UNIVERSITI MALAYSIA SABAH PUSAT PERSEDIAAN SAINS DAN TEKNOLOGI SEKOLAH SAINS DAN TEKNOLOGI

KRETAM HOLDINGS SDN. BHD COMPANY, SANDAKAN, SABAH

GROUP MEMBERS: NAME MOHAMED LUQMAN BIN DAIM (EDITOR) NURSAKINAH NAJWAH BINTI SUHAIMI (GROUP LEADER) AISYAH FIRZANAH BINTI ABD. MALIK NUR AIN FATTENI BINTI RUSLI MEIDIN BIN MANTEDAN ZAIN AZZRAI BIN ZAINUDDIN MAZLI BIN MATZIN NURFARHANA BINTI MOHAMMAD ISMAIL FARASELLAH FABIAN MOHD. FAKHRUR RAZI BIN MAIL SARAH FADHILA J. ANDAI AMIRA NUR SHAFIQAH BINTI AHMAD SANUSI MATRIC NUMBER FS11110022 FS11110003 FS11110019 FS11110013 FS11110012 FS11110004 FS11110031 FS11110015 FS11110001 FS11110021 FS11110007 FS11110027

DATE OF SUBMISSION: 16/04/2012 LIST OF CONTENTS PAGE 1 2

2.0 ABSTRACT 2.1 INTRODUCTION

2.1.1 OBJECTIVE OF RESEARCH AT KRETAM PALM OIL MILL 2.1.2 ABOUT THE COMPANY 2.1.3 LOCATION OF THE COMPANY 2.2 RESULTS 2.2.1 PALM TREES (PLANTATION AND CULTIVATION) 2.2.2 PROCESSING OF PALM FRUITS (STEP-BYSTEP) 2.2.3 NUT-FIBRE SEPARATION (STEP-BY-STEP) 2.2.4 REFINING PROCESS OF PALM CRUDE OIL 2.2.5 MANAGEMENT OF WASTES 2.2.6 PROSPECT OF PALM OIL INDUSTRY IN THE LONG RUN 2.3 CONCLUSION 2.4 REFERENCE 17 18 5

Science Foundation Programme Visit to Kretam Holdingd Sdn. Bhd., Sandakan, Sabah.

Abstract On 28th March 2012, 60 students, 2 lecturers and 1 staff from Science Foundation Programme of University Malaysia Sabah visited the Kretam Palm Oil Mill located at Mile 44 Sandakan - Lahad Datu highway near Bukit Garam, Kinabatangan. It is one of the main companies in Sabah that cultivates oil palm plantations and conducts palm oil processing as its core business. Here, the students learnt the processes of palm trees plantation, harvesting and its milling. This visit facilitated discussion on how the sterilisation process, threshing and stripping of palm fruitlets, oil extraction, clarification and purification, depericarping, nut cracking and also winnowing and drying process were conducted. From the tour, the students were able to know and identify the milling process of obtaining Crude Palm Oil (CPO) and Crude Palm Kernel Oil (CPKO) as well as learn about the management of the wastes. This report documents the visit on what the students had learnt and the application of science behind each process. The prospects of the palm oil industry are also studied.

2.1

INTRODUCTION

2.1.1

OBJECTIVE OF RESEARCH AT KRETAM PALM OIL MILL

There are several objectives for the visit to Kretam Holdings Sdn. Bhd mill. The main objective during this trip is to learn the steps in the production of CPO and CPKO by processing the fruits of palm trees. Besides that, the properties in addition to the importance of palm trees which are cultivated for the development of the palm oil industry in Malaysia, specifically in Sabah were to be researched. Another aim is to study a possible renewable energy source that can sustain human needs as an alternative to non-renewable fossil fuels that will eventually be exhausted. As a whole, students were to relate both concept and theory in the field of science that were applied at the mill. The scope of these objectives will ensure that the trip occurs well and smooth during the process of learning for the students as it is easier to learn when there is a purpose and proper plan.

2.1.2 ABOUT THE COMPANY Kretam Holdings Berhad (KHB) was listed on the Bursa Saham Main Board on 18th January 1989. The KHB group involved itself in many project such as investment holding, oil palm cultivation, milling and sale oil palm products, provision of plantation and palm oil mill management including stock broking and services. The main office of the KHB group is located at Sandakan town. The core business is the plantation division which is located at Sandakan and Tawau area. Syarikat Kretam Mill Sdn Bhd is one of the KHB groups subsidiaries. Nowadays, the Syarikat Kretam Mill Sdn Bhd still continue to cultivate palm plantations and palm oil processing as their core business. In addition, the KHB group comprises of 23 868.96 hectares of developed palm oil estates in the Districts of Sandakan in Kinabatangan, Sg. Silimpopon in Districts of Tawau and in the District of Lahad Datu. Two mills are located in Kinabatangan and Lahad Datu area. They have a capability in processing 60 tonnes of fresh fruit bunch (FFB) per hour. Other than that, the advantage of these mills is they generate their own electric current sources from the palm oil and not from the Tenaga Nasional Berhad. The vision and mission of KHB is to be the best innovative, nature friendly and profitable company in this industry (www.kretam.com).

Figure 1.1: Kretam Holdings Sdn. Bhd. logo

Figure 1.2: Rear view of KHB plant in Sandakan

2.1.3

LOCATION OF THE COMPANY

Kretam Holdings Sdn. Bhd. owns and operates a palm oil mill at Mile 44 at Sandakan-Lahad Datu highway near Bukit Garam, Kinabatangan. The processing plant is located at the A in the map above. The distance of the plant from Kota Kinabalu is approximately 280km and is about 45 minutes away from the main Sandakan town. It is located not far away from the palm plantation estate to ensure easy transportation of harvested palm bunches. Besides that, its location is quite far away from residential areas so that the treatment and disposal of wastes could be done effectively. Other than this specific processing plant, KHB Sdn. Bhd. had recently established a new palm oil mill at Sg. Silimpopon in Kalabakan, Tawau in year 2010.

Figure 1.3: Location of Kretam Holdings Berhad processing plant in Sandakan

2.3 RESULTS Once arrived, all the students, lecturers and staff were given safety helmets and ear plugs as a safety precaution at the mill. The students were divided into four groups to make the visit more efficient. Each group was led by an instructor during the tour of the plant. The mill was very noisy due the sounds that were made by the heavy machinery and it was very hard to hear what the guide had to say. However, the guide managed to explain to us very clearly the step-by-step process in the course of action to produce the commodities namely Crude Palm Oil (CPO) and Crude Palm Kernel Oil (CPKO). 2.3.1 PALM TREES (PLANTATION AND CULTIVATION)

Before the tour of the mill, the engineer guiding the tour also gave a brief explanation of the origin and properties of the oil palm trees. The species of palm trees used for the extraction of CPO and CPKO is Elaeis guineensis, placed in the Arecaceae family along with coconut and date palms. Botanical evidence suggested that the species originated from South America; but direct evidence of an African origin had accumulated in the past decade. The most compelling scientific evidence supporting this theory is the discovery of fossilised seeds of oil palm in Uganda (Corley and Tinker, 2008). There are three naturally occurring forms of the oil palm fruit termed dura, tenera and pisifera. In Malaysia, the oil palm trees planted are mainly the tenera variety, a hybrid between the dura and pisifera which produces fruit with higher oil content (Rieger, 2006). Oil palm trees start bearing fruits after 30 months of field planting, maturation of the fruits takes 7-15 years and the trees will continue to be productive for the next 20 to 30 years, ensuring a consistent supply of oil. The palm bears its fruit in bunches varying in weight from 10 to 40 kg. The individual fruit, ranging from 6 to 20 gm, are made up of an outerskin (the exocarp), a pulp (mesocarp) containing the palm oil in a fibrous matrix; acentral nut consisting of a shell (endocarp); and the kernel, which itself contains an oil, quite different to palm oil, resembling coconut oil.

Mesocar p Kernel Endocar p Exocarp

Figure 1.4: Cross section of palm fruitlet

2.3.2 PROCESSING OF PALM FRUITS (STEP-BY-STEP)

i.

Step 1: Collection of Palm Fruit Bunch (Harvesting)

Fresh Fruit Bunch (FFB) is harvested from the plantations using chisels or hooked knives attached to long poles by manual workers every 10-15 days. Approximately 600 tonnes of FFB is harvested daily which are then transported to the processing mill using heavy duty lorries. Once the lorry enters the mill, the mass of the lorry together with the FFB is weighed. The actual mass for the FFB is calculated by subtracting the mass of the lorry with the total mass of FFB collected and of the lorry. The FFBs are then re-located to the Loading Ramp.

Figure 1.5: The weighing of FFBs

Figure 1.6: The relocation of FFBs to the loading ramp

ii.

Step 2: Grading of FFBs

The FFB inside the ramp is graded then pushed into the FFB Cages via the FFB Conveyor where the quality of the FFB were checked and grouped according to their specific grade. Damaged fruit bunches would produce lower grade CPO because if the fruit is bruised, the Free Fatty Acid (FFA) content in the

damaged part of the fruit increases rapidly. So, grading ensures that the FFBs
are in its optimum condition for producing palm oil. The FFB cages had the capability of carrying 15 MT per cage, which then carried the FFBs to the Steriliser through Transfer Carriage.

Figure 1.7: The FFBs inside the cages were turned upside down allowing the FFBs to be transferred to the Steriliser

Figure 1.8: Transfer Carriage were used to transport the FFBs to the Steriliser

iii.

Step 3: Sterilisation of FFBs

The transferred FFBs are now inside the Steriliser in which the FFBs are cooked with the use of high-temperature and pressurised steam to loosen up

the fruitlets. This step is crucial because (Corley and Tinker, 2008):i. Heat treatment destroys oil-splitting enzymes and arrests hydrolysis and auto-oxidation. ii. Sterilization inactivates the lipases in the fruits, and prevents build-up of free fatty acids (FFA). iii. To weaken the fruit stem and make it easier to remove the fruit from the bunches by shaking or tumbling in the threshing machine.

iv. The steam acts chemically to break down gums and resins that cause the oil to foam during frying.

The Steriliser outputs 30psi of steam and the process takes about 120 minutes to complete.

iv.

Step 4: Stripping and Digestion

Once sterilised, the FFBs were carried by the FFB cage to the Tipper where the sterilised FFBs were channelled through to the Stripper via the Sterilised FFB Conveyor. Stripping or threshing involves separating the sterilized fruits from the

bunch stalks. The stripped pericarp is then transferred to the digestor. This machine consists of a steam-heated cylindrical vessel fitted with a central rotating shaft carrying a number of beater (stirring) arms. Through the action of the rotating beater arms, the fruit is pounded. Pounding the fruit at high temperature, helps to reduce the viscosity of the oil, destroys the fruits outer covering (exocarp), and completes the disruption of the oil cells already begun in the sterilization phase. The bunch stalks called Empty Fruit Bunch (EFB) are removed as they do not contain any oil. It is important to ensure that oil loss in the bunch stalk is kept to a minimum. The stalks are often disposed by incineration, giving ash as potash fertilizer, and fuel for boilers. The separated fruitlets is then transferred to the Digestor to digest the fruitlets into the seeds and pericarp.

Figure 1.9: Stripper machine used in the Stripping process

Figure 1.10: The FFBs were transferred to the Digestor

v.

Step 6: Screw pressing

The digested pericarp is passed to the Presser, in which the fibre and nuts from the Digestor were pressed to extract crude oil. This step functions to squeeze the oil out of a mixture of oil, moisture, fibre and nuts by applying mechanical pressure on the digested mash.

Figure 1.11: Crude oil extracted

vi.

Step 7: Purification of CPO

The CPO is then passed through a high speed centrifuge and a vacuum dryer before it is sent to the bulk storage tanks. The centrifuge machine consists of a drum that rotates around a fixed axis, applying a force perpendicular to the axis. It works using the sedimentation principle, where the centripetal acceleration causes denser substances (in this case, the sludge) to settle at bottom of the drum. In the same way, the lighter substances (purified oil) will move to the top. The purified CPO will then be sold off to other processing companies such as Wilmar Edible Sdn. Bhd. to be further processed into edible oil or other companies for conversion to biodiesel.

The treatment of the FFB is summarised as follows:-

Figure 1.12: Summary of the treatment of FFB

2.3.3 NUT-FIBRE SEPARATION (STEP-BY-STEP)

i.

Step 1: Depericarping

Once the press cake finishes being pressed, it is then carried by the Cake Breaker Conveyor to the Depericarping System where the more lighter fibre are sucked away and the more heavier fruit nuts enter the Nut Polishing Drum.

Figure 1.13: The more light fibre were separated from the nut

ii.

Step 2: Nut Cracking

The wet nuts are then transferred to the Ripple Mill where they are cracked and then separated between the dry shell and kernel using a clay bath. Then a hydrocyclone uses centrifugal force to separate the liquid suspension of kernel from the shell in water. The clay bath principle works on the specific gravity of kernel of (1.07 g/L) and the shell of (1.17 g/L). The kernels will float while the shells sink in a clay bath.

Figure 1.14: Examples of nuts transferred to the Ripple Mill

Figure 1.15: Shell and kernel separated

The dried kernels were then transported to the Kernel Bunkers via a Dried Kernel Conveyor. Kernel Bunkers were then transported to the Kernel Crushing

Plant via a lorry. At the Kernel Crushing Plant, the use of a series of boilers and pressers removed moisture and formed Crude Palm Kernel Oil (CPKO) and Palm Kernel Effluent (PKE). The CPKO is sold off to other processing companies to produce other products whereas the PKE is treated as wastes.

Figure 1.16: The dried kernels transported to the kernel bunkers

The treatment of the palm kernel is summarised as follows:-

Figure 1.17: Summary of the treatment palm kernel

2.3.4 REFINING PROCESS OF PALM CRUDE OIL

Figure 18: Crude oil before purification

The CPO obtained is then processed in the Oil Clarification Station where it is purified in which the sludge is separated from the CPO, forming new purified oil in the Purifier System. The crude palm oil (CPO) is transported to the Oil Refinery via a CPO tanker lorry for further process. It is put in a clarification tank in which its temperature is maintained at about 90oC to enhance oil separation. The clarified oil is continuously skimmed-off from the top of clarification tank leaving Palm Acid Distillate (PFAD) at the bottom of the tank. The clarified oil is then processed further to form Refined Bleached Deodorized Palm Oil (RDBPO). The RDPO then undergoes dry fractionation to get Refined Deodourised Palm Stearin (RDPS) and Refined Deodourised Palm Olein(RDPL). The refining process of crude palm oil is summarised as follows:-

Figure 1.19: Summary of the treatment of CPO

2.3.5

MANAGEMENT OF WASTES

The processing of FFBs produces four wastes at different stages, namely: Empty Fruit Bunches (EFB), Palm Fibre, Palm Kernel Effluent (PKE) and Palm Oil Mill Effluent (POME). Wet, empty bunches are partly dried in the sun and later used as fuel. Another economic use for the empty bunches is to return them to the plantation as a mulch to enhance moisture retention and organic matter in the soil. EFBs are also sold to as a source of Biomass energy to biomass plants such as the Seguntor Bioenergy Powerplant. The palm kernel shell is also used as a source of fuel for the boilers. Unfortunately the shell contains silicates that form a scale in the boilers if too much shell is fed to the furnace, thus limiting the amount of shell that can be utilised in the boilers. Therefore, residual shell is mostly disposed of as gravel for plantation roads maintenance. The fibre recovered from the nut/fibre separation stage is a good combustible material and finds ready use as fuel to boil the fruit. The fibre constitutes the bulk of material used to fire the large boilers used to generate superheated steam to drive turbines for electrical power generation in large-scale plants. The aqueous POME on the other hand must be treated before discharge to avoid serious environmental pollution. Its treatment involves anaerobic fermentation followed by aerobic fermentation in large ponds by aerobic and anaerobic nitrifying bacteria until the effluent quality is suitable for discharge.

2.3.6

BOILER SYSTEM OF THE MILL

The palm oil mill is a self-sustained plant since it uses a boiler system to generate its own power. Steam is used as a source of energy to drive the
power generating set (steam turbine) and to sterilise the FFB. To drive the power

generating set, steam is needed to be dry saturated at the set high pressure. To dry saturate the water, a device called a Deaerator is used.
The device functions to remove oxygen and other dissolved gases from the feedwater to the steam-generating boilers. This is to prevent serious corrosion damage in the steam systems of metal piping and other metallic equipment due to the formation of rust. The removal of carbon dioxide is also important because it combines with water to form carbonic acid that causes further corrosion (Lingsley, 2000).

The quantity of steam supplied to the power generating set and sterilisers must be sufficient, otherwise the generator will not cope with the power supply demand and the FFB will not be fully sterilised, which sequentially will lower the oil production rate. Heat from combustion of fibre
and shell is transferred through tubes or drums to heat the water in the boiler which then evaporates as steam. The steam generated in the boiler shell, flows through a pipe to the steam turbine. In the turbine, part of the high pressure steam is transformed into electrical energy and the remainder is exhausted as low pressure steam (Lingsley, 2000). In the steam utilisation system, the flow of steam at the various stations in the mill has to be steady at the required rate. This is vital to ensure that the system at each station operates satisfactorily at the desired conditions. The schematic of the mills boiler system is drafted as below:-

1
Figure 1.20: The self sustaining boiler system of the mill

2.3.7 PROSPECT OF THE PALM OIL INDUSTRY IN THE LONG RUN Nearing the end of the visit, the engineer that was guiding the tour also gave an eye-opener regarding the prospect and future of the palm oil industry. Palm oil has a variety of uses and can be processed and refined into bio fuel for internal combustion of engines. Biodiesel has been promoted as a renewable energy source to reduce net carbon dioxide emissions into the atmosphere. The development of palm oil allows diversification of energy supplies by virtue of a decreased reliance on foreign oil. What is more, palm oil is thought to be able to compete with other ongoing alternative fuels compared to others because its productivity per hectare is quite high, its lower production costs and it is an annual plant which can adapt well to various agro-climate changes. Palm oil is mostly absorbed by the food industry, especially as cooking oil and as cocoa butter alternative; and non-food industries such as cosmetics and pharmaceutical industry. However, the greatest market potential is the frying oil. That potential is evident from the increase of population has implications for the increasing of food needs to sustain the increasing world population. If it is reviewed from its nutritional aspects, it has not been proven to cause increased cholesterol levels and even contain beta carotene as a source of pro-vitamin A (Fife, 2007). Even though the outlook of palm oil industry in Malaysia is bright, the expansion of this business faces many challenges. Along with the rapidly increasing interest on palm oil use for transport fuels, serious concern about the sustainability of palm oil production has also increased and has stirred up new debates. Moreover, the whole industry is partly blamed as a culprit for loss of forest cover and forested areas (deforestation), loss of biodiversity, endangering wild animals and species, soil, air and water pollution, chemical contamination, as well as for land disputes and social problems in Malaysia. At the milling factories, the problems of waste and pollution particularly of the palm oil mill effluents (POME) are also of growing concern. The industry faces a hurdle when difficulty arises in obtaining certification from competing foreign companies due to protests by so-called nature conservationists.

2.4 Conclusion After the visit, students gained knowledge regarding the species of palm trees used in the palm industry, their origin as well as the structure of the fruits it yielded. The steps in the production of CPO and CPKO were also learned. The sequence of the main processes is namely palm tree planting and cultivation, harvesting and finally its milling. At the mill, the palm fruitlets underwent the sterilisation process, threshing and stripping of fruitlets, oil extraction, clarification and purification, depericarping, nut cracking followed by winnowing and drying process. In all these processes, students were able to identify the scientific concepts and theory they had learnt in class and applied them. The palm oil industry is expected to expand and grow more in the near future because of its potential as a possible renewable energy source; an alternative to non-renewable fossil fuels that will eventually be used up. Their use as high-quality cooking oil and as cocoa butter substitute would also contribute to their increasing demand. Although, important issues such as competition, ecological degradation and climate change and technical production innovations remain as factors affecting the palm oil dynamics.

2.5 References Corley, R. H. V. and Tinker, P.B.H. 2008. The Oil Palm World Agriculture Series. (4th Edition). USA: John Wiley & Sons.

Fife, B. 2007. The Palm Oil Miracle. USA: Piccadilly Books Ltd. http://www.kretam.com/index.php?s=geg|~&c=qazcdb&site=Vision%20& %20Mission http://www.kretam.com/index.php?s=geg|~&c=%60%60y%7Fc %7Fw&site=Corporate%20History Lingsley, D. 2000. Power Plant Control and Instrumentation (The Control of Boilers and HRSG Systems). UK: The Institute of Electrical Engineering. Rieger, M. 2006. Introduction to Fruit Crops (Crops Science). New York: The Harworth Press.