Malaysian Palm Oil Wildlife Conservation Fund (MPOWCF)
field is now wide open for Malaysia’s palm oil mills to step up the
value-chain in providing millions of tonnes of palm oil and oil-palm
biomass for value-added downstream activities.
AT THE opening of Sabah’s first palm-pressed fibre oil exraction plant
in the once-thriving timber town of Keningau last week, the state’s
Minister of Industrial Development Datuk Raymond Tan Shu Kiah imparted
some valuable lessons in value-adding and leveraging on new technologies
as sources of generating wealth.
Using the example of how
Penang-based Eonmetall Group Bhd has helped Malaysia gain a foothold to
lead in palm oil innovations by developing and holding the patent on
palm pressure fibre oil technology, Tan inspired confidence among those
present at the event – that Sabah can now tap technology by turning
waste into “gold”.
For a town like Keningau, which once rode the
logging boom until the late 1980s when its timber resources were
depleted, the fact that palm oil estates have appeared in some parts
recently should help the local economy.
technology developed by Eonmetall is used to recover 5 per cent residual
oil content from palm-pressed fibre. This oil is traditionally used as
boiler fuel in more than 420 palm oil mills dotting the country.
Eonmetall last Thursday delivered the extraction plant to Kim Loong Oil
Mill, which is being viewed as a stepping stone to tap Sabah’s
estimated 122 palm oil mills.
Kim Loong is no stranger to maximising profits by extracting values out of crude palm oil (CPO) and palm oil mill wastes.
Its palm oil mill in Johor is being touted as the first registered
methane emission reduction clean development mechanism (CDM) project in
the world for biogas generated from palm oil mill effluents.
The company’s first solvent extraction plant in Johor, which was also
developed by Eonmetall, serves as what is believed to be the world’s
From the time the Johor facility was commisioned in
September 2007 to July this year, the facility has produced a total of
4,513 tonnes of solvent- extracted red palm oil worth a total of RM11
million, which would have otherwise been burnt and lost in the boilers
of a conventional palm oil mill.
Malaysia and Indonesia are expected to jointly produce an estimated CPO output of 37 million tonnes this year.
Kim Loong Resources Bhd’s group executive chairman Gooi Seng Lim
notes that if the palm fibre oil extraction technology can be
successfully implemented in both countries, there is a potential for
925,000 tonnes of red palm oil that can be recovered.
total value of the red palm oil at today’s price of RM2,700 per tonne
would translate into a whopping revenue of RM2.5 billion.
With the unleashing of the palm fibre oil extraction technology, the
number of downstream applications which can be developed is countless
and not limited only to palm oil entrepreneurs, but other industries as
The field is now wide open for Malaysia’s palm oil mills
to step up the value-chain in providing millions of tonnes of palm oil
and oil-palm biomass for value-added downstream activities.
Innovation has always been the trademark of successful entrepreneurs and
what better way is to turn “useless into useful” while sparing the
environment in the process.
Source : Business Times
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