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Slide 1
Hong Wai Onn
Introduction to the Palm Oil Industry
Palm Oil Processing Special Interest Group
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Slide 2
POPSIG was formed on 3rd August 2015 in
Kuala Lumpur, Malaysia to provide a forum for
the exchange of ideas, the sharing of
experiences and encouraging innovation in the
palm oil processing industry.
It is not limited to traditional areas of milling,
refining or oleochemicals. It includes new areas
such as nutraceuticals, biogas and energy,
biomass, biofuels and bio-based chemicals.
Processing in the palm oil industry encompasses
all the four key challenges in Chemical
Engineering Matters viz energy, food & drink,
health & well being and water. The approach to
improving the quality of life through the use palm
oil has to be done safely and sustainably.
http://www.icheme.org/communities/special-
interest-groups/palm-oil-
processing/resources/newsletter.aspx
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Slide 3
Introduction to the Palm Oil Industry
By
Hong Wai Onn CEng MIChemE
Palm Oil Processing Special Interest Group
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Slide 4
Palm Oil at a Glance
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Slide 5
The Palm Oil Supply Chain
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Slide 6
What will be covered …
The importance of palm oil
Milling
Refining
Oleochemicals
Bulking Installations
Sources of information
NKEA and the 8 EPPs in Malaysia
The role of a chemical engineer
Key players
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Slide 7
Malaysia is celebrating 100 years of
palm oil this year, as the first oil palm
was grown in 1917.
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Slide 8
Some Key Numbers 2016 for
Malaysia 5.7 million hectares of land (17% of land mass)
17 million tonnes of palm oil & 2 million tonnes of palm kernel oil
8% of world’s oil & fat production
Export revenue RM 41 billion (5.3%, #4)
600,000 people employed directly
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Slide 9
Oil Palm Plantation
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Slide 10
Process Flow for Milling
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Slide 11
Palm Oil Mill
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Slide 12
Process Flow for Refining
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Slide 13
Palm Oil Refinery
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Slide 14
Process Flow for Fractionation
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Slide 15
Fractionated Palm Oil Products
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Slide 16
Activity 1
2 minutes
Enter into the question section
some edible products
made from palm oil
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Slide 17
Edible Palm Oil Products …
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Slide 18
Palm Oil Derivatives Flowchart
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Slide 19
Fatty Acids & Fatty Alcohol Plants
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Slide 20
Activity 2
2 minutes
Enter into the question section
some end consumer products containing oleochemicals and their derivatives
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Slide 21
End Consumer products …
Soap noodles
Sodium lauryl sulfate
Stearic Acid
Esters
Glycerin, Isopropyl
Myristate
Methyl Ester
Sulfonate
Cetyl palmitate,
isopropyl myristate,
sorbitan monostearate,
stearyl alcohol
Amide as slip agent
Tocotrienols
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Slide 22
Bulking Installations – Key for
Exports
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Slide 23
Key Organizations
Name Full name
MPOA Malaysian Palm Oil Association (Growers)
MPOB Malaysian Palm Oil Board (Licensing/R&D)
MPOC Malaysian Palm Oil Council (Promotion)
PORAM Palm Oil Refiners Association of Malaysia
AOMG ASEAN Oleochemical Manufacturers Group
MEOMA Malaysian Edible Oil Manufacturers Association
MBA Malaysian Biodiesel Association
RSPO Roundtable on Sustainable Palm Oil
MPOCC Malaysian Palm Oil Certification Council
CPOPC Council of Palm Oil Producing Countries
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Slide 24
NKEA in Malaysia National Key Economic Areas (NKEA) 1) Oil and gas
2) Palm oil and related products
3) Financial services
4) Wholesale and retail
5) Tourism
6) Information and communications technology
7) Education
8) Electrical and electronic
9) Business services
10) Private healthcare
11) Agriculture
12) Greater Kuala Lumpur
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Slide 25
EPP in Malaysia Entry Point Project (EPP)
Upstream productivity
EPP 4: Increasing the oil extraction rate
EPP 5: Developing biogas at palm oil mills
Downstream expansion and sustainability
EPP 6: Developing oleo derivatives
EPP 7: Commercializing second generation biofuels
EPP 8: Expediting growth in food- and health-based downstream segments
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Slide 26
List of companies under EPP 6 Q1 2014
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Slide 27
Chemical Engineering Matters
The role of chemical engineers
in the palm oil industry
and society
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Slide 28
Chemical Engineering Matters
• Outlines the scope, application
and implications for chemical
engineering in activities across
the four challenge areas
(Water, Energy, Food and
nutrition, and Health and
wellbeing) where chemical
engineers create, maintain and
improve quality of life, now and
in the future. http://www.icheme.org/~/media/Documents/i
cheme/pdfs/ChemEngMatters3_web.pdf
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Slide 29
The Role of a Chemical Engineer
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Slide 30
The Role of a Chemical Engineer
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Slide 31
The Role of a Chemical Engineer
Competence
Application of knowledge
Wider implications
Transferable skills
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Slide 32
Application of Knowledge
Item Examples
Process technologies Distillation, crystallisation, filtration
Safety systems Management of change, HAZOP
Laws of conservation Multiple effect evaporation
Mathematical modeling Spray crystallisation, catalysed reactions
Underlying chemistry Hydrolysis, esterification, hydrogenation
Systems analysis Trouble shooting, control of processes
Chemical thermodynamics Increasing splitting degree in a hydrolyzer
Economic evaluation Plant debottlenecking, cost savings
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Slide 33
Technical Areas
Process plant operation Legislation, regulation
Computer application Development of products, services
Project management, administration Teaching, managing, training
Instrumentation & control Quality & assurance
Technical / economic evaluation R&D
Economic accountancy, cost estimation Technical sales, marketing, contracts
Health, safety, risk aspects Design of process, plant & equipment
Sustainability & environmental aspects
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Slide 34
Wider Implications
Item Examples
Health, hazard and safety aspects
Opportunity to improve process safety
Registration, Evaluation, Authorisation and
Restriction of Chemical substances (EU)
Sustainability aspects
Clean Development Mechanism (POME) &
National Biomass Strategy 2020
Roundtable on Sustainable Palm Oil
(RSPO)
Commercial and economic
aspects
Fluctuating palm oil & palm kernel prices
NKEA : Palm Oil as a Growth Engine in the
Tenth Malaysia Plan (2011-2021)
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Slide 35
National Biomass Strategy
It aims to assess how
Malaysia can gain more
revenue from its palm oil
industry through utilisation
of the associated biomass.
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Slide 36
Palm oil can power the world
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Slide 37
Waste is profit
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Slide 38
Wider Implications
Item Examples
Health, hazard and safety aspects
Opportunity to improve process safety
Registration, Evaluation, Authorisation and
Restriction of Chemical substances (EU)
Sustainability aspects
Clean Development Mechanism (POME) &
National Biomass Strategy 2020
Roundtable on Sustainable Palm Oil
(RSPO)
Commercial and economic
aspects
Fluctuating palm oil & palm kernel prices
NKEA : Palm Oil as a Growth Engine in the
Tenth Malaysia Plan (2011-2021)
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Slide 39
Sustainable development
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Slide 40
Stand on Palm Oil Production
IChemE believes that
chemical engineers play an
important role in a current
and future sustainable palm
oil industry.
IChemE supports the practice
of certification of palm oil from
the plantation through to final
consumer products.
http://www.icheme.org/~/media/Documents/i
cheme/Media%20centre/Policy%20position
%20statements/Policy%20position%20-
%20palm%20oil%20production.pdf
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Slide 41
Palm oil for well being
(tocotrienols)
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Slide 42
Transferable Skills
Item Examples
Managing relationships Developing supporting staff with low
level of formal education
Leadership in a professional
role
Lead peers from different backgrounds
in project
Communicating ideas
formally
Applying to be a Chartered Chemical
Engineer
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Slide 43
The Role of a Chemical Engineer
Commitment
Item Example
Commitment to profession Be active in IChemE & your
trade/technical association
Continuing professional
development. Do regular gap analysis
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Slide 44
Typical Numbers …
Item Mill Refinery Oleochemical
Plant
Investment, RM mil 55 85 125
Capacity, t/day 500 1000 400
No of employees 50 100 180
No. of Chemical
Engineers 0.5 2 10
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Slide 45
Activity 3
2 minutes
Enter into the question section
some key players in the palm oil industry:-Suppliers, Manufacturers, and Customers
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Slide 46
Key Players
Suppliers Manufacturers Customers
Item Company Item Company Item Company
Caustic Soda CCM Mill Sime Darby Soap noodles J & J
Plant Desmet
Ballestra Refinery Cargill Edible Oils Unilever
Methanol Petronas Fatty Acids IOI Oleo Edible Oils Kraft Heinz
Boiler Boilermech Fatty Alcohol Emery Oleo Fatty Acids P & G
Mill CBIP Esters Nat Oleo Fatty Alcohol BASF
Enzyme Novozymes Biodiesel Carotino Esters L’Oreal
Biogas plant Kubota Biorefinery Genting Biodiesel Shell
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Slide 47
100 Years for Malaysian Palm Oil
Can we continue to be the global
technology leader in the processing of this
Golden Crop?
Big potential for us to transform the industry
particularly in process engineering through
science and innovation.
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Slide 48
Conclusion
Palm oil is the most widely-used vegetable oil in
the world
The oil palm tree is the most efficient oil crop in
terms of land use
Join the palm oil industry and be a leader
Set your sights now on being a Chartered
Chemical Engineer
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Slide 49
Thank You
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Slide 50
Next Evening Talk
Challenges in Biodiesel Business on 10 April 2017
at Monash University Malaysia
by U.R. Unnithan, founder & CEO of SUMWIN Group