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There are great opportunities to utilise coconut oil as a fuel in the Pacific. Coconut oil can
be blended with diesel fuel, and under certain conditions totally replace it. Coconut oil in
Pacific islands countries is increasingly used in both transport and electricity generation
through its lower local cost. Other benefits include the support to local agro-industries
and a decrease in emissions.
Diesel
Blend<20%
Compression Engine
Coconut oil
Generator / Car
Adapt Engine:
Coconut Oil Fuel pump, tank,
filters and injectors
Standard
Waste Biodiesel
Vegetable Oil
1
Coconut Oil as a biofuel in Pacific Islands
Start / Stop on Diesel In Europe and the United States, the use
Most adaptations incorporate a start and of dual fuel systems, mainly in automotive
stop on regular diesel. As soon as the applications, is slowly developing. Through
engine is operating at rated a combination of high taxation on fuels
temperature, the fuel supply switches to (Europe), low vegetable oil prices (U.S.)
coconut oil and just before shutting an increasing number of consumers have
down, the supply is switched back to acquired an alternative fuel system built in
diesel. This system ensures that the fuel their vehicles. Reportedly, the emission
system has diesel ready for a cold start reductions achieved through use of these
fuels have been mixed [8].
2
Coconut Oil as a biofuel in Pacific Islands
Million tonnes
0.5
1.5
US$/litre
two fully developed standards of
0.4
biodiesel, ASTM-D 6751 in the U.S.
and EN14214 in the E.U. Following 1
0.3
these standards upholds the
guarantee of the engine 0.2
manufacturer [4]. 0.5
0.1
Positive impacts on engines include
increased lubricity and a reduction of 0 0
visible particles in the exhaust. 1997 1998 1999 2000 2001 2002 2003
Secondly, other (waste) vegetable oil Year Market Volume
can be included in the feedstock of US$ per litre
biodiesel production.
Figure 4: Copra Oil World Export Market and Price
The major disadvantage of biodiesel is (Source: Philippines Coconut Authority)
its high costs through the use of a
chemical facility and the requirement of world price. The price composition for
imported methanol. Current research by traditional production of copra oil in Fiji is
the University of the South Pacific will given in table 1. The value of the coconuts
have to point out whether the production and the labour to create copra (includes
of standard biodiesel can be competitive cutting the coconut flesh out of the shell
using locally produced ethanol from and drying it) are almost equal. On top of
sugarcane. that the mill obtains 11 US cents per litre
in return for producing and filtering the
Coconut Oil Economics oil. Finally 11 US cents are required to get
The world production of coconuts in the oil to the world market, in this
copra equivalent has been floating example, the port of Rotterdam.
around 10 million tonnes per year. Of
this market, between 1 and 2 million One of the reasons why the copra oil
tonnes has been traded on the world industry in many Pacific island countries is
market. Figure 4 shows the volume of suffering is because they have a relatively
the global copra oil market and the small size and little opportunities for
associated price per litre over the last 5 economies of scale. Because of the low
years. return for the harsh work involved with
the cutting and drying of copra, many
The price fluctuation of coconut oil has rural farmers are diverting to other cash
been significant, between 0.3 and 0.7 crops, leaving coconuts unharvested in
US$/litre. The export market consists plantations. Regional potential production
mainly of industrial processes that can estimates amount up to a total of 100
use other vegetable oils if the world price million litres of coconut oil.
for coconut oil is high. This can be seen
for example 1999 when there was a There are many opportunities to
worldwide shortage of coconut oil. The mechanise the process of copra
world market price is therefore also very production, but this will only materialise
much linked to the prices and yields of when investors perceive the risks of the
other oils such as palm, corn and canola. investments required to be minimal.
Since the Pacific island countries only Switching to higher value product-market
produce a small percentage of the world combination such as Coconut Oil Fuel
export (Papua New Guinea: 2.2%, might assist in this transition. The electric
Solomon Islands: 1% Samoa 0.4%, Fiji utility of Western Samoa (EPC) is
0.3%), any increase or decrease in currently carrying out a feasibility study of
production in the Pacific will not alter the
3
Coconut Oil as a biofuel in Pacific Islands
Niue
Tuvalu
Vanuatu
Tonga
Kiribati
New Caledonia
Marshall Islands
French Polynesia
Solomon Islands
Hawaii
Retail
Samoa Excluding Duty & Taxes
Figure 6: Pacific Regional Diesel Prices (Source: Pacific Islands Forum Secretariat Fuel Price Monitor Nov-Dec 2004)
4
Coconut Oil as a biofuel in Pacific Islands
husks and shells are used in the process [4] EMA Engine Manufacturers Association (2003) “Technical
of oil production (husk and shells for statement on the use of biodiesel fuel in compression
ignition engines” EMA, Chicago, U.S.A.
drying the copra) and burning of the oil.
This CO2 is again sequestrated during [5] Jones, J. and Peterson, C.L. (2002) “Using unmodified
Vegetable Oil as a Diesel Fuel Extender” University of Idaho,
the growing of new trees and nuts. U.S.A.