Palm oil is the most productive oil seed in the world. A single hectare of palm oil may yield 5,000 kilograms of crude oil, or nearly 6,000 liters of crude oil. In comparison, soybeans and corn—crops often considered as top biofuel sources—generate only 446 and 172 liters per hectare, respectively. Palm oil is so diverse in its uses, this makes it the world's number one fruit crop, beating out bananas. It is used for a wide variety purposes, such as an ingredient in food, engine lubricants, and bases for cosmetics. Palm oil is increasingly becoming an important agricultural product for tropical countries around the world; oil palm plantation in Indonesia covered 5.3 million hectares of the country in 2004. Palm oil is also used as a raw material in a biodiesel production, which is a fuel that is derived from vegetable and animal fat, that when burned, have fewer emissions than the typical petroleum-based fuels.
So, because the world is so reliant upon palm oil, and it could lead to a more environmentally-friendly fuel, why is palm oil cultivation such a concern? The answer lies in how the crop is produced. In recent years, vast areas of natural forest have been cleared across tropical Asia for oil palm plantations. This conversion has reduced biodiversity, increased vulnerability to fires, and affected local communities that are dependent on services and products provided by forest ecosystems. Palm oil cultivation also adds to pollution. In 2001, Malaysia’s production of 7 million tons of crude palm oil generated 9.9 million tons of solid oil wastes, palm fiber, and shells, and 10 million tons of palm oil mill effluent, which is a polluted mix of crushed shells, water, and fat residues that has been shown to have a negative impact on aquatic ecosystems.