In the heart of Malaysia’s palm oil industry, a groundbreaking study is reshaping how mills operate, merging sustainability with economic viability. Led by Siti Naderah Sulin from the Department of Process and Food Engineering at Universiti Putra Malaysia, the research published in ‘Cleaner Environmental Systems’ (formerly known as the Journal of Cleaner Production) offers a blueprint for integrating circular economy principles into palm oil production.
The study simulates and evaluates the techno-economic performance of an integrated palm oil mill (POM) system, focusing on waste management and greenhouse gas (GHG) emissions reduction. By incorporating palm oil mill effluent (POME) treatment, empty fruit bunch (EFB) composting, and residual oil recovery, the research demonstrates significant improvements in both environmental and economic outcomes.
“Our findings show that by combining EFB composting with biogas capture, we can achieve a 53% reduction in CO2 equivalent emissions,” Sulin explains. This integrated approach not only mitigates environmental impact but also boosts revenue by 5% through by-product valorization. The system achieves a positive net present value (NPV) of MYR 75.63 million, an internal rate of return (IRR) of 30.08%, a return on investment (ROI) of 19.20%, and a payback period (PBP) of 5.21 years.
The study highlights the importance of key factors such as the prices of fresh fruit bunches (FFB), crude palm oil (CPO), and the CPO yield in influencing economic performance. These insights are crucial for the energy sector, as they demonstrate the feasibility of transforming waste streams into valuable products like compost, biogas, and recovered oil.
“This research is a game-changer for the palm oil industry,” says Sulin. “It shows that sustainability and profitability can go hand in hand. By adopting circular economy principles, mills can reduce their environmental footprint while improving their bottom line.”
The implications of this research extend beyond the palm oil industry. It sets a precedent for other sectors to explore integrated systems that maximize resource utilization and minimize waste. As the world increasingly focuses on sustainability, studies like this one pave the way for innovative solutions that benefit both the environment and the economy.
In the quest for sustainable energy solutions, this research offers a compelling case for the adoption of circular economy principles. By transforming waste into valuable resources, the palm oil industry can lead the way in creating a more sustainable and profitable future.