Real estate company diversifies into “green fuel” project

CAGAYAN DE ORO CITY, Jan. 10, 2011—Banking on the pronouncement of President Aquino that“public-private partnership will build a road map to economic prosperity,” a real estate company here has diversified into the production of palm oil and has expanded its oil palm tree plantation for the production of what many called the
“green fuel” of the future.
                 Ruffy Magbanua, Special Projects manager of A Brown Company, Inc. said ABCI is now expanding its oil palm tree plantation in its premier land development project Xavier Estates in Upper Balulang because of palm oil’s huge economic as well as environmental benefits.
                The oil palm tree plantation is being handled by ABCI’s wholly-owned subsidiary A Brown Energy and Resources Development, Inc. (ABERDI).  
                From its 9 hectare plantation, ABERDI now manages 30 hectares of oil palm tree plantation inside Xavier Estates. This is in addition to its 700-hectare plantation in Kalabugao, Impasug-ong, Bukidnon.
                Palm oil is one of the best major edible oils in the world. It is only second to soybean oil production in 2000, with 21.7 million metric tons produced worldwide. Soybean oil world production in 2000 was 25.5 million MT.
                (The palm fruit is the source of both palm oil (extracted from palm fruit) and palm kernel oil (extracted from the fruit seeds). Palm oil is reddish because it contains a high amount of betacarotene).
                However, palm oil is the largest traded oil, accounting for 42 percent of the world’s exports, followed by soybean oil at 18.9%.
                In the Philippines, 2001 figure placed local palm oil production at 57,000 MT, up by 3,000 MT from 2000’s production of 54,000 MT.
                At this production rate, the Philippines continues to be import-dependent with importation recorded at 46% of total domestic supply because local demand for crude palm oil in 2000 was 118,199 MT.
                Palm oil has bright prospects in the local and world markets. In the domestic scene, the use of palm oil to take the place of coconut oil is being pushed, thus its accelerated use. 
                As the price of crude oil (petrochemicals) began to increase in the 1970s, manufacturers switched from petrochemicals to oleochemicals because plant-based lauric oils processed from palm kernel oil were cheaper. This saw a boom of coconut plantation in the country.
                Annually, demand for oleochemicals in the Asia-Pacific Region is increasing at a rate range of 2% to 3%.
                Demand for crude palm oil grows with the increasing demand for oleochemicals—chemicals derived from plant and animal fats—as the world grapple with global warming and climate change.
                Magbanua called palm oil as the “green fuel of the future” because palm oil biofuel is “non-toxic, environment-friendly and renewable.”
                Palm oil biofuel is produced from the edible vegetable oil obtained from the fruit of the oil palm tree. 
                Biofuels from palm oil are taking on renewed global importance as countries seek to substitute the soaring price of conventional oil and also cut hazardous emissions. Palm oil's emergence in the market comes quite some time after the introduction of ethanol, made from sugarcane, and other additives.
                Magbanua said that with ABERDI’s expansion of its oil palm tree plantation—the company is targeting to plant around 20,000 hectares of oil palm trees in Misamis Oriental—it can help arrest the effects of global warming and climate change in this side of the Philippines.
                This is because this entails massive tree planting activities, which create huge green cover and contribute to the increasing carbon sink in the country.
                With biofuel becoming more popular, global warming, climate change, greenhouse gas emissions, among others will be arrested, he added.
                In the local scene, the major player in the local palm oil industry are Filipinas Palm Plantations Industries, Inc.; Agusan Plantations Inc.; and Kenram Philippines Incorporated. The three processors are all located in Mindanao, with an aggregate production capacity of 78 MT per hour.
                ABERDI is bent on joining and even surpass this elite group. 
                In March 2006, it has began construction of its palm oil mill in Impasug-ong, Bukidnon. At present, this mill has afeed capacity of 1.5 tons/hr. while its output of crude palm oil (cpo) is 6 tons per day for a 20-hour 
operation.  (Bong D. Fabe)