Palm oil
Encyclopedia
Palm oil, coconut oil
Coconut oil
Coconut oil is an edible oil extracted from the kernel or meat of matured coconuts harvested from the coconut palm . Throughout the tropical world, it has provided the primary source of fat in the diets of millions of people for generations. It has various applications in food, medicine, and industry...

 and palm kernel oil
Palm kernel oil
Palm kernel oil is an edible plant oil derived from the kernel of the oil palm Elaeis guineensis. It should not be confused with the other two edible oils derived from palm fruits: coconut oil, extracted from the kernel of the coconut, and palm oil, extracted from the pulp of the oil palm...

 are edible plant oils
Vegetable fats and oils
Vegetable fats and oils are lipid materials derived from plants. Physically, oils are liquid at room temperature, and fats are solid. Chemically, both fats and oils are composed of triglycerides, as contrasted with waxes which lack glycerin in their structure...

 derived from the fruits of palm trees. Palm oil is extracted from the pulp of the fruit
Fruit
In broad terms, a fruit is a structure of a plant that contains its seeds.The term has different meanings dependent on context. In non-technical usage, such as food preparation, fruit normally means the fleshy seed-associated structures of certain plants that are sweet and edible in the raw state,...

 of the oil palm
Oil palm
The oil palms comprise two species of the Arecaceae, or palm family. They are used in commercial agriculture in the production of palm oil. The African Oil Palm Elaeis guineensis is native to West Africa, occurring between Angola and Gambia, while the American Oil Palm Elaeis oleifera is native to...

 Elaeis guineensis; palm kernel oil is derived from the kernel (seed) of the oil palm and coconut oil is derived from the kernel of the coconut (Cocos nucifera). Palm oil is naturally reddish in color because it contains a high amount of beta-carotene
Beta-carotene
β-Carotene is a strongly-coloured red-orange pigment abundant in plants and fruits. It is an organic compound and chemically is classified as a hydrocarbon and specifically as a terpenoid , reflecting its derivation from isoprene units...

.

Palm oil, palm kernel oil and coconut oil are three of the few highly saturated vegetable fats. Palm oil is semi-solid at room temperature
Room temperature
-Comfort levels:The American Society of Heating, Refrigerating and Air-Conditioning Engineers has listings for suggested temperatures and air flow rates in different types of buildings and different environmental circumstances. For example, a single office in a building has an occupancy ratio per...

s. Palm oil contains several saturated and unsaturated fat
Unsaturated fat
An unsaturated fat is a fat or fatty acid in which there is at least one double bond within the fatty acid chain. A fat molecule is monounsaturated if it contains one double bond, and polyunsaturated if it contains more than one double bond. Where double bonds are formed, hydrogen atoms are...

s in the forms of glyceryl laurate
Lauric acid
Lauric acid , the saturated fatty acid with a 12-carbon atom chain, is a white, powdery solid with a faint odor of bay oil or soap.-Occurrence:...

 (0.1%, saturated), myristate
Myristic acid
Myristic acid, also called tetradecanoic acid, is a common saturated fatty acid with the molecular formula CH312COOH. A myristate is a salt or ester of myristic acid....

 (1%, saturated), palmitate
Palmitic acid
Palmitic acid, or hexadecanoic acid in IUPAC nomenclature, is one of the most common saturated fatty acids found in animals and plants. Its molecular formula is CH314CO2H. As its name indicates, it is a major component of the oil from palm trees . Palmitate is a term for the salts and esters of...

 (44%, saturated), stearate
Stearic acid
Stearic acid is the saturated fatty acid with an 18 carbon chain and has the IUPAC name octadecanoic acid. It is a waxy solid, and its chemical formula is CH316CO2H. Its name comes from the Greek word στέαρ "stéatos", which means tallow. The salts and esters of stearic acid are called stearates...

 (5%, saturated), oleate
Oleic acid
Oleic acid is a monounsaturated omega-9 fatty acid found in various animal and vegetable fats. It has the formula CH37CH=CH7COOH. It is an odorless, colourless oil, although commercial samples may be yellowish. The trans isomer of oleic acid is called elaidic acid...

 (39%, monounsaturated), linoleate
Linoleic acid
Linoleic acid is an unsaturated n-6 fatty acid. It is a colorless liquid at room temperature. In physiological literature, it has a lipid number of 18:2...

 (10%, polyunsaturated), and alpha-linolenate
Alpha-linolenic acid
α-Linolenic acid is an organic compound found in many common vegetable oils. In terms of its structure, it is named all-cis-9,12,15-octadecatrienoic acid. In physiological literature, it is given the name 18:3 ....

 (0.3%, polyunsaturated). Palm kernel oil and coconut oil are more highly saturated than palm oil. Like all vegetable oils, palm oil does not contain cholesterol
Cholesterol
Cholesterol is a complex isoprenoid. Specifically, it is a waxy steroid of fat that is produced in the liver or intestines. It is used to produce hormones and cell membranes and is transported in the blood plasma of all mammals. It is an essential structural component of mammalian cell membranes...

 (found in unrefined animal fats), although saturated fat intake increases both LDL and HDL cholesterol.

Palm oil is a common cooking ingredient in the tropical belt of Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...

, Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...

 and parts of Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

. Its increasing use in the commercial food industry in other parts of the world is buoyed by its lower cost and the high oxidative stability (saturation
Saturated fat
Saturated fat is fat that consists of triglycerides containing only saturated fatty acids. Saturated fatty acids have no double bonds between the individual carbon atoms of the fatty acid chain. That is, the chain of carbon atoms is fully "saturated" with hydrogen atoms...

) of the refined product when used for frying.

The use of palm oil in food products is often the focus of environmental activist groups, due to it being documented as a cause of substantial and often irreversible damage to the natural environment.

History

Palm oil (from the African oil palm
Oil palm
The oil palms comprise two species of the Arecaceae, or palm family. They are used in commercial agriculture in the production of palm oil. The African Oil Palm Elaeis guineensis is native to West Africa, occurring between Angola and Gambia, while the American Oil Palm Elaeis oleifera is native to...

, Elaeis guineensis) has long been recognized in West Africa
West Africa
West Africa or Western Africa is the westernmost region of the African continent. Geopolitically, the UN definition of Western Africa includes the following 16 countries and an area of approximately 5 million square km:-Flags of West Africa:...

n countries, and is widely used as a cooking oil
Cooking oil
Cooking oil is purified fat of plant origin, which is usually liquid at room temperature ....

. European merchants trading with West Africa occasionally purchased palm oil for use in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

, but since the oil was of a lower quality than olive oil
Olive oil
Olive oil is an oil obtained from the olive , a traditional tree crop of the Mediterranean Basin. It is commonly used in cooking, cosmetics, pharmaceuticals, and soaps and as a fuel for traditional oil lamps...

, palm oil remained rare outside West Africa. In the Asante Confederacy, state-owned slaves built large plantations of oil palm trees, while in the neighbouring Kingdom of Dahomey
Dahomey
Dahomey was a country in west Africa in what is now the Republic of Benin. The Kingdom of Dahomey was a powerful west African state that was founded in the seventeenth century and survived until 1894. From 1894 until 1960 Dahomey was a part of French West Africa. The independent Republic of Dahomey...

, King Ghezo
Ghezo
Ghezo was the ninth King of Dahomey , considered one of the greatest of the twelve historical kings. He ruled from 1818 to 1858. His name before ascending to the throne was Gakpe....

 passed a law in 1856 forbidding his subjects from cutting down oil palm
Oil palm
The oil palms comprise two species of the Arecaceae, or palm family. They are used in commercial agriculture in the production of palm oil. The African Oil Palm Elaeis guineensis is native to West Africa, occurring between Angola and Gambia, while the American Oil Palm Elaeis oleifera is native to...

s.

Palm oil became a highly sought-after commodity by British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 traders, for use as an industrial lubricant
Lubricant
A lubricant is a substance introduced to reduce friction between moving surfaces. It may also have the function of transporting foreign particles and of distributing heat...

 for machinery during Britain's Industrial Revolution
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...

. Palm oil formed the basis of soap
Soap
In chemistry, soap is a salt of a fatty acid.IUPAC. "" Compendium of Chemical Terminology, 2nd ed. . Compiled by A. D. McNaught and A. Wilkinson. Blackwell Scientific Publications, Oxford . XML on-line corrected version: created by M. Nic, J. Jirat, B. Kosata; updates compiled by A. Jenkins. ISBN...

 products, such as Lever Brothers
Lever Brothers
Lever Brothers was a British manufacturer founded in 1885 by William Hesketh Lever and his brother, James Darcy Lever . The brothers had invested in and promoted a new soap making process invented by chemist William Hough Watson, it was a huge success...

' (now Unilever
Unilever
Unilever is a British-Dutch multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products....

) "Sunlight Soap
Sunlight (cleaning product)
Sunlight is a brand of household soap originally produced by the British company Lever Brothers in 1884. It was the world's first packaged, branded laundry soap. Designed for washing clothes and general household use, the success of the product led to the name for the company's village for its...

", and the American Palmolive brand. By , palm oil constituted the primary export of some West African countries such as Ghana
Ghana
Ghana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...

 and Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...

, although this was overtaken by cocoa in the 1880s.

Research

In the 1960s, research and development (R&D) in oil palm breeding began to expand after Malaysia's Department of Agriculture established an exchange program with West African economies and four private plantations formed the Oil Palm Genetics Laboratory. The government also established Kolej Serdang, which became the Universiti Pertanian Malaysia (UPM) in the 1970s to train agricultural and agro-industrial engineers and agro-business graduates to conduct research in the field.

In 1979, following strong lobbying from oil palm planters and support from the Malaysian Agricultural Research and Development Institute (MARDI) and UPM, the government set up the Palm Oil Research Institute of Malaysia (Porim). B.C. Sekhar was instrumental in helping Porim recruit and train scientists to undertake R&D in oil palm tree breeding, palm oil nutrition and potential oleochemical
Oleochemical
Oleochemicals are chemicals derived from plant and animal fats. They are analogous to petrochemicals derived from petroleum.The formation of basic oleochemical substances like fatty acids, fatty acid methyl esters , fatty alcohols, fatty amines and glycerols are by various chemical and enzymatic...

 use. Sekhar, as founder and chairman, pushed Porim to be a public-and-private-coordinated institution. As a result, Porim (renamed Malaysian Palm Oil Board
Malaysian Palm Oil Board
The Malaysian Palm Oil Board is a government agency responsible for the development, promotion and regulation of the palm oil industry in Malaysia...

 in 2000) became Malaysia's top research entity commercializing 20% of its innovations, compared to 5% among local universities.

Nutrition

Many processed foods contain palm oil as an ingredient.

Palm oil is composed of fatty acid
Fatty acid
In chemistry, especially biochemistry, a fatty acid is a carboxylic acid with a long unbranched aliphatic tail , which is either saturated or unsaturated. Most naturally occurring fatty acids have a chain of an even number of carbon atoms, from 4 to 28. Fatty acids are usually derived from...

s, ester
Ester
Esters are chemical compounds derived by reacting an oxoacid with a hydroxyl compound such as an alcohol or phenol. Esters are usually derived from an inorganic acid or organic acid in which at least one -OH group is replaced by an -O-alkyl group, and most commonly from carboxylic acids and...

ified with glycerol
Glycerol
Glycerol is a simple polyol compound. It is a colorless, odorless, viscous liquid that is widely used in pharmaceutical formulations. Glycerol has three hydroxyl groups that are responsible for its solubility in water and its hygroscopic nature. The glycerol backbone is central to all lipids...

 just like any ordinary fat. It is high in saturated fatty acids. Palm oil gives its name to the 16-carbon saturated fatty acid palmitic acid
Palmitic acid
Palmitic acid, or hexadecanoic acid in IUPAC nomenclature, is one of the most common saturated fatty acids found in animals and plants. Its molecular formula is CH314CO2H. As its name indicates, it is a major component of the oil from palm trees . Palmitate is a term for the salts and esters of...

. Monounsaturated oleic acid
Oleic acid
Oleic acid is a monounsaturated omega-9 fatty acid found in various animal and vegetable fats. It has the formula CH37CH=CH7COOH. It is an odorless, colourless oil, although commercial samples may be yellowish. The trans isomer of oleic acid is called elaidic acid...

 is also a constituent of palm oil. Unrefined palm oil is a large natural source of tocotrienol
Tocotrienol
Tocotrienols are members of the vitamin E family. An essential nutrient for the body, vitamin E is made up of four tocopherols and four tocotrienols . The slight difference between tocotrienols and tocopherols lie in the unsaturated side chain having three double bonds in its farnesyl isoprenoid...

, part of the vitamin E
Vitamin E
Vitamin E is used to refer to a group of fat-soluble compounds that include both tocopherols and tocotrienols. There are many different forms of vitamin E, of which γ-tocopherol is the most common in the North American diet. γ-Tocopherol can be found in corn oil, soybean oil, margarine and dressings...

 family.

The approximate concentration of fatty acids (FAs) in palm oil is as follows:

Red palm oil

Red palm oil gets its name from its characteristic dark red color, which comes from carotenes such as alpha-carotene
Alpha-carotene
α-Carotene is a form of carotene with a β-ring at one end and an ε-ring at the other. It is the second most common form of carotene.-Human physiology:...

, beta-carotene
Beta-carotene
β-Carotene is a strongly-coloured red-orange pigment abundant in plants and fruits. It is an organic compound and chemically is classified as a hydrocarbon and specifically as a terpenoid , reflecting its derivation from isoprene units...

 and lycopene
Lycopene
Lycopene is a bright red carotene and carotenoid pigment and phytochemical found in tomatoes and other red fruits and vegetables, such as red carrots, watermelons and papayas...

—the same nutrients that give tomatoes, carrots and other fruits and vegetables their rich colors.

Red palm oil contains at least 10 other carotenes, along with tocopherol
Tocopherol
Tocopherols are a class of chemical compounds of which many have vitamin E activity. It is a series of organic compounds consisting of various methylated phenols...

s and tocotrienol
Tocotrienol
Tocotrienols are members of the vitamin E family. An essential nutrient for the body, vitamin E is made up of four tocopherols and four tocotrienols . The slight difference between tocotrienols and tocopherols lie in the unsaturated side chain having three double bonds in its farnesyl isoprenoid...

s (members of the vitamin E
Vitamin E
Vitamin E is used to refer to a group of fat-soluble compounds that include both tocopherols and tocotrienols. There are many different forms of vitamin E, of which γ-tocopherol is the most common in the North American diet. γ-Tocopherol can be found in corn oil, soybean oil, margarine and dressings...

 family), CoQ10, phytosterols, and glycolipids. In a 2007 animal study, South African scientists found consumption of red palm oil significantly decreased p38-MAPK phosphorylation
Phosphorylation
Phosphorylation is the addition of a phosphate group to a protein or other organic molecule. Phosphorylation activates or deactivates many protein enzymes....

 in rat hearts subjected to a high-cholesterol diet.

Since the mid-1990s, red palm oil has been cold-pressed and bottled for use as cooking oil, and blended into mayonnaise
Mayonnaise
Mayonnaise, , often abbreviated as mayo, is a sauce. It is a stable emulsion of oil, egg yolk and either vinegar or lemon juice, with many options for embellishment with other herbs and spices. Lecithin in the egg yolk is the emulsifier. Mayonnaise varies in color but is often white, cream, or pale...

 and salad oil. Red palm oil antioxidants like tocotrienols and carotenes are added to foods and cosmetics due to their purported health benefits.

In a 2004 joint-study between Kuwait Institute for Scientific Research and Malaysian Palm Oil Board, the scientists found cookies, being higher in fat content than bread, are a better vehicle for red palm oil phytonutrients.

In a 2009 study, scientists in Spain tested the acrolein
Acrolein
Acrolein is the simplest unsaturated aldehyde. It is produced widely but is most often immediately reacted with other products due to its instability and toxicity...

 emission rates from the deep frying of potatoes in red palm, olive and polyunsaturated oils. They found higher acrolein emission rates from the polyunsaturated oils. The scientists characterized red palm oil as "mono-unsaturated".

Frying French fries in red palm oil gives them an attractive color.

Refined, bleached, deodorized palm oil

Palm oil products are made using milling
Mill (grinding)
A grinding mill is a unit operation designed to break a solid material into smaller pieces. There are many different types of grinding mills and many types of materials processed in them. Historically mills were powered by hand , working animal , wind or water...

 and refining
Refinery
A refinery is a production facility composed of a group of chemical engineering unit processes and unit operations refining certain materials or converting raw material into products of value.-Types of refineries:Different types of refineries are as follows:...

 processes: first using fractionation
Fractionation
See also: Fractionated spacecraftFractionation is a separation process in which a certain quantity of a mixture is divided up in a number of smaller quantities in which the composition changes according to a gradient. Fractions are collected based on differences in a specific property of the...

, with crystallization and separation processes to obtain solid (stearin
Stearin
Stearin , or tristearin, or glyceryl tristearate is a triglyceride, a glyceryl ester of stearic acid, derived from animal fats created as a byproduct of processing beef. It can also be found in tropical plants such as palm. It is used as tallow in the manufacture of candles and soap. In the...

), and liquid (olein) fractions. Then melting and degumming removes impurities. Then the oil is filtered and bleached. Next, physical refining removes smells and coloration, to produce refined bleached deodorized palm oil, or RBDPO, and free sheer fatty acids, which are used as an important raw material in the manufacture of soap
Soap
In chemistry, soap is a salt of a fatty acid.IUPAC. "" Compendium of Chemical Terminology, 2nd ed. . Compiled by A. D. McNaught and A. Wilkinson. Blackwell Scientific Publications, Oxford . XML on-line corrected version: created by M. Nic, J. Jirat, B. Kosata; updates compiled by A. Jenkins. ISBN...

s, washing powder and other hygiene and personal care products. RBDPO is the basic oil product sold on the world's commodity markets, although many companies fractionate it further into palm olein, for cooking oil or other products.

Splitting of oils and fats by hydrolysis
Hydrolysis
Hydrolysis is a chemical reaction during which molecules of water are split into hydrogen cations and hydroxide anions in the process of a chemical mechanism. It is the type of reaction that is used to break down certain polymers, especially those made by condensation polymerization...

, or under basic conditions saponification
Saponification
Saponification is a process that produces soap, usually from fats and lye. In technical terms, saponification involves base hydrolysis of triglycerides, which are esters of fatty acids, to form the sodium salt of a carboxylate. In addition to soap, such traditional saponification processes...

, yields fatty acids, with glycerin (glycerol) as a byproduct. The split-off fatty acids are a mixture ranging from C4 to C18, depending on the type of oil/fat.

Uses

Derivatives of palmitic acid were used in combination with naphtha
Naphtha
Naphtha normally refers to a number of different flammable liquid mixtures of hydrocarbons, i.e., a component of natural gas condensate or a distillation product from petroleum, coal tar or peat boiling in a certain range and containing certain hydrocarbons. It is a broad term covering among the...

 during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

 to produce napalm
Napalm
Napalm is a thickening/gelling agent generally mixed with gasoline or a similar fuel for use in an incendiary device, primarily as an anti-personnel weapon...

 (aluminum naphthenate and aluminum palmitate).

Many processed foods contain palm oil as an ingredient.

Biodiesel

Palm oil, like other vegetable oils, can be used to create biodiesel
Biodiesel
Biodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....

, as either a simply processed palm oil mixed with petrodiesel, or processed through transesterification to create a palm oil methyl ester blend, which meets the international EN 14214
EN 14214
EN 14214 is a European Standard that describes the requirements and test methods for FAME - the most common type of biodiesel.The technical definition of biodiesel is a fuel suitable for use in compression ignition engines that is made of fatty acid monoalkyl esters derived from biologically...

 specification. Glycerin is a byproduct of transesterification
Transesterification
In organic chemistry, transesterification is the process of exchanging the organic group R″ of an ester with the organic group R′ of an alcohol. These reactions are often catalyzed by the addition of an acid or base catalyst...

. The actual process used to produce biodiesel around the world varies between countries and the requirements of different markets. Next-generation biofuel
Biofuel
Biofuel is a type of fuel whose energy is derived from biological carbon fixation. Biofuels include fuels derived from biomass conversion, as well as solid biomass, liquid fuels and various biogases...

 production processes are also being tested in relatively small trial quantities.

The IEA
International Energy Agency
The International Energy Agency is a Paris-based autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development in 1974 in the wake of the 1973 oil crisis...

 predicts that biofuel
Biofuel
Biofuel is a type of fuel whose energy is derived from biological carbon fixation. Biofuels include fuels derived from biomass conversion, as well as solid biomass, liquid fuels and various biogases...

s usage in Asian countries will remain modest. But as a major producer of palm oil, the Malaysian government is encouraging the production of biofuel feedstock and the building of palm oil biodiesel
Biodiesel
Biodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....

 plants. Domestically, Malaysia is preparing to change from diesel to bio-fuels by 2008, including drafting legislation that will make the switch mandatory. From 2007, all diesel sold in Malaysia must contain 5% palm oil. Malaysia is emerging as one of the leading biofuel producers, with 91 palm oil plants approved and a handful now in operation.

On 16 December 2007, Malaysia opened its first biodiesel plant in the state of Pahang, with an annual capacity of 100,000 tonnes, and which also produces by-products in the form of 4,000 tonnes of palm fatty acid distillate and 12,000 tonnes of pharmaceutical grade glycerine.
Neste Oil
Neste Oil
Neste Oil is a Finnish oil refining and marketing company producing mainly transportation fuels and other refined petroleum products. Neste Oil shares are quoted on the Helsinki Stock Exchange.- History :...

 of Finland plans to produce 800,000 tonnes of biodiesel per year from Malaysian palm oil in a new Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

 refinery from 2010, which will make it the largest biofuel plant in the world, and 170,000 tpa from its first second-generation plant in Finland from 2007-8, which can refine fuel from a variety of sources. Neste and the Finnish government are using this paraffin
Paraffin
In chemistry, paraffin is a term that can be used synonymously with "alkane", indicating hydrocarbons with the general formula CnH2n+2. Paraffin wax refers to a mixture of alkanes that falls within the 20 ≤ n ≤ 40 range; they are found in the solid state at room temperature and begin to enter the...

ic fuel in some public buses in the Helsinki area as a small scale pilot.

First generation biodiesel production from palm oil is in demand globally. Palm oil is also a primary substitute for rapeseed
Rapeseed
Rapeseed , also known as rape, oilseed rape, rapa, rappi, rapaseed is a bright yellow flowering member of the family Brassicaceae...

 oil in Europe, which too is experiencing new demand for biodiesel purposes. Palm oil producers are investing heavily in the refineries needed for biodiesel. In Malaysia companies have been merging, buying others out and forming alliances to obtain the economies of scale needed to handle the high costs caused by increased feedstock prices. New refineries are being built across Asia and Europe.

As the food vs. fuel debate mounts, research is turning to biodiesel production from waste. In Malaysia, an estimated 50,000 tonnes of used frying oils, both vegetable oils and animal fats, are disposed of yearly without treatment as wastes. In a 2006 study researchers found used frying oil (mainly palm olein), after pre-treatment with silica gel
Silica gel
Silica gel is a granular, vitreous, porous form of silica made synthetically from sodium silicate. Despite its name, silica gel is a solid. It is a naturally occurring mineral that is purified and processed into either granular or beaded form...

, is a suitable feedstock for conversion to methyl esters by catalytic reaction using sodium hydroxide. The methyl esters produced have fuel properties comparable to those of petroleum diesel, and can be used in unmodified diesel engines.

A 2009 study by scientists at Malaysian Science University concluded that palm oil, compared to other vegetable oils, is a healthy source of edible oil and at the same time, available in quantities that can satisfy global demand for biodiesel. Oil palm planting and palm oil consumption circumvents the food vs. fuel debate because it has the capacity to fulfill both demands simultaneously. By 2050, a British scientist estimates global demand for edible oils will probably be around 240 million tonnes, nearly twice 2008 consumption. Most of the additional oil may be palm oil, which has the lowest production cost of the major oils, but soybean oil production will probably also increase. An additional 12000000 hectares (46,332.3 sq mi) of oil palms may be required, if average yields continue to rise as in the past. This need not be at the expense of forest; oil palm planted on anthropogenic grassland could supply all the oil required for edible purposes in 2050.

Market

According to Hamburg-based Oil World trade journal, in 2008, global production of oils and fats stood at 160 million tonnes. Palm oil and palm kernel oil were jointly the largest contributor, accounting for 48 million tonnes or 30% of the total output. Soybean oil came in second with 37 million tonnes (23%). About 38% of the oils and fats produced in the world were shipped across oceans. Of the 60.3 million tonnes of oils and fats exported around the world, palm oil and palm kernel oil make up close to 60%; Malaysia, with 45% of the market share, dominates the palm oil trade.

Indonesia

As of 2009, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...

 was the largest producer of palm oil, surpassing Malaysia in 2006, producing more than 20.9 million tonnes. Indonesia aspires to become the world's top producer of palm oil. But at the end of 2010, 60 percent of the output was exported still in the form of Crude Palm Oil
CPO
-Officers:* Chief Performance Officer of the United States* Chief Petty Officer, a military rank* Chief privacy officer, an executive responsible for managing issues of privacy laws and policies...

. FAO
Fão
Fão is a town in Esposende Municipality in Portugal....

 data show production increased by over 400% between 1994–2004, to over 8.66 million metric tonnes.

In addition to servicing traditional markets, Indonesia is looking to put more effort into producing biodiesel. Major local and global companies are building mills
Mill (grinding)
A grinding mill is a unit operation designed to break a solid material into smaller pieces. There are many different types of grinding mills and many types of materials processed in them. Historically mills were powered by hand , working animal , wind or water...

 and refineries, including PT. Astra Agro Lestari terbuka (150,000 tpa biodiesel refinery), PT. Bakrie Group (a biodiesel factory and new plantations), Surya Dumai Group (biodiesel refinery). Cargill
Cargill
Cargill, Incorporated is a privately held, multinational corporation based in Minnetonka, Minnesota. Founded in 1865, it is now the largest privately held corporation in the United States in terms of revenue. If it were a public company, it would rank, as of 2011, number 13 on the Fortune 500,...

 (sometimes operating through CTP Holdings of Singapore, is building new refineries and mills in Malaysia and Indonesia, expanding its Rotterdam
Rotterdam
Rotterdam is the second-largest city in the Netherlands and one of the largest ports in the world. Starting as a dam on the Rotte river, Rotterdam has grown into a major international commercial centre...

 refinery to handle 300,000 tpa of palm oil, acquiring plantations in Sumatra
Sumatra
Sumatra is an island in western Indonesia, westernmost of the Sunda Islands. It is the largest island entirely in Indonesia , and the sixth largest island in the world at 473,481 km2 with a population of 50,365,538...

, Kalimantan
Kalimantan
In English, the term Kalimantan refers to the Indonesian portion of the island of Borneo, while in Indonesian, the term "Kalimantan" refers to the whole island of Borneo....

, the Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...

n peninsula and Papua New Guinea
Papua New Guinea
Papua New Guinea , officially the Independent State of Papua New Guinea, is a country in Oceania, occupying the eastern half of the island of New Guinea and numerous offshore islands...

). Robert Kuok
Robert Kuok
Robert Kuok Hock Nien , is an influential Malaysian Chinese businessman. According to Forbes his net worth is estimated to be around $12.5 billion on May 2011, making him the richest person in Malaysia and Southeast Asia....

's Wilmar International Limited has plantations and 25 refineries across Indonesia, to supply feedstock to new biodiesel refineries in Singapore, Riau, Indonesia and Rotterdam.

Malaysia

In 2008, Malaysia produced 17.7 million tonnes of palm oil on 4500000 hectares (17,374.6 sq mi) of land, and was the second largest producer of palm oil, employing more than 570,000 people. Malaysia is the world's second largest exporter of palm oil. About 60% of palm oil exports from Malaysia are shipped to China, the European Union, Pakistan, United States and India. They are mostly made into cooking oil, margarine, specialty fats and oleochemical
Oleochemical
Oleochemicals are chemicals derived from plant and animal fats. They are analogous to petrochemicals derived from petroleum.The formation of basic oleochemical substances like fatty acids, fatty acid methyl esters , fatty alcohols, fatty amines and glycerols are by various chemical and enzymatic...

s.

In December 2006, the Malaysian government initiated merger of Sime Darby
Sime Darby
Sime Darby is Malaysia's leading multinational conglomerate involved in five core sectors: plantations, property, industrial, motors and energy & utilities, with a growing presence in healthcare...

 Berhad, Golden Hope Plantations Berhad and Kumpulan Guthrie Berhad to create the world’s largest listed oil palm plantation player. In a landmark deal valued at RM31 billion, the merger involved the businesses of eight listed companies controlled by Permodalan Nasional Berhad (PNB) and the Employees Provident Fund (EPF). A special purpose vehicle, Synergy Drive Sdn Bhd, offered to acquire all the businesses including assets and liabilities of the eight listed companies. With 543,000 hectares of plantation in a landbank, the merger resulted in an oil palm plantation entity that could produce 2.5 million tonnes of palm oil or 5% of global production in 2006. A year later, the merger completed and the entity was renamed Sime Darby
Sime Darby
Sime Darby is Malaysia's leading multinational conglomerate involved in five core sectors: plantations, property, industrial, motors and energy & utilities, with a growing presence in healthcare...

 Berhad.

Colombia

In the 1960s, about 18000 hectares (69.5 sq mi) were planted with palm. Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...

 has now become the largest palm oil producer in the Americas, and 35% of its product is exported as biofuel. In 2006, the Colombian plantation owners' association, Fedepalma, reported that oil palm cultivation was expanding to 1000000 hectares (3,861 sq mi). This expansion is being funded, in part, by the United States Agency for International Development
United States Agency for International Development
The United States Agency for International Development is the United States federal government agency primarily responsible for administering civilian foreign aid. President John F. Kennedy created USAID in 1961 by executive order to implement development assistance programs in the areas...

 to resettle disarmed paramilitary
Paramilitary
A paramilitary is a force whose function and organization are similar to those of a professional military, but which is not considered part of a state's formal armed forces....

 members on arable land, and by the Colombian government, which proposes to expand land use for exportable cash crops to 7000000 hectares (27,027.2 sq mi) by 2020, including oil palms. Fedepalma states that its members are following sustainable guidelines,

Some Afro-Colombians claim that some of these new plantations have been expropriated from them after they had been driven away through poverty and civil war, while armed guards intimidate the remaining people to further depopulate the land, while coca
Coca
Coca, Erythroxylum coca, is a plant in the family Erythroxylaceae, native to western South America. The plant plays a significant role in many traditional Andean cultures...

 production and trafficking follows in their wake.

Benin

Palm is native to the wetlands of western Africa, and south Benin
Benin
Benin , officially the Republic of Benin, is a country in West Africa. It borders Togo to the west, Nigeria to the east and Burkina Faso and Niger to the north. Its small southern coastline on the Bight of Benin is where a majority of the population is located...

 already hosts many palm plantations. Its 'Agricultural Revival Programme' has identified many thousands of hectares of land as suitable for new oil palm export plantations. In spite of the economic benefits, Non-governmental organisations (NGOs), such as Nature Tropicale, claim biofuels will compete with domestic food production in some existing prime agricultural sites. Other areas comprise peat land
Peat
Peat is an accumulation of partially decayed vegetation matter or histosol. Peat forms in wetland bogs, moors, muskegs, pocosins, mires, and peat swamp forests. Peat is harvested as an important source of fuel in certain parts of the world...

, whose drainage would have a deleterious environmental impact. They are also concerned genetically modified plants will be introduced for the first time into the region, jeopardizing the current premium paid for their non-GM crops.

Kenya

Kenya's domestic production of edible oils covers about a third of its annual demand, estimated at around 380,000 metric tonnes. The rest is imported at a cost of around US$140 million a year, making edible oil the country's second most important import after petroleum. Since 1993 a new hybrid variety of cold-tolerant, high-yielding oil palm has been promoted by the Food and Agriculture Organization of the United Nations in western Kenya. As well as alleviating the country's deficit of edible oils while providing an important cash crop, it is claimed to have environmental benefits in the region, because it does not compete against food crops or native vegetation and it provides stabilisation for the soil.

Ghana

Ghana has a lot of palm nut
Palm nut
Palm nut can refer to:*The fruit of the oil palm tree*The fruit or seed of any palm tree...

s vegetation, which can become an important contributor to the agriculture of the Black Star region. Although Ghana has multiple palm species, ranging from local palm nuts to other species locally called agric, it is only marketed locally and to neighboring countries.

Social

Palm oil producers have been accused of various human-rights violations, from low pay and poor working conditions to theft of land and murder. However, some social initiatives use palm oil profits to finance poverty alleviation strategies. Examples include the financing of Magbenteh hospital in Makeni, Sierra Leone
Sierra Leone
Sierra Leone , officially the Republic of Sierra Leone, is a country in West Africa. It is bordered by Guinea to the north and east, Liberia to the southeast, and the Atlantic Ocean to the west and southwest. Sierra Leone covers a total area of and has an estimated population between 5.4 and 6.4...

 through profits made from palm oil grown by small local farmers, the Presbyterian Disaster Assistance's Food Security Program, which draws on a women-run cooperative to grow palm oil, the profits of which are reinvested in food security, or the UN Food and Agriculture Organisation's hybrid oil palm project in Western Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...

, which improves incomes and diets of local populations.

Environmental

Palm oil production has been documented as a cause of substantial and often irreversible damage to the natural environment. Its impacts include: deforestation
Deforestation
Deforestation is the removal of a forest or stand of trees where the land is thereafter converted to a nonforest use. Examples of deforestation include conversion of forestland to farms, ranches, or urban use....

, habitat loss of critically endangered species such as the Orangutan
Orangutan
Orangutans are the only exclusively Asian genus of extant great ape. The largest living arboreal animals, they have proportionally longer arms than the other, more terrestrial, great apes. They are among the most intelligent primates and use a variety of sophisticated tools, also making sleeping...

 and Sumatran Tiger
Sumatran Tiger
The Sumatran tiger is a tiger subspecies that inhabits the Indonesian island of Sumatra and has been classified as critically endangered by IUCN in 2008 as the population is projected at 176 to 271 mature individuals, with no subpopulation having an effective population size larger than 50...

, and a significant increase in greenhouse gas
Greenhouse gas
A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...

 emissions.

The pollution is exacerbated because many rainforests in Indonesia and Malaysia lie atop peat bogs that store great quantities of carbon that are released when the forests are cut down and the bogs drained to make way for plantations.

Environmental groups such as Greenpeace
Greenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...

 claim that the deforestation
Deforestation
Deforestation is the removal of a forest or stand of trees where the land is thereafter converted to a nonforest use. Examples of deforestation include conversion of forestland to farms, ranches, or urban use....

 caused by making way for oil palm plantations is far more damaging for the climate than the benefits gained by switching to biofuel.

The Roundtable on Sustainable Palm Oil (RSPO)is an organisation that was formed in 2004 with the objective promoting the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders. It has over 450 member organisations that are from the different stakeholders in the palm oil supply chain from the Palm Oil Growers to the Palm Oil Processors and Traders, Banks and Investors, Consumer Goods Manufactures, Retailers, Environmental Organisations (NGOs) and Social Organisations (NGOs). RSPO practices a consensus based decision making philosophy. The seat of the association is in Zurich, Switzerland, while the secretariat is currently based in Kuala Lumpur with a satellite office in Jakarta. This video done by WWF a environmental NGO gives a balance view of the industry and RSPO. Many of the major companies in the vegetable oil economy
Vegetable oil economy
Vegetable oil economy deals with the potential of vegetable oil to replace fossil fuels in the economy and how it compares to other potential replacements, including renewable electricity. Vegetable oils are the basis of biodiesel, which can be used like conventional diesel...

 participate in the Roundtable on Sustainable Palm Oil
Roundtable on Sustainable Palm Oil
In response to the urgent and pressing global call for sustainably produced palm oil, the Roundtable on Sustainable Palm Oil was formed in 2004 with the objective of promoting the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders.The...

, which is trying to address this problem, though their efforts so far have done almost nothing to change or slow the escalating situation and have been likened to green-washing. Even so, in 2008 Unilever, a member of the RSPO group, committed to use only palm oil which is certified as sustainable, by ensuring that the large companies and smallholders that supply it convert to sustainable production by 2015. On 1 June 2011, RSPO launched its trademark for use by its members. With this trademark producers of products such as chocolate, margarine and cosmetics can show their commitment towards sustainable palm oil through the use of the trademark. On 1 July 2011, PT Carrefour Indonesia reiterated its commitment to exclusively source for sustainable palm oil products by 2015.

Meanwhile, much of the recent investment in new palm plantations for biofuel has been part-funded through carbon credit
Carbon credit
A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one tonne of carbon dioxide or the mass of another greenhouse gas with a carbon dioxide equivalent equivalent to one tonne of carbon dioxide....

 projects through the Clean Development Mechanism
Clean Development Mechanism
The Clean Development Mechanism is one of the "flexibility" mechanisms defined in the Kyoto Protocol . It is defined in Article 12 of the Protocol, and is intended to meet two objectives: to assist parties not included in Annex I in achieving sustainable development and in contributing to the...

; however the reputational risk associated with unsustainable palm plantations in Indonesia has now made many funds wary of investing there.

Medical

Although palm oil is applied to wounds for its supposed antimicrobial effects, research does not confirm its effectiveness.

Blood lipid and cholesterol effects


The Center for Science in the Public Interest
Center for Science in the Public Interest
Center for Science in the Public Interest is a Washington, D.C.-based non-profit watchdog and consumer advocacy group focusing on nutritional education and awareness.-History and funding:...

 states that palm oil, which is high in saturated and low in polyunsaturated
fat, promotes heart disease
Heart disease
Heart disease, cardiac disease or cardiopathy is an umbrella term for a variety of diseases affecting the heart. , it is the leading cause of death in the United States, England, Canada and Wales, accounting for 25.4% of the total deaths in the United States.-Types:-Coronary heart disease:Coronary...

. The CSPI report cited research that goes back to 1970 and metastudies. CSPI also said that The National Heart, Lung and Blood Institute, World Health Organization
World Health Organization
The World Health Organization is a specialized agency of the United Nations that acts as a coordinating authority on international public health. Established on 7 April 1948, with headquarters in Geneva, Switzerland, the agency inherited the mandate and resources of its predecessor, the Health...

 (WHO), and other health authorities have urged reduced consumption of palm oil. WHO states that there is convincing evidence that palmitic acid
Palmitic acid
Palmitic acid, or hexadecanoic acid in IUPAC nomenclature, is one of the most common saturated fatty acids found in animals and plants. Its molecular formula is CH314CO2H. As its name indicates, it is a major component of the oil from palm trees . Palmitate is a term for the salts and esters of...

 consumption contributes to an increased risk of developing cardiovascular diseases. 2005 research in Costa Rica suggests consumption of non-hydrogenated unsaturated oils over palm oil.

In 1993, Malaysia's Institute for Medical Research's head of Cardiovascular Disease Unit Cardiovascular, Diabetes and Nutrition Centre Dr Tony Ng Kock Wai showed that the cholesterol impact of saturated fats is affected by its amount at the sn-2 position. Despite the high palmitic acid content (41%) of palm oil, only 13-14% is present at the sn-2 position.

In an email response to WHO's 2002 draft report, Dr. David Kritchevsky of the Wistar Institute
Wistar Institute
The Wistar Institute is a biomedical center, with a focus on cancer research and vaccine development. It is located in the University City section of Philadelphia, Pa...

, Philadelphia denied that there were, at that time, any data showing palm oil consumption causing atherosclerosis
Atherosclerosis
Atherosclerosis is a condition in which an artery wall thickens as a result of the accumulation of fatty materials such as cholesterol...

.

However, a 2006 study supported by the National Institutes of Health
National Institutes of Health
The National Institutes of Health are an agency of the United States Department of Health and Human Services and are the primary agency of the United States government responsible for biomedical and health-related research. Its science and engineering counterpart is the National Science Foundation...

 and the USDA Agricultural Research Service
Agricultural Research Service
The Agricultural Research Service is the principal in-house research agency of the United States Department of Agriculture . ARS is one of four agencies in USDA's Research, Education and Economics mission area...

 concluded that palm oil is not a safe substitute for partially hydrogenated fats (trans fats) in the food industry, because palm oil results in adverse changes in the blood concentrations of LDL cholesterol and apolipoprotein B
Apolipoprotein B
Apolipoprotein B is the primary apolipoprotein of low-density lipoproteins , which is responsible for carrying cholesterol to tissues. While it is unclear exactly what functional role APOB plays in LDL, it is the primary apolipoprotein component and is absolutely required for its formation...

 just as trans fat does.
Comparison with animal saturated fat

Not all saturated fats are equally cholesterolemic. Studies have indicated that consumption of palm olein (which is more unsaturated) reduces blood cholesterol when compared to sources of saturated fats like coconut oil, dairy and animal fats.

In 1996, Dr Becker of University of Massachusetts
University of Massachusetts
This article relates to the statewide university system. For the flagship campus often referred to as "UMass", see University of Massachusetts Amherst...

 stressed that saturated fats in the sn–1 and -3 position of triacylglycerols exhibit different metabolic patterns due to their low absorptivity. Dietary fats containing saturated fats primarily in sn–1 and -3 positions (e.g., cocoa butter
Cocoa butter
Cocoa butter, also called theobroma oil, is a pale-yellow, pure edible vegetable fat extracted from the cocoa bean. It is used to make chocolate, biscuits, and baked goods, as well as some pharmaceuticals, ointments, and toiletries...

, coconut oil
Coconut oil
Coconut oil is an edible oil extracted from the kernel or meat of matured coconuts harvested from the coconut palm . Throughout the tropical world, it has provided the primary source of fat in the diets of millions of people for generations. It has various applications in food, medicine, and industry...

, and palm oil) have very different biological consequences than those fats in which the saturated fats are primarily in the sn–2 position (e.g., milk fat and lard
Lard
Lard is pig fat in both its rendered and unrendered forms. Lard was commonly used in many cuisines as a cooking fat or shortening, or as a spread similar to butter. Its use in contemporary cuisine has diminished because of health concerns posed by its saturated-fat content and its often negative...

). Differences in stereospecific fatty acid location should be an important consideration in the design and interpretation of lipid
Lipid
Lipids constitute a broad group of naturally occurring molecules that include fats, waxes, sterols, fat-soluble vitamins , monoglycerides, diglycerides, triglycerides, phospholipids, and others...

 nutrition studies and in the production of specialty food products.

External links

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