Industry to industry by-products exchange network towards zero waste in palm oil refining processes

Abstract

This paper presents a systematic framework for optimal utilization of by-products generated during crude palm oil refining processes. Three by-products are considered in the supply chain network: soapstock, palm fatty acid distillate (PFAD) and spent bleaching earth (SBE). These by-products, generated from neutralization, deodorization and bleaching processes, are viable feedstocks to other commercial industries such as animal feed, biodiesel, lubricant and soap. The case study is formulated as Mixed Integer Linear Programming (MILP) and integrated into the framework with the objective to maximize the refinery's profit as well as moving towards a conscious mindset of zero waste. This is the first time that such framework is developed and applied for the palm oil industry. The framework is called as Industry to Industry By-products Exchange Network (I2IBEN). An illustrative case study demonstrates a significant potential profit of MYR182, 893 per month.