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THE ADDED VALUE OF
PALM OIL AND ITS
DERIVATIVES
Darmono Taniwiryono
Presented at:
Indonesia – China Business Forum
Palm Oil in the Future
Guangzhou Shangri-la Hotel, 16th June 2017
Fresh fruit bunches (FFB) Leaf fronds
Trunks
PALM OIL
PALM OIL COMPOSITION
Some of the benefits of VRO is boosting
cardiovascular health – such as helping to
maintain healthy LDL cholesterol levels and
protecting these molecules from oxidation
damage, promoting artery flexibility, and
supporting blood flow and normal platelet
function.
Recent studies suggest that VRO also supports
liver health by helping to maintain normal liver
enzyme levels, normal triglyceride
concentrations in the liver and protecting cells
from oxidation damage.
Cosmetics
Supplements
Food Seasoning
Burn TreatmentAlso contains:
✓ Omega 6
✓ Omega 9
✓ Co-Q10
✓ Squalene
One of the main reasons that palm oil is such a complex
commodity is the demand for a large number
of fractions and derivatives of the oil. About 60% of the
palm oil consumed globally is in the form of derivatives.
http://www.sustainablepalmoil.org/refineries/palm-oil-derivatives/
PALM OIL DERIVATIVES
http://www.sustainablepalmoil.org/refineries/palm-oil-derivatives/
http://www.sustainablepalmoil.org/refineries/palm-oil-derivatives/
http://www.sustainablepalmoil.org/refineries/palm-oil-derivatives/
Applications of Palm
Oil Derivatives as
Biomaterials
(Hambali, 2016)
These products could also be produced from other vegetable oils.
But the gain that could be got from producing these products
primarily depends on the price of the raw materials itself.
Compared to other vegetable oils, palm oil is the most competitive
(in term of price) and sustainable source of vegetable-oil-based
products for food and oleochemical industries.
It also depends the on cost of initial investments, labor, logistics,
incentives, and cost of maintenance for each individual industry.
0.00 200.00 400.00 600.00 800.00 1000.001200.001400.001600.00
Soybean
Sesame
Peanut
Rapeseed
Jojoba
Coconut
Oil Palm
Biodiesel Yield
(liters per ha) Global Biofuel
Production 2020:
1,900 million barells
Biodiesel Productions
17
Source. MEMR March 2016
• 2015 drop in production,
due to the decline of
world fossil fuel price
• Started to rebound in
August 2015, after the
establishment of CPO
Funds (IECF)
190 243
1,812
2,221
2,805
3,961
1,653
3,655
70 20
1,453
1,552
1,757 1,629
329 429
119
223
359
669
1,048
1,845
915
3,008
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2009 2010 2011 2012 2013 2014 2015 2016
ThousandkL
Production Export Domestic
PROJECTION OF BIOFUELS CONSUMPTION (MillionKL)
IN INDONESIA (MEMR DECREE No. 12, 2015)
Source, APROBI
Type 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Diesel 34.00 36.72 39.66 42.83 46.26 49.96 53.95 58.27 62.93 67.97 73.40 79.28
Biodiesel 3.40 5.50 7.93 8.57 9.25 9.99 16.19 17.48 18.88 20.39 22.02 23.78
Gasoline 26.00 28.08 30.33 32.75 35.37 38.20 41.26 44.56 48.12 51.97 56.13 60.62
Bioethanol 0.26 0.28 0.61 0.66 0.71 0.76 2.06 2.23 2.41 2.60 2.81 12.12
BIOETHANOL FROM OIL PALM TRUNK
OTHER UTILIZATION
Particle boards
Wood pellets for energy
Pulp and paperBiofertilizer
Bioplastic
(Shahira et al. 2015)
The highest bioethanol yield (81.89%) was achieved by adding MgSO4.
The rank of nutrient influence on improving the bioethanol yield was
MgSO4 > C3H7NO2 > (NH4)2SO4 > Na2HPO4
Oil;
5,0
Frond (Pruning),
48.9
Trunk (OPT)*,
23.7
Empty Fruit
Bunches, 5.0
Mesocarp Fibers,
3.5 Kerne Shell,
1.4
Oil 28,1
Frond (Pruning) 277,3
Trunk (OPT)* 134,4
Empty Fruit Bunches 28,1
Mesocarp Fibers 20
Kerne Shell 8
(million ton)
https://www.researchgate.net/publication/
41090328_Soybean_Biomass_as_a_Renew
able_Energy_Resource
Oil Palm Biomass kg/ha/year
Frond (Pruning) 48.915,15
Trunk (OPT)* 23.707,88
Empty Fruit Bunches 4.956,78
Mesocarp Fibers 3.527,96
Kerne Shell 1.411,18
Total 82.518,96
Soybean Cultivar kg/ha
Ika 2.571,10
Neoplanta 3.194,80
Tisa 3.374,70
Podravka 2.820,72
Vita 2.683,10
Total 2.928,88
Kis et al, 2009. Soybean biomass as
renewable resources. Agriculturae
Cosnpectus Scientificus Vol 74(03): 201-
203
Biomass
Yield
28 x
8.803,00 16.726,00
17.606,69 26.502,64
33.746,15 44.016,72
Palm Kernell Shell
Mesocarp Fiber
Empty Fruit Bunches
Indonesia 2014 CPO production
of 29.344.480 tons Biodiesel 28.464.150 tons
(APROBI, 2106)
Biomass (‘000 tons) Electricity (GWH)
Oil Palm & Cattle
We ought to take care of it, wisely exploit it
and use its products,
in a such sustainable manner
Contact person:
Darmono Taniwiryono
Email: Darmonot@Hotmail.com
Phone: +62 857 1111 2537

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Darmono Taniwiryono Ghuangzhou 2017

  • 1. THE ADDED VALUE OF PALM OIL AND ITS DERIVATIVES Darmono Taniwiryono Presented at: Indonesia – China Business Forum Palm Oil in the Future Guangzhou Shangri-la Hotel, 16th June 2017
  • 2. Fresh fruit bunches (FFB) Leaf fronds Trunks
  • 5.
  • 6. Some of the benefits of VRO is boosting cardiovascular health – such as helping to maintain healthy LDL cholesterol levels and protecting these molecules from oxidation damage, promoting artery flexibility, and supporting blood flow and normal platelet function. Recent studies suggest that VRO also supports liver health by helping to maintain normal liver enzyme levels, normal triglyceride concentrations in the liver and protecting cells from oxidation damage.
  • 7. Cosmetics Supplements Food Seasoning Burn TreatmentAlso contains: ✓ Omega 6 ✓ Omega 9 ✓ Co-Q10 ✓ Squalene
  • 8. One of the main reasons that palm oil is such a complex commodity is the demand for a large number of fractions and derivatives of the oil. About 60% of the palm oil consumed globally is in the form of derivatives. http://www.sustainablepalmoil.org/refineries/palm-oil-derivatives/ PALM OIL DERIVATIVES
  • 9.
  • 13. Applications of Palm Oil Derivatives as Biomaterials (Hambali, 2016)
  • 14. These products could also be produced from other vegetable oils. But the gain that could be got from producing these products primarily depends on the price of the raw materials itself. Compared to other vegetable oils, palm oil is the most competitive (in term of price) and sustainable source of vegetable-oil-based products for food and oleochemical industries. It also depends the on cost of initial investments, labor, logistics, incentives, and cost of maintenance for each individual industry.
  • 15. 0.00 200.00 400.00 600.00 800.00 1000.001200.001400.001600.00 Soybean Sesame Peanut Rapeseed Jojoba Coconut Oil Palm Biodiesel Yield (liters per ha) Global Biofuel Production 2020: 1,900 million barells
  • 16.
  • 17. Biodiesel Productions 17 Source. MEMR March 2016 • 2015 drop in production, due to the decline of world fossil fuel price • Started to rebound in August 2015, after the establishment of CPO Funds (IECF) 190 243 1,812 2,221 2,805 3,961 1,653 3,655 70 20 1,453 1,552 1,757 1,629 329 429 119 223 359 669 1,048 1,845 915 3,008 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2009 2010 2011 2012 2013 2014 2015 2016 ThousandkL Production Export Domestic
  • 18. PROJECTION OF BIOFUELS CONSUMPTION (MillionKL) IN INDONESIA (MEMR DECREE No. 12, 2015) Source, APROBI Type 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Diesel 34.00 36.72 39.66 42.83 46.26 49.96 53.95 58.27 62.93 67.97 73.40 79.28 Biodiesel 3.40 5.50 7.93 8.57 9.25 9.99 16.19 17.48 18.88 20.39 22.02 23.78 Gasoline 26.00 28.08 30.33 32.75 35.37 38.20 41.26 44.56 48.12 51.97 56.13 60.62 Bioethanol 0.26 0.28 0.61 0.66 0.71 0.76 2.06 2.23 2.41 2.60 2.81 12.12
  • 19. BIOETHANOL FROM OIL PALM TRUNK OTHER UTILIZATION Particle boards Wood pellets for energy Pulp and paperBiofertilizer Bioplastic (Shahira et al. 2015) The highest bioethanol yield (81.89%) was achieved by adding MgSO4. The rank of nutrient influence on improving the bioethanol yield was MgSO4 > C3H7NO2 > (NH4)2SO4 > Na2HPO4
  • 20. Oil; 5,0 Frond (Pruning), 48.9 Trunk (OPT)*, 23.7 Empty Fruit Bunches, 5.0 Mesocarp Fibers, 3.5 Kerne Shell, 1.4 Oil 28,1 Frond (Pruning) 277,3 Trunk (OPT)* 134,4 Empty Fruit Bunches 28,1 Mesocarp Fibers 20 Kerne Shell 8 (million ton)
  • 21. https://www.researchgate.net/publication/ 41090328_Soybean_Biomass_as_a_Renew able_Energy_Resource Oil Palm Biomass kg/ha/year Frond (Pruning) 48.915,15 Trunk (OPT)* 23.707,88 Empty Fruit Bunches 4.956,78 Mesocarp Fibers 3.527,96 Kerne Shell 1.411,18 Total 82.518,96 Soybean Cultivar kg/ha Ika 2.571,10 Neoplanta 3.194,80 Tisa 3.374,70 Podravka 2.820,72 Vita 2.683,10 Total 2.928,88 Kis et al, 2009. Soybean biomass as renewable resources. Agriculturae Cosnpectus Scientificus Vol 74(03): 201- 203 Biomass Yield 28 x
  • 22. 8.803,00 16.726,00 17.606,69 26.502,64 33.746,15 44.016,72 Palm Kernell Shell Mesocarp Fiber Empty Fruit Bunches Indonesia 2014 CPO production of 29.344.480 tons Biodiesel 28.464.150 tons (APROBI, 2106) Biomass (‘000 tons) Electricity (GWH)
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  • 26. Oil Palm & Cattle
  • 27. We ought to take care of it, wisely exploit it and use its products, in a such sustainable manner
  • 28. Contact person: Darmono Taniwiryono Email: Darmonot@Hotmail.com Phone: +62 857 1111 2537