Journal of Energy Bioscience 2024, Vol.15, No.4, 243-254 http://bioscipublisher.com/index.php/jeb 247 shown promising results with a FAME content of 99.4% under optimized conditions, but its availability is limited to specific regions (Cardoso et al., 2019). Hybrid feedstocks, such as blends of waste cooking oil and beauty leaf oil, have been developed to improve physicochemical properties and yield, demonstrating good potential as biodiesel feedstocks (Milano et al., 2018). However, palm oil remains one of the most efficient and widely available feedstocks for biodiesel production, making it a preferred choice in many regions (Ding et al., 2018; Phromphithak et al., 2020). By leveraging various catalysts and optimizing process conditions, the conversion of palm oil to biodiesel can achieve high yields and meet international fuel standards, making it a viable and sustainable option for biodiesel production. 5 Environmental and Economic Aspects 5.1 Environmental impact of palm oil biodiesel production 5.1.1 Deforestation and habitat loss The expansion of palm oil plantations has been a significant driver of deforestation and habitat loss, particularly in countries like Indonesia and Malaysia. Studies have shown that forest cover in concession areas has decreased by 20%, with forest fragmentation increasing by 44% compared to non-concession areas (Rulli et al., 2019). This deforestation not only reduces biodiversity but also impacts carbon storage, as oil palm plantations store significantly less carbon than pristine rainforests (Szulczyk and Khan, 2018; Rulli et al., 2019). Additionally, the conversion of peatlands for palm oil cultivation has led to further environmental degradation, including increased greenhouse gas emissions and loss of unique ecosystems (Meijaard et al., 2020). 5.1.2 Greenhouse gas emissions Palm oil biodiesel production is associated with significant greenhouse gas (GHG) emissions, primarily due to land-use changes and the release of methane from palm oil mill effluents (POME). For instance, the treatment of POME is crucial as it emits methane, a potent GHG (Szulczyk and Khan, 2018). Moreover, the deforestation associated with palm oil cultivation contributes to CO2 emissions, exacerbating climate change (Rulli et al., 2019). However, optimizing the production chain and implementing sustainable practices can reduce GHG emissions by up to 55% (Ramirez-Contreras et al., 2020). The use of biodiesel itself can also help reduce emissions compared to fossil fuels, contributing to global emission reduction targets (Zahan and Kano, 2018; Dey et al., 2020). 5.2 Economic viability and market trends 5.2.1 Production costs The production costs of palm oil biodiesel are influenced by various factors, including the cost of raw materials and the efficiency of the production process. Palm biodiesel has been noted for its relatively low production cost compared to other biodiesel sources, with a price of approximately 660 USD/ton (Dey et al., 2020). However, the high cost of palm oil itself can make biodiesel less competitive with traditional diesel unless subsidized. For example, in Malaysia, government subsidies of RM 1.09 per liter (USD 0.28/liter) are necessary to make palm biodiesel economically viable (Szulczyk and Khan, 2018). 5.2.2 Global market dynamics The global market for palm oil biodiesel is growing, driven by increasing demand for renewable energy sources and supportive policies in various countries. The market value of palm oil is expected to reach USD 92.84 billion by 2021, highlighting its economic significance (Dey et al., 2020). Major producers like Indonesia and Malaysia dominate the market, with a significant portion of their production destined for export (Rulli et al., 2019). The demand for palm oil biodiesel is also influenced by fluctuations in fossil fuel prices and the implementation of renewable energy policies worldwide (Zahan and Kano, 2018; Dey et al., 2020). 5.3 Regulatory frameworks and policies 5.3.1 National and international regulations Regulatory frameworks at both national and international levels play a crucial role in shaping the palm oil biodiesel industry. Countries like Malaysia have implemented regulations to enhance the GHG efficiency of their
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