Exciting Time!

During this past year of inactivity, the palm oil industry has experienced the most exciting time in decades.

The price of Fresh Fruit Bunch (FFB) has increased 104% from RM360/mT (19% OER on Dec 5, 2006) to RM 736/mT (19% OER on Mar 28, 2008)! The FFB price reached its peak on March 4th, 2008 at RM 855/mT!

This is a very exciting time indeed for oil palm planters!

Equator targets waste system at planters

This is another waste treatment idea by composing the Empty Fruit Bunch (EFB) using new technology developed in Taiwan National ChungHsing University. Their composing technique allows the EFB to turn into useful compose within 24hr. The company's Managing Director Murphy Koh wish to address the excessive waste at the palm oil mill and secondary pollution created by other EFB waste treatment techniques such as burning EFB as solid fuel, recycling EFB into papers, etc.

Equator targets waste system at planters
By ZAZALI MUSA

JOHOR BARU: Equator Life Science Bhd is targeting palm oil plantation companies as the main users of its biotechnology waste management system.

Managing director Murphy Koh said the company, via subsidiary Biosmart Sdn Bhd, had invented an instant composting technology (ICT) in joint venture with Taiwan National ChungHsing University.

Murphy Koh with the company’s soil conditioner, Biosmart Soiltonic
Koh said the technology was used to turn food waste from households and restaurants into compost fertiliser and had been used in Taiwan for five years.

“We decided to bring it to Malaysia and apply it in the palm oil industry,’’ he told StarBiz yesterday.

Koh said the company would unveil the ICT at the Bio Malaysia 2006 convention to be held from tomorrow until Friday at the Kuala Lumpur Convention Centre.

He added that the local palm oil sector instantly provided sufficient raw materials for the system to take off in a bigger way compared with in Taiwan.

Koh said more than 30 million tonnes of bio-waste were created from 400 palm oil mills nationwide after the oil had been extracted from the fruit bunches.

He said the bio-waste disposal was an important issue not only in terms of cost for disposal but also because it threatened the environment.

“The system allows us to utilise all bio-waste and will enable Malaysia to achieve zero-waste discharge for the palm oil industry,’’ Koh said.

Currently, there are various ways to utilise the bio-waste to produce solid fuel, paper, compress board and compost, but only a small fraction of the problem is solved due to limitation.

For instance, solid fuel, paper and compress board produce secondary pollution and composting process takes too long, needs a large space and is dependent on weather conditions.

Koh said the ICT system was able to convert oil palm bio-waste into organic fertiliser within a day, thus there would be no empty fruit bunches to be burned and no POME (pam oil mill effluent) to be discharged.

“Palm oil mills could install the machines within their vicinity and use the product as compost fertiliser for the oil palms,” he said.

He said the company currently produced SOS Soiltonic from the palm oil waste and the product helped rehabilitate “sick soil” from over-cultivation.

Koh said its plant in Banting, Selangor, now produced 50 tonnes of SOS Soiltonic daily and last month exported the product to China.

He said the company would also target the palm oil sectors in Indonesia and Thailand and commercial agriculture farmers in Japan and Taiwan for the products.

Carotech plans to triple biodiesel output

Carotech plans to triple biodiesel output
by Reuters

Carotech Bhd plans to more than triple its bio-diesel production to 125,000 tonnes a year, as it ramps up its core business activity of producing vitamins from palm oil.

The firm, a 55% subsidiary of Hovid Bhd, produces Vitamin E extracted from crude palm oil, and in the process gets bio-diesel or palm methyl ester as a by-product.

Carotech expects strong revenue growth from bio-diesel sales, given the growing global demand for green fuel, as nations from Asia to Europe seek ways to reduce dependence on fossil fuels and cut green house gas emission.

“We have gotten a head start in the market as we have been supplying bio-diesel to oil traders since 1995,” managing director David Ho told Reuters. “Now we just have to be aggressive in securing new clients.”

Ho said bio-diesel exports could contribute 60% of the company's revenue in 2007, up from 50% in 2006, as production increases.

Carotech, based in Perak, sells bio-diesel to oil companies for blending with petroleum fuel.

Earlier this year, it secured a two-year contract worth RM155mil to supply bio-fuel to Osaka-based Hatakeyama Oil Corp.

Carotech started operating its second vitamin extraction plant in May and aimed to start another unit by June 2007, Ho said.

He said Carotech's bio-diesel prospects were unlikely to take a big hit due to a spike in crude palm oil prices and a decline in petroleum, which has sparked a global debate on the viability of vegetable oil-based bio-fuels.

“It will affect us slightly. We will try to pass it on to our bio-diesel prices.”

The official did not disclose Carotech's exact bio-diesel prices, but said it sells the bio-fuel at US$600 to US$700 per tonne in short- and mid-term agreements.

The company posted a net profit of RM12.3mil for the year ended June 2006, an increase of 70.8% from RM7.2mil in 2005.