Circular Economy Applications in Oil Palm Mills

MOSTA CLIMATE CHANGE WEBINAR

Ir. Dr. Mohd Shiraz Aris, Sime Darby Plantation Research Sdn Bhd
Wednesday, 13 April 2022
Presentation Outline

1. Waste Management
2. Circular Economy
3. Circular BioEconomy
4. Challenges in Circular BioEconomy
5. Malaysia in Circular BioEconomy
6. Circular BioEconomy in the Oil Palm Industry
7. Summary and Way Forward
 Waste Management
Options for managing wastes

Correlation between economic

growth and the growing amounts
of materials that end up as waste

What are the environmental,

economic and social
consequences ?

What is the intensity and nature of

these consequences ?

https://www.oecd-ilibrary.org/sites/f5670a8d-en/index.html?itemId=/content/component/f5670a8d-en
Circular Economy
Linear vs Circular

Energy
Waste &
A model of production, consumption, &
Production Distribution Use Disposal Emission
waste management Material
Leakage
Input

Sharing, leasing, reusing, repairing,

refurbishing and recycling existing materials
and products as long as possible

A symbiotic relationship between Components of Circular Economy

business, environment and social

Resource flows
Narrow Reducing resource use
responsibility and/or using materials that
are more renewable and with
Built on the drive to utilize waste Slowing less environmental impacts
Circular Closing
and optimize resources Reusing materials
Economy
from the post-use
goods via recycling
Foundation

The building blocks of a circular

Renewable Non-toxic Extending the
economy promotes the idea of Materials
Energy utilisation period of
“living harmoniously with nature”
goods
 Circular Economy
Global commitments

100% by 2030 100% by 2025 25% current

100% by 2025 25-100% by

2025 100% current

25% by 2025 25% current

https://www.oecd-ilibrary.org/sites/f5670a8d-en/index.html?itemId=/content/component/f5670a8d-en
Circular BioEconomy
Integrating circular economy principles into the bioeconomy

Biomass produces renewable biofuels, bioproducts, and

biopower for economic, environmental, and social benefits

Circular bioeconomy balances livelihood and nature

Circular Bioeconomy

A transformation of the traditional plantation business

into a comprehensive system to “give and receive” Sustainable
Replacing production Generating
fossil-based and minimum
resources with consumption amount of
biological waste
Technology have made it possible to valorise waste resources
streams and create new business opportunities
Challenges in Circular BioEconomy
Circular Bioeconomy Implementation Pain-points
Challenges in Implementing Circular Bioeconomy
Cost of technology

Heavy investments and lengthy development

time frame towards commercial readiness of
solutions

Solutions within Reach

CO2 sequestration from flue gas Zero discharge of mill and refinery
(via algae farming) effluent

Utilisation of biomass for bio-

Virtual mills and refineries
based products production

Upgrading talent & skills of plantation Full/Semi autonomous systems in

fertilizing, pesticide application and
workers in IR 4.0 skill sets
fruit bunch harvesting and
evacuation
 Malaysia in Circular BioEconomy
Where are we headed

Malaysia produces fossil fuel plastic product, with the

sales turnover of RM48.46 billion and RM13.3 billion
export in 2020

The recycling rate in Malaysia was at 28.1% in

2019 and is predicted t achieve 40% in 2025

Malaysia’s Roadmap Towards Zero-Single Use

Plastics by 2030

Palm Oil industry efforts on net zero: (a) deforestation

management, (b) CO2/CH4 emission control in
• https://www.mida.gov.my/circular-economy-where-are-we-now-and-how-do-we-even-begin/ processing and (c) carbon sequestration
• Malaysian Plastics Manufacturers Association Annual Report 2020
• https://www.mpocc.org.my/mspo-bogs/net-zero-palm-oil-malaysia
Circular Bioeconomy in the Palm Oil Industry
Current practices and explorable solutions

Treated water Biogas Electricity

Water Course Sell

EFFLUENT
TREATMENT PLANT BIOGAS PLANT

COMPOSTING PLANT Fiber & shell

BOILER
Rain

POME
Water
Compost EFB

PALM OIL MILL PALM OIL REFINERY

OIL PALM PLANTATION EFB Electricity

OIL PALM Refined

oils
Fuel PLANTATION FFB CPO

Kernel
Sludge
Fertiliser Frond & Trunk
oil
Note:
FFB – Fresh fruit bunch Sell
CPO - crude palm oil Biodiesel Kernel oil
EFB – Empty fruit bunch BIODIESEL PLANT
POME – Palm oil mill effluent KERNEL CRUSHING PLANT EFFLUENT TREATMENT PLANT
 Circular Bioeconomy in the Palm Oil Industry
Current practices and explorable solutions
BIOGAS PLANT
Treated water Biogas Electricity
Water Course Sell
EFFLUENT Alternative
RE sales Boiler fuel
TREATMENT PLANT
Shell & decanter Animal Feed /
Bioethanol / cake Other applications
Bioplastics / POME
Estate
Rodent Trunk Biohydrogen EFB Fiber & shell mechanization
control BOILER
Rain

POME
Water
Compost EFB Flue gas
Algae farming
Aerial COMPOSTING PLANT
Mapping & PALM OIL MILL
P2P spraying Steam/ PALM OIL REFINERY
OIL PALM PLANTATION EFB
Electricity

OIL PALM Refined

oils
Harvesting
Fuel PLANTATION FFB CPO
and General
Evacuation Kernel use
Frond & Trunk
Sludge Kernel expeller
Fertiliser
oil Animal Feed
Note:
FFB – Fresh fruit bunch Sell
CPO - crude palm oil Biodiesel Kernel oil
EFB – Empty fruit bunch BIODIESEL PLANT Boiler
POME – Palm oil mill effluent KERNEL CRUSHING PLANT EFFLUENT TREATMENT PLANT
Circular Bioeconomy in the Palm Oil Industry
Zero Discharge – boiler make-up water
BIOGAS PLANT
Treated water Biogas Electricity
Water Course Sell
EFFLUENT
TREATMENT PLANT

Boiler Fiber & shell

BOILER

POME
Electro-oxidation (EO)
• Electromagnetic potential, filtration and
chemical dosing PALM OIL MILL PALM OIL REFINERY
• Proprietary technology developed for palm Electricity

oil mills and refinery ETP Refined

oils
• Capable of reaching 0 ppm BOD, colourless,
AN < , TDS <
• Full scale tested for water course discharge Boiler
EFFLUENT
at 20 ppm TREATMENT
• Pilot plant tested for zero discharge PLANT
Circular Bioeconomy in the Palm Oil Industry
Bioenergy from Sludge Oil & Technical Grade
1 Use of B5 in company 4x4 vehicle

2 Sludge oil as feedstock for biodiesel production

3 Use of B5 in estate transportation in Sime Darby

Plantation Selangor & Negeri Sembilan estates

4 B50 and B100 commercial trial in East Estate

PALM OIL MILL PALM OIL REFINERY

OIL PALM PLANTATION PALM OIL
MILL Refined
Fuel FFB CPO oils

Sludge
Sell oil
Biodiesel
BIODIESEL PLANT
Circular Bioeconomy in the Palm Oil Industry
Energy sales and internal utilization

BIOGAS PLANT RE sales

EFFLUENT Biogas Electricity
TREATMENT PLANT
Sell

Alternative
Bioethanol Biohydrogen fuel
Estate
mechanization
Fermentation

POME
Fiber
Trunk Biomass Pre- EFB & shell
treatment BOILER
OIL PALM PLANTATION Aerial
PALM OIL MILL Mapping &
P2P spraying

Steam /
Electricity
Summary and Way Forward

 Circularity promotes internal collaboration and optimizes resources towards a

common goal

 Circular BioEconomy enables a symbiotic space where we prioritize Environment,

Sustainability and Business Needs

 There are many opportunities within the Palm Oil industry to contribute towards a
Circular BioEconomy

 Technology has become available and reasonably priced for potential deployment

 Infrastructure and support is required to close the loop and to ensure a smooth
transition into a new way of operations