Lanka's very own Coco diesel as an answer to the oil crunch

Shirajiv SIRIMANE

COCONUT DIESEL: In a bid to find a solution to the mounting global oil prices Sri Lanka is to manufacture diesel using coconut oil by the end of this year. This breakthrough product Coconut Diesel is branded as Coco Diesel.

The manufacturing would be undertaken by the British Ceylon Company Limited (BCC) which is Sri Lanka's first coconut oil and by product manufacturing company in a joint venture with a Malaysian company.

Minister of Coconut Development Salinda Dissanayake at the re-launching ceremony of some of the BCC products said that the Government will soon come to an agreement with a Malaysian company to acquire the technical knowledge to manufacture Coco diesel.

"This company is already involved in the manufacture of bio diesel in Malaysia using palm oil. The Minister said that they will come to an agreement with the Malaysian company where they would build own and transfer the company to Sri Lanka after 30 years," he said at the launch.

The Malaysian Palm Oil Board (MPOB) and Golden Hope Plantations are already building a bio-diesel plant in the country to produce 5,000 tonnes (approximately 36.5 thousand barrels or 1.15 million gallons) of bio-diesel a month.

The Minister said that after the open economy was introduced the value of coconut and coconut oil reduced and palm oil invaded the local market.

"Since 1995 palm oil production has overrun the coconut oil production all over Asia," he said.

Thailand was the first country to launch bio-diesel as a national programme on July 10, 2001. In 2006, several bio-diesel plants are operating in Thailand using the excess palm oil/palm stearin and in some cases, waste vegetable oil as raw materials.

About 15 petrol stations are now distributing B5 (5% bio-diesel with 95% diesel) in Chiangmai and Bangkok.

Bio-diesel is much cleaner than fossil-fuel diesel ("dinodiesel"). It can be used in any diesel engine with no need for modifications. Diesel engines run better and last longer with bio-diesel

President Mahinda Rajapaksa is very keen to develop the coconut industry and has launched several programmes ranging from providing free coconut plants, subsidies and other assistance to develop the industry the Minister said.

Prime Minister Ratnasiri Wickramanayake who was the chief guest at the event said that he was pleased that the BCC is now not a financial burden to the Government and the Treasury.

The Prime Minister also said he was happy that the BCC would tie-up with a Malaysian company to produce several coconut oil by-products.

Chairman, BCC, S.A.R. Maddumabandara said the company had to be privatised and due to Government intervention production has recommenced once again.

"We will first manufacture soap and then look towards producing coconut oil," he said.

The Chairman said that over 80% of palm oil is used to manufacture coconut oil which are sold in the market and their aim is to produce a 100% locally manufactured coconut oil product.

"When both the soap and oil manufacturing are in full operation BCC would once again be a high profit making company and we would be also looking for overseas markets," he said.