issue no. 83 (april - june 2007)palmoilis.mpob.gov.my/publications/poeb/poeb83.pdf · palm oil...

PALM OIL ENGINEERING BULLETIN NO. 83 �

ISSUE NO. 83 (April - June 2007)


CONTENTS

Editorial

RECENT EVENTS

FORTHCOMING EVENTS 2007 MPOB Training Programme

2007 MPOB Conferences/Seminars

FEATURE ARTICLESDialogue Session with the Palm Oil Industryand Stakeholders

Those Little Dirty Things Called Dust

Welding Technology for Good Milling Practice

Mongana Basic: Part 8

TITBITS

DATASHEET Cholesterol Content in Edible Oils and Fats

1

3

7

8

11

17

18

31

EDITORIAL BOARD

ChairmanDato’ Dr Mohd Basri Wahid

• Dato’ Dr Choo Yuen May• Dr Lim Weng Soon• Dr Ma Ah Ngan

• Ab Aziz Md Yusof • Ir N P Thorairaj

SecretaryIr N Ravi Menon

Malaysian Palm Oil BoardMinistry of Plantation Industries and Commodities,

MalaysiaP .O. Box 10620, 50720 Kuala Lumpur, Malaysia

Tel: 603-8769 4400Fax: 603-8925 9446

Website: http://mpob.gov.my

© Malaysian Palm Oil Board, 2007All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher.

Products and services advertised in thisPalm Oil Engineering Bulletin do not

connote endorsement by MPOB.

TEditorial

see page 2

23

41

that this trend may continue. The inves-tors poised to invest in palm oil-based biodiesel plants are beginning to have second thoughts as the profit margin has been reduced tremendously due to high raw material costs. What is next? A number of uncertainties have emerged in the Malaysian horizon with no defi-nite lead to follow. Can the government afford subsidies to make biodiesel ven-ture more attractive? If the answer is yes, then the price of all essential com-modities will move upwards. If the an-swer is no, then biodiesel development will slow down and in time probably the CPO price may drop. Between the two, the latter appears to be the better choice. One other option is for the government to subsidize biodiesel for local use.

Now that the price of palm oil is good this is possibly the best time for the industry to spend some funds to improve processing conditions in terms of cleanliness and food safety. A number of areas in palm oil mills need urgent attention to make them conform to standards that are the norm in other food industries. Recently, MPOB addressed the South Peninsular of Palm Oil Millers Association on the need for millers to implement good milling practices. They needed some clarification on the proposals made earlier by MPOB. Generally, millers were not against the proposal but were concerned with the current high price of stainless steel, which would place financial burden on the mill if they were to use them liberally. But the price of palm oil is also equally

he price of palm oil has been steadily rising in the past few months and indications are

PALM OIL ENGINEERING BULLETIN NO. 83�

from page 2

CALL FOR ARTICLES

The millers are requested to send in articles of relevance to the palm oil industry in Malaysia for publication in Palm Oil Engineering Bulletin. By sharing your expertise you will be helping the industry and the nation as a whole. The topics of interest are:

1. Plant modifications done in your mill that resulted in improvements in milling operation or maintenance.

2. Innovations done in your mill that produced improvements in the operation of the mill and that you are willing to share them with others.

3. Any special work done in your mill that directly resulted in improvements in OER and product quality.

Please submit your article to us and we shall be pleased to publish them in Palm Oil Engineering Bulletin. Feel proud to have your articles published in this Bulletin that is circulated throughout the industry and MPOB offices worldwide.

high and should even out the high price of stainless steel.

The condition of some of our mills is indeed depressing and the management continue to ignore any calls for treating their mills as food processing entities. Keeping the mill floor and its surrounding clean does not have to cost a fortune. The workers operating the plants can be made to keep their work areas clean as a matter of habit. They should take pride in keeping their work area clean but why are we reluctant to do the same is still a mystery. The management is partly to blame because they themselves do not believe that cleanliness is a good virtue in palm oil mills. A country’s real progress is measured by the improvement in the mental attitude of its citizens rather than the possession of the latest luxurious goods its people may possess. As such,

we have to develop a culture to constantly keep our work areas clean.

Recently, there were several com-panies offering technologies to palm oil mills to capture the biogas generated by the palm oil mill effluent treatment sys-tems. These companies come with finan-cial support and the millers do not have to pay a sen except to offer their treatment facilities to them to put up their systems. These companies will then submit this project as a CDM (clean development mechanism) or methane avoidance proj-ect to claim carbon credit. The millers will also be given a share of the carbon credit. Such offer seems too good to be-lieve and to refuse. However, the millers concerned are advised to study the agree-ment with great care to assess the risks and returns.


Recent Events Contributed by: Noor Asmawati Abd Samad*

* Malaysian Palm Oil Board, P. O. Box 10620, 50720 Kuala Lumpur, Malaysia.

Programme Advisory Meeting (PAC)This annual event was held on 9-13 April 2007 at MPOB Head Office. The PAC is a nominated committee comprising international experts in their respective areas and will advise MPOB on its annual research programmes. The most recent member of the PAC, Dato’ Mamat Salleh, former Deputy Director-General (Services) of MPOB was invited to be in the Technical and Commercial Sub-Committee of the PAC. During this event, the Chairman of MPOB , Dato’ Haji Sabri Ahmad hosted a dinner to welcome the PAC members and who visited the Golden Hope’s Biodiesel Plant at Carey Island on the final day.

PALM OIL ENGINEERING BULLETIN NO. 83�

Recent Events

Launching of Supervised Fertilizer Cluster Scheme,

KinabatanganThe Minister of Plantation Industries and Commodities, Datuk Peter Chin Fah Kui has launched the two Supervised Fertilizer Cluster Schemes in Beaufort and Merotai in Kota Kinabatangan, Sandakan, Sabah on 10 May 2007.

Forty smallholders received their cou-pons under the Scheme for the Supply of Good Quality Oil Palm Seedlings to Poor Smallholders in Sabah and Sarawak from Datuk Peter Chin during the event. Earlier almost 850 smallholders and people from the industry attended the Smallholder De-velopment Seminar organized in conjunc-tion with the event.

Transfer of Technology Seminar

The Parliamentary Secretary of the Ministry of Plantation Industries and Commodities, Datuk Dr S Vijayaratnam officially launched the Transfer of Technology (TOT) Seminar 2007 on 18 June 2007 at MPOB Head Office. The TOT Seminar is organized by MPOB annually to disseminate to the industry the latest research findings for adoption and commercialization for increased productivity, value addition, generate wealth and contribute to the well-being of the Malaysian palm oil palm industry.

Until 2006, MPOB had launched 344 technologies. In 2007, 34 new technologies and 23 services had been added, increasing the number of technologies to 378.

During the event, Datuk Dr S Vijayaratnam also launched three new products, namely, Envo Cyper, MPOB F1 Xtra K and Mobile Filter Press.

Envo Cyper is an advanced non-flammable, biodegradable water-based cypermethrin insecticide formulation developed by MPOB and Imaspro Biotech Sdn Bhd using palm-based EW-insecticide formulation since June 2006.

MPOB F1 Xtra K - fertilizer produced by MPOB and Union-Harvest Marketing Sdn Bhd with extra K nutrient for oil palm tree. It is cost-effective, whereby planters do not have to fertilize their trees as often.

Mobile Filter Press is a product of collaboration effort by MPOB experts in solid-liquid separation process and PROPEL experts in mechanical design and waste management. The product is considered to be a high technology equipment in waste water management, particularly for industries using pond digestion systems. A new technology has recently been introduced to the Malaysian palm oil industry for effectively separating solids from palm oil mill effluent digestion ponds.


Recent Events

During the event, Datuk Dr S Vijayaratnam also witnessed the signing of two agreements. The first signing agreement was between MPOB and Ecotree Bioscience (M) Sdn Bhd on a collaborative project to produce biodegradable lubricant products. The second agreement signed was between MPOB and Imaspro Biotech Sdn Bhd on the development of EW-Pyrethroid Insecticides and their effects against insect pests in the oil palm plantation.

Dialogue Session with Palm Oil Industry and StakeholdersMPOB organized a dialogue session with the palm oil industry and the stakeholders in order to have their feedback on the potential of utilizing palm oil mill effluent-based biogas for either power generation or other CDM related uses. Various ways of using biogas were presented to the participants of the session and their valuable feedback were conveyed to the ministry. The response was overwhelming and participants were very active during the dialogue session.

Highlights of the dialogue session is published in this issue under Feature Article section.


Forthcoming Events

CODENO.

TITLE DATE VENUE

A COURSES

1 Oil Palm

A1.1 Kursus Kemahiran Menggred Buah Sawit

Bil.�:Tengah �9–��Jun Melaka

Bil.�:Sarawak ��–��Ogos Miri,Sarawak

Peperiksaan Kemahiran Menggred Buah Sawit

PeperiksaanBil.8 ��Mei Tawau,Sabah*

PeperiksaanBil.9 ��Ogos Kuantan,Pahang

A1.2 8th Intensive Diploma in Oil Palm Management and Technology Course

SemesterI ��June–�July MPOBHQ

EstateAttachment �–��July MPOBHQ

SemesterII ��July–9Aug. MPOBHQ

EstateAttachment ��–��Aug. MPOBHQ

SemesterIII ��Aug.–�8Sep. MPOBHQ

A1.3 KursusPengurusandanPenyelenggaraanTapakSemaianSawit

�–�April Tawau,Sabah

A1.4 KursusOperatorMekanisasiLadang FebruariOgos

MPOB/UKM

A1.5 ��thOilPalmPlantationsManagementCourse

�–�9Nov. KualaLumpur

A1.6 KursusPegawaiPengembangandanPengurusanKilang

��-��Nov. Trolak,Perak

2007 MPOB TRAINING PROGRAMME SCHEDULE

PALM OIL ENGINEERING BULLETIN NO. 838

2007 MPOB CONFERENCES/SEMINARS

Forthcoming Events

CODENO.

TITLE DATE VENUE

2 PALM OIL

A2.1 Diploma in Palm Oil Milling Technology and Management**

SemesterI ��–��Mar. PLASMAMPOB,

LahadDatu,Sabah

SemesterII �–��May

SemesterIII 9–��July

Exam.SemesterIII �–�Sept.

A2.2 The��stMPOBOilPalmProductsSurveyingCourse

��–�9June JohorBahru,Johor

The�0thMPOBOilPalmProductsSurveyingExamination

��–�9August JohorBahru,Johor

A.2.3 KursusPenyeliaKilangKelapaSawitPeperiksaan**

�–��Mei��Julai

PLASMAMPOB,LahadDatu,Sabah

A.2.4 KursusPengendaliMakmalKilangMinyakSawit 9–��April Bintulu,Sabah

A.2.5 ReclamationWeldingTechnologyinPalmOilIndustry

April,June,August SIRIM,ShahAlam

A2.6 WelderCertificationinPalmOilIndustry Mar,June,August SIRIM,ShahAlam

A2.7 ColourCosmeticCourse ��–��July MPOBHQ

A2.8 DiplomainMarketingandTracing *��Oct.–��Dec. MPOBHQ

CODENO.

TITLE DATE VENUE

1. ProgrammeAdvisoryCommittee(PAC)Seminar ��Apr. MPOBHQ

2. �thNationalSeminaronOilPalmTreeUtilisation ��-��Nov. *Hotel

3. MPOBTransferofTechnology(TOT)Seminar�00� �8June MPOBHQ

4. MPOB Technology Demonstration Month 2007

Quality&ProductDevelopmentResearchSeminar ��July MPOBHQ

OleochemicalResearchSeminar �9July MPOBHQ

Engineering&ProcessingResearchSeminar ��July MPOBHQ

BiologicalResearchSeminar �August MPOBHQ

PALM OIL ENGINEERING BULLETIN NO. 83 9

Forthcoming Events

CODENO.

TITLE DATE VENUE

5. MingguKomoditi�00� �–�July PWTC,KualaLumpur

6. InternationalBiofuelConference �–�July PWTC,KualaLumpur

7. MPOBInternationalPalmOilCongress(PIPOC) ��–�0Aug. KLConventionCentre,KualaLumpur

Notes: * Tobeconfirmed.+ Byinvitation. **CourseapprovedunderPROLUSschemeof Pembangunan Sumber Manusia Berhad.

For enquiry or further information, please contact:

HRD&ConferenceManagementUnitTel. No. :0�-8��9��00ext.�8��,�8�0,�8��Fax No. : 0�-89��9��E-mail : [email protected]’s website : http://www.mpob.gov.my

PALM OIL ENGINEERING BULLETIN NO. 83 ��

Feature Article

Dialogue Session with the Palm Oil Industry and Stakeholders

Engineering and Processing Division, MPOBN Ravi Menon*

M

* Malaysian Palm Oil Board, P.O. Box 10620, 50720 Kuala Lumpur, Malaysia.

their feedback on the potential of utilizing palm oil mill effluent-based (POME) biogas for either power generation or other clean development mechanism (CDM) related uses. Various ways of using biogas were presented to the participants of the session and their valuable feedback were conveyed to the ministry. The response was overwhelming and participants were very active during the dialogue session.

The highlights of the presentation by MPOB held at the MPOB Conference Hall on 16 May 2007 are appended below.

UTILIZATION OF BIOGAS FROM PALM OIL MILL EFFLUENT

We must admit that we have not been very responsible on global warming judged by the unrestricted emission of large volumes of methane from our palm oil mills. Currently, POME biogas is freely emitted to the atmosphere by most of the 397 palm oil mills in Malaysia. Indonesia also has about the same number of mills making the total about 800 mills.

POB organized a dialogue session with the palm oil industry and the stakeholders in order to get

Can We Call Ourselves Responsible?

• Methane is a greenhouse gas (GHG). POME biogas contains about 65% meth-ane gas. Methane as a GHG is 21 times more harmful than carbon dioxide; and

• We must do something to negate the effect of free release of methane to the atmosphere.

Impact on Global Warming

Methane together with carbon dioxide and nitrogen oxides contribute towards climate change by containing the heat within the globe, causing temperature to rise. It forms a blanket preventing heat radiation out of earth at night.

In the last century, according to newspa-pers, the temperature of earth rose by 0.5oC and by 2100, the earth’s temperature is ex-pected to rise by 2oC. Can our future genera-tion accommodate this?

What we should do as a responsible nation is to arrest the emission of methane into the atmosphere. By doing this, the mills can also increase their revenue possibly by a few million ringgit.

PALM OIL ENGINEERING BULLETIN NO. 83��

AVAILABLE OPTIONS Option 1

Cover POME digestion ponds with canopies laid flat on ponds integral with gas flow ducting that leads the gas straight into boiler furnace as a fuel in combination with the fibre/shell mixture. Generate steam and operate turbo alternators to produce electric power. The displaced palm kernel shell can be sold as fuel at RM 70 – RM 80 t-1 in Malaysia.

Option 2

Cover POME digestion ponds with canopies laid flat on ponds integral with gas flow ducting that leads the gas to scrubbing equipment where corrosive contaminants like hydrogen sulphide is removed. The scrubbed gas is then used as fuel in gas turbines or internal combustion engines for generating electricity. The digestion can be either thermophillic or mesophillic.

Option 3

Allow digestion in steel tanks and then route the collected gas to the furnace of a boiler and raise steam for power generation. The displaced palm kernel shell can then be sold at RM 70 - RM 80 t-1, the prevailing price in Malaysia.

Option 4

Collect the gas and scrub it to remove contaminants, compress the gas and

• transport to central power stations to generate power; and

• bottle the gas for use as domestic fuel, operate I.C. engines or gas turbines for power generation.

Option 5

If none of these approaches appeal to the mill owners, the collected gas can then be flared (burned) so that methane is converted to carbon dioxide. This way the harmful effects of methane is reduced by one-twentieth. The millers can still claim merit from God.

CDM MERITS

What are the merits of flaring the biogas? Millers may possibly make millions of ringgit by trading carbon credits as flaring itself may affect the quality as a CDM activity with slightly less value than when used as a fuel in boiler. The payback period can be very short if the price of carbon credits remains high (Table 1).

If the average value of carbon credit per mill is RM 1.5 million per year for 400 mills, the amount is a staggering RM 600 million! And remember millers are doing a noble deed at the same time.

Canopies or Gas Tapping Sheets

Based on information received:• these sheets are interlinked;• they are provided with gas flow ducting

underneath;• can be laid flat on ponds;• they lift when gas is generated;• we need not worry about full coverage of

the ponds;• used in effluent ponds in Western

countries;• Malaysia will soon get an agent for its

distribution; and• comes with support equipment, e.g.

pump etc.

Feature Article


TABLE 1. BIOGAS TAPPING AND UTILIZATION

Method Utilization *Cost (RM) **Payback period (yr)

Canopies Canopies laid on pond surface. Flaring only.

0.5 million 3 months

Steel tank digestion

Burn in steam boilers. 0.8 million 6 months


Flaring only. 0.75 million 6 months


Gas scrubbed to remove mainly hydrogen sulphide for operating gas turbine or I. C. engine for power generation.

10 million < 4 years

Notes: *Estimates. **Depends on price of CERs (carbon credits).

CDM Application in a 60 t hr-1 Palm Oil Mill Effluent Biogas Generation System Oil Mill

FFB processed = 360 000 t yr-1 (60 t FFB x 20 hr x 300 days)POME produced at 65% to FFB = 234 000 m3 yr-1

Closed tank digestion efficiency is usually taken as 80% If the mill effluent COD is 56 800 ppm (mg litre-1),

COD degraded = 234 000 x 56 800 x 80%/1000 000 = 10 633 t yr-1 At COD to methane conversion of 25% = 10 633 x 25% = 2658 t CH4 yr-1 Combustion of Methane

CH4 + 2 O2 ➔ 2 H2 O + CO2

The molecular weight of methane = 16 and that of CO2 = 44Methane to CO2 molecular weight ratio = 16: 44 or 1: 2.75CO2 produced by the combustion of 2800 t of CH4 = 2800 x 2.75 t = 7700 t yr-1

Computation BasisThe GHG effect of methane is 21 times that of carbon dioxide.

Carbon credits gained by the conversion of methane to CO2 = 2800 x 21 = 58 800 t yr-1

Feature Article


Net gain in carbon credits = 58 800 – 7700 t = 51 100 t

At € 10 t-1 of carbon, this will generate a revenue of €510 100 yr-1,

Which at € 1 = RM 4.5 conversion = RM 2 295 450 yr-1

Biogas Power Generation in a 60 t hr-1 Mill

Biogas production rate = 6.5 million m3

Average calorific value of the gas = 20 000 KJ m-3

Energy input to boiler = 131 040 000 MJ

Electrical out put at 25% efficiency = 32 760 000 MJ

As J = Watt s, dividing by 3600 s = 9000 MWhr

For power plant sizing, divide by 8760 hr in the year = 1.04 MW

Sale of electricity say at 19 sen unit-1

Units exported (9100 MWhr) = 9 100 000 kWhrValue of this at 19 sen unit-1 = RM 1 729 000

Less maintenance cost, operational cost, fixed costs and loan repayment cost etc. amounts to say,

• 80% of the revenue, profit = RM 345 800• 70% of the revenue, profit = RM 518 700• 60% of the revenue, profit = RM 691 600• 50% of the revenue, profit = RM 864 500

It seems that the current price of carbon credits according to some sources is € 16 t-1 of carbon dioxide.

This price may possibly increase as the deadline draws closer to 2008 - 2012, when member nations are obliged (Kyoto Protocol 1998) to reduce the GHG emissions by 5% from the 1990 levels. The future prospects for the developing nations appear to be good if they focus on promoting renewable energy or projects that reduce the emission of GHG. Malaysia has the advantage of tapping the large volume of biogas that is freely emitted to the atmosphere by all mills. We can reduce its impact on global warming. Why not we do this noble deed?

Feature Article


Feature Article

Those Little Dirty Things Called DustJohn de Kock*

D

* Wet Air Sdn. Bhd.

our teeth, not to mention the red eyes, sneezing and coughing. Yes, our bodies do not like dust, hence, the various responses. During commissioning of a dust collector in a palm oil mill, the mill manager complained to the project manager: “Your system not working lah!, last time, it went up the chimney, now its all over the place!” We always joke about this incident, because the purpose of the dust collector is to take out the dust, and it was doing exactly that - very efficiently. However, there was a lesson in it for us: air pollution management only ends when the collected dust is contained and manageable.

Nettling as it may be, the dust is part and parcel of any palm oil mill. It comes from the boiler fuel and even though the amount of ash per calorific value is higher than typical wood and sugar bagasse, it is still much less than paddy husk or high-ash coal. (Coal has different ash contents, depending on the source.) There are a few steps to make our dust problem less cumbersome.

First of all, don’t waste so much fuel. Even though you may have an old boiler, nothing prevents you from investing in a proper boiler control system, at least controlling the fuel feed automatically, based on the

ust, isn’t it an irritation to everybody? We all know the feeling of dust below the collar, or between

steam pressure, the forced draft (FD) and secondary air (SA) based on the fuel feed and the Induce Draft according to the furnace pressure. Not only will you be having less of unburnt pieces flying around, but reduce that other thorn in the flesh - dark smoke emissions. Fly-ash by itself is much easier to handle than a mixture between unburnts, fly-ash and soot.

Secondly, invest in a proper dust collector. Modern axial flow vortex tube dust collectors (made in Malaysia, reliable and robust) are able to reduce the emission by more than 90%, making sure dust does not exceed emission limits and are not going to fall out in the surrounding areas. Very importantly, get your supplier to guarantee the dust collection efficiency and verify the latter through a third party using the applicable standards (MS1596:2003 and MS1723:2003).

Thirdly, service and maintain your dust collector as what you are doing with that nice car you are driving: on time and without fail. We all know the escalating cost payable upon major breakdowns because servicing was not done as required. (I know, sometimes we feel those service stations are taking advantage). Well, usually you will be able to maintain your filter in-house. If it is too complicated to maintain in-house, it may not be suitable for a palm oil mill.

PALM OIL ENGINEERING BULLETIN NO. 83�8

The fourth step is to monitor your dust collector and dust handling system. The Department of Environment has recently started to require “Performance Monitoring” for all dust collectors. This simply means that you log all the parameters that may indicate that your dust collector has a problem. This includes the amount of dust collected, the pressure drop across the filter, etc. Modern dust collectors are supplied with more comprehensive monitoring that will show the operator whether the hoppers are blocked or leaks are present over the discharge valve.

Lastly, manage the collected fly-ash by wetting it and storing it in an enclosed place

until it is sent away for disposal in landfills or by other methods. By the way, fly-ash can be used to prolong the life of concrete, so if you are burning efficiently and having only fly-ash, this may be another by-product with selling potential to complement your existing income.

We may summarize this into five words: efficient, effective, maintained, reliable and clean. Just five steps in getting rid of that nuisance we get when we burn some of the waste from our beloved oil palm fruits. Not only will we be happier, but we will also ensure a better environment for our workers, our neighbours and our children, the hope of tomorrow.

Welding Technology for Good Milling PracticeModule 1: Safety and Health in Welding Environment

S P Narayanan*

hurt themselves and even lose their lives in accidents. Then only will people start investigating why the accident took place.

It has been found from such investiga-tions that accidents could have been avoided if the people concerned followed discipline in safety precautions.

The most commonly encountered occupational hazards in welding are:

• electric shock;• electromagnetic radiation;

* Advance Training Centre, 18, Jalan 6/19 Bandar Putri, 47100 Puchong, Selangor, Malaysia.

I t is invariably a fact that one opens their eyes only when an accident or mishap takes place. Often people

Feature Article

PALM OIL ENGINEERING BULLETIN NO. 83 �9

• burns and mechanical injuries;• fumes and gases;• fire and explosions; and• noise pollution.

Welding is considered a safe occupation because the incidence of occupational illness and diseases among welders is not as high as any other industrial workers.

Yet it must be admitted that welders are exposed to potential hygienic hazards associated with welding fumes and gases when they work in ill-ventilated areas over a prolonged period.

Management must be aware of such hazards and must provide safe and healthy working conditions to their welders.

The management must continuously

educate the welders and supervisors on the use of proper ventilation procedures, the use

Due to Carelessness

Due to Overconfidence

Due to Ignorance

ACCIDENT

t t t

Feature Article

General ventilation

1 2 3 4 5

t

t

t

t

t

Health hazards from welding operations may be controlled by:

Respirator Exhaust fans

Local exhaust Exhaust hood

Health hazards due to gases, fumes or dust:

1 2 3 4 5 6

Lead Cadmium Mercury

Zinc Flourine Extreme heat

t t t

t t t


Feature Article

of safety equipment and observance of safe working practices. The management must ensure their instructions are followed.

Constant inhalation of certain constitu-ents of welding fumes and gases over a pe-riod of time can be eventually harmful to lungs and other organs of the body.

The ultimate toxicity of the constituents depends primarily on its concentration and the physiological response of the human body. The constituents of welding fumes and gases are either particulates or gases.

Particulates get deposited in lungs. This condition is termed pneumoconiosis. Pneumoconiosis can be harmless or harmful depending on whether the fume is non-toxic

or toxic. The harmful ones can be fibrotic or non-fibrotic.

Examples of Harmful Pneumoconiosis of the Fibrotic Type

Silicon dioxide. Silicosis is caused by the inhalation of finely divided silicon dioxide in the free state, which may be in crystalline form such as quartz. The size of the silica particles is important. It determines the depth to which the particle penetrates into the lungs and in what amount they may be retained there. Silicosis may be either acute or chronic. Most cases are chronic and take years to develop.

Asbestos. Deposition of asbestos in the lung is termed asbestosis. Prolonged inhalation of asbestos fibres between 20 – 50 cm long

Repair or replacedefective cables immediately.

Keep fire extinguishing equipment at a handy location near the job.

Never watch the arc except through filters of the correct shade.

Lead and cables should be kept clear of passageways.

Never strike an electrode on any gas cyclinder.

Never use oxygen for venting containers.


Feature Article

may lead to a typical pulmonary fibrosis that may be accompanied by severe respiratory disability.

Copper. Inhalation of copper fumes is known to produce fibrosis. In welders, symptoms of metal fume fever can produce congestion of the nasal mucous membrane and other complications. The condition is referred as copperosis. Examples of harmful pneumoconiouses of the non-fibrotic type are:

Beryllium. Inhalation of beryllium dust or fume can lead to an acute or chronic systematic disease depending on the extent of exposure and nature of beryllium compound. This is called beryllosis.

PULMONARY IRRITANTS AND TOXIC INHALANTS

• Cadmium. Inhalation of cadmium oxide during soldering, brazing or welding of cadmium plate. Effects: respiratory irritation, sore dry throat, cough, chest pain, difficulty in breathing, bronchitis pneumonitis, pulmonary cadema may occur, headache, dizziness, loss of appetite, weight loss. Liver, kidney and bone marrow may be injured by the presence of the metal;

• Lead. Inhalation of lead fumes causes lead poisoning, whose symptoms may include abdominal pain, constipation, headache weakness, muscular aches or cramps, loss of appetite, nausea, vomiting, weight loss;

• Manganese. The fumes from manganese are highly toxic and they can produce total disablement even after exposures as short as few months to high fume concentrations. Disablement is more likely after prolonged and repeated exposures above 30 m g-3. Such exposure is usually caused by inhalation of manganese dioxide dust;

• Chromium. Welding of certain chromi-um alloys can produce chromium triox-ide fume that often referred as chromic acid. Contact with this fume will pro-duce, bronchospasm ocdema and hyper secretion, bronchitis hyper reaction of the branches bronchial tree similar to asthma;

• Mercury. Welding of metal coated with protective materials containing mercury compounds will produce mercury vapours. Exposure to this vapour may produce abdominal pain, vomiting, diarrhoea, renal (kidney) damage and respiratory failure;

• Nickel. Nickel and compound are known to be toxic and induce cancer of the lungs and sinuses;

• Vanadium. When vanadium oxide is present in welding wire, the welder is exposed to vanadium pentoxide that is moderately hazardous. Effects of exposure are severe irritation of eyes, throat and respiratory tract resulting in conjunctivitis, nasal catarrh and irritation of throat; and

• Zinc. Zinc oxide fumes are formed during the welding, brazing or cutting of galvanized materials. These may cause fume fever such as nausea vomiting, muscular pain, dryness of throat, headache, fatigue and weakness.

EFFECT OF TOXIC GASES

Prolonged exposure to the various toxic gases generated during welding can produce one or more of the following effects:

• inflammation of the lung;• pulmonary oedema (swelling and

accumulation of fluids);• emphysema (loss of elasticity of the

lungs);• chronic (bronchitis); and• sphyxiation.


Feature Article

Common Toxic Gases with Welding • Carbon monoxide; • Nitrogen dioxide; and • Phosphine.

Carbon dioxide. Carbon dioxide is harmless but long exposure to high concentration of this gas can produce serious effects.

Ozone. Ozone is formed by electrical arc and corona discharge in air by ultraviolet photochemical reactions. The inhalation of 1 to 2 ppm of ozone for 2 hr produce headache pain in the chest and dryness of upper respiratory track. Welders who have severe acute exposure at an estimated 9 ppm of ozone plus other air pollutants develop pulmonary oedema (presence of fluid in lungs).

Nitrogen dioxide. Very irritating to the eyes and mucous membranes. Exposure to high concentration may produce immediate coughing and chest pain.

Phosphine. High concentration is irritating to eyes, nose and skin. Acute effects of phosphine can be serious and they include serious damage to kidneys and other organs.

THRESHOLD LIMIT VALUES

Factory Inspectorate and Health in Advanced Countries Issue the Following Recommendation

The threshold limit values (TLV) refers to airborne concentrations of substances and represent conditions under which all workers may be repeatedly exposed, day after day without adverse effect. When the TLV of a constituent is exceeded, it presents health hazard to the welder. The TLV of particulate fumes are expressed in m g³ and gases in parts per million (ppm). The smaller the numerical value of the TLV the more toxic is the constituent.


Feature Article

Mongana Basic: Part 8N Ravi Menon*

* Malaysian Palm Oil Board, P. O. Box 10620, 50720 Kuala Lumpur, Malaysia.

and 45% to 55% of moisture. The percentage of residual oil in fibre is still too high amounting to 8% to 18% of the total oil. If the fibre is subjected to a pressure of 50 bar the residual oil can be further brought down to 8% - 9%. The extracted crude oil is very thick laden with solids. It contains approximately 20% oil. With centrifugal separation, only 80% to 85% of the oil can be separated due to the high solid content. The residual oil remained attached to cellular debris.

Post-pressing of Fibre

The post-pressing of fibre was tried out in a vertical screw press in Mongana using a pressure of even 300 bar-g. Fibre with oil content on dry matter ranging from 15% to 22% was tried out in the screw presses. After pressing in 2 t hr-1 press, the oil content of the fibre was reduced to 8% - 11% on dry matter, higher than when pressing fruits in the absence of nuts. In practice, post-pressing enables the recovery of 2.5% to 4.5% of the total oil, if a centrifugal process is used for the subsequent separation of oil. Through static settling, that is by dilution, boiling and settling even after repeating several times only one-third of the oil was recoverable.

A fter centrifugal extraction of the digested mash, the fibre contains 13% to 25% oil on dry matter

Generally, the handling of fibre is dif-ficult. Extensive humidification is essential for efficient oil extraction. Numerous diffi-culties were encountered in the passage of fibre through the digester, which inciden-tally was solely used for heating. The oil derived from post-pressing was apparently identical to pulp oil with regard to oil qual-ity (FFA, peroxide value, carotenoid content and bleachability) provided fresh fibre was used.

As it was observed that the pressing of the fibre was less effective than that of the fruit, calyx leaves, which is normally used as a filtering material, were added to the fi-bre. The addition failed to improve recovery of oil.

Post-pressing undeniably permits to recover part of the oil left in the fibre. Centrifugal separation of the crude oil is seen to give good extraction efficiency. The handling of fibre entails certain amount of problems, which could be addressed by using cyclone to feed the press and by heating the fibre through steam injection in the press itself. The hourly throughput of the presses is greatly reduced when operating on fibres (75% of the capacity of fruits).

Simultaneous Post-pressing of Fruits and Loose Fruits

It has been well proven that the segregated processing of loose fruits led to

see page 29


a marked improvement in the quality of the oil derived from bunches as regards to FFA content as well as bleachability, stability, etc.

Similarly, it has been mentioned that the recovery of oil from fibre by post-pressing was possible but that the efficiency was lower in the absence of nuts. It was therefore logical to combine processing of loose fruits with post-processing of fibre as a means of introducing enough nuts to ensure efficient removal of oil from the fibre.

A series of tests were carried out with varying proportions of constituents within the range 16/100 to 80/100 of fibre to fruit ratio. Beyond the latter ratio, digestion does not take place normally and voids occur in the digester. Beyond a ratio of 80 to 100 fibre to fruit ratio, lumps also obstruct the digester outlet. Loose fibre at the outlet of the cyclone has a density of 100 to 150 kg m-3. This increased to 200 - 250 kg m-3 under

the effect of light compacting. Fibre is sent into the digester with the latter density. In the case of a larger excess of fibre over fruit (6:1 for instance), digestion must be prolonged considerably, the degree of digestion being completely inadequate after 40 min. Loose fruits processed together with fibre was of dura origin to the extent of 25% to 50%. The fibre used in the post-processing was derived from centrifugal extraction. Its oil content was 15% to 20% on dry matter.

To determine the efficiency of the process it is necessary to assess separately the oil derived from the fibre and from the fruit. To that end, the weights of the following elements were recorded: (a) initial fibre, (b) fruit, (c) total crude oil, (d) total clarified oil, and (e) final fibre.

The oil content of the initial and final fibre was also determined. From the data, it was possible to allocate oil and to calculate the coefficients α, β and γ. As

TABLE 1. EFFECT OF THE CLARIFICATION PROCEDURE ON THE RATIO OF LOST OIL TO TOTAL OIL

Static separation

(%)

Static separation and partial

centrifugation (%)

Centrifugal separation of crude

oil (%)

Primary sludge 7.3 7.3 2.7

Secondary sludge 3.2 3.2 1.7

1st interface 2.1 0.5 0.5

2nd interface 0.2 0.2 0.2

3rd interface 7.1 0.9 0.9

Overall loss 19.9 12.1 6.0

Oil recovered 80.1 87.9 94.0

100.0 100.0 10.0

Feature Article

from page 23


only one average α, β, γ, coefficient can be established for crude oil, the coefficient β may be slightly overestimated for the fibre and underestimated for the fruit.

α = extraction efficiency β = purification efficiencyγ = industrial efficiency compared to

laboratory

Summing up, the coefficient α, for fibre ranged from 0.500 to 0.600 (depending on the oil content of fibre); that of the fruit ranged from 0.950 to 0.965. The overall efficiency of α, β and γ varied from 0.450 to 0.560 for fibre and from 0.875 to 0.905 for the fruit. Contrary to expectations, the addition of fruit to fibre (or shell to fibre for that matter) does not make it possible to attain the rate of extraction recorded with a screw press. The post-pressing of fruit and fibre yielded

fibre with average oil content of 10% on dry matter. This is twice as high as normal. The hope placed in that process failed to materialize except for nut breakage.

In the above process as well as the post-pressing of fibre alone, the clarification of crude oil was carried out by batch settling and by centrifugation. In one of the trials, static separation was carried out repeatedly. The aqueous phase was drained off and subjected to centrifugation instead of being discharged as in the conventional process. The result of the test enables a comparative assessment to be made of the following possibilities:

• static separation (with three treatments);• single static separation with centrifuga-

tion of the aqueous phase; and • centrifugal separation of crude oil.

Feature Article


Titbits

Palm Oil Production in Malaysia and Indonesia

In Malaysia, palm oil production has risen from 151 000 t in 1964 to 16.5 million tonnes in 2006. Over the same period, exports have climbed from 141 000 t to 13.1 million tonnes. Oil palm plantations grew from 60 000 ha in 1960 to more than 3 million hectares in 2001. In 2004, 43% of these were located in Sabah and Sarawak, on the island of Borneo. How-ever, because virtually all suitable land is used up in Peninsular Malaysia, expansion is expected mostly to occur in east Malay-sia and, to a greater extent, Kalimantan, In-donesia. Oil palm cultivation has increased from 186 744 ha in Sabah and Sarawak in 1984 to 1 673 721 ha at the close of 2003.

Between 1964 and 2006, Indonesian oil palm production has increased from 157 000 t to 15.9 million tonnes while ex-ports have jumped from 126 000 t to 11.6 million tonnes. In Indonesian Borneo, oil palm plantations in Kalimantan have ex-panded from 13 140 ha in 1984 to nearly one million hectares at the end of 2003. Overall, oil palm cultivation has expanded in Indo-nesia from 600 000 ha in 1985 to more than 6 million hectares by early 2007, and is ex-pected to reach 10 million hectares by 2010.

Supply and Cooking Oil Price Stabilization Cess

This new cess scheduled to commence in June and run for up to 12 months is expect-ed to hit the least efficient plantation com-panies. The scheme will hit companies that have the least oil extraction ratios. The gov-ernment decided to do this to help refiners cope with high crude palm oil (CPO) prices. The Malaysian Palm Oil Board will collect

cess of RM 2 t-1 of fresh fruit bunches (FFB) for every RM 100 t-1 rise in the CPO price - as long as it stays above RM 1500 t-1. This is only applicable to plantations with more than 40 ha of land.

In an interview with Business Times recently, Datuk Peter Chin, the Minister of Plantation Industries and Commodi-ties said, “If the CPO price were to go up, the planters will pay more and if it comes down, they will pay less”. The Minister also said that this is a stop gap measure for the upstream big players to compensate the re-finers and this will only last for 12 months, at the most.

Since the cess is not levied on the Indo-nesian estates owned by Malaysian planta-tion companies, Chin noted that earnings of Indonesian centric planters like Kuala Lumpur Kepong (43% of total plantation area) and PPB Oil Palms (78% of total plan-tation area) will be least affected.

Biofuel Development in Indonesia

• Biofuel producers are urging the gov-ernment to make the use of biofuel com-pulsory in order for the eco-friendly fuel business to become more economically viable. A member of the Indonesian Bio-fuel Producers Association said that such a regulation, in which industry players and vehicle owners were required to use a certain amount of biofuel, was needed for the development of the biofuel indus-try in Indonesia. If motor car manufactur-ers withdraw warranty on vehicles using biofuel, how will the government be able to give incentives? This has to be accept-able to motor car manufacturers before government can lend a hand.


Titbits

According to the member, the Philip-pines Government took such a step last year when they decided to adopt such a policy. In the first year the biofuel legislation was introduced, every factory and vehicle in the Philippines was required to use at least 1% of biofuel in its fuel usage, and in the second year, that percentage went up to 2%. He said that the country has already established a very clear road map, even though they only started the programme last year. Can it be sustained with the current price of CPO or other edible oil?

He believes that such a move in Indone-sia would not harm businesses across the board, as fuel costs would still be quite ac-ceptable. “In fact, it would bring benefits to companies in that they could create an im-age of being an environment-friendly busi-ness, which has become quite a selling point these days amid the increasing awareness of environmental and climate issues”, he said. Will the investors agree with this when the finished product will cost half the price of palm oil feed stock for biodiesel produc-tion based on the current price of palm oil? Investors are more interested in profit than fame!

The association also hopes the govern-ment will offer incentives in the form of tax relief to biofuel producers. The Director of biofuel producer PT Eterindo, Immanuel Sutarto, has questioned the feasibility of the biofuel business in the long run, as produc-ers will have to cope with the increasing prices of CPO and methanol, which are two major raw materials used to produce biofu-el. Even now biofuel producers are operat-ing a losing business. State-owned oil and gas company, Pertamina declared last week that the company planned to scrap its bio-fuel business by the end of this year as its biofuel products, BioSolar and BioPremium caused the company to lose Rp 16.9 billion (approximately USD 1.8 million) last year due to increasing methanol and CPO prices. Pertamina Marketing and Trading Director, Achmad Faisal urged the government to

provide financial incentives for producers of methanol and CPO. It is unlikely any of the developing countries would be able to offer subsidies for the production of biofuels.

• The Indonesian Government encourages biofuel production from palm oil and as such, most of the new land is allocated for oil palm cultivation. In 2006, palm production in Indonesia was 16 million tonnes last year with yearly increment ranging from 500 000 t to 750 000 t. About 60% of that total production were ex-ported both as finished product known as RBD palm olein and crude palm oil.

• Indonesia is expected to produce 600 000 t of biofuel this year. Among the major producers are PT Wilmar with a pro-duction of 350 000 t yr-1, Eterindo with

120 000 t yr-1 and PT Sugar Group with 70 000 t yr-1. How they intend to carry out this plan based on the current price of CPO is something to ponder.

Biofuel Economic Analysis

The biofuel industry’s economics are not well defined. The success of any biofuel in-vestment is very much related to the price of petroleum crude oil. If it falls below USD 50 a barrel, the biofuel plants will collapse even with government subsides. One local energy consultant stated that any incentive for making and selling biodiesel produced with Indonesian palm oil will essentially disappear when crude palm oil prices reach levels above USD 650 t-1. This is because the biodiesel is going to be a ‘drop in the ocean’ in terms of overall supply compared to fos-sil fuel-based diesel. He figures that based on an average price of palm oil under USD 500 t-1, the break-even point for palm oil ver-sus crude oil would be USD 40 per barrel of oil. Crude prices now hover around USD 62 a barrel, while commodity analysts expect palm oil will average USD 800 t-1 this year compared to between USD 400 and USD 500 last year.


Indonesia has the ambition to become the world’s leading biodiesel producer and its most influential and politically connected companies are joining hands with foreign investors to accelerate the biodiesel devel-opment, which is expected to cost billions of dollars. But there are many major risks associated with the projects which were not given wide coverage. The same companies which incurred and defaulted huge for-eign debts during the Asian financial crisis in the wake of 1997 - 1998 are the ones that are leading Indonesian biofuel drive. Some of them who settled their debts continue to be leaders in the logging, timber and pulp industries.

Evita H Legowo, the First Secretary of the National Biofuel Development Commit-tee said, “the government was considering halving the tax rate on biofuel used in cars, trucks and motorbikes to 2.5% from the cur-rent 5%”. Evita also said the government would consider adopting the methods em-ployed by developed countries to promote biofuel usage, such as imposing additional taxes on conventional fuels. This is very laudable indeed if it works. The problem is with motorcar manufacturer’s guarantee. Perhaps Malaysia can watch and observe how sustainable this is going to be before deciding on what it should do.

Environmental Impact

The booming market for palm oil is driving record production but fuelling rising con-cerns over the environmental impact of the supposedly ‘green’ bioenergy source. The two leading producers of palm oil, Malay-sia and Indonesia, have rapidly expanded palm oil production in recent years, often at the expense of bio-diverse rainforests and carbon-rich peat lands that store billions of tonnes of greenhouse gases. Environmen-talists say that due to these factors, burning of palm oil can at times be more damaging to the global climate than the use of fossil fuels. Environmentalists say the expansion

of oil palm plantations continue to come at the expense of natural forests rather than the conversion of already denuded land be-cause of the better soil conditions fresh-cut forest lands provide. The annual forest fires that rage through Indonesia and frequently smother neighbouring countries in smog are started mainly by palm growers to clear land for new planting.

The United Nations Environment Pro-gramme Executive Director, Achim Steiner, last month warned attendees at a global business summit for the environment in Sin-gapore that businesses run the risk of a pub-lic backlash if the globally in vogue green business model is hijacked by industries who engage in environmental destructive practices. This appears to be a hint on the vast biodiesel development programmes in Indonesia.

Peat Lands

“As much as 2000 million tonnes of carbon dioxide are released annually from just the logged and drained peat lands of South-east Asia; 8% of all global emissions”, said Marcel Silvius of Wetlands International, an environmental group that has analysed the climate impact of peat lands destruction in Indonesian. “Over 50% of new plantations are allocated on peat lands. As such, palm oil is a major driver in the further destruc-tion of the remaining peat swamp forests and a significant cause for global CO2 emis-sions”.

European Governments have recently expressed concern over the apparent un-sustainability of oil palm cultivation in peat lands. Last week, Dutch Minister of the En-vironment, Jacqueline Cramer, finalized a framework that set guidelines for the sus-tainable production of palm oil. While the initiative is non-binding in order to skirt World Trade Organization (WTO) regula-tions, it could set a precedent for other Eu-ropean nations to follow.

Titbits


Roundtable on Sustainable Palm Oil

Both the European Governments and the United Nations are looking at the example set forth by the Roundtable on Sustainable Palm Oil, an industry group that seeks to cultivate oil palm can in a manner that helps mitigate climate change, preserves biodi-versity and brings economic opportunities to desperately poor rural populations.

• The Palm Oil Giants of Indonesia. Indo-nesia has signed a number of big new for-eign joint-venture deals to develop the bi-ofuel sector, including major investments in oil palm plantation development and big new processing facilities that benefit from government incentives and policies aimed at rapidly developing the sector.

• China National Offshore Oil Corp. The Chinese energy giant China National Off-shore Oil Corp (CNOOC) is among 59 foreign and local energy investors who in January signed many biofuel-related re-newable energy agreements worth USD 12.2 billion. This is China’s leading energy company and leads the country’s broad strategic efforts to reduce its dependence on imported crude oil and offset the use of coal. It has recently teamed up with a local plantation giant, Sinar Mas Agro Resources and Technology (SMART) and Hong Kong Energy, considered to be the world’s largest biofuel project. It has plans to bring three biodiesel plants on-line this year and additional facilities in Timor Leste. West Kalimantan provinces will begin operations in 2008.

• SMART. This is listed on the Jakarta and Surabaya Stock Exchanges. SMART is a subsidiary of the country’s largest oil palm grower, Golden Agri-Resources Ltd. It is also part of the controversial Widjaja family’s sprawling business em-pire, which includes Asia Pulp & Paper (APP), part of the Sinar Mas Group and Asia Pacific Resources International Ltd

(APRIL), which in turn is controlled by Raja Garuda Mas International (RGM).

• APRIL. This is owned by Sukanto Tan-oto, considered to be Indonesia’s richest man, according to a recent survey. Eco-nomic analysts believe there are big risks when dealing with these organizations. During the Asian financial crisis, Sinar Mas and APP defaulted on billions of dol-lars worth of loans, equivalent to more than a tenth of Indonesia’s total foreign debt. Even though the bad days are over their reputations are tarnished as relia-ble business partners. APRIL announced earlier this month a plan to spend USD 60 million on a new biodiesel plant with Texas-based Fulcrum Power Services and is now building a second paper mill in Sumatra province which will double its capacity to 800 000 t per annum by year’s end. Meanwhile, RGM’s Asian Agri Unit has a production capacity of about 1 mil-lion tonnes of crude palm oil per year, which is currently used mainly for food production, but the company now says it plans to build a palm-based biodiesel plant in the area.

• Golden Agri-Resources Ltd. Even though prices of palm products are fa-vourable and business is profitable, the family’s past business practices are still questionable in the minds of certain credit analysts. Golden Agri-Resources Ltd plans a bond issue in Singapore this year, but the credit-rating agency, Moody does not seem to be convinced about the company’s ‘complicated family-control-led organizational structure’ and feels that there could be risks of funds being used to support affiliated companies.

• Raja Garuda Mas International. The regionally-oriented RGM’s Asian Agri, which defaulted on USD 1.26 billion of debts owed to a consortium of foreign and local banks during the financial cri-

Titbits


sis, now operates over 200 000 ha of palm oil, rubber and cocoa plantations across Indonesia, the Philippines, Malaysia and Thailand. Ranked as one of Asia’s largest primary producers of crude palm oil, the company manages more than 26 planta-tions totalling 160 000 ha and 19 palm oil mills with a production capacity of more than 1 million tonnes. It also has three refineries processing crude palm oil into end products.

• Asia Pulp & Paper (APP). Riau province, home to both APP and APRIL’s giant pulp and paper mills, has more recently become Indonesia’s largest crude palm oil produc-ing area. Both enterprises also have the li-on’s share of plantation concessions there. Out of a total of 1806 533 ha of plantation concessions, APP holds 679 424 ha and APRIL 639 593 ha. APRIL also has con-cessions for 57 807 ha in the Riau Islands. Forest clearing programmes are attract-ing attention from environmentalists in Indonesia. A coalition of three envi-ronmental groups called Eyes on the Forest is active in Riau. An independ-ent investigation conducted found that APRIL was involved in forest clear-ance operations in two concession areas without having a valid logging license. APRIL has denied it and no legal action has been taken against the company.

• PT Bakrie Sumatera Plantations (BSP). Another major player is public listed PT Bakrie Sumatera Plantations (BSP), owned by the listed conglomerate PT Bakrie & Brothers, which is 80% owned by the family of Coordinating Minister for People’s Welfare, Aburizal Bakrie. The family accumulated and defaulted on part of more than USD 1 billion in debts at the height of the Asian financial crisis related to a broad range of businesses. BSP currently has concessions on 53 000 ha of mixed plantations, the majority of them planted with oil palms. The compa-ny recently acquired another 25 500 ha in Sumatra and expects to boost crude palm

oil production to 180 000 t this year, up from 158 000 t in 2006. The company also operates three palm oil refineries in West Java and Sumatra and holds a 70% stake in Bakrie Rekin Bio-Energy, a joint-ven-ture with state-owned contractor, Reka-yasa Industri, with whom it has started building a biodiesel plant in Batam with a capacity of 100 000 t yr-1.

• Salim Group. The Widjaja and Bakries are not the only ones bidding to rehabilitate their businesses and restore their fam-ily fortunes through biofuel-related busi-nesses. For instance, the Salim Group’s publicly listed, Indofood Agri Resources Ltd, with investments in oil palm planta-tions, commands a 60% share of Indone-sia’s cooking oil sector. It recently raised USD 275 million in a share sale in Singa-pore to be partially used for biofuel-re-lated outlays. The Group was founded by Liem Sioe Liong, a renowned business associate of former strongman President Suharto.

• PT Astra Agro Lestari. Meanwhile, PT Astra Agro Lestari, owned by Indonesia’s giant auto maker, Astra International, is the country’s largest crude palm oil pro-ducer. Founded by Suharto associate and former Trade Minister, Bob Hasan, the company controls some 205 000 ha of plantation area in Sumatra, Kalimantan and Sulawesi provinces. Hasan was con-victed on corruption charges in February 2001 for causing the Indonesian Govern-ment to lose USD 244 million in a fraudu-lent forest-mapping project. He was re-leased on parole in February 2004.

Most of the Indonesia’s emerging biofu-el tycoons follow the government’s guide lines on biofuel. The Chairman of the gov-ernment’s biofuel Development Committee, Alhilal Hamdi says, “current planning en-visages production of about 200 000 barrels of oil equivalent in biofuel per day by 2010”. In order to meet this target, the government is giving a lot of encouragements like sim-

Titbits


plifying land use permits, plant licensing procedures and passed a new investment law that gives foreigners control over land for as long as 90 years.

Indonesian Strategies for Fast Tracking

Oil Palm Cultivation

• Land expansion for oil palm cultivation in Indonesia. The land expansion for oil palm cultivation is also facing stiff criti-cism from environmental groups who claim that this is causing rapid de-for-estation. Indonesia currently has an es-timated 5.5 million hectares of oil palm

plantations, and the government now plans to more than double the total area under cultivation through the develop-ment of another 6.1 million hectares in Kalimantan, Papua and other provinces.

• Licensing. The Minister of Agriculture currently makes decisions on the maxi-mum and minimum area to be used for oil palm and other commercial crop plan-tations. The local administrations in the respective provinces issue 35-year renew-able concessions for plantation develop-ment based on the availability of land, population density and other factors.

Titbits


Datasheet

Cholesterol Content in Edible Oils and Fats

Edible oils and fats Range (ppm) Average (ppm)

Coconut oil 5 - 24 14

Cocoa butter - 59

Palm kernel oil 9 - 40 17

Palm oil 13 - 19 16

Sunflower oil 8 - 44 17

Soyabean oil 20 - 35 28

Cottonseed oil 28 - 108 44

Rapeseed oil 25 - 80 53

Maize oil 18 - 95 50

Lard 3 000 – 4 000 3 500

Butter 2 200 – 4 100 3 150

Beef fat 800 – 1 400 1 100

Source: Kalanithi, N and Badri, M (1994). Nutritional properties of palm oil. SelectedReadingsonPalmOilanditsUses. PORIM, Bangi. p. 15.


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