Palm oil and palm kernel oil as raw materials for basic oleochemicals and biodiesel

The palm oil- and palm kernel oil-producing countries in South East Asia are becoming the dominant producers of fatty acids and fatty alcohols. The large and very efficient palm oil plantations are giving the local producers of basic oleochemicals a decisive competitive advantage. The production of fatty acid methyl esters for use as biodiesel is expanding all around the world. In tropical countries, the preferred raw material for biodiesel is palm oil, Europe uses mostly low-erucic rapeseed oil and the USA soya oil. To a large extent, the growth of biodiesel depends on direct or indirect subsidies for the agriculture and on tax exemptions. The rapid growth of biodiesel has created an excess of glycerine, which cannot be absorbed by existing markets. The price for glycerine will probably remain low for the next years and therefore attract investments in new applications.