new business opportunity for palm oil-based biorefinery

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Denny K. S. NG, PhD, AMIChemE

The University of Nottingham, Malaysia

Global Green Synergy Sdn Bhd, Malaysia

GGS Eco Solutions Sdn Bhd, Malaysia

New Business Opportunity for Palm Oil-based Biorefinery

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Presentation outline

• Introduction

– Oil Palm Biomass

– Palm Oil-based Biorefinery

– Biomass Value Losses

• Systematic Strategy Utilisation and Optimisation of Palm Oil-based Biorefinery

• Synthesis of Oil Palm Biomass Supply Chain

• Conclusion

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(MPOB, 2011)

Palm Oil Industry

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*Based on 83.92 million tonnes FFB proceed in 2010

Biomass available from Palm Oil Industry

% from FFB*Quantity

(106 tonnes)

Empty Fruit Brunch (EFB) 23 19.30

Mesocape Fiber 13 10.90

Palm Kernel Shell 6 5.04

Palm Oil Mill Effluent (POME)

60 50.35

Palm Oil Industry

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Malaysia Palm Oil industry is producing 19 millions metric tons of empty fruit brunch (EFB) yearly.

Left as waste

Most of the times

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Most of mill owners send EFB to landfill.

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Types of oil palm biomass

Mesocarp

Palm Kernel Cake Palm Kernel Shell

POME

Empty Fruit Bunch

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Palm Oil-based Biorefinery

• Processing facility that transform oil palm biomassinto any value-added products.

– Biofuels

– Biomaterials

– Specialty chemicals

– Pharmaceuticals

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• First generation– Direct heat & power generation via biomass boiler

– Dried Long Fiber

– Palm Briquette

– Palm Pellet

– Bio-Organic Compost

– Biogas

Footsteps of Palm Oil-based Biorefinery

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Palm Briquette

• An ideal green fuel which substitutes the conventional fossil fuels such as coal

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Palm Pellet

• Ideal Green Fuel for Power Plant• High Calorific Value • Bulk handling for Export Market

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Palm Compost

• “ Zero” Waste Discharge concept in Palm Oil Mill

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Bio-Charcoal

TorrefiedPalm Pellet

Palm BasedLiquid Fertilizer

Bio-Organic Compost

Fiber MatDried Long Fiber

Palm Briquette

Source: Global Green Synergy

Palm Pellet

Palm Kernel Shell

Products of Palm Oil-based Biorefinery

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Footsteps of Palm Oil-based Biorefinery

• Second generation– Biofuels (e.g., biodiesel, gasoline)

– Biochemicals (e.g., ethanol, butanols)

– High value products (e.g., fuel additives)

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Value-added products

Biodiesel Biomass Boiler Briquette

Fiber Pallet

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Palm

Oil

Biomass

Valuable

Products

NO SYSTEMATIC ANALYSIS &

OPTIMISATION TOOLS

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Objectives

� Systematic analysis for synthesis of palm oil-based

biorefinery

� Optimisation of biomass utilisation

� Minimise biomass value losses & environmental impact

� Development for sustainable manufacturing

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Optimisation Model

i = NSOURCE

Source

j = 1

j = 2

j = 3

j = NPROCESS

Process

/ Sink

p = 1

p = 2

p = 3

p = NINTER

Intermediate

j = 1

j = 2

j = 3

j = NPROCESS

Process

/Sink

p' = 1

p' = 2

p' = 3

p' = NPRODUCT

i = 1

i = 2

i = 3

Product

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Objectives

Maximise

•Economic Potential

•Revenue

Minimise

•Biomass Losses

•Environmental Impact

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Optimisation Result

• Decision making

• Strategy utilisation of biomass for MAXIMUM profit and MINIMUM losess

• Sustainable manufacturing

• Promotion of palm oil industry as GREEN industry

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Objectives

• Linkage of all palm oil products in an efficient network

• Future business expansion planning

• Decision making guidelines

• For marketing / promotions on greener production

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Tools used

Mathematical Programming

(MP)

Geographical Information System

(GIS)

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Geographical Information System (GIS)

14

Map

Quantities

Impacts

Changes

…

Location

Densities

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Location of the biomass sources

Transportation and infrastructure

Potential customer & market

Stage 1 (Data Analysis)

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Stage 2 (Utilisation of Palm Oil Biomass)

site

route

production

What, How, Who, Where?

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Stage 3 (Malaysia oil palm biomass & products supply chain)

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Outcome

�Existing processes – provide the most optimum processing options

– Processing options include:

• Transportation route

• Raw material supply

• Infrastructure type…

�New business expansion – provide the optimum options for decision making

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Conclusion

• Palm oil biomass is the “BIOMASS KING” in Malaysia

• Systematic strategy utilisation and optimisation of palm oil biomass

– Reduce biomass value losses & increase profit

– Sustainable manufacturing

– Promote GREEN industry

• Biomass supply Chain

– Most optimum processing options

– New business expansion

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Contact Details:

Denny.Ng@nottingham.edu.my