumar is hope-ful that the number will grow once other residents are aware of the pollution posed by careless disposal of grease.

ting the mentality of the masses against die-sel powered vehicles. Many Malaysians prefer petrol to diesel due to the misconception that of diesel en-gines are only suited to heavy machinery. This further reduces the desirability of biodiesel compounded with the low price. By compari-son, neighboring Thailand has far more diesel vehicles personally owned by commuters. FatHopes specializes in customizing sus-tainable biofuel production business models to suit specific environments, business cul-tures and social norms. All three facets of the business are addressed, to ensure successful business models. Among the key objectives of every business model FHE develops, the ability to realize long-term multiple bottom line success is prioritized. Economic bottom line success is achieved by ensuring feedstock is exclusively sourced from the local community, applying sustaina-

bility-based procurement methods. This will ensure that each plant/facility set up continues running as long as its com-munity and the businesses in its vicinity re-main operational. Many options of biofuel feedstock are sourced from waste, with a mi-nor quantum from sustainable, fast gestation crops. The social bottom line is the most im-portant bottom line as it determines the ef-ficiency of each project. It is addressed by ensuring all stakeholders in a given project have a vested interest in the project’s suc-cess, and further stand to gain something from their positive contribution. Developing projects hand-in-hand with stakeholders on the ground consistently indicates increases in projects’ efficiencies. As the environmental implications of eve-ry proposed project is always at the forefront of their planners’ minds, FHE assures that pro-jects that are well-aligned to the two afore-mentioned bottom lines, will excel in the area of environmental stewardship.

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SECTOR 1 Raw Materials

Algae has potential as biofuel for aviation industry

What is Marine Algae?

BIOFUEL FROM ALGAE

BIODIESEL FROM ALGAE

Yield of various plant oils

Algae are a form of aquatic plant life that can range from microscopic unicellular organisms (microalgae) to multicellular organisms that can grow to exceed 50 metres in length (macroalgae). In most cases, strains of algae are photosynthetic, meaning they are able to derive energy and reproduce with little more than sunlight, carbon dioxide and water.

Recent breakthrough discoveries have found that algae can be cultivated to yield biofuels, including biodiesel and bioethanol, at a rate that is 10 to 100 times higher than that of comparable energy crops. In addition, algae has been found to produce more oxygen than all other vegetation on earth put together, thus removing a huge amount of carbon from the atmosphere.

It is also an incredibly versatile crop, able to grow in a myriad of temperatures and environmental conditions. When this is coupled with the fact that it grows in seawater, the potential area available for its cultivation increases to multiple times that of the total arable space on land.

These factors collectively contribute to the strong conviction we have, that the avenue of marine algae presents a remarkably unique capacity for delivering triple bottom line success. In turn, the application of our specialised expertise and in-depth knowhow in the field will guarantee the success of every project we undertake.

Marine algae is seen to have the potential to provide third generation biofuels for use as jet fuel by airplanes, said a senior government official.

“Unlike other biofuels like bioethanol from corn and biodiesel from soyabean, the lipids from micro-algae can be

After initial growth, algae is deprived of nutrients to produce a greater oil yield.

Extraction of oil. A press produces 70-75% of the oils from the plant.

High oil prices and advances in biotech over the past decade have refueled the algae biofuel race.

Solvents used to separate sugar from oil; solvents then evaporate.

Oil is ready. Can be used as oil directly in diesel engines or refined further into fuel.

water

screw press

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Sunlight

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206

251

373

605

1,572

26,417

Soy

Safflower

Sunflower

Castor

Coconut

Palm

Algae

Amongst the fastest growing plants; about 50% of their weight is oil

Contains no sulfur; non toxic, highly biodegradable

Algae fuel is also known as algal fuel or oilgae

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About algae

FatHopes Algae (FHA) is working hand in hand with FHE and University Malaya (UM) to commercialize the cultivation of high lipid content algae. Numerous strains have been iden-tified and adequate methodologies are being screened before mass cultivation. Both marine and fresh water are being ex-perimented on, to determination the most feasible method for mass cultivation. The continued use of petroleum-based fuels is the driving concern behind algal biofuel development, as conventional fuel supplies are widely accepted to be depleting, while mas-sively contributing to the accumulation of CO2 in the envi-ronment. Renewable and carbon neutral fuels are in demand to support the widespread promotion of environmental and economic sustainability. Biodiesel is an attractive alternative fuel option that can directly replace petroleum diesel, while offering many advantages over its conventional counterpart. Of late, there has been increased interest in exploiting microalgae as a viablefeedstock for biodiesel production. The oil content of microalgae can range from 16% to 68% of its dry weight. Microalgae oil yield can reach up to 136,900 L/ha compared to other plant crops, which range from 172 to 5950 L/ha. The crop produces a variety of lipids including try-glerides, hydrocarbons, glycolipids and phospholipids. While most algal strains primarily produce triglycerides, Botryococ-cus braunii contains high amounts of hydrocarbons, which can be converted to gasoline and light and heavy cycle oil after subjected to the cracking process. An added advantage of using photoautotrophic microal-gae is that it absorbs greenhouse gases. Using such a system, any emissions released upon burning the biodiesel will have been previously sequestered, rendering the combustion car-bon neutral. Recently it has been demonstrated that microal-gae like Spirulina and Scenedesmus obliquus are efficient in removing pollutants from the atmosphere.One productive ap-proach to applying this technology would be to use microal-gae in removing carbon emitted by power plants and industry, while producing biodiesel. FHA stays focused on developing scalable models to put the option of fuel production into the individual’s hands. The model strives to allow entrepreneurs with minimal investment capital to purchase modularized sys-tems that cultivate algae and produce biofuel for consump-tion. This will enable individuals and entities alike to hedge on fuel price and offer lower prices for services, as the cost remains constant.

For more information on FatHopes Algae please log on to www.fathopesalgae.com or visit us at IGEM2011.

transformed into jet fuel,” said Professor Dr Nor Aieni Mokhtar, the national oceanography directorate at the Ministry of Science, Technology and Innovation.

“Algae biomass is able to efficiently capture carbon dioxide and is suitable for waste water treatment,” she told reporters at the opening of the Asean workshop on the status and technology development of biofuel from marine algae.

The workshop was part of a seminar on third generation biofuels held in Kuala Lumpur recently. Nor Aieni said that under the 9th Malaysia Plan, RM3.52 million had been allocated to seven marine algae research projects. She said algae offer a promising renewable energy source for a fully sustainable and low-carbon economy.



SECTOR 1Raw Materials

ALTERNATIVEFUEL FARMING

SUSTAINABLE SOURCING OF FEEDSTOCK

Pass the source?

INNOVATIVE WASTE OIL MANAGEMENT SYSTEM FOR PENANG STATE GOVERNMENT

5

Ecological (M) is the brainchild of FatHopes Energy, a com-pany that has worked tirelessly in order to unite this group of capable individuals from various backgrounds. Having secured shining talents from the realms of marketing, indus-trial design, and systems development, Ecological (M) is ide-ally positioned to meet the extensive needs of its customers. Only serving to buttress this formidable offering is FatHopes Energy’s considerable experience in the industry. Our mission is to source all available recyclable raw mate-rials by providing efficient and holistic collection, storage, and management services catering to any customer category. Such raw materials include dry waste (metals, plastics, and papers), wet waste (food scraps, garden waste, kitchen waste) and used cooking oil. Our current customer pool is dominated by schools, apart-ments, and orphanages. However, the applicability of our sys-tem allows us a very promising scope as to including other potential groups such as commercial centres and offices. The main criterion for any proposed collection points is volume but more significantly, they need to qualify as places of con-gregation, locations that enjoy substantial exposure and traf-fic. Ecological (M)’s collection system uses conventional mul-ti-tonne diesel trucks to retrieve recyclable waste from des-ignated locations. The striking difference between Ecologi-cal’s system and your average logistics service provider lies in

AT FATHOPES Plantations (FHP), alternative sources of feed-stock are consistently devised and developed, to ensure a con-stant supply of raw material for the production of organically derived biofuel. The company prioritizes sustainable growth methodologies and procedures that simultaneously work to mitigate the food vs. fuel crisis. One of its primary aims is to ensure its plantations and crops alike, are able to provide a sus-tainable, cost effective and efficient fuel solution for genera-tions to come. FHP specializes in rapid growth crops – like those with fast gestation cycles – which have the ability to absorb heavy met-als and can be grown in degraded land. After several cycles of growing these crops on the otherwise non-arable land, other food crops can also be introduced –once the area has been suit-ably rehabilitated – thus multiplying the plantation’s utility. Further, the company insists that 10% of all land used is allocated for livestock breeding, primarily for cattle and chick-ens. The animal droppings are used for energy generation and as crop fertilizer. The culmination of these elements reliably results in a plot of land that is not only able to sustain itself, but also release feedstock for energy generation while organically enriching the area used. All growing methodologies are automated, significantly reducing dependency on manpower; the availability of which has proven to fluctuate. Further, with the biodiesel production machinery located on-site, the entire production process is

eco. logical

FatHopes Commodities (FHC) is a synergistic partnership between CGV Industries – Malaysia’s leading waste oil collec-tor – and FatHopes Energy. The primary objective of the com-pany is to efficiently consolidate and convert waste materials/oils for environmentally compliant biofuel production. FHC not only collects waste materials/oils, but also con-solidates by way of sourcing and importing the raw materials required for the production of biofuel in Malaysia. It evaluates the Malaysian biofuel market’s requirements and offers more sustainable alternatives that cause less environmental degra-dation. For example, biodiesel facilities currently using Crude Palm Oil (CPO) – which can be used as cooking oil – are able to choose alternatives like used cooking oil, grease trap sludge, palm oil sludge, palm fatty distillates, or palm acid oils, all of which are non-edible waste products that perform perfectly as substitute biodiesel feedstocks in Malaysia today. FHC offers waste oil collection services to the public, as the pioneers in facilitating waste to energy conversion na-tionally. Realizing that as the nation works towards a better financial future we are bound to consume more and more fos-sil fuel – thereby exacerbating global warming and climate change – the company prioritizes energy production. In line with achieving the B5 Policy and our 40% Carbon Emissions

Beginning in Q3 2011, FatHopes Energy-incubated Sus-tainable Biofuels Malaysia (SBM) and the Penang State Gov-ernment will jointly explore the potential for capitalizing on producing and utilizing biofuel from waste oils. The first stage is a state-wide Used Cooking Oil (UCO) Awareness and Recycling Campaign, in line with addressing environmental issues caused by fats, oils and grease pollution in water lines. Pilot UCO collection centers are to be set up on Jalan Kam-pung Benggali on the mainland, and Jalan Macalister on the island, before adoption across the state. SBM will provide the knowhow and expertise in ensuring stewardship in UCO col-lection and management, through conversion into biofuel. Timely, conscientious disposal of UCO will be demonstrat-ed to the state’s hawkers and F&B operators, in order to en-gender mutually beneficial partnerships with the localpopulation. Consumers will initially be advised to equip their kitchens with oil collection containers, to encourage individual contri-bution until centralized disposal depots are allocated to each locality. The campaign will also involve the use of online portals, awareness posters and educational materials to promote widespread public support for a cause where every individual can take charge of proper waste oil disposal. This initiative was proposed as a result of the infrastruc-tural stresses caused by Penang’s numerous eateries, thanks to its reputation as a regional food heaven. The project’s ob-jectives are to:

1. Mitigate irresponsible UCO disposal, which is currently the cause of clogged drains, bad odor and consistently costly maintenance costs to the state.

2. Reduce water pollution in streams and surrounding seas.

3. Maximize application of subsidy-independent renewable, environmentally compliant fuel.

4. Offer greater food security by reducing the amount of UCO being re-sold for human consumption.

The innovative program will also offer operators automatic grease traps, with minimal maintenance costs and justifiable return-on-investment periods. This equipment assures opti-mal efficiency of extraction, by skimming wastewater for oil in a heated chamber, as the water flows through it.

rendered energy positive. This means that all energy required for the planting, growing, harvesting, processing, cleaning, and delivery to the end user is powered by the crop and the excess biofuel is sold to the market for a profit. FHP creates micro-businesses in every plantation that is set up, providing local populations with sustainable job op-portunities and the chance to create new streams of revenue generation. From the crops’ by-products, native populations are encouraged to produce cottage industry goods, such as organic cloth and dyes. Locals are also allowed to plant their choice of food crop in the space between those that exist, con-tributing towards their nutritional sustenance. FatHopes also offers farmers contract farming opportuni-

ties for a consistent and significant return. This illustrates the company’s beliefs in wealth sharing, as one of the most per-tinent values in sustainable business and further, its belief in allowing more people experience first-hand, the process of biodiesel production. In turn, this leads to a better understanding held by the general population, and therefore a strong sense of confidence in the feasibility of biofuel as a far-reachingsolution to today’s overdependence on finite fossil fuels. FHP also explores the option of leasing land for biofuel crop cultivation.

For more information, members of the public should log on to www.fathopesenergy.com

Intensity reduction commitment, FHC sees the value in seizing a valuable resource, rather than letting it go to waste. FHC strives to offer the best customer service and re-sponse for waste oil collection to individuals and companies alike. Customer focused and results driven, the company seeks to apply its industry experience by completing jobs in a neat and timely manner. Currently the appointed collector of more than 300 businesses, FHC is confident of being able to offer its services to more clients. Some of the most successful F&B chains in the world have placed their trust in the company, to supply the stated waste oil collection service. All results are measured in compliance with global carbon emissions standards and by way of carbon emissions reduc-tion. With the wide utilization of sustainable biofuels pro-duced from recovered or inedible sources, FHC is centered and resolute on significantly reducing carbon emissions intensity in Malaysia. Malaysia has set an example for the rest of the world with the production of biodiesel from CPO due to the mass produc-tion of palm oil; shouldn’t we set another Malaysian example with sustainable production of biodiesel derived from waste and inedible streams?

terms of environmental impact. Ecological uses FatHopes Bio-diesel. With our transportation overheads kept to a minimum, both in terms of ‘Mother Nature’ and operations, Ecological (M) thrives in conditions where others find it difficult to survive, let alone profit. To complement our collection system, we at Ecological (M) insist on integrated sustainable design to all our concepts, most notably for our storage systems. For example, our school recycling campaigns boast purpose-built recycling collection facilities fitted with rainwater tanks for the regular cleaning of the aforesaid. Meanwhile, our orphanages and apartments have floor-to-floor collection facilities with depositories made of recycled plastic. Such stringent internal practices allow us to offer our services confidently, unconcerned about third-party credibility checks simply because we in turn scrutinize other companies who purport to offer green services. Ecological (M) management services further enhances col-lection and storage systems by combining known best-practic-es such as Kaizen, TQM and knowledge-management. Like all other forerunners of industry, the Internet is an indispensable tool to the workings of our supply chain. Customers of Eco-logical (M) benefit from this regular and up-to-date transfer of information because it ensures that each participating school, apartment, or orphanage receives the best available market rates for their recyclable items. Each group is also subject to routine quality control practices which enables all complaints, discrepancies and losses are speedily amended. We also practice change-management by constantly analysing politi-cal, economic, social, technological, environmental, and legal trends both locally and internationally. Such a holistic service is a scarcity in Malaysia thus belying the reason for our existence. Our services are unique and so-phisticated enough to pique investor interest while remaining applicable and current enough for any customer wanting to upgrade their sustainability factor.



IN THE NEWS6



IN THE NEWS 7



SECTOR 2 Manufacturing

SUSTAINABLE BIODIESEL FOR MALAYSIA

Sustainable Biofuels Malaysia

An Eco Friendly Alternative to Petrol

CONVERTING WASTE TO CNG

PUTRAJAYA: Biodiesel is now available in the market. Beginning this month until October, the supply of the new fuel will be available in stages starting at Putrajaya followed by Malacca, Negri Sembilan, Kuala Lumpur and Selangor respectively. Plantation Industries and Commodities Minister Tan Sri Bernard Dompok launched the B5 biodiesel programme at the Petronas station at Precint 9 here yesterday.With this, all five Petronas stations and one Shell station here will be dispensing the fuel. B5 is a blend of 95% regular petroleum-based diesel and 5% biodiesel which can be used in normal diesel engine vehicles without any modifications. It will be sold at the same

price as regular diesel at RM1.80 per litre. Dompok said that the B5 price mechanism would be regulated and determined by the Finance Ministry. “The rolling out of the B5 programme will not cause any price changes as the Government will continue providing subsidies to ensure that the B5 will be at the same cost as regular diesel,” he said. “The production of the B5 is more expensive but the cost is absorbed by the Government,” he added. Malaysian Palm Oil Board director general Datuk Dr Choo Yuen May said the fuel is more environmentally friendly compared to regular diesel.

ENVIRONMENTALLY FRIENDLY BIODIESEL NOW ON SALE

SBM

-The Star - 2/6/2011

As a division of the FatHopes group, FatHopes Ethanol is currently developing a feasible business model for the production of Ethanol in the Malaysian environment. Ethanol is a one-for-one replacement for con-ventional petrol that can be used in today’s petrol engines. Along with FatHopes Algae, working in collaboration with University of Malaya, the company is currently exploring the conver-sion of algae into ethanol. It is developing the most sustainable and cost effective ar-rangement to convert macro marine algae into bioethanol. These in-depth studies into suitable mechanisms are tailored to suit Ma-laysian market demands imposed by the low price of petrol, due to heavy subsidies. The entity’s main objective is to develop a renewable, alternative fuel that can com-pete with the price of subsidized fuel. This is mainly due to the fact that the majority of primary petrol users buy the fuel at the sub-sidized price. In contrast, the vast majority of Malaysian diesel consumers purchase the fuel without subsidies. The wide-scale utilization of ethanol, as a conventional petrol replacement, also offers attractive returns from its potential for reduc-tion of environmental impact. In additionto being cheaper than fossil petrol, it doesn’t release carbon monoxide emissions, making

petrol vehicles safe again. This comes as a reminder of how the petrol vehicle was first powered by its inventors, running it on moon-shine – alcohol. Ethanol has a promising future, but risks may arise unless a solid foundation of re-search and development is established, fol-lowed by exhaustive testing and certification. The development of a cost effective model capable of producing in commercial quantity is presently being centralized. Confident that the Malaysian market is re-ceptive enough to delve into a future-fuel, the entity remains on the look out for partners to assist with project development. At present, considerable awareness on the difference between conventional petrol and renewable alternatives is still required, to facilitate the realization that it is worthwhile to pay slight-ly more for environmentally complaint fuel. This only applies at the final stage, after vi-able options have been prepared for consid-eration and approval. FatHopes Ethanol strives to meet the pub-lic will to contribute on a personal level, but unfortunately the majority of Malaysian con-sumers’ cars are petrol driven.

Members of the public interested in more in-formation should log on to www.fathopesen-ergy.com

FatHopes Biodiesel (FHB) is the biodiesel-manufacturing arm of the FatHopes group. FHB produces environmentally compliant fu-els prioritizing the lowest embodied emission throughout the manufacturing process. The entity is constantly on the look out for alternative feedstock sources inline with increasing the product’s sustainability stand-ards. FHB is exclusively specialized as a mul-tiple bottom-line business. The company sources and localizes state-of-the-art equipment from around the world to ensure the latest technologies are used in the efficient production of biodiesel in the Malaysian business environment. It specializ-es in converting waste streams into biodiesel of globally recognized standard, while ensur-ing prices stay competitive and affordable to the masses. FHB currently operates in Malaysia; con-verting waste streams like used cooking oil (UCO), grease trap waste, palm fatty distil-lates, palm acid oil and palm oil sludge. Sus-tainable crop oils that don’t compete with food supply, like Jatropha and Safflower oil, are also explored. The technology currently utilized by FHB was supplied and set up by FatHopes Energy, a distributor of fully au-tomated multi-feedstock plants. The tech-nology’s inventor is from Calcutta’s Eastern Biodiesel Technologies India Pvt. Ltd., which been supplying some of the most reputable companies like TATA, Indian Railway and Re-liance India. The technology comprises com-ponents combined from some of the best specific-equipment producers from around

the world. Entire plants are fabricated, as-sembled, commissioned and tested in India before being dismantled and dispatched to Malaysia. FHB utilizes multi-feedstock equipment, reducing business risk and allowing fuel to be produced more sustainably. It focuses on em-powering Malaysians to use biodiesel by cap-italizing on the fact that it is produced from waste streams and can therefore be made at very competitive prices. FHB strives to enable consumers at large to comply with the national 5% biodiesel policy: the B5 scheme. If biodiesel can be pur-chased at slightly cheaper than current prices shouldn’t we all start using it? It is only when producers can find alternative feedstocks at cheaper prices, that the end product can be affordable enough for consumption in Malay-sian vehicles. FHB, FatHopes Commodities and CGV In-dustries, one of Malaysia’s most experienced and reputable UCO collectors, are working to bring this awareness into the public eye. The ultimate goal is a Malaysia where all realize the value in proper UCO disposal: cheaper energy. As the cost of producing UCO-derived biodiesel can be kept constant at the current level – less than that of petroleum-based die-sel – it will continue to be a profitable busi-ness model, while the cost of conventional fuel continues to rise. Nevertheless, the quantity of UCO collect-ed is dependent on widespread public partic-ipation and is expected to continue growing, along with the national population.

FatHopes Biogas (FHBG) manufactures sustainable compressed natural gas (CNG) as a swap-in replacement of gas for natural gas-powered vehicles (NGV). FHBG also supplies biogasification equipment, enabling individual and companies alike, the opportunity to begin converting any organic waste stream into biogas and/or CNG. All feedstock used for CNG production is waste-derived and it is recommended that such facilities are set up for sustainable waste management. This is probably the most financially feasible manner to deal with the waste we produce daily. FHBG’s equipment and machinery is capable of converting all organic waste into biogas, allowing the

company to support the propagation of a zero-waste system. Biogasification technology significantly reduces waste that needs to be sent to landfill, in turn limiting the overall number of dumpsites required. Further, all emissions released from rotting material at the dumpsite can be captured and utilized for energy generation. Ultimately, land that is currently taken up by landfills can be converted into projects that return greater financial benefits. Current landfill operators stand to not only realize savings from the reduction of maintenance work required, but also have the option of becoming independent power producers, by retailing organic waste-derived

Inline with the Penang State Govern-ment’s motto ‘A Cleaner, Greener Penang’, Sustainable Biofuels Malaysia (SBM) has emerged to offer innovative waste manage-ment solutions that prioritize energy produc-tion in the form of biofuels. SBM has recently set up a micro biodiesel processing facility in Bukit Mertajam, Penang to provide the apparatus necessary to convert used cooking oil (UCO) and grease trap waste into biodiesel. The facility was set up to ad-dress the issue of water pollution caused by improper disposal and management of UCO. Meanwhile, the threat to food security is mounting, with increasing amounts of UCO being blended with virgin oils for re-con-sumption. The company is currently developing an integrated pig waste management facil-ity with the objective of producing high-end compressed natural gas (CNG) to power natu-ral gas vehicles (NGV). The project was pro-posed in order to help increase the standard of living for downstream communities, while providing value addition to pig farmers by allowing land currently used for wastewater treatment to be converted into additional farming area.

All of SBM’s projects are developed to ensure the achievement of all three bottom lines within the given circumstances; namely the economic, social and environmental pil-lars. This comes with the realization that busi-ness models that discount even one of these bottom lines are bound to be finite and non-renewable. Instead, they have opted for mod-els that are cyclic and work hand-in-glove with triple bottom line business. SBM’s success is benchmarked by stake-holder satisfaction and maintaining the per-fect return-on-investment record. In addition, environmental achievement is measured by the realization of significant carbon emis-sions reductions while keeping detailed car-bon emissions reports, in accordance with global standards. By properly managing 150 tons of pig manure per day, the company is confident of being able to reduce carbon di-oxide emissions by at least 30,000 tons per year. SBM also strives to supply Penang’s citi-zens and businesses with more accessible renewable fuel choices, contributing towards achievement of the State Government’s goal to create a ‘habitat of choice’ for all Penan-gites. The realization of this vision – through the application of alternative biofuels – will not only revitalize its urban spaces and streetscapes, but also deliver better living environments while serving to reposition Penang as Malaysia’s sustainable city.

CNG. Conversion of existing waste will allow the landfill to go from a utility funded by costs to the consumer, to a revenue-oriented business model, letting operators gain more control over their landfill’s future. This shift will, however, profoundly affect the end-user in two ways; while incurred costs are lessened, waste separation will have to be done by the consumer at the source. Awareness and educational efforts are currently being undertaken in pockets throughout the country to facilitate better understanding of waste separation at the source. FatHopes’ strategic partners like EcoLogical Sustainable Services and Sustainable Biofuels Malaysia are providing assistance in this field, disseminating information, while mentoring reception and

8

compiling progress reports. Biogasification solutions are successful in a broad range of applications, if cornerstone stakeholders are united for the project’s implementation. Biogas solutions are also perfectly suited to livestock farm conditions, where waste treatment can incur considerable costs. Apart from minimizing waste treatment costs, they can result in a further saving on energy, or a new revenue stream for the farm through the sale of energy generated. FHBG prides itself in consistently offering individuals and companies cost effective organic waste management systems with a proven return on investment. Available equipment ranges from 300 KGs to 50 tons per day, each allowing for attractive savings on waste and wastewater treatment.



Spreads the word

BEYOND INCREMENTALIMPROVEMENTS

Dissemination 9SECTOR 3

The level of understanding of environ-mentalism in Malaysia leaves something to be desired in comparison to other developing nations. Other countries are already dabbling in bio-fuels and flexi-fuels for cars while still others have mastered the technique of con-verting sewage into drinking water. In order for Malaysia to compete on an international level we must break the current paradigm, uniting under the guidance of Ecological (M) primary and secondary visions to achieve ex-cellence and credibility. Ecological’s primary vision is concerned with debunking current perceptions of pro-hibitive costsand difficulty associated with environmentally friendly practices, ultimate-ly demonstrating the accessibility of these practices to the public at large. Many remain unaware of available tech-nologies and practices that enable fiscal sav-ings as well as their corresponding environ-mental benefits. Ecological (M) endeavours to revolutionize this status quo by initiating a steady stream of extensive campaigns, each with its own specific goal for a targeted de-mographic. Such an effort will be accelerated by the simultaneous creation of suitable fo-rums for engagement to which active envi-ronmentalists and non-active individuals can flock. From a long-term perspective, this will enhance collective understanding of sustain-ability. By identifying the various definitions commanded by ‘sustainability’, we can bet-

ter inform, educate, and manage such willing individuals along the appropriate phases for enacting change. Each group may stand at dif-fering levels of environmental activism, thus Ecological (M)’s faculty for the adaptation and accommodation of each must suit multiple backgrounds. Such capability has effectively been demonstrated via the various groups of customers with whom we currently work. Ecological’s secondary vision is geared toward the connection and integration of all members of the public to achieve an agreed state of unity – that elusive ideal of zero waste. In the transition period to becoming a ‘zero waste’ nation, the effort of each and every individual will not go unnoticed. Eco-logical (M) prioritizes the people who devote time and effort to their involvement in any program servicing a customer group. For example, the myriad cleaning staff who customarily toil in seeing to the removal of our waste are heavily integrated into any system. They receive a regular stipend from the waste as part of any program implement-ed for a customer. This provides them with greater incentive to collect, sort and manage recyclable waste in addition to that collected by the customer, as they grow to appreciate the tangible value of the waste. Such considerations are mandatory to our operations. Each decision, action, and plan endeavours to consider every single indi-vidual who may be affected. This is vital to ensuring success in connecting individuals to create critical mass for change. The general connotation of peer pressure is a negative one but in this context, a wave of environ-mental activism is undoubtedly a good influ-ence on society, country and the world as a whole.

The climate crisis is spinning out of con-trol at the same time as the world is faced with a major development crisis; by 2050 the global human population will have reached 9 billion. The majority of whom will live a life of poverty if we fail to alter our current develop-ment path. Until now, most efforts to solve the cli-mate crisis have focused on how to reduce the carbon footprint of our current economic system. However, this approach will not alone lead us onto the right path as it is concerned with eliminating a problem rather than build-ing a new economy. Efforts to solve the climate crisis must focus simultaneously and speedily on all sec-tors, all gases in all regions on how to reduce the carbon footprint of our current economic system. However, this approach will not lead us onto the right path if only selective ac-tions are being taken which may focus only on short-term economic benefits and costs. If we do not radically alter the system and construct a 21st century green economy we are likely to reduce the problem but not solve it entirely. Furthermore, enhancing the effi-ciency of the current system will not build an economy capable of providing the jobs and services needed for 9 billion people, within the limits of our planet. Creating a new economy seems an over-whelming task to most of us and obviously no one knows how a future sustainable economy will look like. However, if we have the courage to rise to this challenge and alter our perspec-

tive we will see that certain technologies and sectors have an often overlooked potential to help us take the important steps on the path toward sustainability. Industrial biotechnology is one such sec-tor. Even though the sector is still in it’s infan-cy, it globally avoids the creation of 33 mil-lion tonnes of CO2 each year through various applications, without taking ethanol use into consideration, whilst globally emitting 2 mil-lion tonnes of CO2. With this report, WWF sets out to explore the magnitude and nature of this sector in our search for pathways toward a green economy and a sustainable future. The potential is enormous, but the uncertainties and pitfalls are many. The courage, vision and drive of the world’s politicians, investors and business leaders will ultimately determine whether we realize this potential. The path toward a green economy will not be easy, but we must be mindful of where we are likely to end up if we continue on our current path. With this in mind, it is clear that there is no alternative to explore these inno-vative pathways.

eco. logical

-80

0 20 40 60 80 100

-70

-60

-50

-40

-30

-20

-10

0

10

20

CARBON FOOTPRINT OF 1L OF UCOME (USED COOKING OIL METHELY ESTER)The vast majority of biodiesel available in Ma-laysia is sourced from palm oil, often grown on recently deforested rainforest, like vast tracts of land in Indonesia. It is conceivable that cultivating biofuel crop could emit 2 to 8 times more carbon than using conventional fossil-diesel. FatHopes only converts waste/non-edible oils into biodiesel, dramatically

reducing the product’s carbon footprint. With technologies capable of achieving a one-for-one conversion yield in Malaysia, FatHopes was able to drastically streamline its emis-sions. The advanced technologies applied help ensure that every liter of used cooking oil (UCO) processed is turned into biodiesel, without discharge or effluent.

Green House Gas (GHG) Emissions Reductions.

•70% less Hydrocarbons•50% less Carbon Monoxide

Carbon Footprint by Stage of Production.

0

20

40

60

80

100

As shown above, used cooking oil biodiesel releases less emissions than conventional biodiesel and far less emissions, compared to fossil diesel. FatHopes’ BioRecoil (Biodiesel from Recycled Cooking Oil) has a carbon con-tent of only 0.65 KGs per liter, 2.03 KGs less than conventional diesel’s 2.68 KGs per liter. FatHopes’ manufacturing facility currently operates at the rate of 150 Mt per month, re-sulting in:

Average emissions impacts of biodiesel for heavy-duty highway engines.

Shar

e of

ove

rall

foot

prin

t

Combustion ProcessEnergy

ProcessChemicals

Transport Raw Material

Biodiesel from tallow scenario Ior biodiesel from used cooking oil

Biodiesel from tallow scenario II

Biodiesel from tallow scenario III(price allocation)

Biodiesel from tallow scenario III(mass allocation)

NOx PM CO HC

Percent biodiesel

Perc

ent c

hang

e in

em

issi

ons

•50% less Particulate Matter•10% more Nitrogen Oxide

Biodiesel and Straight Vegetable Oil

100% recycled biodiesel releases:

3,645 tons of carbon saved

in just one year.



CLIMATE CHANGE

Biofuels

Global process:

Fossil Fuels

Global process:

Threats

Crops are renewable

Land use competition with food production

Agricultural prices up

Biodiversitydamage

and other health concernsFAMINE, MALNUTRITION

Monoculture

DeforestationLand use change

Massive need for agricultural land

Petrol anddiesel

substituion

Distribution

Production + use of fertilizers

Water + soil pollution

Use of farm machinery

Industrial transformation process

Agricultural production

No greenhousegas emission

Limitedresource

Final UseRoad

Transport

Greenhousegas emission

Refining

Transport

Prospecting + extracting

Fossil fuel shortage

Distribution

Petrol anddiesel use

Fossil fuelburningFinal Use

RoadTransport

BIOFUELS

FOSSIL FUELS

vs.

Virtuous initial equation in favour of biofuels

Main concerns related to biofuels

Main concerns related to fossil fuels

Dissemination10ENVIRONMENTALLY COMPLAINT TRANSPORTATION SERVICE

SECTOR 3

Source: Emmanuelle Bournay, Atlas Environnement du Monde Displomatique 2007

Lorry Rental Service (1t, 3t & 5t)

Van Service (8 & 12 seaters)

Bus Service (25 & 40 seaters)

CO2

Plants ProduceVegetable Oil

Used in Restaurants

Exhaust Gases Absorbed by Plants

Separated BiodieselWashed to Remove

Impurities

monoalkylesters

glycerol

Glycerol Usedin Manufacturing

Waste Vegetable Oil Collected and Purified

Chemical Reaction Separates Biodiesel

from Glycerol

Biodiesel Soldto Consumers

Biodiesel Polishedby

Proprietary Process

LifecycleBiodiesel

offers a full range of transportation services,

among them:

A

B

C

FatHopes Transport (FHT) is Malaysia’s premier B5-compliant transportation provid-er, running all its vehicles on 5% biodiesel blend, in line with national policy. FHT is the fist environmentally compliant transporta-tion provider in Malaysia, achieving its vision by ensuring its sustainability policies are kept relevant. Having set the benchmark for the na-tional sustainable transport industry, the company is keen to satisfy client expecta-tions. FHT is an functional example of how a sustainable business can actually be cheaper than conventional businesses; charging one of the lowest rates in the market, since the biodiesel used is acquired at slightly cheap-er than market fuel prices. Coupled with a focus on routing and avoiding congested areas at peak times, we are able to considerably reduce fuel con-sumption. From fleet management alone, overall fuel consumption was reduced no-ticeably. Further reducing the carbon em-bodied in the transport service, FHT runs on biodiesel derived from reclaimed Used

Cooking Oil (UCO), cutting the environmen-tal costs of growing and manufacturing more feedstock crop. All vehicles run on UCO biodiesel, ensur-ing that all transportation operations have minimal environmental impact. Industry-leaders looking to put a real Green edge to satisfying their transport needs should start with Green fuel. In fact, companies that have yet to adapt to the Green movement also have the perfect opportunity to take a significant step, with something that will actually make a differ-ence. Regardless, the affordable rates are also a great reason to commission FHT’s services. FHT currently serves Penang and the Klang Valley area, also catering to individuals inter-ested to charter vehicles and return them at either of the two locations. For more informa-tion on the services offered, members of the public should contact Pete at +60176853648 for all lorry enquiries and confirmations, or Yunda at +60124932082 for bus and van en-quiries and confirmations.

+603 2300 3780 [email protected] www.fathopestransport.com

+603 2300 3780 [email protected] www.fathopestransport.com



11WHY SUSTAINABLE BIOFUELS?

TYPES OF BIOFUELS

Biofuels are combustible materials di-rectly or indirectly derived from biomass, commonly produced from plants, animals and micro-organisms but also from organic wastes. Biofuels may be solid, liquid or gase-ous and include all kinds of biomass and de-rived products used for energetic purposes. This “bioenergy” is one of the so-called renewable energies. Besides the traditional use of bioenergy 3, ‘modern bioenergy’ com-prises biofuels for transport, and processed biomass for heat and electricity production. Biofuels for transport are commonly ad-dressed according to their current or future availability as first, second or third genera-tion biofuels (OECD/IEA 2008). Second and third generation biofuels are also called “ad-vanced” biofuels. UNEP (2008) points out that this differentiation is not always straight-forward due to overlaps regarding feedstocks and processing technologies, as well as un-certainties regarding environmental impacts. Terms such as “higher generation” or more “advanced” biofuels suggest superiority; however, superiority in terms of sustainabil-ity is not a given and needs to be assessed as critically as for all kinds of biofuels. ‘First-generation biofuels’ are commer-cially produced using conventional technol-ogy. The basic feedstocks are seeds, grains, or whole plants from crops such as corn, sugar cane, rapeseed, wheat, sunflower seeds or oil palm. These plants were originally selected as food or fodder and most are still mainly used to feed people. The most common first-

CONSUMER / NATION

generation biofuels are bioethanol (currently over 80% of liquid biofuels production by energy content), followed by biodiesel, veg-etable oil, and biogas. Second-generation biofuels can be pro-duced from a variety of non-food sources. These include waste biomass, the stalks of wheat, corn stover, wood, and special energy or biomass crops (e.g. Miscanthus). Second-generation biofuels use biomass to liquid (BtL) technology, by thermochemical conver-sion (mainly to produce biodiesel) or fermen-tation (e.g. to produce cellulosic ethanol). Many second-generation biofuels are under development such as biohydrogen, biometh-anol, DMF, Bio-DME, Fischer-Tropsch diesel, biohydrogen diesel, and mixed alcohols. Algae fuel, also called oilgae, is a biofuel from algae and addressed as a third-genera-tion biofuel (OECD/IEA 2008). Algae are feed-stocks from aquatic cultivation for production of triglycerides (from algal oil) to produce biodiesel. The processing technology is basi-cally the same as for biodiesel from second-generation feedstocks. Other third -generation biofuels include alcohols like bio-propanol or bio-butanol, which due to lack of production experience are usually not considered to be relevant as fuels on the market before 2050 (OECD/IEA 2008), though increased investment could ac-celerate their development. The same feed-stocks as for first-generation ethanol can be used, but using more sophisticated technol-ogy. Propanol can be derived from chemical processing such as dehydration followed by hydrogenation. As a transport fuel, butanol has properties closer to gasoline than bioeth-anol.

The table on page 26 and 27 of Towards Sus-tainable Production and use of resource : As-sessing Biofuel – UNEP Document

Canola

20 40 60 80 1000

Sa�ower

Sunflower

Corn

Olive

Soybean

Peanut

Cottonseed

Yellow Grease

Lard

Beef Tallow

Palm

Coconut

Composition of various biodiesel feedstocks

SaturatedMonounsaturatedPolyunsaturated

Linseed Oil (raw)0

20

40

60

80

0

20

40

60

80

0

20

40

60

80

0

20

40

60

80

0

20

40

60

80

0

20

40

60

80

Peanut Oil (crude) Sunflower Oil (RBD)Soybean Oil (crude/de-gummed)

Canola Oil (RBD)

Corn Oil (refined) Palm Olein (RBD)Soybean Oil (RBD) Palm Oil (RBD) Cottonseed Oil (PBSY)

Coconut Oil (crude)Palm Kernel Oil (RBD) Corn Oil (crude) Palm Stearin (RBD)

Edible/Technical Tallow

Palm Stearin

Lard Intermediate Tallow Bleachable Fancy Tallow - PackerPoultry Fat (less than 4% FFA)

Choice White Grease Bleachable FancyTallow - Renderer

Stabilized/Poultry Fat Yellow GreasePalm Fatty Acid Distillate

0

20

40

60

80

0

20

40

60

80

0

20

40

60

80

0

20

40

60

80

Feedstock Price Comparison

Transportation Rates

Price per Pound

Units in cents per pound

Pricing as of 4/1/2009 Source: The Jacobson and BNSF Published Rates

Biofuels – in the form of liquid fuels de-rived from plant materials – are entering the market, driven by factors like oil price spikes and the need for increased energy security. However, many of biofuels that are currently supplied have been criticized for their ad-verse impacts on the natural environment, food security and land use. The challenge is to support biofuel devel-opment – including the development of new cellulosic technologies – with responsible policies and economic instruments to help ensure sustainability in biofuel commerciali-zation. Responsible commercialization of bi-ofuels represents an opportunity to enhance sustainable economic prospects in Africa, Latin America and Asia. Biofuels offer the prospect of increased market competition and oil price moderation. A healthy supply of alternative energy sourc-es will help to combat gasoline price spikes and reduce dependency on fossil fuels, espe-cially in the transport sector. Using transpor-tation fuels more efficiently is also an integral part of sustainable transport strategies. Biofuel development and use is a com-plex issue, because of the diversity of avail-able biofuel options. Biofuels like ethanol and biodiesel are currently produced from the products of conventional food crops such as the starch, sugar and oil feedstocks from crops like wheat, maize, sugar cane, palm oil and rapeseed oil. A major switch to biofuels derived from such crops would create direct competition with their use for food and ani-mal feed, with clearly visible economic con-sequences already emerging in some parts of the world. Second-generation biofuels are now be-ing produced from a much broader range of feedstocks, including the cellulose in dedi-cated energy crops (perennial grasses such as Switchgrass and Miscanthus giganteus), forestry materials, by-products of food pro-duction, and domestic vegetable waste. Ad-vancements in conversion processes will im-prove biofuel sustainability, through higher

efficiencies and reduced environmental im-pact from the propagation and cultivation of alternative fuel feedstocks. Produced responsibly, alternative feed-stocks are a sustainable energy source that need not divert any land from the growing of food, nor cause damage to the environment; they can also help solve problems caused by the unchecked generation of waste, while creating jobs in downtrodden rural communi-ties, where opportunities are scarce. Produced irresponsibly, they at best of-fer no climate benefit and, at worst, have detrimental social and environmental con-sequences. In other words, the application methodology of biofuel is critical, just as with any other product. According to the Rocky Mountain Insti-tute, sound biofuel production practices don’t hamper food and fibre production, nor cause water or environmental problems, and could even enhance soil fertility. The selec-tion of land on which to grow the feedstocks is a critical component of the ability of bio-fuels to deliver sustainable solutions. A key consideration is the minimization of biofuel competition for prime cropland. Public attitudes and the actions of stake-holders can play a crucial role in realizing the potential of biofuels. Informed discussion and dialogue, based both on hard science and an understanding of public and stakeholder views, is important. The Roundtable on Sustainable Biofuels is an international initiative, which brings together farmers, companies, governments, non-governmental organizations, and sci-entists who are interested in the sustain-ability of biofuel production and distribution. Throughout 2008, the Roundtable developed a series of principles and criteria for sustain-able biofuel production through meetings, teleconferences, and online discussions. The Roundtable for Sustainable Biofuels released ‘Version Zero’ of its proposed stand-ards for sustainable biofuels on August 13, 2008. This included 12 principles, each with

several criteria developing the principle fur-ther:

1. Biofuel production shall follow interna-tional treaties and national laws regarding such things as air quality, water resources, agricultural practices, labor conditions and more.

2. Biofuel projects shall be designed and op-erated in participatory processes that involve all relevant stakeholders in planning and monitoring.

3. Biofuels shall significantly reduce green-house gas emissions as compared to fossil fu-els. This principle seeks to establish a stand-ard methodology for comparing Greenhouse Gas (GHG) benefits.

4. Biofuel production shall not violate human rights or labor rights, and shall ensure decent work and the wellbeing of workers.

5. Biofuel production shall contribute to the social and economic development of local, rural and indigenous peoples and communi-ties.

6. Biofuel production shall not impair food security.

7. Biofuel production shall avoid negative im-pacts on biodiversity, ecosystems and areas of high conservation value.

8. Biofuel production shall promote practices that improve soil health and minimize degra-dation.

9. Surface and groundwater use will be opti-mized and contamination or depletion of wa-ter resources minimized.

10. Air pollution shall be minimized along the supply chain.11. Biofuels shall be produced in the most cost-effective way, with a commitment to improve production efficiency and social and environmental performance in all stages of

the biofuel value chain.

12. Biofuel production shall not violate land rights. In April 2011, the Roundtable on Sus-tainable Biofuels launched a comprehensive set of sustainability criteria – the ‘RSB Cer-tification System.’ Biofuels producers that meet these criteria are able to show buyers and regulators that their product has been obtained withoutharming the environment or violating human rights.



Born 18 March 1858 in Paris, France to German immigrants Theodore and Elise Die-sel, Rudolf Christian Karl Diesel was a Me-chanical Engineer most notable for the inven-tion of the diesel engine. Rudolf Diesel understood the theoretical and practical constraints on fuel efficiency

WHO WAS RUDOLF DIESEL?

INNOVATIVE UCO COLLECTION FOR THE MASSES

BIORECOIL

BioRecoil is Biodiesel from Recycled Oil. The FatHopes group has recently launched this brand as the pioneer product that has been tested and proven for the biofuel mar-ket. BioRecoil was coined for the easy un-derstanding of the product and wide dis-semination of the brand. The brand aspires to encourage diesel consumers to relook fossil energy dependency and gather the courage to delve into renewable alternatives. BIORecoil is biodiesel manufactured from recycled cooking oil in compliance with global standards. BioRecoil is benchmarked to EN14214 and ASTM D6751 standards to ensure the consistent reliability and product

quality. It is also useable under operating temperatures of as low as 0˚C. These stand-ards ensure the fuel is a one-for- one replace-ment – widely know as a ‘drop-in alternative fuel’ – useable in today’s diesel engines. BioRecoil is a renewable fuel with one of the lowest carbon emissions due to the ori-gin of the feedstock – used cooking oil (UCO); a kitchen waste product sourced locally as well as internationally. The waste collected is consolidated in Klang, Malaysia before being processed. The entire process, from collection to processing to distribution, is closely moni-tored and documented in an internationally recognized ‘chain of custody’ format. The trail of documentation allows forverification and confirmation that the feedstock originated from waste streams, ensuring the waste oil’s lifecycle continued after it was first used, in-stead of being disposed of. FatHopes Commodities and CGV Indus-tries Sdn. Bhd. – one of Malaysia’s most sizeable and reputable UCO collectors – col-lect UCO, BioRecoil’s raw material. The raw product is primarily collected from fast food chains, factories, large canteens and food courts. As part of the FatHopes group’s Corpo-rate Social Responsibility commitment, UCO is also collected at community level and at schools, to spread awareness of wealth shar-ing and alternative energy options available today. This reflects well with a younger gen-eration that is curious, and willing to look at things differently. The benefits of using BioRecoil, apart from the fact that it is priced extremely com-

editor designer

content provider contributors

FatHopes and Tywei Marketing have re-cently collaborated to launch an innovative used cooking oil (UCO) collection system de-signed for the masses. The unique integration of FHE’s UCO collection methods and Tywei’s 3R Box Recycling Program results in a crea-tive solution that bridges the gap between recycling contributors and waste-to-energy producers. The collaboration between FatHopes and the widely successful 3R Box Recycling Pro-gram in Penang – which strategically places

management office:

22-2, Jalan 28/70A,Desa Sri Hartamas,50480 Kuala Lumpur,Malaysia

FATHOPES ENERGY SDN BHD(920586-w)

manufacturing facility:

No. 10, Lorong 51A/227B,Seksyen 51A,46100 Petaling Jaya,Malaysia

and knew that good steam engines are only 10-15% thermodynamically efficient, equat-ing to 90% wastage of the fuel’s energy. Driven by the goal of higher efficiency ratios, he developed his own approach and eventu-ally designed his engine which he described as a “slow-combustion engine” that first compressed air thereby raising its tempera-ture above the igniting-point of the fuel. The engine would then gradually introduce fuel while letting the mixture expand “against re-sistance sufficiently to prevent an essential increase of temperature and pressure”, then cutting off fuel and “expanding without trans-fer of heat.” His engine was the first to prove that fuel could be ignited solely with high compres-sion. The engine he patented ran on Peanut Oil, now more commonly known as straight vegetable oil (SVO) or Biodiesel. Though most remembered for his pres-sure-ignited heat engine, Rudolf Diesel was also a social theorist with three common-alities in his inventions; they relate to heat transfer by natural physical processes or laws; they involve markedly creative mechanical design; and they were initially motivated by the inventor’s concept of sociological needs – he originally conceived the diesel engine to enable independent craftsmen and artisans to compete with industry. On August 10, 1893, Rudolf Diesel’s prime model; a single 10-foot iron cylinder with a flywheel base, ran on its own power for the first time. He spent two more years on improvements and demonstrated a model capable of 75% efficiency in 1896. By 1898, he became a millionaire and his engines were used to power pipelines, electric and water plants, automobiles, trucks and marine craft. They were soon also used in mines, oil fields, factories and transoceanic shipping.

recycling depots in locations convenient to townsfolk – represents a robust formula in the face of the emergent global energy crisis. By engaging the masses in proper UCO disposal, society as a whole is effectively in-tegrated into the waste-to-fuel production process, which will in turn reflect positively on the people’s fuel-related economic and environmental issues. Conscientious individuals, communities, schools, businesses and organizations can now adopt this innovative UCO collection system. Those who are keen and feel strongly for eradicating litterbugs and foul smelling, clogged drains, should visit Booth E-008-009 at IGEM 2011 for more information on 3R Boxes and opportunities for recycler remu-neration.

petitively with conventional fossil diesel, are:

•BioRecoil users will find their vehicles achieving additional mileage; this is due to the fact that BioRecoil is far more flammable than conventional diesel.•Once BioRecoil has been running in a vehicle for about 20 kilometers, users will notice con-siderable reductions in engine noise. Noise reductions have been noted up to the follow-ing levels:

Reading 1: Before BioRecoil - 1809 to 2067 dB.

The first results, taken on a Hyundai Starex right before a B50 blend was introduced, saw a bottom bore reading of 1809 dB and a top bore reading peaking at 2076 dB.

Reading 2: 15 minutes after BIORecoil - 1593 to 1809 dB.

15 minutes after the blend was introduced, bottom bore readings peaked at just 1593 dB and the top bore reading peaked at 1809 dB. This illustrates a noticeable 10% reduction in engine noise.

Reading 3: Three days after introducing Bi-oRecoil - 345 to 775 dB.

Three days after introducing the B50 blend, bottom bore readings further reduced to just 345 dB and top bore readings reduced all the way to 775 dB. Overall, this shows an incred-

ible engine noise reduction of up to 70%, bringing the diesel engine’s noise pollution down to levels comparable with a petrol en-gine. Engine noise can be so drastically reduced thanks to the fact that there are no carbon particles in the fuel, as BioRecoil is only made from recycled vegetable-based cooking oil. These are the particles usually responsible for the buildup of composites and the release of black smoke from diesel engines, therefore reducing the frequency of decarbonization and oil changes. One of the most attractive environmental benefits of BioRecoil is that its burning releases no sulphur emissions. The environmental detriment caused by the release of sulphur is well documented, and consumers should therefore make conscien-tious fuel choices. In Malaysia, BioRecoil is sold at RM 2.70/l to the industrial client. These consumers generally purchase conventional fuel at any-where between RM 2.30/l and RM 3.08/l, due to the fluctuation of conventional fossil die-sel prices. BioRecoil is poised to allow price hedging, thus making project costs more manageable and mitigating risk from unseen price fluctuation. Further, it is priced based on a system with minimal fluctuation, offer-ing stability to consumers. Those with a long-term view will undoubtedly notice the ben-efits of price stability and realize the external benefits as well.

For a free sample of Biorecoil, visit us at IGEM2011.

Vikesh SinhaShawn ChenVineshJames Veerapen Jane LeongTeh Yun Da

FaT ExprESS TEamThE

12

BIODIESEL FROM RECYCLED OIL

CONSUMER / NATION

T : +603 2300 3780 / 3781F : +603 2300 3782E : [email protected]


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