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Desiccated coconut industry of Sri Lanka: Opportunities for energy

efficiency and environmental protection

Article  in  Energy Conversion and Management · August 2003

DOI: 10.1016/S0196-8904(02)00235-2

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 Energy Conversion and Management 44 (2003) 2205–2215
www.elsevier.com/locate/enconman

Desiccated coconut industry of Sri Lanka: opportunities

for energy efficiency and environmental protection
a,*
S. Kumar , G. Senanayake b, C. Visvanathan a, B. Basu a

a
School of Environment Resources and Development, Asian Institute of Technology, P.O. Box 4, Klong Luang,
Pathumthani 12120, Thailand
b
Industrial Services Bureau of North Western Province, 141, Kandy Road, Kurunegala 60000, Sri Lanka
Received 13 October 2001; received in revised form 28 May 2002; accepted 23 September 2002

Abstract
The desiccated coconut (DC) industry is one of the major export oriented food processing industries in
Sri Lanka. This paper discusses the production processes, types of fuel used, energy use pattern and the
overall specific thermal and electrical energy consumption in the DC sector. An analysis of the energy use
highlights the inefficient processes and the key energy loss areas. Options for energy conservation in the DC
mills have been discussed, and carbon dioxide emissions from this sector and its mitigation potential are
estimated. Other options to improve efficiency and reduce other pollution and policy aspects have been
presented.

2002 Elsevier Science Ltd. All rights reserved.

Keywords: Desiccated coconut; Specific energy consumption; Energy efficiency; Sri Lanka; GHG emission

1. Introduction

The major energy sources used in Sri Lanka are biomass and oil. In 1999, biomass (mostly
firewood) accounted for about 51% of the national primary energy consumption, of which about
24% was consumed in industries, such as the tea, desiccated coconut (DC) and rubber industries
[1,2]. Fossil fuel (oil and a small quantity of coal) accounts for about 37% of the total energy
consumption, which is totally imported. Between 1999 and 2000, the countryÕs oil demand in-
creased by 14% [3]. In 2000, the total electricity generation was 6843 GW h from an installed
capacity of 1799 MW. Hydropower accounted for 46% of the installed capacity, and the rest is

*
Corresponding author. Tel.: +66-2-524-5410; fax: +66-2-524-5439.
E-mail address: kumar@ait.ac.th (S. Kumar).

0196-8904/02/$ - see front matter
2002 Elsevier Science Ltd. All rights reserved.
doi:10.1016/S0196-8904(02)00235-2
2206 S. Kumar et al. / Energy Conversion and Management 44 (2003) 2205–2215

from fossil fuel based thermal power plants. The electricity consumption of the industrial sector
rose by 8% since 1999.
Coconut has been the third most important commercial crop of Sri Lanka since the colonial
era. Sri Lanka is the worldÕs fourth largest producer of coconut, covering a total acreage of over
one million acres. Coconut plantations are concentrated in the south of the Northwestern
province and in the north of the Western province, named the Ôcoconut triangleÕ, though it is
grown in home gardens and in isolated plots in other parts of the country.
The average annual coconut crop production is around 3000 million nuts, of which around 65%
is directly used for domestic consumption (for cooking purposes). The rest is mainly used by two
industries, namely DC (18%) and the rest for producing coconut oil. The former is export ori-
ented, and the latter caters mainly to the domestic market.
DC is a dried white, particulated or shredded product manufactured from the peeled kernel of
seasoned coconut under hygienic processing conditions. It is used in the bakery and confectionery
industry for fillings for nut bars, cookies, biscuits, sanding of cakes, pies etc. It is estimated that to
produce 1 ton of DC, 8000 nuts are required.
Sri Lanka is the birthplace of the DC industry, the first factory being established nearly a
century ago (1880) in Colombo, which continues to be one of the countryÕs important food
processing industries. The DC industry in Sri Lanka consists of around 66 factories, which are
mostly located in the coconut triangle. The capacity of an average factory varies from 30,000 to
40,000 nuts/day. Industry output is around 60,000 tons per annum. Sri Lanka is the worldÕs
second largest DC producer after the Philippines, sharing about 25% of the global annual DC
production. In 2000, the DC production reached its highest level of about 89,000 tons [4]. It is the
highest foreign exchange earner in the Sri Lankan coconut processing industry, accounting for
about 0.44% of national GDP. More than 98% of the DC produced is exported, and the total
export earning was US$65.2 million in 2000 [5]. About 35,000 personnel are involved in the co-
conut processing industry, out of which nearly 10,000 are directly employed by the DC industry.
The DC industry, at present, is facing market uncertainties, on both supply and demand sides.
The industry has to compete with other coconut industries for the raw material (coconut). Re-
sulting from the constraints in the supply side, the Coconut Development Authority (CDA),
which is the approving body, does not grant permission for new factories. In the demand side, the
market for DC has been sluggish and forecasted to increase only marginally as no new market is
being identified. Both supply and demand constraints have resulted in under capacity operation
in most mills and, hence, less profits.
The cost of the raw material, coconut, is responsible for a major portion of the total cost (90%).
Therefore, the price of coconut, which is dependent on many factors, such as the supply situation
(which depends on weather conditions and seasons), the demand of the coconut oil industry and,
to a lesser extent, the export price of DC, has a significant influence on the cost of production. The
cost of energy is about (5%). For its survival and growth, the DC industry has to implement cost
cutting measures by improved process efficiencies, such as energy conservation and management,
and adopting cleaner production technologies.
Only a very few studies are available on the energy use, pollution generation and other related
issues of the Sri Lankan DC sector [6,8,9]. The objective of this article is to describe briefly the
production process, type of fuels used, energy use pattern and pollution generation. Options to
improve the energy efficiency and minimize the negative environmental effects of DC mills in Sri
 S. Kumar et al. / Energy Conversion and Management 44 (2003) 2205–2215 2207

Lanka are then discussed. The analysis and results presented are based on the work performed by
the Asian Institute of Technology, Thailand, and the Industrial Service Bureau (ISB) of the
Northwestern Province, Sri Lanka, under the Asian Regional Research Programme on Energy,
Environment and Climate funded by the Swedish International Development Cooperation
Agency (Sida).

2. Technology and production process

The level of technology employed by the industry is not sophisticated though maintaining
hygienic conditions is of paramount importance, as the product is a food item.
DC factories could be divided into three categories, as traditional, modernized and ultra-
modernized. There are about 16 traditional mills employing ÔdesiccatorsÕ, the drying equipment
that is considered the heart of the production process. They operate at around 42% efficiencies
and are generally fueled by firewood through air heaters. Modernized mills (around 50 in number)
employ a fluidized bed type of dryers and are fueled by furnace oil through the generation of
steam using boilers. Fluidized bed type modern dryers have high efficiencies, ranging from 52% to
60%. However, there are variations of performance even among fluidized bed dryers according to
their capacities, design and construction etc. Modernized mills are considered to be superior in
terms of product quality and hygienic conditions of the factory environment. The share of the
annual DC production in traditional and modern mills is 30% and 70%, respectively. There is one
ultra-modern factory with the installed capacity of 250,000 nuts/day, which has a much greater
degree of mechanization and capacity.
There are a series of operations in the DC manufacturing process, viz. hatcheting, paring,
pairing, sterilizing, cutting, drying, grading and packing. The drying process, which is the most
energy intensive, reduces the moisture content from around 52–55% to 3%. Fig. 1 shows the
process diagram during the production of DC.

3. Energy usage of DC industry

The energy prices of Sri Lanka are rapidly increasing, mainly due to devaluation of Sri Lankan
Rupees against major currencies. During the recent past, fuel oil prices have been increased by
136% (Redwood Second 1000: from SLRs 8 in 2000 to SLRs 18.90 in April 2002; 1US$ ¼ 96
SLRs, May 2002). As Diesel prices also have increased in the same proportion (from SLRs 13.60
in 2000 to SLRs 28 in April 2002), the cost of transport has also gone up, thus increasing the cost
of firewood. While this situation has an adverse effect on the profitability of the DC industry, it
stimulates the industry to look for cost cutting options. Implementing energy saving measures and
adopting better energy management practices seem to be the only possibilities to arrest the sit-
uation.
Heat and electricity are the two main energy forms used in DC mills. Thermal energy is used to
produce hot water, steam for pasteurization/sterilization and hot air for drying. Electrical energy
is used for driving conveyors, motors, blowers, mechanical de-shellers, sifters and screening,
2208 S. Kumar et al. / Energy Conversion and Management 44 (2003) 2205–2215

Fig. 1. DC production process.

grading and packaging machines. Table 1 shows the energy utilization pattern (thermal plus
electrical) of a typical modernized and a typical traditional DC factory.
The total specific energy consumption in DC mills varies, depending on the type of fuel used,
efficiency of drying machine, extent of mechanical conveyance and other electrical machineries.
Higher values are found in traditional DC mills (about 6.51 kW h/kg of DC) due to their lower
efficiency, use of firewood in boilers and batch type desiccators. In modern mills, the specific
 S. Kumar et al. / Energy Conversion and Management 44 (2003) 2205–2215 2209

Table 1
Energy utilization pattern of a typical modernized and a traditional DC factory
Process
Drying Sterilizing Cutting Grading
Modernized factory
kW h/kg of DC 2.1 0.23 0.03 0.01
Percentage 88.6 9.7 1.3 0.4
Traditional factory
kW h/kg of DC 5.27 1.2 0.03 0.01
Percentage 81 18.4 0.5 0.2

energy consumption is low (2.37 kW h/kg of DC) due to the use of more efficient oil fired boilers
and continuous dryers.

3.1. Electrical energy

The average specific electricity consumption varies between 0.10 and 0.13 kW h/kg of DC and
the electrical energy consumption in modern mills is higher compared to traditional mills due to
the use of more electrically operated machineries.
In terms of unit operations, drying consumes around 60% of the electricity, the highest amount
among the unit processes. The size reduction and screening processes account for 30% and 10%,
respectively, of the total electricity consumption. However, when electrically operated de-shelling
machines and conveyers are used, the specific electricity consumption increases significantly to
about 1.0 kW h/kg, of which 80–90% is consumed in these machines.
The total annual electricity consumption of the DC industry is estimated to be around 10
GW h. The electricity demand of modernized DC factories varies from 75 to 115 kV A, while in
conventional or traditional factories, it averages around 37 kV A. Therefore, the entire industry
demands around 5–6 MV A.

3.2. Thermal energy

Thermal energy constitutes about 90–95% of the total energy consumption, and about 85% of
the total thermal energy is consumed in drying with the rest in pasteurizing or sterilizing. The
specific thermal energy consumption of modernized DC factories varies from 2.13 to 2.65 kW h/kg
of DC, while in traditional factories, it averages around 6.46 kW h/kg of DC.
The high thermal energy consumption in traditional mills is due to the inefficiencies and large
losses in the desiccators. Old tray type desiccators consume about 1.5–2 times more energy than
advanced continuous dryers and take a longer drying time (nearly 45 min compared to 15 min for
advanced dryers). Hot water pasteurization consumes about 2–2.5 times more energy compared
with steam sterilization. Losses in the blancher are also due to the loss of hot water during loading
and unloading of meats from the blancher and surface (convection and radiation) losses. In-
complete combustion of firewood and low efficiency of burners in wood fired boilers (about 10–
15% lower than oil fired boilers) also reduce the overall efficiency of the system.
2210 S. Kumar et al. / Energy Conversion and Management 44 (2003) 2205–2215

4. Pollution aspects

Two types of waste, liquid and solid, are generated, apart from the gases produced during the
combustion process of fuel. The main waste is the coconut water (sap), which is mixed with
normal washing water and discharged, with a little treatment, to neighboring lands and water
bodies, causing severe environmental damages to vegetation, ground water resources and water
bodies. The only treatment done is the removal of oil sludge after allowing the wastewater to be
retained in open pits for some time. This sludge is sold as a lubricant to the tile industry.
In traditional mills, where firewood is used to generate hot air, wood ash is a waste product.
These ash stocks are dumped on the factory premises itself.
Though the coconut shell is a waste in the process of DC manufacturing, it is either sold to
charcoal manufacturers or burned within the premises to make charcoal. Likewise, coconut
scrapes (parings) coming out as a waste during the scraping process are sold for extraction of
coconut oil.

4.1. Local pollution

The industry is saddled with a local environmental problem due to the large quantities of
wastewater that have to be discharged. Wastewater has high concentrations of biodegradable
compounds, including carbohydrates, oil and grease. A typical factory with a daily capacity of
50,000 nuts, discharges around 40,000–60,000 l of wastewater, consisting of both coconut sap and
wash water [6]. This results in a total discharge of around 620,000 tons per annum. The BOD and
COD levels of coconut sap and wastewater are given in Table 2. At the time the industry was set
up, about a century ago, pollution was not a major concern, and the industry enjoyed the freedom
to discharge wastewater without being resisted either by neighboring dwellers or by environmental
authorities. With the increase of settlements near factories and also with the imposition of dis-
charge standards, the industry is forced to find a lasting solution.

4.2. GHG and other emissions

Table 3 gives the gaseous emissions of a typical traditional and a typical modernized DC mill.
The gaseous emissions of the Sri Lankan DC industry due to the combustion of fuel oil (in
modernized factories) and firewood (in conventional factories) has been estimated as:
CO2 72,500 tons per year
CO 7000 tons per year
SO2 250 tons per year
NO2 30 tons per year

Table 2
BOD and COD levels of coconut sap and wastewater
BOD5 (mg/l) COD (mg/l)
Coconut sap 13,000–15,000 40,000
Wastewater 6000–10,000 17,000–20,000
 S. Kumar et al. / Energy Conversion and Management 44 (2003) 2205–2215 2211

Table 3
Gaseous emissions of a typical traditional and a modernized DC mill
Traditional mill Modernized mill
CO2 (kg per kg of DC) 3.27 0.282
CO (kg per kg of DC) 0.47 0.0028
SO2 (kg per kg of DC) 0.005 0.002
NO2 (kg per kg of DC) 0.002 0

The total CO2 emission of the industry accounts for about 1% of the national figures (energy
related carbon emissions of the country: 2.5 million metric tons of carbon).

5. Improving energy efficiency and environmental friendliness in DC mills

Though the industry is economically important, it has to struggle for its survival due to supply
and demand constraints, process deficiencies and inefficiencies arising from technology obsoles-
cence, escalating input costs and, more importantly, the environmental challenges. Some of them
indeed are beyond the control of the industry. Some options available to the industry are de-
scribed below:

5.1. Generic energy efficiency options

Energy efficiency can be improved by adopting better operational and housekeeping practices
and using energy efficient boilers and desiccators. In traditional mills,

(a) better operation and maintenance of existing equipment, such as improvement in the perfor-
mance of tray type desiccators by reducing their idling time and synchronizing the upstream
production with the drying cycle, would improve their efficiency,
(b) operating at rated capacity and controlling the quantity and temperature of the supplied air
and residence time can reduce energy use and
(c) insulation of desiccators and reduction in loading/unloading time of coconut meat can help
achieve further energy savings.

Boiler performance can be improved by operating at the correct air–fuel ratio, preheating com-
bustion air, regular cleaning of burners etc. About 10–15% increase in fuel efficiency could be ob-
tained by switching from firewood to oil fired boilers. The efficiency of heat exchangers can be
improved by insulation, removing scales and repairing leaks in the heat exchanger coils. Condensate
loss and pipeline losses can be reduced by regular maintenance of transmission lines and insulations.
For example, the condensate loss of about 40–60% can be recovered by operating in a closed loop
system. This would reduce the condensate heat loss to about half and also promote water recycling.
Waste heat recovery can be another important means to reuse heat, and it is estimated that
about 20% reduction in fuel consumption is possible by installation of suitable waste heat re-
covery systems [10]. Important sources of waste heat recovery are boiler flue gas, dryer flue gas
and flue gas from the shell carbonization unit. The recovered heat can be utilized to preheat boiler
2212 S. Kumar et al. / Energy Conversion and Management 44 (2003) 2205–2215

feed water, to preheat combustion air and for indirect drying of the coconut meat. To avoid
contamination, the flue gas should not come into direct contact with the coconut meat.
In modern mills, where many electrically operated equipments are used, capacitors for im-
proving power factor and energy efficient motors can save electrical energy.
It is estimated that the DC sector in Sri Lanka consumes about 21,660 tons of firewood, 16.5
million l of furnace oil and 10 GW h of electricity annually. This constitutes about 0.16% of the
total energy consumption of 0.3 PJ of Sri Lanka and about 0.2% of the annual national electricity
production [7].

5.2. Other technological options

5.2.1. Efficient dryers

The dryer is the most critical and highest energy consuming unit in a DC factory and is re-
sponsible for the consumption of around 90% of the total thermal energy. Therefore, any im-
provement in the dryer will have a significant impact on the cost of production.
About 50–60% energy saving is possible by changing from the traditional tray type desiccators
to continuous band dryers. If the remaining 16 traditional factories switch over to more efficient
Fluidized Bed Dryers, approximately 45 GW h of thermal energy could be saved annually, which
is equivalent to SLRs 14 million (US$0.16 million) at current fuel prices. This would also result in
the reduction of CO2 emission by 43,500 tons per year and of CO emission by 5100 tons per year.
Though energy efficient boilers and dryers are available, implementation in DC mills is restrained
due to its high capital cost. A continuous dryer having a capacity to process 300,000 nuts/day
would cost about Rs 4–4.5 million [approximately 1US$ ¼ 96 Sri Lankan Rupees (Rs)], which is
about 50% higher than locally made semi-automatic dryers of the same capacity. However, non-
availability of adequate capital and fluctuation in the global DC market impede installation
of energy efficient equipment in the DC mills in Sri Lanka, especially in traditional mills.

5.2.2. Waste heat recovery from flash steam

Audits indicate that there are several deficiencies in boilers and steam distribution systems,
especially in terms of energy efficiency. Flash steam recovery is one of the energy saving measures
that has been tried recently in the Sri Lankan DC industry. Most dryers in the DC industry are in
the capacity range of 550–750 kg/h, and the steam pressure at the main radiators is maintained at
around 9–10 bars to get the required temperature in the dryer. In one of the DC factories, to
recover the waste heat of flash steam, an additional radiator was introduced, which operates at
atmospheric pressure. This was connected to the condensate line and is used for preheating air to
the main radiator. The monthly fuel saved was about 1400 l, amounting to SLR 24,000. For an
investment of SLR 200,000, the payback period obtained was about 9 months, and CO2 emissions
were mitigated by 53 tons per year.

5.2.3. Coconut shells as a source of energy

It is estimated that around 213,000 tons of coconut shell per year are made available as a
byproduct of the DC industry. Over 90% of this is burned in open pits to produce charcoal for the
activated carbon industry. This process emits a lot of harmful gases, creating severe environ-
mental problems. If efficient carbonization of coconut shells were adopted, the waste heat of the
 S. Kumar et al. / Energy Conversion and Management 44 (2003) 2205–2215 2213

process could be used for generating steam, and the environmental hazard could be eliminated.
This is an ideal option for the traditional 16 mills that need to be modernized, and the cost of the
coconut shell carbonization system is estimated at SLRs 3 million (US$33,000). Some trials done
in this regard have shown that this will reduce the fuel consumption of the boilers by 20% and, at
the same time, produce 750 kg of charcoal out of 3 tons of coconut shells (the traditional shell
burning produces about 800 kg of charcoal from 3 tons of shells). Though a few factories have
installed prototype systems, there is room for further development and improvements. The im-
provements could be done in all three stages, which consist of shell burning, waste heat recovery
and using the heat in dryers and boilers. However, for the modernized factories, this may not be
economically attractive, as it requires the replacement of existing boilers.

5.2.4. Wastewater treatment

A pilot wastewater treatment plant has been built in one of the DC factories using an anaerobic
digestion system. This had been earlier developed and tested in the laboratory by the National
Engineering Research and Development Centre (NERD). It is expected that the BOD and COD
levels of the wastewater after treatment will be reduced to acceptable limits, and the biogas
generated (1 m3 of biogas per 2 m3 of wastewater) will find useful applications (to supplement
boiler fuel, lighting, water boiling in the canteen and in the laboratory etc.) within the factory.
However, in order to reduce the initial investment of the treatment plants (estimated to be around
SLRs 1,200,000 or US$13,340), the wastewater generated needs to be reduced by separating the
coconut sap from the wash water. Positive results of this plant will benefit not only the DC mills in
overcoming their pollution problems but also the people living in the vicinity of DC mills who
have been suffering from the environmental degradation.

5.2.5. New applications for sap

No organized attempts have been made to identify new applications for coconut sap so that its
value can be upgraded instead of trying to treat it as a waste product. Therefore, it is suggested to
explore the possibility of converting the liquid effluent to ‘‘consumable’’ products. The sap con-
tains 1.5% fat and very valuable minerals, such as iron, sodium, potassium, magnesium, calcium
and small quantities of phosphorous. There is a considerable market for coconut water based
products, for example, in Taiwan, and the technology is available in the Philippines, Thailand and
China. Promotion of technology transfer through joint ventures and local research and devel-
opment works could, thus, reduce waste and increase profits.

6. Policy options

In order to facilitate the sustainability of the industry, in addition to the pursuance of tech-
nology options described above, policy options will have to formulated and implemented. Some
recommendations that could have an impact on the DC sector include:

• Formation of an ‘‘Energy Authority’’ to act as an agency with adequate power and authority to
promote and integrate policies and strategies pertaining to the entire energy sector and to co-
ordinate with other sectoral policies such as environment, transport, industry etc. Considering
2214 S. Kumar et al. / Energy Conversion and Management 44 (2003) 2205–2215

the projected increase in energy consumption and the countryÕs dependence on imported fossil
fuel resources, a policy of national non-dependence in energy by promoting renewable and al-
ternative energies should be formulated. Measures to promote the application of economic in-
struments and incentives to increase energy efficiency and to mitigate environmental ill effects
should be encouraged.
• Enforcement of environmental laws should collaborate with appropriate solutions. For exam-
ple, promoting energy efficiency measures after identifying technology gaps; prescribing relaxed
standards (for a limited period) pertaining to those industries where the abatement technologies
are not yet easily available; and dissemination of information on technologies, new laws and
regulations etc. on a regular basis, could benefit both the environment and the industry.
• Identify the needs of the industries and develop a participatory mechanism to conduct applied
research with the government providing initial funding through its own resources or through
other suitable means.
• Solicit adequate national recognition of the DC industry from the Ministry of Industries, Min-
istry of Finance and eliminate policy biases, if any, against the DC industry.

7. Conclusion

Beyond doubt, the DC industry is one of the nationally important indigenous industries of Sri
Lanka. Therefore, it is the responsibility of all stakeholders to contribute to the sustainability of
the industry. Though DC production is not very energy intensive, the energy use influences the
overall efficiency of the DC mills operation and the cost of production. For the Sri Lankan DC
sector to be competitive in the global market, measures to reduce energy consumption would help
to reduce the cost of production and generation of pollutants.
On the part of the industry, all measures should be taken to improve the process efficiencies by
acquiring new technologies and through better energy management practices in order to enhance
the overall productivity of the operation. Implementation of energy saving devices and better
energy management may lead to a reduction of CO2 emission and also reduce the cost of envi-
ronmental cleanup. Research and development organizations should work with the industry to
identify technology gaps and to suggest solutions. The government also has to play a key role in
funding the research and development activities, as the industry alone may not be able to bear the
full cost due to the high risk of such activities. Once a technology is identified or developed and if
it is economically feasible, industry should come forward to embrace such technologies. In the
case of environmental protection technologies, industry should even be prepared to forego some
of its profits as a responsible stratum of the society. In this process, the government could create a
conducive and enabling environment by putting in place the right policies. Recognition of the
industry for its economic contribution and eliminating policy biases, if any, against the industry
are also vital for its sustainability.

Acknowledgements

The authors are grateful to the project ÔSmall and Medium Scale Industries (SMI) in Asia:
Energy, Environment and Climate InterrelationsÕ under the framework of the Asian Regional
 S. Kumar et al. / Energy Conversion and Management 44 (2003) 2205–2215 2215

Research Programme in Energy, Environment and Climate (ARRPEEC) Phase-II, funded by the
Swedish International Development Cooperation Agency (Sida), without whose support this
article could not have been written.

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