Value added for a better life: From food to fuel.
INDUSTRIAL COOPERATION TOWARDS VALUE ADDED PRODUCTION. The production of crude palm oil into value added is essential to ensuring that palm oil producing nations can support the continued improvement of health, education and social services which helps underpins the efforts made by Governments in developing economies.
Palm oil is highly versatile providing the opportunity for value added in many indispensable downstream industries to meet national demand to include food, fuel, fine chemical, also feed and fibre, etc.
Attributable mainly to the export tax on palm oil, Indonesia, the biggest palm oil producer, has witnessed an increase in downstream processing with a decline in crude palm oil exports and a corresponding increase in the production and consumption of downstream products for the domestic and export markets. Worthy of note is the biodiesel 20% (B-20) mandatory program which has resulted in Indonesia being the largest palm oil producer as well as the second largest consumers of palm oil with the EU market relegated to third.
Other sectors of development of value added include biomass residue from oil palm which is an attractive source for renewable energy fuel. These include press fibre and shell, and palm kernel shells as coal substitution. Palm oil–based biomass has more advantages as clean emission renewable energy and will be trend in the future.
Bioenergy palm oil utilization is also growing in the oleo chemical industry. Oleo chemicals are used for various applications including lubricants, polymers and surfactants, personal care, soaps in which new applications have emerged as substitution for petroleum-based products.