This report was prepared by Gerhard Zieroth under the PIEPSAP Project. During the PIEPSAP consultations, the stakeholders repeatedly expressed the need to explore the option to use locally produced coconut oil as a substitute fuel. Both the Minister of Resources and Development and the Minster of Public Works are particularly interested in decentralized coconut oil extraction that is seen to open a range of opportunities for economic development of the outer islands. It would contribute to rural income poverty alleviation and economic development. A higher proportion of the value of the production chain remains in the community. Coconut oil is a versatile product that can be used as cooking oil, fuel for diesel vehicles and boat motors (inboard and outboard) and fuel for electricity generators provided adequate technology is used and proper procedures are being followed. It can serve as a basis of cosmetics and other niche value-added products. Local communities producing the oil also have the option to generate cash income by trading surplus oil that is not used within the community.
