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Biodiesel: MAKE HUGE RETURNS FROM OIL PALM PLANTATION INVESTMENT IN NIGERIA.

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    MAKE HUGE RETURNS FROM OIL PALM PLANTATION INVESTMENT IN NIGERIA.

    The Oil Palm tree is one of the greatest economic assets a state or nation has, provided its importance is realized and potentials fully harnessed. Oil Palm products include Palm Oil, Palm Kernel Oil and Palm Kernel Cake. These can further be processed into RBD OLEIN (Cooking Oil), Vegetable Ghee, Shortenings, Margarine, CBS. CBE, Ice Cream, Dough, Creaming, Coating, and other specialty fats. Some other by-products of the Oil Palm include Palm wine, fatty alcohols as well as intermediates.

    Nature so made it that all aspects of the Oil palm tree is useful and economically viable.” Oils” is a collective term for more or less viscous, generally organic-chemical liquids. Depending on their chemical composition, a distinction may be drawn between fatty, essential, mineral and silicone oils. Fatty oils include liquid, semisolid and solid products of vegetable and animal origin. They are also known as sweet oils. Palm kernel oil is a white to yellowish oil of vegetable origin which is solid at normal temperatures and is obtained from the kernels of the oil palm (Elaeis guineensis). It is one of the best oils.

    Palm kernel oil is different from palm oil, which is obtained from the flesh of the fruit. Three {3} products namely palm kernel oil, palm kernel cake and palm kernel shell {crushed} which is used as a biofuel can be gotten from palm kernel nuts. Palm kernel oil is processed to yield edible fats, soaps and candles and is used in the confectionery, pharmaceutical and perfume industries.

    Palm Kernel Oil Specifications:
    FFA (%) Max: 2.5
    Moisture & Impurities (%) Max: 0.3
    IV: 16-19Colour (5 1/4” Lovibond)
    R: 3.4-4.5
    Colour (5 1/4” Lovibond)
    Y: 30-32

    Vegetable oil is a product derived from oil bearing seeds and has both domestic and industrial uses. Domestically, it is used in homes and fast food centers as cooking oil while industrially, they are used in the production of soap, butter and margarine. The cake gotten as a bye-product is used in formulating livestock feeds especially for cattle, sheep and poultry.

    THE MARKET:

    The market for edible oil is national. With a population of over 140 million people and an estimated national population growth rate of 5.7% per annum ,an average economic growth rate of 3.5% per annum in the past five {5} years, Nigeria has a large market for edible oil. The demand is high but local supply low hence the need for importation in the past.

    In 2005, in order to stimulate local production and attain self sufficiency in vegetable oil production, the government introduced the presidential initiative on the development if vegetable oil over a period not exceeding three {3} years. Under these initiative, attention was focused on the promotion of eleven scheduled oil seed crops which are oil plam,groundnut,soya beans, cotton etc and production target was set for each of the crops under the programme as follow

    1. Oil Palm: 1 million hectares capacity of producing 15 million fresh fruit bunches
    2. Groundnut: 15 million tones annually
    3. Soya beans: 670,000 1 million tones per annum
    4. Seed Cotton: 1 million tones over the plan period

    After three {3} years of starting the initiative, the domestic edible oil demand for exceeds the national production. The short fall in supply being estimated at about 300,000 tones per year. From the above figures, it is clear that there is a large and sustainable market for vegetable oil in Nigeria.

    Large expanse is land is also available for the cultivation of oil palm seedlings for interested investor and we can help secure already producing plantation for willing investors.

    The rising cost of oil and other traditional source of energy coupled with the need to reduce the effects of global warming are intensifying the search for alternative clean fuel sources across the world.

    Biofuels are a wide range of fuels which are in some way derived from biomass. The term covers solid biomass, liquid fuels and various biogases.[1] Biofuels are gaining increased public and scientific attention, driven by factors such as oil price spikes and the need for increased energy security.

    Crop that can be processed into biofuel is referred to as energy crops and they include cassava, jatropha, algae, cotton seed, sesame seed, oil palm seed ETC.

    For a nation that wants to develop, it most focuses on area where it has comparative advantage and surely Nigeria does has a comparative advantage in the agricultural sector especially in the production of biofuel.

    From available findings, Nigeria’s record in this emerging is challenging from the figures given below

    Australia 20 Million Gallons
    China 530 Million Gallons
    Brazil 4.35 Billion Gallons
    USA 4.3 Billion Gallons
    E U 250 Million Gallons
    India 80 Million Gallons
    Nigeria Zero Million Gallons

    In order to reverse these trend, the government has made available improved oil plam seedling for interested investor and would make available land expanse of land.

    For a detailed Feasibility study report, please do contact the writer.

    Geologist Anaekwe Everistus Nnamdi is a solid mineral and agricultural produce consultant. You can reach him on 08033782777 0r 07082530855 or farriconsultingng@gmail.com

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