•••••• •• • • • • • • lmP.er•um renewables 

November 2, 2012 

The Honorable Gina McCarthy 

.... .... 

. ... .... .... .... .... ..... . .... ..... . ...• 

: 

; . 

-

Assistant Administrator for Air and Radiation 

United States Environmental Protection Agency 

Ariel Rios Building 

1ih and Pennsylvania Avenue, NW 

Washington, DC 20460 

Dear Assistant Administrator McCarthy: 

Fuels,LLC 

Integrating biofuels 

We are writing concerning EPA's conditional approval of Palm Fatty Acid Distillates (PF ADs) 

as a biogenic waste oil. It is our position that this designation is inappropriate under the EPA's 

published rules for the Renewable Fuel Standard Program (RFS2), and we remain concerned that 

stakeholders were not provided an opportunity to comment on this significant determination. We 

appreciated the opportunity to discuss tl\is issue with EPA staff on October 9, 2012, at a meeting 

hosted by the Department of Agriculture. At that time, we agreed to provide the additional data 

contained in this letter, which we hope will be useful to you and your staff. 

The EPA has a pending final rule that would qualify esterification as an eligible production 

process for processing eligible free fatty acids, waste oils/fats/greases and other eligible 

feedstocks under the RFS2 program. It was not public knowledge at the time this rule was 

published for comment in January 2012 that on September 16, 2011 , EPA had provided a private 

response letter ruling conditionally qualifying "Palm sludge oil, Palm free fatty acids, and Palm 

oil recovered from bleaching earth (hereafter collectively call palm waste) as Non-cellulosic 

portions of separated food waste ... ," which are categorically considered a biogenic waste oil and 

therefore an eligible "waste" feedstock under the RFS2 (EPA PSO Letter, 9/16/11 ). This EPA 

response letter determination was not available in any form for public comment, nor would it 

have been clear even to industry participants from the letter that PF ADs would be encompassed 

within the determination. Only recently was industry informed that through this response letter, 

the EPA had "concluded that palm fatty acid distillate (PF AD) qualifies under the existing RFS2 

program as a waste product from the production of food." That interpretation was provided via a 

memo from EPA staff (Argyropoulos 6/18/2012). In fact, there has not been a mention of 

PF ADs in any EPA published rulemaking that would have brought this possible classification to 

the attention of the renewable fuels industry or the non-governmental organization community, 

and provided the possibility for public comment. 
As a result of the response letter ruling and the pending final rule on esterifcation, the US 

biodiesel industry estimates that between 400 million and one billion gallons of PF AD-based 

biodiesel could be imported into US markets from palm sources in Malaysia and Indonesia, the 

two countries which currently account for almost 90 percent of the world's palm production. 

We are basing these projected volumes on the current production of palm oil for 2011-12, which is 

7.3 billion gallons for Indonesia and 5.2 billion gallons for Malaysia, from which 5-11 percent is 

separated as fatty acid distillate depending on the processing equipment. Given this potential 

massive volume, and the fact that PF AD is sourced from the same palm crops and industrial 

process as palm oil itself, there is a need for more detailed analysis and an opportunity for notice 

and public comment. 

As stated above, we believe the response letter determination that was interpreted to qualify 

PF ADs as a waste oil was in error, and appears to have been made on incomplete data about the 

uses of PF ADs and its current value as a feedstock. To support that position, a discussion of 

established EPA waste oil definitions, the basis of the response letter determination itself, and the 

current uses and market position of PF ADs follows. 

In the March 26, 2010 rule implementing the RFS2 program, EPA stated that "EPA will consider 

these [waste] feedstocks to be 'wastes' if they are used as feedstock to produce fuel, but would 

otherwise normally be discarded or used for another secondary purpose because they are 

no longer suitable for their original intended use. They may be unsuitable for their original 

intended use either because they are themselves waste from that original use (e.g. table scraps) or 

because of contamination, spoilage or other unintentional acts." (Federal Register, March 26, 

2010, p. 14794). EPA elaborates further on the alternative secondary purpose concept, stating 

that "(f)or example, contaminated vegetable oil might be burned in a boiler." (Federal Register, 

March 26, 2010, p. 14794). 

A June 18, 2012 EPA staff memo (Argyropoulos 6/18/2012) describes the basis upon which the 

EPA made its waste determination via the response letter: "While PF AD has some existing uses 

such as a supplemental energy source for boiler fuel, we conclude that these other uses are 

generally considered low value uses and removal of PF ADs from such alternative uses will not 

substantially impact these other uses .... Therefore we concluded that PF AD in the circumstances 

which were presented to the EPA is consistent with the description of a waste as included in the 

final RFS2 rulemaking .... " The memo went on to say that "EPA reserves the right to reassess 

this determination at a later date should circumstances change." 

While this biogenic waste oil qualification is appropriate for many waste products, we believe it 

is inappropriate for PF ADs. PF ADs are a co-product of palm oil production, and PF ADs as a 

feedstock itself has a wide range of current commercial uses, and significant market value. 

PF ADs are used in the soap industry, for animal feed, and as a raw material for oleo chemical 

industries. PF ADs also contain squalene, vitamin E, and phytosterols, all of which have 

significant value for the nutraceutical and cosmetic industries. As early as 2009, representatives 

from the industry were describing the breadth of PFADs' market uses and potential. An early 

2010 article by Ab Gapor Md Top, a senior research fellow with the Malaysian Palm Oil Board, 

states: "The palm oil refining industry has a valuable byproduct known as palm fatty acid 

distillate (PF AD) ... PF AD has been traditionally and widely used as an ingredient in the animal 

food industry .... PF AD is used for the manufacture of laundry and toilet soaps. Fatty acids of 
PF ADs could also be esterified and used as a feedstock for oleo chemicals and biofuels." (Lipid 

Technology, January 2010, Vol. 22, No. 1). 

A simple on-line search of industry promotional materials, presented by the marketers 

themselves, describes the breadth of uses for which PFAD is currently sold. "We provide the 

best quality palm fatty acid distillate that is appreciated for its certain special properties and is in 

huge demand all across the world for the manufacture of soaps and shampoos." (Pankti 

Associates, Ahmedabad, Gujarat). "Ambuja palm fatty acid distillate is demanded by small scale 

soap industries for manufacture of laundry and toilet soaps. Ambuja PF AD is widely used for 

making oleo chemicals-fatty alcohols." (Gujarat Ambuja Exports Ltd.) Among the many uses 

listed are: for animal feed as a source of calcium and fat, for heavy duty lubricants; for liquid 

soaps, for mould release agents and lubricants, for cosmetics, food emulsifiers, foam stabilizers 

and water repellants. 

The market for PF ADs has grown significantly in recent years, and so has its value in the 

marketplace. Through September, the 2012 export price of Malaysian PFADs has averaged 

$844 per metric tonne compared to $1010 per metric tonne of palm oil. With PF ADs trading at 

nearly 85% of the price of palm oil throughout 20.12, PF ADs can hardly be considered a lowvalue waste product. For your reference, we have attached data published by the Malaysian Palm 

Board showing the average monthly sales price in 2012 for palm oil and other palm products. 

Despite the fact that PF ADs have traded for much of this year at only a slight discount to palm 

oil, a 2012 average trading price of $844 per metric tonne, PF ADs nonetheless have a significant 

price advantage over the major existing eligible feedstocks such as soybean oil and rapeseed oil 

(canola), which have averaged $1171.17 and $1251.27 per metric tonne respectively during 2012 

to date. Accordingly, PF ADs have an even higher economic value as a feedstock for biodiesel 

production for the US market than the other already high value uses of PF ADs. As a result, the 

bulk of the volume of produced PF ADs is likely to be utilized as a feedstock for biodiesel, 

especially if PFADs qualify as biodiesel feedstock and are entitled to RINs. This added 

economic return in the palm oil process could be an additional incentive for more palm oil 

production, with serious negative impacts from additional land use and greenhouse gas (GHG) 

emlSSlOnS. 

Biodiesel produced from PF ADs does not yet qualify under the RFS2. However, PF AD 

eligibility as a "waste" oil, when coupled with the anticipated approval of esterification as an 

eligible production process under the RFS2, will result in the production of between 400 million 

to 1 billion gallons of eligible biodiesel, much of it bound for US markets. Further, the European 

Union is in the process of adopting new rules that will restrict the sale of palm-based biofuels to 

EU member nations, making the US market even more attractive. 

In the Notice of Data Availability, issued on January 27, 2012, the EPA determined that palm oil 

failed to qualify as a feedstock under the RFS2 because of its poor GHG emission avoidance 

ratings of 17% for biodiesel and 11% for renewable diesel. When a feedstock is declared a waste 

product, published regulations indicate that EPA assumes it to have a qualifying GHG avoidance 

rating, relying on EPA's GHG emissions avoidance analysis of yellow grease, which was done 

prior to the March 2010 rule. However, in calculating those GHG impact numbers for that rule, 

3 
EPA only used energy consumption numbers for commercial biodiesel plants in the US, whereas 

PF ADs would be processed overseas at plants whose energy usage was not evaluated. Land use 

impacts and the transport of the finished product to the United States are also not considered with 

respect to PF ADs, nor is the fact that palm oil failed to qualify under the RFS2 because of its 

poor GHG avoidance numbers. 

For the reasons we have stated above, and based on our review of the published rules on the 

RFS2 program, we again respectfully submit that PF ADs do not qualify for designation as a 

"waste" oil. PF ADs are neither a product that would "normally be discarded" nor are they a 

product that is "used for another secondary purpose because they are no longer suitable for 

their original intended use." The June 2012 staff memo (Argyropoulos 6/18/2012) addressing 

PF ADs as a waste indicated that the "EPA reserves the right to reassess this determination at a 

later date should circumstances change." Having now had the opportunity to investigate the full 

market chain, we firmly believe that the full breadth of market data presented above clearly 

demonstrates that the earlier assumptions made about the market uses and value of PF AD by 

EPA were underestimated and undervalued. Accordingly, we believe the EPA has the right and 

obligation to reverse that determination, and we strongly urge you to do so. Additionally, until 

the EPA has reversed this "waste" designation, we encourage the EPA not to qualify PF ADbased biodiesel, using the esterification process, as an eligible fuel for biodiesel under the RFS2. 

We appreciate EPA's careful consideration ofthis issue. Please contact us or Bob Van Heuvelen 

of Van Heuvelen Strategies at 202-534-4920, if we can provide any additional information or 

comment to assist the EPA in finding a solution to this issue. 

Sincerely, 

John Plaza 

CEO, Imperium Renewables 

Jonathan Phillips 

COO, Renewable Biofuels 

Martin D. Beirne, III 

CEO, Green Earth 

Fuels of Houston 
.. ~·-·· \ .. ) :,: .. ... ! .)'"_ 

.. i 

--~ "t" ~ 

~-..~

UNITED STATES ENVIRON ENTAL PROTECTION AGENCY 

WASHINGTON, D.C 20460 

Sent Via Email - September 16, 2011 

Dear Sirs: 

r r-! C:. •. t· 

.... -.. •· •• t ·.-·,\[ ; .\: 

This letter is in response to your June 13, 2011 letter requesting the Environmental Protection Agency 

provide an interpretation of the application of our RFS2 regulations as they pertain to Palm Sludge Oil 

(PSO). 

After review of the documents you provided and consultation with our technical team and our office of 

General Council, we have made the following detennination: 

The EPA will regard Palm sludge oil recovered from palm oil mill effluent. Palm free fatty acids, and 

Palm oil recovered from bleaching earth (hereafter collectively called palm waste) as "Non-cellulosic 

portions of separated food waste'' so long as such wastes meet the following conditions: 

1. The palm waste would be permanently discard~d ifnot used to make biofuel, or if not 

discarded, they would be used to make some non-biofuel product whose revenue or cost savings 

represents a very small fraction of the revenue that would have been generated from the sale of 

the production of the primary product palm oil. 

2. The palm waste is from palm that was originally intended to be used in food production or 

derived from post consumer food 

Since palm wastes are categorized as "Non-cellulosic portions of separated food waste" they are also by 

definition be included under the category of "Biogenic waste oils/fats/greases" and therefore are eligible 

for generating a 04 or OS RIN under our current regulations. 

:::.a.· .••• .:. .. -:':.,..,..., .. :~. · -:--... .. ....... . ..,~ .. ~ 9" \' 

RPCy(fed,'Ret :fCiaoll: · =· ··:r•-· :: • ..•..• ,..'.•Uc 5~eiJ ~ ... ~ ···· l:O: ... t:- ..... _,;; "': .;'1 -.:-· - r ;: ~!:· ; h jr·· 't l" 't.••: ... t. ·,·r· : >.•~: · 
However, please be reminded all applicable regulatory requirements must be met as applied to your 

companies and facilities specific circumstances, including registration, recordkeeping and reporting. 

Sincerely, 

Paf~s!!::t-- Senior Policy Advisor 

Office of Transportation and Air Quality 
From: Paul Argyropoulos [mailto:Argyropoulos.Paul@epamail.epa.gov] 

Sent: Monday, June 18, 2012 7:03 AM 

To: Sandra Dunphy 

Subject: Re: PSO 

Hope this helps. 

Based on information received , EPA can regard Palm Sludge Oil (PSO) recovered from 

palm oil mill effluent, Palm free fatty acids, and Palm oil recovered from bleaching earth 

(hereafter collectively called palm waste) as "Non-cellulosic portions of separated food 

waste" so long as such wastes meet the following conditions: 

1. The palm waste would be permanently discarded if not used to make biofuel, or if not 

discarded, they would be used to make some non-biofuel product whose revenue or cost savings 

represents a very small fraction of the revenue that would have been generated from the sale of 

the production of the primary product palm oil. 

2. The palm waste is from palm that was originally intended to be used in food production or 

derived from post consumer food 

Since palm wastes are categorized as "Non-cellulosic portions of separated food waste" they are 

also by definition included under the category of "Biogenic waste oils/fats/greases" and therefore 

are eligible for generating a D4 or D5 RIN under our current regulations, provided all conditions of 

the pathway requirements are met (i.e. approved process). 

Please be reminded all applicable regulatory requirements must be met as applied to your companies 

and facilities specific circumstances, including registration , recordkeeping and reporting. 

Applying our general interpretation of the RFS2 regulations -we concluded that palm fatty acid distillate 

(PFAD) qualifies under the existing RFS2 program as a waste product from the production of food. Our 

determination is that PFAD is a by-product in the production of palm oil and do not represent a primary 

product and are not the purpose for growing palms or extracting and purifying palm oil. While PFAD has 

some existing uses such as a supplemental energy source for boiler fuel, we conclude that these other 

uses are generally considered low value uses and removal of PFADs from such alternative uses will not 

substantially impact these other uses (e.g., decreasing the amount of PFAD used as boiler fuel will not 

substantially impact the availability of feedstock used for boiler fuel). Therefore we concluded that PFAD 

in the circumstances which were presented to EPA, is consistent with the description of a waste as 

included in the final RFS2 rulemaking, assuming the material also meets the definition of renewable 

biomass and any and all other applicable compliance requirements established by rule. EPA reserves the 

right to reassess this determination at a later date should circumstances change. 

Thanks, Paul 

Paul N. Argyropoulos 

Senior Policy Advisor 

Office of Transportation & Air Quality 

US Environmental Protection Agency 

Office Phone: 1-202-564-1123 

Mobile: 202-577-9354 

Email: argyropoulos.paul@epa.gov 

Website: www.epa.gov/otag 
Page I of I 

,.. 

d (MPOB) 

MONTHLY PALM OIL PRICES, 2012 I 

LOCAL PRICES OF PALM OIL PRODUCTS (RM!TONNE) 

- -· 

Jan Feb Mar Apr May Jun Jul I Sep Oct 

34.44 33.42 35.75 37.83 34.23 31.5q 32.2-1 1-----1- ·-

3,291 00 3,493.00 3,197.00 2,961 5 0 3,033.00 2,811.00 2,729.00 

3,188.50 3,116.00 - -3,182.50 3,108.50 3,278.00 3,480.50 3,188.50 2,955.50 3,03 1.50 2,805.50 2,7 19.50 

1,957.50 1,863.00 2,023.50 1,975.00 1,828.50 1,712.00 1,696.50 1.501.00 1,386.50 

4.15 1.00 3,936.50 4,1 61.0( 4,292.50 3,716.00 3,435.00 3,351.00 2,956.50 2,800.00 

3.314 50 3,298.50 3,430.5( 3,606.00 3,408.00 3,046.50 3,127.00 2,974.50 2,927.50 

3,384.50 3,289.00 3.438.0( 3,601.50 3,411.00 3,08 1.00 3,158.50 3,004.00 2,932.50 

3,012.00 2,938.50 3,073.00 3,448.50 3,265.00 2.913.00 2,746.00 2,725.50 

- -

259.50 278.00 313.00 404.50 379.00 366.50 482.50 500.00 520.00 

EXPORT PRICES OF PALM OIL (USSFOB/TONNE) 

Jan Feb Mar Apr May Jun Jul Aug Sep Oct 

1,045.50 1,060.50 1,115.50 1.161.50 1,048.50 957.50 991.00 937.50 932.50 1,062.00 1,080.50 1,130.00 1,166.50 1,080.50 966.50 997.00 953.50 953.50 

949.5(] 959.00 1.011.50 1,135.5(] 1,044.00 928.00 940.50 872.50 865.00 791.0(] 786.50 831.50 987.00 1.015.50 879.00 837.00 774.50 788.50 

1,428.00 1,358.00 1,481.50 1,511.00 1,388.00 1,165.50 1,171.50 1,014.50 959.50 1,223.5(] 1.237.00 1,327.50 1,350.0(] NT 1,026.50 1.100.00 917.50 910.00 

1,786.50 1,790.00 1,776.50 1,843.50 1,575.00 1.518.00 1,552.50 1,394.50 1,213.00 

92.50 100.50 113.00 144.0(] 138.00 124.50 155.00 172.50 177.00 -

k/monthl)fbh monthl) _ 12.htm 

Nov Dec Jan· Sep 2012 

33.63 

- 1-

----f--- 3,037.50 

3,049.00 

1,677.00 

·-r-- .. -

. 

• 3,598.5C 

3,264.5C 

3,338.5(] 

--

3,012.00 1---·-

395.50 

Nov Dec Jan· Sep 2012 

1,010.00 1.048.50 

953.00 

844.50 

1.295.00 1,195.50 

1,549.50 

134.50 

Jan-Dec 

2011 

36.28 

3,218.50 3,219.00 

2,206.00 

--

4,611.00 

3,440.00 

3,544.50 

3, 11 7.00 

384.50 

Jan-Dec 

2011 

1,117.00 

1,147.50 

1,019.00 

813.50 

1,627.50 

1,498.00 1,939.00 

128.50 

y 

) 

10/9/2012 
Lipid Technology January 2010, Vol. 22, No. 1 11 

DOI1 0.1 002/lite.200900070 

Feature 

Production and utilization of palm fatty acid 

distillate (PFAD) 

Ab Gapor Md Top 

Dr. Ab Gapor Md Top is senior research fellow at the Malaysian Palm Oil Board (MPOB), No. 6, Persiaran lnstitusi, Bandar Baru Bangi, 

43000 Kajang, Selangor, Malaysia; tel: 603-8769-4454; fax: 603-8926-2971; e-mail: gapor@ mpob.gov.my 

Summary 

PFAD (palm fatty acid distillate) is a by-product of physical refining of crude palm oil products and is composed of free fatty acids (81. 7%), 

glycerides (14.4%), squalene (0.8%), vitamin E (0.5%), sterols (0.4%) and other substances (2.2%). PFAD is used in the anima/feed and 

laundry soap industries as well as a raw material for the o/eochemica/s industry. Vitamin E, squalene and phytostero/s are value-added 

products.which could be extracted from PFAD and are of potential value for the nutraceutica/ and cosmetic industries. 

Introduction 

As the second largest producer of palm oil in the world, Malaysia 

contributed 41 % of the total palm oil produced in the world in 

2008. The palm oil industry plays an important role in the 

Malaysian economy in terms of employment and foreign 

exchange earnings. In 2008, Malaysia produced 17.73 million 

tonnes of crude palm oil and exported 2.34 million tonnes of 

crude palm oil and 13.08 million tonnes of processed palm oil 

products with a total export value ofUSD 14.04 billion (1). Most 

of the crude palm oil produced in Malaysia is processed and 

refined before export and palm fatty acid distillate (PFAD) is a byproduct generated during the physical refining process. 

Production of PFAD 

Palm oil is a commodity product used mainly in food applications as processed palm oil. Crude palm oil is refined as such or 

after fractionation into crude olein and crude stearin. The palm 

oil processing industry started in Malaysia in the early 1970s 

and this well-developed process currently involves the processes 

of refining and fractionation. alone or in combination. Physical 

refining is more widely practiced than alkali refining. The processes involved in physical refining are phosphoric acid treatment, bleaching earth treatment, deacidification and deodorization. The purpose of deacidificaion is to remove free fatty acids, 

and the purpose of deodorization is to remove the odor of the 

oil. Both are carried out by steam distillation under high 

vacuum. The distilled fatty acid is known as palm fatty acid distillate, a highly odoriferous product which also contains some 

glycerol esters along with minor components of the feedstocks. 

It is a light brown solid at room temperature melting to a brown 

liquid on heating. Unlike the statistics for crude palm oil and 

processed palm oil products (1), no official production data on 

PFAD seem to be available but its estimated availability is given 

in Table 1 based on the assumption of 4% free acid in crude palm 

oil. PFAD is exported as such or as hydrogenated palm fatty acid 

distillate (HPFAD); the volume and value are given in Table 2. 

PO RAM's specifications for PFAD are given in Table 3. The average monthly export price ofPFAD in 2008 was 501 (range 302-

© 2010 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim 

Table 1. Total production (tonnes) of crude palm oil (CPO) and PFAD in 

Malaysia 

Year CPO Production Estimated 

PFAD Production 

1980 2,573,173 102,927 

1990 6,094,622 243,785 

2000 10,842,095 433,684 

2005 14,961 ,654 598,466 

2006 15,880,786 635,231 

2007 15,823,745 632,950 

2008 17,734,441 709,378 

Table 2. Export volume and value of palm fatty acid distillate (PFAD) and 

of hydrogenated palm fatty acid distillate (HPFAD) 

Year PFAD HPFAD 

Volume Value Value Volume Value 

(tonnes) (RM (USD (tonnes) (RM 

Million) Million) Million) 

2001 426,538 278.4 81.6 1,837 1.9 

2005 574,629 676 198.0 224 0.9 

2006 591 ,893 748.6 219.3 932 2 

2007 514,835 905 265.1 2,325 5.7 

2008 652,419 1,280.70 375.2 1,967 4.8 

Table 3. PORAM• Standard Specifications for PFAD 

Free Fatty Acid (as palmitic) 

Moisture and impurities 

Saponifiable matter 

• Palm Oil Refiners Association of Malaysia 

70% min 

1%max 

95%min 

Value 

(USD 

Million) 

0.6 

0.3 

0.6 

1.7 

1.4 

730) (FOB USD(fonne) (1). This compares with average values for 

crude palm oil at USD 812.36 (local delivered) and export prices 

ofRBD palm oil and RBD palm olein at 806 (range 478- 1326) and 

922 (range 517- 1325) (FOB USD(fonne) respectively. For 2009 

Uanuary- November), the average of monthly export prices of 

PFAD was 429.50 (range 327.50- 560.50) (FOB USD(fonne) (1) This 

compares with average values for crude palm oil at USD 649.92 

(local delivered) and export prices ofRBD palm oil and RBD palm 

olein at 662 (range 574-819.50) and 690.50 (range 600-831.50) 

(FOB USD(fonne) respectively. 
12 January 2010, Vol. 22, No. 1 Lipid Technology 

Table 4. Physical and chemical properties of PFAD in Malaysia 

Survey by Hamirin (1983) Survey by Bonnie & Mohtar (2009) 

Titre (

0

C) 

Iodine value (1,11 OOg) 

Free fatty acid(%) (as palmitic acid) 

Moisture content(%) 

Unsaponifiable matter(%} 

Saponification value (mg KOH/g sample) 

Mass per volume (kg 1· ') 

Fatty acid composition (wt%) 

12:0 

14:0 

16:0 

18:0 

18:1 

18:2 

18:3 

NA: not available 

Table 5. Typical composition (%wt} of PFAD 

Free fatty acids 

Glycerides 

VitaminE 

Squalene 

Sterols 

Others 

Characteristics of PFAD 

81.7 

14.4 

0.5 

0.8 

0.4 

2.2 

Range 

(n=162) 

40.7-49.0 

51.2-57.4 

72.3-89.4 

0.05-0.15 

1.5-3.4 

190.7-203.5 

NA 

0.1-0.3 

0.9-1.5 

42.9-51.5 

4.1- 4.9 

32.8-39.8 

8.6-11 .3 

0.2-0.6 

Surveys on the characteristics and properties of palm fatty acid 

distillates (PFAD) from local refineries have been conducted by 

Hamirin (2) and by Bonnie & Mohtar (3) and the results are given 

in Table 4. The ffa content complied with PORAM specifications 

with palmitic acid and oleic acid as the major fatty acids in 

PFAD. A typical composition ofPFAD containing information on 

free fatty acids and on glyceride and non-glyceride components 

is given in Table 5. 

Utilization of PFAD in animal feeds and laundry 

soaps 

PFAD has been traditionally and widely used as an ingredient in 

the animal feed industry (4) both as the free acid and as the calcium soap. The latter is composed of long-chain fatty acids 

which are reacted with calcium oxide or hydroxide to form a calcium salt or soap product, known in the industry as "CaPFAD". 

This product is relatively inert in the first digestive compart· 

ment (rumen) of ruminants (e.g. cows) but is broken down to 

fatty acids in the abomasum, or true stomach. The fatty acids are 

then absorbed from the small intestine and utilized by the cow 

for milk fat production or as an energy source. The advantages 

ofPFAD as a feed fat are, among others, PFAD is probably one of 

the cheapest and most reliable sources of feed fat and is a source 

of essential fatty acid (EFA) as PFAD contains about 10% of linoleic acid (18:2). PFAD is also less prone to rancidity than some 

other fats, because of the low level of linolenic acid (18:3) and 

high level of vitamin E which acts as an antioxidant. On hydrogenation, PFAD is converted to hydrogenated PFAD (HPFAD) 

which is also used in the animal feed industry. In certain coun-

© 2010 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim 

Mean 

46.3 

55.3 

83.3 

0.08 

2.5 

198 

NA 

0.2 

1.2 

47.1 

4.5 

36.6 

9.6 

0.47 

Range 

(n=NA) 

46.0-48.3 

46.3-57.6 

80-90 

0.03-0.24 

U-2.3 

200.3-249.4 

0.8640- 0.8880 

NA 

NA 

43.0-49.1 

NA 

36.3-37.2 

NA 

NA 

Mean 

46.7 

54.8 

NA 

0.104 

1.56 

210.0 

0.8725 

tries, PFAD is used for the manufacture of laund!Y and toilet 

soa s. Fatty acids of PFAD could also be esterified and the roduct used as a feedstock for oleochemicals industry and biofuel. 

Utilisation of PFAD as source of vitamin E, 

squalene and phytosterols 

There is an increasing interest in nutraceuticals and in the functional food industry, which promotes food-derived phytochemicals as their active ingredients. There is a growing body of evidence that vitamin E (tocopherols and tocotrienols) are important for their antioxidant activities in foods and biological systems. Palm vitamin E is a tocotrienol-rich product, where the 

ratio of tocotrienols to tocopherols is about seven to three. In 

the last decade, tocotrienols have been shown to be superior to 

tocopherol in their beneficial effects in cell and animal studies 

devoted to hypocholesterolemic, anti-cancer (e.g. breast, pros· 

tate) and neuron protection activities. 

The major components of palm phytosterols are beta-sitosterol, campesterol and stigmasterol. Several studies have demonstrated that consumption of phytosterols reduces cholesterol 

absorption and lowers both total serum and LDL cholesterol 

levels in animals and humans. The use of phytosterol and its 

hydrogenated forms (phytostanols) as such or as esters in functional foods as a cholesterol-lowering agent is now well-accepted 

by consumers (5). One spread in the market uses stanol ester, a 

hydrogenated sterol sourced from wood pulp, as its cholesterollowering agent. Phytosterols have also been shown to have anti· 

cancer properties. 

The major sources of squalene are from shark liver oil and 

from the olive oil industry. Squalene is a natural emollient and 

finds wide utilizations in the cosmetic industry as squalene or as 

fully hydrogenated squalane. Other areas of squalene utilizations are in health food and pharmaceutical industries. However, because of concern on sustainability and availability o 

s ualene from the traditional sources a new source such as 

PFAD is desirable. 

It is desirable to isolate useful phytochemicals from PFAD and 

to deliver them in concentrated and pure forms to the relevant 

industries for the benefit of consumers. Extraction of the high 

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value compounds, vitamin E, squalene and hytosterols from 

PFAD would represent a value-addition strategy to PFAD in itself 

and ultimately to the palm oil industry. Based on the estimated 

production of PFAD in Table 1 and the representative contents 

of vitamin E, squalene and phytosterols as in Table 5, potential 

availability of these compounds in 2008 were 3547, 5675 and 

2838 tonnes respectively. MPOB has attempted the isolation and 

purification of the useful bioactive materials from PFAD for 

sometime and is currently at different stages of progress for the 

three groups of compounds. In the case ofvitamin E, significant 

progress was made at the pilot plant level (6). Subsequently, the 

technology was taken to commercial scale production, and products containing palm vitamin E have been available in the market for more than five years. 

Conclusions 

The palm oil refining industry has a valuable by-product known 

as palm fatty acid distillate PFAD . It is composed mainly of free 

fatty acids with smaller amounts of glycerol esters and nonglyceride components (vitamin E. squalene and phytosterols). By 

virtue of its high saponifiable fraction (free fatty acids and glycerides), PFAD has been traditionally used as a competitive raw 

material for the manufacture of animals feeds and laundry 

soaps . But PFAD is relatively rich in useful phytochemicals i.e., 

vitamin E. squalene and phytosterols and the recovery of these 

© 2010 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim 

January 201 0, Vol. 22, No. 1 13 

compounds have been attempted. Vitamin E from PFAD (known 

as palm vitamin E) is rich in tocotrienols and has been on the 

market for a few years, whereas squalene and phytosterols are 

still at the development stage. 

References 

1. Malaysian Oil Palm Statistics 2008, Malaysian Palm Oil 

Board, February 2009, ISSN 1511-743X; MPOB website 

(econ. mpob.gov.my) 

2. Hamirin K. (1983) Survey on characteristics of Malaysian 

palm fatty acid distillate (pfad) and palm acid oil (soapstock). PORIM Report PO (59) 83 General. Palm Oil 

Research Institute of Malaysia . 

3. Bonnie T. Y. and Mohtar Y. (2009) Characteristics and 

properties of fatty acid distill~te from palm oil. PIPOC 

2009 Int. Palm Oil Congress - Oleo&Spec. Chern. Conf, 

309-312. 

4. Thiagarajan T. (1990) PFAD for feed , Palm Oil Development, 

13, 4 - 7. 

5. Plat J. et a!. (2000) Therapeutic potential of plant sterols 

and stanols, Curr. Opin. Lipidol., 11 : 571-576. 

6. Sundram K. and Ab Gapor Md Top (1992) Vitamin E from 

palm oil: Its extraction and nutritional properties, Lipid 

Technology , 4,137-141. 

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Distillated Palm Oil 

We are one of the renowned lraders and suppliers of D1stlllated Palm Oil. The palm oils or our 

enterprise are applauded ror !he prope11ies like high purity, superior medicinal value and zero side 

effects. These oils contain large proportion of beta-carotene and high saturated tats. Our palm oils 

find extensive applications in making of Soaps, Personal care products, DeteJgent powders and 

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C! Palm Fatty Acid Distillate 

We provide best quality Palm Fatty Add 

Distillate that is appreciated ror Its certain 

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Ambuja Palm Fatty Acid Distillate(PFAD) !Q"J······················································································································ ..................................... (\\,.1 

> INTRODUCTION 

I Al'l"buja palm fatty acid distillate is obtained from the crude palm oil by physical refining with live steam at 

very high temperature and at reduced pressure. 

II The distillate is a chemical unit occurring naturally either single or col'l"bined and consisting strongly linked 

carbon and hydrogen atoms in a chain like structure. At the end of the chain is a reactive acid group 

composed of carbon, hydrogen and oxygen. This acid group permits reaction with alkali, alcohol etc. and is 

known as reactive group. 

1 Al'l"buja palm fatty acid distillate is demanded by small-scale soap industries for manufacture of laundry and 

toilet soaps. 

II Al'l"buja PFAD is widely used for making oleo chemicalsa Fatty Alcohols Produced by hydrogenation of fatty acids. 

b Metallic soaps 

Calcium Soap 

Lithium Soap 

Potassium Soap 

Other Metallic 

Soap 

Fatty Acid Esters 

Fatty Acid Ethoxy lates 

Fatty Arrines 

By treating with metallic hydroxides:-

For animal feed as a source of calcium and fat 

For heavy duty lubricants. 

For liquid soaps. 

For mould release agents and lubricants. 

For mould release agents and lubricants. 

by esterification of fatty acids for use in cosmetics. 

by esterification of fatty acids for wide usage of food 

emulsifiers. 

by treatment with arrines for use as foam stabilizers and 

water repella nts. 

Ambuja PFAD Typical Specification 

Parameters Specifications 

Trt:re 40 o C Min. 

FFA % as Palmitic Acid 

MIV 

s.v 

USM 

85 Min. 

1% Max. 

190-205 

1.5-3.4% 

Custorrized specification can also be achieved 

Packing Available- Loose in the form of serri solid and can be transported through bulk road tankers. 

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