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Nontraditional sources for biodiesel production in Malaysia: The economic evaluation of hemp, jatropha, and kenaf biodiesel

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  • Szulczyk, Kenneth R.
  • Badeeb, Ramez Abubakr

Abstract

Three feedstocks, hemp, jatropha, and kenaf, are economically evaluated to produce biodiesel for Malaysia and whether they could improve its sustainability and reduce carbon dioxide emissions in the transportation sector. This study uses a partial equilibrium model, called the Malaysian Agriculture and Plantation Greenhouse Gas Model, to evaluate the potential feedstocks. The model represents the major agricultural commodities of Malaysia and forecasts market prices and quantities between 2024 and 2064. The results show that hemp and kenaf biodiesel can compete with the retail diesel price at the pump. Both hemp and kenaf are sustainable, and these two commodities produce two valuable coproducts: fiber and seed cake. The seed cake helps Malaysia offset some animal feed imports since Malaysia relies on imported feed to support its poultry and cattle industries. Furthermore, hemp and kenaf biodiesel production increases agricultural employment and mitigates some carbon dioxide equivalent emissions in the transportation sector. Jatropha biodiesel is not economically feasible because this commodity produces biodiesel and no valuable coproducts. If jatropha could be genetically altered to make less toxic seed cake or yield other valuable coproducts, then jatropha biodiesel could become economically viable.

Suggested Citation

  • Szulczyk, Kenneth R. & Badeeb, Ramez Abubakr, 2022. "Nontraditional sources for biodiesel production in Malaysia: The economic evaluation of hemp, jatropha, and kenaf biodiesel," Renewable Energy, Elsevier, vol. 192(C), pages 759-768.
    • Handle: RePEc:eee:renene:v:192:y:2022:i:c:p:759-768
    DOI: 10.1016/j.renene.2022.04.097
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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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