Introduction to Agarwood & Oil Extraction

1. Introduction to Agarwood & Essential Oil Extraction

What is Agarwood?

Agarwood, also known as oud, is a highly valuable aromatic resin that forms in the heartwood of Aquilaria trees when they are naturally or artificially infected by fungi or other stressors. The most commonly used species for resin production include:

  • Aquilaria malaccensis
  • Aquilaria filaria
  • Aquilaria cumingiana

When the tree is wounded or stressed (biotically or abiotically), it produces a dark, fragrant resin as a defensive mechanism. This resin-impregnated wood is known as agarwood.


Why is Agarwood Valuable?

  • It is one of the most expensive natural raw materials in the world.
  • Used extensively in:
    • Luxury perfumery
    • Religious ceremonies (incense)
    • Traditional medicine
    • Cosmetics and personal care

High-grade agarwood essential oil, called oud oil, can sell for USD $10,000 or more per liter, depending on purity and origin.


Why Extract Essential Oil from Agarwood?

The essential oil is considered the purest and most concentrated form of agarwood aroma. It has higher economic and sensory value compared to chips.

Key Benefits:

  • Concentrated value: High price-to-volume ratio
  • Ease of transport and trade (compared to bulky chips)
  • Global demand from:
    • France (niche perfumeries)
    • Middle East (oud culture)
    • China, Korea, Japan (medicinal use)

What is Essential Oil Extraction?

Essential oil extraction is the process of separating volatile aromatic compounds from agarwood using heat and/or pressure.

The main methods include:

  1. Hydrodistillation (most traditional and common for agarwood)
  2. Steam distillation
  3. CO₂ supercritical extraction (modern, high-tech)
  4. Solvent extraction (less common for oud oil)

Focus of This Course: Hydrodistillation

Hydrodistillation is the process of boiling agarwood in water, then condensing the steam to isolate the oil.

Why use hydrodistillation?

  • Simple and low-tech
  • Suitable for rural settings
  • No need for pressurized equipment
  • Produces traditional-style oud oil appreciated in the Middle East

Learning Objectives for This Module:

  • Understand the origin and value of agarwood
  • Learn why essential oil extraction is a profitable venture
  • Get familiar with hydrodistillation as a processing method
  • Prepare for hands-on application in succeeding modules

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