Demand CPO for Energy Industry Predicted to be Higher
Crude Palm Oil (CPO) utilization is predicted to shift from oleofood and oleochemcial to biohydrocarbon industry in the five years to come. Traditionally, oleofood and oleochemical industry uses more CPO than other industries.
JAKARTA—Domination of Crude Palm Oil (CPO) utilization is predicted to shift from oleofood and oleochemcial to biohydrocarbon industry in the five years to come. Traditionally, oleofood and oleochemical industry uses more CPO than other industries.
Chairman of Indonesian Vegetable Oil Association (GIMNI), Sahat Sinaga predicted energy, emulsifier, and oil industry would replace domination of oleochemical and oleofood. Biohydrocarbon was estimated to absorb around 40% of total national CPO production, whereas emulsifier and oil industry would absorb 15%-20%.
At the same time, the amount of CPO absorbed by domestic oleofood industry would be stable at around 30% and by oleochemical industry would be around 10%-15%. “Raw materials for biohydrocarbon, lubricant, and emulsifier offer more added value than other traditional products,” Sahat said.
CPO conversion to Refined, Bleached and Deodorized Palm Oil (RBDPO) or oleofood offers added value only US$18/ton. On the other hand, CPO conversion to FAME as well as green diesel offer added value around US$150/ton and US$200/ton for conversion to lubricant raw material.
Sahat said current downstreaming process in palm oil industry was growing so slowly that government should implement measures, including fiscal system adjustment and improvement of the logistics system. (Source: Bisnis.com)
