INTRODUCTION
For some time now, Indonesia has been facing a fossil fuel crisis as indicated by fuel shortages in some areas. Fossil fuel is a non-renewable resource, thus it is a limited resource. The limited of fossil fuel and the rapid increase in the fossil fuel consumption due to the rise in the economic as well as the population growth are seen as the culprit of the oil crisis in Indonesia. The utilisation of fossil fuels are causing the global climate change due to the emission of COx, SOx, NOx and other organic compounds which are released during the combustion [1]. Therefore it is needed to find a new alternative energy source which is renewable and environmentally friendly. Crude Palm oil is a potential alternative energy source. Currently, Indonesia ranks second in the world as a palm oil producer. In 2006 the total production of palm oil in Indonesia is 16 milion tons; therefore Indonesia has a prospect to be the best palm oil producer in the world in the foreseeable future [2]. Crude palm oil can be processed to produce an alternative energy source to replace gasoline, kerosene and diesel fuel, since palm oil