ABSTRACT

The global push towards carbon neutrality has led to rapid advancements in alternative energy. Biodiesel is one of the promising substitutes for fossil-based transportation fuels with oil palm being a major oil crop for biodiesel production. A typical oil palm-based biodiesel supply chain includes plantations, palm oil mill, and refineries. Large volumes of continuous biodiesel production require reliable supply of fresh fruit bunches (FFBs) from the plantations. Therefore, it is crucial to optimise the plantation expansion based on the expected biodiesel demand. Moreover, optimisation provides opportunities for improved economic performance and environmental protection when the plantation expansion necessitates a prior land-use change (LUC). This chapter presents a simple model for optimal land selection for plantation expansion.