Wednesday, October 28, 2009

Extractor targets smaller palm farms

       Community palm-oil extraction facilities are being marketed to serve small-scale plantations and support Thailand's emerging biodiesel industry.
       Expanding to a single site with a harvested area of 10,000 rai is no longer possible but smaller sites of about 1,000 to 3,000 rai have appeared in recent years to cash in on the alternative energy boom, said Nared Chin-inmanu, assistant vice-president of Great Agro Co, a unit of Charoen Pokphand Group.
       "These new plantations, mostly located far from crushing plants and biodiesel refiners, face higher expenses from transport and lengthy delivery times that could degrade palm nuts," he said.
       To solve the problem, Great Agro joined with the National Metal and Materials Technology Center (MTEC) to develop an innovative steamless palm-oil extraction machine at an affordable price.
       The CPP1500 model costs 4.5 million baht and can crush a tonne of fresh palm fruit each hour to create 200 litres of palm oil for a biodiesel plant.
       The steamless production process maintains crude palm oil (CPO) quality and curbs the environmental impact from waste water, said Mr Nared.
       Steam extraction has been widely used in Thailand. A machine with capacity to extract 15 to 60 tonnes of palm fruit an hour needs an investment of at least 100 to 150 million baht.
       The cheaper machine has attracted new operators, notably palm-nut traders in the South who want to diversify to supply refined palm oil for biodiesel plants.
       Last week, Great Agro sold its first machine to four palm-nut traders in Prachuap Khiri Khan, Krabi and Surat Thani. The company expects to sell 10 machines by the year-end.
       High oil prices have raised the value of energy crops and encouraged farmers to plant more palms, which Mr Nared estimates will cover 3.5 million rai next year - up from 3 million rai at present.
       Sakda Hengparinyathorn, a palm-nut dealer, plans to install the machine at a plant in Krabi next year and said the investment was viable because palm product prices were good.
       Extracted palm oil is currently 23 baht per kilogramme, a strong price despite the slide from more than 30 baht last year, he said.
       In addition to palm oil, investors can sell byproducts such as waste and kernels,which are used in animal feed.
       The government is attempting to promote alternative fuels from several crops - including ethanol from cassava and sugarcane, as well as biodiesel from jatropha and oil palm - to cut the cost of imported fuel.
       The Energy Ministry estimates diesel use in transport and industry at 49 million litres per day but only about 1.27 million litres are B100 biofuel or 100% crude palm oil.

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