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Article
Systematic Approach for Synthesis of Integrated
Palm Oil Processing Complex. Part 1: Single Owner
Rex T. L. Ng, and Denny K. S. Ng
Ind. Eng. Chem. Res., Just Accepted Manuscript • Publication Date (Web): 07 Jun 2013
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Systematic Approach for Synthesis of Integrated
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12 Palm Oil Processing Complex. Part 1: Single Owner
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16 Rex T. L. Ng, †,‡ Denny K. S. Ng*,†
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19 †
20 Department of Chemical and Environmental Engineering / Centre of Excellence for Green
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22 Technologies, University of Nottingham, Malaysia, Broga Road, 43500 Semenyih, Selangor,
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24 Malaysia.
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27 ‡
28 GGS Eco Solutions Sdn Bhd, Wisma Zelan, Suite G.12A & 1.12B, Ground Floor, No 1, Jalan
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30 Tasik Permaisuri 2, Bandar Tun Razak, Cheras, 56000 Kuala Lumpur, Malaysia.
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KEYWORDS
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37 Bioenergy; Integrated biorefinery; Palm oil processing complex; Network synthesis.
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40 ABSTRACT
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44 Throughout the palm oil milling process, fresh fruit bunches are converted into crude palm oil
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47 and large amount of palm-based biomasses are produced as by-products. Processes that convert
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49 palm-based biomass (e.g., empty fruit bunches, palm oil mill effluent etc.) into value added
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51 products via single conversion technology (i.e., thermal, biological and physical conversion
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54 technologies) is well established. However, integrating multiple conversion technologies to
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56 convert palm-based biomasses into value added palm green products (e.g., biofuels, biobased
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chemicals) has not been studied. In this work, a conceptual zone of integrated palm oil
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6 processing complex (POPC) which is owned by single owner is introduced to fully utilise palm-
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8 based biomass for value-added palm green products production and heat and power generation.
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In this work, integrated POPC is defined as a complex which integrates palm oil mill (POM),
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13 palm oil refinery (POR), palm oil-based biorefinery (POB) and combined heat power (CHP) =at
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15 the same site. A systematic generic approach for synthesis and optimisation of integrated POPC
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18 to achieve maximum economic performance is developed and presented in Part 1 of this series.
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20 The optimised network configuration which achieves the targets can also be determined.
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22 Meanwhile, the synthesis and optimisation of integrated POPC which has multiple owners of
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25 those processing facilities is further analysed based on industrial symbiosis concept and will be
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27 presented in Part 2 of this series.
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34 1. INTRODUCTION
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37 According to the American Soybean Association (ASA), palm oil which is produced from oil
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40 palm fruit is the world’s largest vegetable oil consumption in 2011, accounting for 49.6 million
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42 tonnes palm oil out of 150.8 million tonnes vegetable oils consumption.1 Such oil possesses
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44 excellent cooking properties and widely used for food application (e.g., cooking oil, margarine,
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47 shortening, cocoa butter, etc.) or non-food items (e.g., soap, cosmetics, detergents, etc.).2 In
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49 Malaysia, the oil palm planted area reached 5.00 million hectares and total of 92.9 million tonnes
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of oil palm fruit is harvested in 2011.3 Based on the available oil palm fruits, a total of 18.9
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54 million tonnes of crude palm oil (CPO) and 2.1 million tonnes of crude palm kernel oil (CPKO)
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56 are produced.3 In order to produce various value-added products (e.g., cocoa butter equivalent,
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emulsifiers, etc.) from CPO and CPKO, those oils are further processed (e.g., refining,
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6 fractionation, hydrogenation, etc.) in palm oil refinery (POR).
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9 Figure 1 illustrates the typical flow diagram of palm oil mill (POM) process. Upon harvesting,
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12 oil palm fruits, which are also known as fresh fruit bunches (FFBs), are collected from
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14 plantations and processed in POMs. FFBs are first sterilised in order to remove the fruits from
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16 FFBs in stripper. The steam condensate is discharged as wastewater. Meanwhile, empty fruit
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19 bunches (EFBs) are generated. Next, the fruits are being crushed via screw press to extract crude
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21 oil from the fruit. Crude oil is then pumped to a clarification tank and purified for crude palm oil
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23 (CPO) production. Steam condensate, wastewater and sludge from separator and clarification are
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26 discharged as palm oil mill effluent (POME). After that, press cake which produced from screw
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28 press is sent to nut/fibre separator to remove palm mesocarp fibre (PMF) from nut. The nut is
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further cracked in nut cracker and palm kernel shell (PKS) is removed. The remaining palm
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33 kernels are collected and sent to crushing plant, which processes the kernels to produce other oil
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35 products, crude palm kernel oil (CPKO). It is noted that palm-based biomasses (e.g., EFBs,
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38 PMF, PKS, POME, etc.) are produced as waste or by-products throughout the palm oil milling
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40 process as shown in Figure 1. The amounts of palm-based biomass generated may differ from
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42 mills, and estates, as it highly dependent of the quality of FFBs. However, according to Husain et
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45 al.,4 it is estimated that one tonne of FFB produces of 21 % CPO, 6 – 7 % palm kernel, 23 %
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47 EFB, 14 – 15 % PMF, 6 – 7 % PKS.
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Figure 1. Schematic diagram of palm oil mill (POM).
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54 CPO and CPKO are further processed in different processes (e.g., refining, fractionation,
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56 hydrogenation etc.) in order to meet various specifications of palm downstream products (e.g.,
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Cocoa butter equivalent, emulsifiers etc.). Figure 2 illustrates the typical flow diagram of POR
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6 process. As shown in Figure 2, CPO and CPKO can be further refined and fractionated in POR.
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8 CPO can be either refined physically or chemically into Refined, Bleached, and Deodorised palm
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oil (RBDPO) or Neutralised, Bleached Deodorised palm oil (NBDPO) in refining process.
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13 Throughout the refining processes of CPO, palm fatty acid distillate (PFAD) are produced which
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15 can be used as soap, animal food and bio-diesel industries. Moreover, refined palm oil (RBDPO
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18 or NBDPO) is further fractionated to obtain olein (liquid portion) and stearin (solid portion).
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20 While, CPKO is first fractionated to produce crude palm kernel olein (CPKOL) and crude palm
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22 kernel stearin (CPKS). Next, CPKO, CPKOL and CPKS can be further refined physically or
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25 chemically to produce Refined, Bleached, Deodorised palm kernel oil (RBDPKO) or
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27 Neutralised, Bleached Deodorised palm kernel oil (NBDPKO). Besides, RBD/NBD palm kernel
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olein (RBDPKOL/NBDPKOL), RBD/NBD palm kernel stearin (RBDPKS/NBDPKS) and palm
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32 kernel fatty acid distillate (PKFAD) are also produced from the refining process. Note that
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34 during fractionation of RBDPO or NBDPO, olein is the premium product; while in fractionation
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37 of CPKO, stearin is the premium product.2
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40 Figure 2. Schematic diagram of palm oil refinery.
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45 2. MALAYSIA PALM-BASED BIOMASS
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49 With the increasing volume of palm oil production, palm-based biomass is projected to
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51 increase up to 110 million dry tonnes by 2020.5 Palm-based biomass is gaining significant
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attention to improve energy security as Malaysia is highly dependent on fossil oil as an energy
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56 source. To date, there are many mature processes and technologies that convert palm-based
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biomass to value-added palm green products through biological (e.g., anaerobic digestion,
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6 fermentation etc.), physical (e.g., drying, densification and pelletising, separation etc.) and
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8 thermochemical conversions (e.g., combustion, pyrolysis, gasification etc.). For example, POME
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can be treated in anaerobic digestion process to convert organic materials in POME into biogas,
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13 which mainly consists of methane (approximately 60%) and carbon dioxide (approximately
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15 40%). Biogas is then further fed into conversion devices such as an internal combustion engine
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18 for producing electricity or shaft work.6 Meanwhile, dried fibre produced from the drying and
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20 sieving processes of EFB can be used as mattresses, seats, insulation, etc.7 EFB and PKS can
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22 also be converted to solid fuels such as palm briquette or pellet via screw press technology.4,8
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25 Both palm pellet and briquette can be used as replacement or complement to fossil fuels, such as
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27 coal in industrial boiler, residential and commercial heating. Furthermore, PKS and EFB can be
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fed into gasification system, with a controlled supply of oxygen and/or steam to produce
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32 syngas.9,10 Note that syngas can then be used as feedstock for the production of biofuels and
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34 biobased chemicals as well as the source for generation of heat and power. In contrast, PKS and
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37 EFB can also be used as feedstock of pyrolysis process to produce charcoal and bio-oil.11-13 Bio-
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39 oil can be used to substitute liquid fossil fuels for heat and power generation (e.g., to be burned
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41 in diesel engines, turbines and boiler). Besides, it also can be converted to chemicals (e.g.,
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44 organic acids, fertilisers, sugars, etc.).14,15 Based on abovementioned reasons, there is a
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46 continuous increasing interest concerning palm-based biomasses generated from the POM as a
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48 source of renewable energy.
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52 On the other hand, Malaysia government introduced several palm-based biomass strategies in
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54 recent years. Ministry of Energy, Green Technology and Water (KeTTHA) introduced
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Renewable Energy Policy to enhance the utilisation of local renewable energy resources, leading
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to sustainable socio-economic development.16 The policy sets a target of 4000 MW of installed
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6 renewable energy capacity for 2030.5 Apart from that, the feed-in tariff (FiT) is introduced to
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8 help the development of the renewable energy and promote the usage of the renewable energy.
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FiT is a government incentive and it acts as a catalyst for the entry of renewable energy power
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13 generation industries. In addition, Malaysia Innovation Agency (AIM) developed National
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15 Biomass Strategy 2020, to capture the potential of palm-based biomass as a source of growth and
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18 value for the future through innovation. It focuses the development of national clusters in biofuel
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20 and biobased chemicals industries, as well as fulfils the national renewable energy target for
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22 biomass to energy.5 The initial strategy focuses on the palm oil industry; yet, the scope maybe
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25 later extended to include other industries such as wood, rice husk, etc. Most recently, Malaysia
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27 Sixth Prime Minister Datuk Seri Najib Tun Razak announced the 1 Malaysia Biomass
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Alternative Strategy (1MBAS), which strengthen the execution of National Biomass Strategy
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32 2020 and expand the strategy to other sources of biomass such as forestry, municipal waste and
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34 rubber.17 The initiative of 1MBAS is to encourage more local and foreign companies to invest in
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37 the biomass industry, at the same time enhance the development of new industries through
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39 utilisation of biomass. Based on above policies and incentives, Malaysia has made efforts
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41 towards the developments of biomass industries and encourages the utilisation of palm-based
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44 biomass for value-added products production and electricity generation.
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3. INTEGRATED BIOREFINERY
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54 On top of rapid development of different biomass conversion technologies (biological,
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biomass conversion technologies and combined heat and power (CHP) to produce numerous
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6 bioenergy, biobased chemicals and biofuel.18 Integrated biorefinery emerged as noteworthy
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8 concept to integrate several conversion technologies to have more flexibility in product
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generation with energy self-sustained, and reduce the overall cost of the process. Research works
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13 on detailed gasification modelling, process simulation, and process integration in converting
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15 biomass to transportation fuels had been carried out.19-22 In addition, different systematic
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18 approaches were introduced for the screening and selection of technology pathways for
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20 biorefineries, which includes hierarchical approach,23 graphical-based approach,24 mathematical
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22 optimisation approach25-27 and combination of both mathematical optimisation and insight-based
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25 approaches.28-29
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28 Although the concept of integrated biorefinery had been exploited in soybean oil,30 algae,22,31
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switchgrass,21 sewage sludge,32 corn,33,34 hardwood chips35, limited research works had been
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33 done in introducing palm oil-based integrated biorefinery. Ng et al.36 presented a modular
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35 optimisation approach in solving simultaneous process synthesis and heat and power integration
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38 problem in an integrated palm oil-based biorefinery. Kasivisvanathan et al.37 presented the
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40 concept of systematic optimisation approach to retrofit a POM into a sustainable integrated palm
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42 oil-based biorefinery (POB). However, the paper only focuses the integration of heat and power
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45 within POM and palm oil-based biorefinery. In order to facilitate the integration of palm oil
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47 processing facilities, Palm Oil Processing Complex (POPC), a conceptual zone that consists of
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the POM, POB, palm oil refinery (POR) and combined heat and power (CHP) facilities, as
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52 shown in Figure 3, is introduced in this work. By integrating all the processing facilities
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54 simultaneously, the material and energy recovery within integrated POPC can be enhanced. Note
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that FFB is processed in POM to generate CPO; CPO is further processed to palm refined
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products (e.g., PFAD, RBDPO) in refining and fractionation process in POR; palm-based
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6 biomasses are fully utilised by either converting to value-added palm green products (e.g., palm
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8 briquette, palm pellet, dried long fibre) in POB or heat and power in CHP. For instance, palm-
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based biomass can be used for electricity generation for self-consumption within POM, POB and
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13 POR; palm briquette and pellet as feedstock of biomass boiler; dried fibre for mattress
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15 application; biogas for electricity generation; compost for plantation etc.
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19 Figure 3. Conceptual zone integrated Palm Oil Processing Complex (POPC).
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22 In this work, a systematic approach for synthesis and optimisation of integrated POPC is
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developed. Based on the proposed approach, product allocation of biomass to be sold or to
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27 generate heat and power can be determined. In addition, via systematic strategy utilisation of the
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29 biomasses, the biomass value losses can be reduced. The network configuration in integrated
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POPC that achieves the maximum economic performance is determined. Note that the proposed
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34 approach is not limited to palm oil industry and it can be extend to other industries to enhance
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36 the interaction of integrated biorefinery and other processing plants. In this work, a typical palm
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39 oil industry case study is solved to illustrate the proposed approach.
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44 4. PROBLEM STATEMENT
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48 To ease the synthesis and optimisation problem, the model breaks down the integrated POPC
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50 into four blocks (POM, POR, POB and CHP) that interact with each other through material and
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52 energy balances as shown in Figure 4.
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56 Figure 4. Block diagram of the integrated palm oil processing complex (POPC).
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The problem definition of an integrated POPC is stated as follows:
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7 FFB (WFFB) from palm plantation is sent to POM (Block I) to produce palm oil o ∈ O and
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9 palm-based biomass i ∈ I . In POR (Block II), palm oil o ∈ O from POM is sent to refinery
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12 processes to produce refined product p ∈ P via technology b∈ B . While in POB (Block III),
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14 palm-based biomass i ∈ I is sent to technology j ∈ J to produce intermediate k ∈ K . The
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17 intermediate k ∈ K is then upgraded to palm green product q ∈ Q via technology j '∈ J ' . Other
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19 than producing intermediate k and palm green product q ∈ Q , primary energy e ∈ E (i.e.,
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22 biogas) and secondary energy e'∈ E' (i.e., medium or low pressure steams and electricity) can be
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24 generated from technologies g ∈ G and g '∈ G ' in CHP (Block IV). Note that the conversion of
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27 palm-based biomass is normalised to continuous production. This normalisation also reflects the
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29 application of sequential batch processing in order to supply consistent amount of intermediates
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32 and products.
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35 5. PROBLEM FORMULATION
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In this approach, integrated POPC is categorised into four models: POM, POR, POB and CHP.
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41 Figure 5 shows the allocation of palm-based biomass i can be sent to POB or CHP via
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43 technology j, j', g, g' to produce intermediate k, final palm green product q, primary energy e and
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45 BIO INT
46 secondary energy e'. The mass flowrate of palm-based biomass Wi , intermediate Wk and
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49 palm green product WqPR , is used to track and determine the detailed allocations of materials and
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51 products for the POB. In the following section, detail formulation of the proposed model is
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54 presented.
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57 Figure 5. Generic superstructure of Block III and Block IV.36
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5.1. Material Balance. 5.1.1. Palm Oil Mill (Block I). FFB with flowrate WFFB is sent to
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OIL BIO
6 POM and converted to palm oil o and palm-based biomass i at the conversion of Xo and Xi ,
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9 respectively:
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12 WoOIL = W FFBXOIL
o ∀o (1)
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16 Wi BIO = W FFBXiBIO ∀i (2)
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20 BIO
As shown in Figure 5, it is noted that each palm-based biomass i with flowrate Wi is split
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23 into the potential technology j in POB with the flowrate of W ijI and potential technology g in
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26 CHP with the flowrate of W igI .
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J G
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31 Wi BIO = ∑WijI + ∑WigI ∀i (3)
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35 OIL
5.1.2. Palm Oil Refinery (Block II). Palm oil with the flowrate Wo is split into the potential
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38 OIL
technology b (e.g., refining, hydrogenation etc.) with the flowrate of Wob :
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42 B
43 WoOIL = ∑WobOIL ∀o (4)
44 b=1
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WobOIL is then processed in technology b to produce palm refined product p at the conversion
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50 rate of X OIL
obp .
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54 O
55 WbpOIL = ∑WobOILXOIL
obp ∀b ∀p (5)
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4 The total production rate of palm refined product W pPR is given as:
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7 B
8 WpPR = ∑WbpOIL ∀p (6)
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b=1
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13 5.1.3. Palm Oil-based Biorefinery (Block III).
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16 Palm-based biomass i is converted to intermediate k via technology j at the production rate of
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19 W jkI , with given conversion of Xijk
I
.
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22 I
23 W jkI = ∑WijI X ijk
I
∀j ∀k (7)
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i =1
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28 The total production rate of intermediate k is given as:
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31 J
32 W k
INT
= ∑W jkI ∀k (8)
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37 Next, the intermediate k can be distributed to potential technology j' to produce palm green
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39 product q. The splitting constraint of intermediate k is written as:
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42 J'
43 WkINT = ∑WkjII' ∀k (9)
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48 Palm green product q can be determined by converting intermediate k at the conversion rate of
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50 X IIkj 'q via the technology j'.
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54 K

55 W jII'q = ∑WkjII' X IIkj 'q ∀j ' ∀q (10)

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The total production rate of palm green product q is written as:
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J'
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8 W q
PR
= ∑W jII'q ∀q (11)
9 j '=1
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12 Note that palm-based biomass i and intermediate k are allowed to by-pass technologies j and j'
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15 via a “blank” technology in the circumstances where no technology is required to produce
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17 intermediate k or desired final palm green product q without any conversion.
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20 5.1.4. Combined Heat and Power (Block IV). In CHP (Block IV), palm-based biomass i is
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Gen-CHP
23 converted to energy e via technology g at the production rate of Ee , with given conversion
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25 I
26 of Yige . The production rate of energy e is given as:
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29 I
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EgeI = ∑WigI Yige
I
∀g ∀e (12)
i =1
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G
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36 E eGen -CHP = ∑E geI ∀e (13)
37 g =1

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40 Primary energy e such as biogas is needed to convert into other forms of energy (e.g.,
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42 Gen-CHP
43 electricity) via technology g' , Ee is split and further converted to secondary energy e' via
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46 technology g' with conversion of YegII 'e' . The splitting constraint of energy e is written as:
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49 G'
50 EeGen-CHP = ∑ EegGen'-CHP ∀e (14)
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55 The total production rate of secondary energy e' through upgrading technology g' is written as:
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4 E gII'e ' = ∑ EegGen'-CHP YegII 'e ' ∀g ' ∀e' (15)
5 e=1
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G'
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10 E Gen
e' =E Gen-CHP
e' = ∑EgII'e' ∀e' (16)
11 g '=1
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14 In order to reduce the complexity of model, all energy correlation in this case study focuses on
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17 secondary energy e'. In case where primary energy e (e.g., HPS in POB and MPS in POM) is
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19 required in integrated POPC, primary energy e is allowed to by-pass technologies g' or h' via a
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“blank” process where no conversion occurs. Thus, primary energy e is equal to secondary
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24 energy e'.
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27 Con − POB
5.2. Energy Balance. The energy consumption in POB, Ee ' is determined based on the
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30 energy consumed in technologies j and j' with the conversions of YeI'ijk and YeII'kj 'q , respectively.
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33 The total energy consumption in POB is determined as:
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( ) ( )
K J Q J'
37 EeCon
'
- POB
= ∑∑ WkINT YeI'ijk + ∑∑ WqPR YeII'kj 'q ∀ e' (17)
38 k =1 j =1 q =1 j '=1
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Con
42 The total energy consumption Ee' is determined based on the energy consumed in POM
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45 (EeCon
'
-POM
) , POR ( EeCon
'
-POR
) and POB ( EeCon
'
-POB
) . The total energy consumption is determined
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48 as:
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51 EeCon
' = EeCon
'
-POM
+ EeCon
'
-POR
+ EeCon
'
-POB
∀ e' (18)
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3 Exp
4 In an integrated POPC, the excess energy Ee' can be sold and exported to any third party
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plants if the total energy generation exceeds the total energy consumption ( Ee' > Ee' ) . In
Gen Con
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9 Imp
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contrast, external energy importation ( Ee ' ) is needed for the synthesised integrated POM
11
12 ( EeImp-POM
) , POR ( EeImp-POR
) and POB ( EeImp-POB
) . if the total energy generated is insufficient for
13 ' ' '

14
15 the total consumption ( Ee' < Ee' ) . Ee' is determined as:
Gen Con Imp
16
17
18
19 EeImp
' = EeImp
'
-POM
+ EeImp
'
-POR
+ EeImp
'
-POB
∀ e' (19)
20
21
22
23 To determine the import or export energy e', the energy correlation can be written as:
24
25
26
27 EeCon
' = EeGen
' + EeImp
' − Ee'
Exp
∀ e' (20)
28
29
30 5.3. Economic Analysis. In order to perform economic analysis of an integrated POPC, gross
31
32
33 profit (GP) is determined by revenue obtained from final palm refined products, palm green
34
35 products and export energy subtract the import energy, cost of raw materials (e.g., FFB),
36
37 processing, power and heat generation. Equation 21 shows GP of an integrated POPC.
38
39
40
41  P Q E' E' 
 W PR CPR + W PR CPR + E ExpCExp − E ImpC Imp 
42
43
∑
 p =1 p p ∑
q =1
q q ∑
e'=1
e' e' ∑
e ' =1
e' e'

44  K J

 P B
Proc 
45 GP = AOT  − W CFFB − W CFFB − ∑∑Wbp Cbp − ∑∑W jk C jk 
FFB Raw FFB Proc OIL Proc I
(21)
46 p =1 b =1
47  k =1 j =1

48  Q J ' II Proc E G I Proc E ' G ' II Proc 
49  − ∑∑W j ' q C j ' q − ∑∑ Ege C ge − ∑∑ Eg ' e ' C g ' e ' 
50  q =1 j ' =1 e =1 g = 1 e ' =1 g ' =1 
51
52
53
54 where AOT is annual operating time, C PR
p and C PR
q are selling price of palm refined and palm
55
56 Exp Imp
57
green products, Ce' and Ce' are energy export and import costs, C Raw
FFB is raw material cost of
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2
3 Proc
4 FFB, C Proc Proc
FFB and Cob are processing cost of POM and technology b per unit oil o. C jk and C Proc
j 'q
5
6
7 are processing cost of technologies j and j' per unit k and q, respectively. C Proc
ge and C Proc
g 'e ' are
8
9 processing cost of technologies g and g' per unit energy e and e', respectively.
10
11
12
13
14
15 In this work, net present value (NPV) is used to determine the economic performance of an
16
17
integrated POPC’s profit or loss over its operational lifespan. The NPV is expressed in following
18
19
20 equation:
21
22
23
24 NPV = ∑
t max
[GP × (1 − TAX) + DEP × TAX − HEDGE + GOV] (22)
25 t (1 + ROR )t
26
27
28
29
where GP is gross profit, TAX and DEP are the marginal tax rate and depreciation rate,
30
31 respectively. HEDGE and GOV are expenses associated with hedging against catastrophic
32
33 market actions and net benefits realised through governmental incentives or penalties,
34
35
36 respectively. tmax is the operating lifespan and ROR is the expected rate of return.
37
38
39 It is further assumed that the main factor of economic performance is based on GP, thus,
40
41 Equation 23 can be simplified to:
42
43
44
t max
45 GP
46 NPV = ∑ (23)
47 t (1 + ROR) t
48
49
50 In addition, payback period (PP) is calculated to determine the length of time required to
51
52
recover the total investment cost. The constraint of PP can be introduced in order to constrain the
53
54
55 extent of the optimisation model. PP is expressed as total cost of investment over GP and it is
56
57 showed in following equation:
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3
 FFB Cap P B OIL Cap K J I Cap Q J ' II Cap 
4 W C FFB + ∑∑Wbp Cbp + ∑∑W jk C jk + ∑∑W j 'q C j 'q 
5  
p =1 b =1 k =1 j =1 q =1 j '=1
6 AOT  E G E ' G' 
7
 + ∑∑ E geI C Cap + ∑∑ E II
C Cap
+ C Cap- Fixed 
8  ge g 'e ' g 'e ' 
9 PP =  e =1 g =1 e ' =1 g ' =1 
(24)
10 GP
11
12
13
14 where CCap Cap Cap Cap Cap Cap
FFB , C bp , C jk , C j 'q , C ge and C g 'e ' are capital investment of POM, technology b per
15
16
17
unit flowrate of p produced, technology j per unit flowrate of k produced, technology j' per unit
18
19 flowrate of q produced, technology g per unit energy e generated and technology g per unit
20
21 Cap-Fixed
22 energy e' generated, respectively; while C is fixed capital cost needed to be invested in
23
24 integrated POPC which including industrial land, vehicles, building, etc.
25
26
27
28
29
30 6. CASE STUDY
31
32
33
34
A POM with a capacity of 80 t/h of FFB is solved to illustrate the proposed approach. In this
35
36 study, it is assumed only CPO is to be further processed and the capacity of POR is then
37
38 designed according to the availability of CPO produced from POM. Physical refining process is
39
40
41 carried out in order to purify the CPO. EFB, PKS, POME and PMF are identified as the potential
42
43 palm-based biomass feedstock for production of value added palm green products, such as dried
44
45 long fibre (DLF), pellet, briquette, char coal, compost etc. Figure 6 illustrates the normalised
46
47
48 mass balance of the POM and POR. Note that 1 tonne of FFB produces 200 kg CPO, 23 kg EFB,
49
50 60 kg PKS, 600 kg POME and 130 kg PMF.4 Based on interview with industrial partner, for
51
52 every 100 kg of CPO, it produces 76 kg RBDPOL, 19 kg RBDPS and 5 kg palm fatty acid
53
54
55 distillate (PFAD). To sustain the energy requirement of POM, POR and POB, energy is
56
57 generated from the palm-based biomass.
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Figure 6. Product conversion of Block I and Block II.
4
5
6
7 Figure 7 shows the superstructure of case study with all the potential pathways for converting
8
9 palm-based biomass i into palm green product q (pellet, DLF, briquette, PKS charcoal and
10
11
12 compost) and energy e' (steam and electricity). Note that throughout the processing of EFB into
13
14 DLF, short fibre (SF) is produced. SF can be further processed to valuable products through
15
16 pelletising, briquetting or fermentation process. Meanwhile, PKS can be sent to carbonisation to
17
18
19 produce PKS-charcoal as final product. POME either can be fermented with EFB and short fibre
20
21 to produce compost or can be sent to anaerobic digester for biogas production. Unutilised POME
22
23 has to be treated in existing pond system before discharge into environment and remaining PKS
24
25
26 can be trade directly to market. It is assumed that fermentation and anaerobic digestion processes
27
28 are normalised into production rate based on hourly basis. This normalisation also reflects the
29
30
31
application of sequential batch processing of anaerobic digestion in POB in order to supply
32
33 consistent amount of biogas. According to Figure 7, palm-based biomass i can be processed via
34
35 single technology to produce pellet, briquette, charcoal, and compost by by-passing the next
36
37
38 technology; While two stages of conversion (e.g., separation and drying (technology j) and DLF
39
40 processing (technology j') are needed in DLF production. On the other hand, palm-based biomass
41
42 i can also be converted into high pressure steam (HPS) at 40 bar, 400ºC or biogas via technology
43
44
45 g and sent to upgrading technology g' for production of electricity and medium pressure steam
46
47 (MPS) at 12 bar, 250ºC or low pressure steam (LPS) 4 bar, 145 ºC.
48
49
50
Figure 7. Superstructure of case study.
51
52
53
54 In this study, it is assumed that AOT is given as 8000 h and the processing facility is designed
55
56 based on an operating life-span of 15 years. The expected rate of return (ROR) is given as 15%.
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In case where ROR is lower than 15%, the stakeholder will not be interested in investing the
4
5
6 project. The price of raw material, palm refined product, palm green product, and energy, the
7
8 mass conversion factor, economic data (including capital and operating costs) and energy
9
10
11
consumption (electricity and steam) for each technology are shown in Table A – D in supporting
12
13 information. Note that information given in supporting information is collected through the
14
15 interview with industry partners.
16
17
18
19 In order to maintain the boiler efficiency, the moisture content of palm-based biomasses which
20
21 feeds into boiler (g = 2) has to be less than 40 % as shown in Equations 25 and 26. Both
22
23 equations can be linearised by simplifying both equations into Equation 27.
24
25
26
I I
27
28 MC overall × ∑WigI = ∑ MCiWigI g=2 (25)
29 i=1 i =1
30
31
32 MC overall ≤ 0.4 (26)
33
34
35
36 I I
37 0.4 × ∑WigI ≥ ∑ MCiWigI g=2 (27)
38 i=1 i =1
39
40
41
42 where MCi is moisture content of each palm-based biomass.
43
44
45 The amount of HPS produced from boilers in CHP can be determined in following equation:
46
47
48
( )
I
49 η boiler × ∑ (1 − MC i ) W igI CVi
50 Gen − CHP i =1
E HPS = g=2 (28)
51 H T = 400 ° C, P = 40bar − H T =100 ° C, P =1bar
52
53
54
55
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4 where nominator term is boiler efficiency ηboiler multiplies with calorific value (CV) of dry
5
6 biomass mixtures fed into boiler; while denominator term is enthalpy H of HPS in CHP or MPS
7
8
9 in POM subtract the enthalpy H of feed water at 1 bar, 100ºC. Based on the collected industry
10
11 data, the boiler efficiency of both palm-based biomass boilers in CHP and POM is given as 55%
12
13
14
Based on the collected information from the industry, production capacity of each technology
15
16
17 is rounded to the nearest integer of the production rate. Meanwhile, total capital cost of
18
19 technology in supporting information (Table C) is also normalised based on production capacity
20
21 Gen-CHP
22 of each technology. Therefore, variables of WqPR and Ee' are limited to only integer values
23
24
25
except palm-based biomass combustion and steam turbine. There is a possibility of unutilised
26
27 EFB in optimised configuration as the production rate of palm green product and secondary
28
29 energy are limited to integer values. In order to fully utilise all palm-based biomass, the excess
30
31
32 EFB will then be used as feedstock of boiler for steam and electricity generation. In this case
33
34 study, the capital cost of the boiler with steam turbine is based on design capacity of 5 MW
35
36 electricity. Therefore, in case where the total amount of electricity produces from steam turbine
37
38
39 is lower than 5 MW, the capital cost is still remain as USD 2,500,000, which is similar with
40
41 5MW electricity power plant. Note that the design capacity of pellet, DLF, briquette, PKS
42
43
44
charcoal, compost and anaerobic digester with biogas system are fixed and their capital cost are
45
46 based on production capacity of 2 t/h pellet, 1 t/h DLF, 3 t/h briquette, 1 t/h PKS charcoal, 1t/h
47
48 compost and 1 MW electricity, respectively.
49
50
51
52 To demonstrate the robustness of the proposed work, two scenarios are taken into
53
54 consideration for this case study. In the first scenario, design of integrated POB and CHP (Block
55
56 III and Block IV) is presented; while, design of an integrated POPC (Block I, Block II, Block III
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3
and Block IV) is presented in Scenario 2. Figure 8 shows the block diagram of both scenarios.
4
5
6 MILP models for both scenarios are solved by maximise NPV via LINGO v10 in HP Compaq
7
8 6200 Elite Small Form Factor with Intel® Core™ i5-2400 Processor (3.10 GHz) and 4GB DDR3
9
10
11
RAM. Summary of both scenarios are tabulated in Tables 1 and 2.
12
13
14 Figure 8. Block diagram of different scenarios.
15
16
17 Table 1: Summary of Case Study.
18
19
20
21 Table 2: Detail of Case Study.
22
23
24 6.1. Scenario 1. In Scenario 1, it is assumed that POM owner would like to implement new
25
26
27
POB and CHP (Block III and Block IV) near to the POM. Therefore, variables and parameters
28
ProcProc
Con-POM Con-POR Imp-POM Imp-POR Raw
29 related to POM and POR (e.g., CFFB , Cb , Ee' , Ee' , Ee' , Ee' , W pPR , CFFB ,
30
31
32 Raw Cap Cap
COIL , W OIL , CFFB , Cb ) are assumed to be zero. In addition, raw material cost of palm-based
33
34
35 BIO Raw
biomass ( Ci ) is replacing raw material cost of FFB ( CFFB ) as input and Equation 21 is revised
36
37
38 as:
39
40
41
 Q PR PR E ' Exp Exp E ' Imp Imp 
42  ∑Wq C q + ∑ Ee ' C e ' − ∑ Ee ' C e ' 
43  q=1 
e '=1 e '=1
44  I 
K J Q J'
45

GP = AOT − ∑Wi Ci − ∑∑W jk C jk − ∑∑W j 'q C j 'q
BIO BIO I Proc II Proc 
(29)
46
 i =1 k =1 j =1 q =1 j '=1

47
48
 
 E G I Proc E ' G ' II Proc 
49
 − ∑∑ E ge C ge − ∑∑ E g 'e ' C g 'e ' 
50  e=1 g =1 e '=1 g '=1 
51
52
53
54 Furthermore, all steams and electricity are required to sustain both POB and CHP
55
56 consumption. Thus, additional constraint (Equation 30) is added in the optimisation model.
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4 EeGen
' > EeCon
' ∀ e' (30)
5
6
7 In order to linearise the model, a minimum payback period of an integrated biorefinery with
8
9
10 CHP is added. In this scenario, payback period is assumed to be less or equal three years. Based
11
12 on this assumption, Equation 24 is modified and given as:
13
14
15
 K J Q J'

16  ∑∑ W jkI C Cap
jk + ∑∑ W jII'q C Capj 'q 
17  k =1 j =1 q =1 j '=1 
18 3 × GP ≥ AOT  E G E' G'  (31)
19  + ∑∑ E geI C Cap + ∑∑ E II
C Cap
+ C Cap -Fixed 
20  ge g 'e ' g 'e ' 
21  e =1 g =1 e '=1 g '=1 
22
23
24 A MILP model for Scenario 1 (Equations 1 – 20, 23, 25 – 31) is solved by maximising NPV.
25
26 Based on the optimised result, the summary is listed in Tables 1 and 2. Note that the maximum
27
28
29 NPV of Scenario 1 is located as USD 29.52 million over its operational lifespan (15 years) with
30
31 GP of USD 4.31 million per year and payback period of 1.93 years. Note also that 80 t/h of FFB
32
33
34
is sent to POM and produced 18.40 t/h EFB, 4.80 PKS, 48.00 t/h POME and 10.40 t/h PMF. In
35
36 this scenario, DLF and compost production pathways are selected to produce palm green
37
38 products in POB. The optimal network configuration of Scenario 1 is showed in Figure 9. Based
39
40
41 on Tables 1 and 2, 17.96 t/h of fresh EFB and 12.49 t/h fresh POME are utilised to produce DLF
42
43 and compost at the capacity of 5.00 t/h and 3.00 t/h, respectively. 0.91 t/h of unutilised PKS is to
44
45 be sold to biomass boiler owner. The remaining 35.51 t/h of unutilised POME is sent to existing
46
47
48 pond system in POM. Based on the result, 17.50 t/h MPS and 10.50 t/h LPS are required in POB
49
50 to fulfil the energy requirement.
51
52
53
Figure 9. Optimised pathway for scenario 1.
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In CHP, all SF collected from DLF production is fully utilised for combustion in boiler.
4
5
6 Besides, 10.40 t/h PMF is mixed with 0.44 t/h EFB, 4.15 t/h SF and 3.89 t/h PKS to achieve an
7
8 overall moisture content equal or less than 40% before feeding to the boiler for generation of
9
10
11
43.75 t/h HPS. The pressure of HPS is then reduced via steam turbine to generate 3.89 MW of
12
13 electricity. At the same time, 17.50 t/h MPS and 26.25 t/h LPS are produced. It is noted that 1.50
14
15 MW of electricity is used for self-consumption within the entire POB. As there is excess of
16
17
18 electricity, additional electricity generated from biogas through gas engine is not required. The
19
20 excess of 2.39 MW of electricity can then be exported for any external demands.
21
22
23 6.2. Scenario 2. In Scenario 2, an integrated POPC is synthesised. It is assumed that new
24
25
26 POR, POB and CHP are to be constructed in existing POM. It is further assumed that the design
27
28 of POB and CHP is only required to supply sufficient electricity to whole integrated POPC and
29
30
31
export of electricity is considered only there are excess electricity produced. Thus, Equation 30 is
32
33 included in this scenario. In addition, steam required in POR can be supplied from existing
34
35 boilers available in POR. Since the existing POM is not taken into consideration in this scenario,
36
37
38 ( )
Proc
( )
Raw
the processing cost CFFB , raw material cost CFFB and capital cost of existing POM CFFB are ( )Cap

39
40 BIO
41 assumed to be zero and raw material cost of palm-based biomass ( Ci ) is considered. It is note
42
43 that the revenue gained from POM is excluded in this model as palm-based biomass material
44
45
46 cost is considered in both POB and CHP; while CPO material cost is considered in POR. Thus
47
48 GP is modified as:
49
50
51
52
53
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 P PR PR Q PR PR E ' Exp Exp E ' Imp Imp O OIL OIL 
4  ∑ W p C p + ∑ Wq C q + ∑ Ee ' C e ' − ∑ Ee ' C e ' − ∑ Wo C o 
5  p=1 
q =1 e '=1 e '=1 o =1
6
 I P B J I J' K 
7

GP = AOT − ∑ Wi Ci − ∑∑ Wbp Cbp − ∑∑ Wij Cij − ∑∑ Wkj ' C kj '
BIO BIO OIL Proc I Proc II Proc  (32)
8
9
 i =1 p =1 b =1 j =1 i =1 j '=1 k =1 
10
 G I G' E

− 
 ∑∑ Wig Cig − ∑∑ Eeg '
I Proc Gen-CHP Proc
11 C eg ' 
12  g =1 i =1 g '=1 e=1 
13
14
15
16
Besides, payback period of integrated POPC is assumed to be less or equal to five years.
17
18 Equation 24 is modified and given as:
19
20
21
 P B OIL Cap K J Q J'

22  ∑∑ Wbp C bp + ∑∑ W jkI C Cap jk + ∑ ∑ j 'q 
W jII'q C Cap
23  p =1 b=1 k =1 j =1 q =1 j '=1 
24 5 × GP ≥ AOT  E G E' G'  (33)
25  + ∑∑ E geI C Cap + ∑∑ E II
C Cap
+ C Cap-Fixed 
26  ge g 'e ' g 'e ' 
 e=1 g =1 e '=1 g '=1 
27
28
29
30 The optimisation model for Scenario 2 is solved by maximising NPV with the constraints in
31
32 Equations 1 – 20, 23, 25 – 28, 30, 32 – 33. The maximum NPV is targeted as USD 43.15 million
33
34
35 with GP of USD 6.05 million per year and its payback period is around 3.17 years. The
36
37 optimised production pathway of this scenario is showed in Figure 10. Similar to Scenario 1, 80
38
39 t/h of FFB is processed in POM and produced 16.00 t/h of CPO. CPO is then transferred to POR
40
41
42 to produce 12.16 t/h RBDPOL, 3.04 t/h RBDPS and 0.80 t/h PFAD. In this scenario, 2.00 t/h of
43
44 pellet, 3.00 t/h of DLF, and 1.00 t/h of compost in POB are produced. All 2.45 t/h of SF
45
46 collected from DLF production is further processed in pellet production. PKS charcoal is not
47
48
49 produced in this scenario as more energy required from CHP and most of PKS are required to be
50
51 used for heat and power generation due to its high calorific value. In addition, compost
52
53
54
production is lesser as compared with Scenario 1. This is because more EFB is sent to energy
55
56 generation in CHP.
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3
Figure 10. Optimised pathway for Scenario 2.
4
5
6
7 Other than that, 6.13 t/h EFB is sent to boiler and turbine with 4.26 t/h PKS and 10.40 t/h PMF
8
9 to generate 48.82 t/h HPS, 19.53 t/h MPS, 29.29 t/h LPS and 4.35 MW electricity. In this
10
11
12 scenario, biogas production pathway is not chosen since electricity generated from boiler is
13
14 sufficient to support the energy requirement of the entire integrated POPC (4.35 MW). 43.84 t/h
15
16 unutilised POME is sent to existing pond system for further treatment. In addition, 0.31 MW of
17
18
19 excess electricity can be exported.
20
21
22
23
24
25
7. CONCLUSION
26
27
28
29 In this work, a systematic approach for the synthesis of an integrated POPC is presented. It is
30
31 expected that the concept of integrated POPC will be able to convert palm oil industry into
32
33
34 greener industry and as an independent electricity supply to external facilities. The presented
35
36 concept of integrated POPC can be extended to other industries (e.g., rubber, rice husk and etc.).
37
38 Besides, the proposed approach can be easily revised and re-formulated to handle different case
39
40
41 studies from different industries for systematic allocation of biomass. Note that the generic
42
43 approach also can be extended to integrate more downstream activities in food-based, oleo and
44
45 biodiesel plants, which is considered in the future work. In addition, mathematical optimisation
46
47
48 model is developed to determine the detail allocation of palm-based biomasses to achieve the
49
50 maximum economic performance. Further research works on a systematic approach for industrial
51
52
53
symbiosis of integrated POPC where different owners of different processing facilities are to be
54
55 presented in Part 2 of this series.
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3
4
5
6
7 AUTHOR INFORMATION
8
9
10 Corresponding Author
11
12
13
14 *Email: Denny.Ng@nottingham.edu.my. Telephone: +6(03) 8924 8606, Fax: +6(03) 8924 8017.
15
16
17
18
19
20
ACKNOWLEDGMENT
21
22
23
24 The financial supports from Global Green Synergy Sdn. Bhd., Malaysia and University of
25
26 Nottingham Research Committee through New Researcher Fund (NRF 5021/A2RL32) are
27
28
29
gratefully acknowledged. Authors would like to acknowledge financial support from Minister of
30
31 Higher Education, Malaysia through LRGS Grant (project code: 5526100). In addition, the
32
33 authors would also like to acknowledge Mr. Yong Chen Wei for providing helpful industrial data
34
35
36 in developing the case study.
37
38
39
40
41
42
SUPPORTING INFORMATION AVAILABLE
43
44
45
46 This information is available free of charge via the Internet at http://pubs.acs.org/.
47
48
49
50
51
52
53 NOMENCLATURE
54
55
56 Abbreviation
57
58
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1
2
3
ASA American Soybean Association
4
5
6
7 CAMD Computer-Aided Molecular Design
8
9
10 CHP combined heat and power
11
12
13
14 CPKO crude palm kernel oil
15
16
17 CPKOL crude palm kernel olein
18
19
20 CPKS crude palm kernel stearin
21
22
23
24 CPO crude palm oil
25
26
27 DLF dried long fibre
28
29
30
31 EFB empty fruit bunch
32
33
34 FFB fresh fruit bunch
35
36
37 FiT feed-in tariff
38
39
40
41 HPS high pressure steam
42
43
44 LPS low pressure steam
45
46
47
48 MPOC Malaysia Palm Oil Council
49
50
51 MPS medium pressure steam
52
53
54 NBDPKO neutralised, bleached, deodorised palm kernel oil
55
56
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58 NBDPKOL neutralised, bleached, deodorised palm kernel olein
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NBDPKS neutralised, bleached, deodorised palm kernel stearin
4
5
6
7 NBDPO neutralised, bleached, deodorised palm oil
8
9
10 NBDPOL neutralised, bleached, deodorised palm olein
11
12
13
14 NBDPS neutralised, bleached, deodorised palm stearin
15
16
17 NREL National Renewable Energy Laboratory
18
19
20 PFAD palm fatty acid distillate
21
22
23
24 PKFAD palm kernel fatty acid distillate
25
26
27 PKS palm kernel shell
28
29
30
31 PMF palm mesocarp fibre
32
33
34 POB palm oil-based biorefinery
35
36
37 POM palm oil mill
38
39
40
41 POME palm oil mill effluent
42
43
44 POPC palm oil processing complex
45
46
47
48 POR palm oil refinery
49
50
51 RBDPKO refined, bleached, deodorised palm kernel oil
52
53
54 RBDPKOL refined, bleached, deodorised palm kernel olein
55
56
57
58 RBDPKS refined, bleached, deodorised palm kernel stearin
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RBDPO refined, bleached, deodorised palm oil
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5
6
7 RBDPOL refined, bleached, deodorised palm olein
8
9
10 RBDPS refined, bleached, deodorised palm stearin
11
12
13
14 RNFA Reaction Network Flux Analysis
15
16
17
18
19
20 Sets
21
22
23
24 e index for primary energy
25
26
27 e' index for secondary energy
28
29
30
31 g index for technology to produce primary energy
32
33
34 g' index for technology to produce secondary energy
35
36
37 i index for palm-based biomass
38
39
40
41 j index for technology to produce intermediate
42
43
44 j' index for technology to produce palm green product
45
46
47
48 k index for intermediate
49
50
51 o index for palm oil produced from palm oil mill
52
53
54 p index for palm refined product
55
56
57
58 q index for palm green product
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7 Parameters
8
9
10 Cap
11
Cbp capital cost via technology b per unit product p, USD/t
12
13
14
15
C Cap
jk capital cost via technology j per unit intermediate k, USD/unit intermediate
16
17
18
C Cap
j 'q capital cost via technology j' per unit product q, USD/t
19
20
21
22 C Cap capital cost via technology g per unit energy e, USD/t or USD/MW
ge
23
24
25
26 C Cap capital cost via technology g' per unit energy e', USD/t or USD/MW
g 'e '
27
28
29
30 CCap
FFB capital cost of palm oil mill, USD/t
31
32
33
34 C Cap-Fixed fixed capital cost of POPC, USD
35
36
37
38 CeExp
' revenue from energy exported, USD/t or USD/MW
39
40
41
42 CeImp
' cost of imported energy, USD/t or USD/MW
43
44
45
Proc
46 Cbp processing cost via technology b per unit product p, USD/t
47
48
49
50 CProc
FFB processing cost of FFB in palm oil mill, USD/t
51
52
53
54 C Proc
jk processing cost via technology j per unit intermediate k, USD/t
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4 C Proc
j 'q processing cost via technology j' per unit product q, USD/t
5
6
7
8
C Proc
ge processing cost via technology g per unit energy e, USD/t or USD/MW
9
10
11
12
C Proc
g 'e ' processing cost via technology g' per unit energy e', USD/t or USD/MW
13
14
15
CPR
q revenue from palm green product q via pathway kj’, USD/t
16
17
18
19 CPR revenue from palm refined product p, USD/t
p
20
21
22
23 DEP depreciation
24
25
26
27
GOV government incentives or penalties
28
29
30 H enthalpy
31
32
33 HEDGE expenses associated with hedging against catastrophic market actions
34
35
36
37 MCi moisture content of palm-based biomass i
38
39
40 ηboiler boiler efficiency
41
42
43
44 R expected rate of return or cost of capital
45
46
47 tmax designed lifespan of biorefinery, year
48
49
50
51 TAX marginal tax rate
52
53
54 I
X ijk conversion of palm-based biomass i to intermediate k via technology j
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4 X kjII 'q conversion of intermediate k to palm green product q via technology j'
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6
7
8 XiBIO conversion of FFB to palm-based biomass i
9
10
11
12
XOIL
o conversion of FFB to palm oil o
13
14
15
X OIL
obp conversion of palm oil o to palm refined product p via technology b
16
17
18
19 I
Yige conversion of primary energy per unit of palm-based biomass i via technology
20
21
22 g
23
24
25
26 YegII 'e' conversion of secondary energy per unit of primary energy e via technology g'
27
28
29
30 YeI'ijk conversion of energy required per unit of palm-based biomass i to intermediate
31
32 k via technology j
33
34
35
36 YeII'kj 'q conversion of energy required per unit of intermediate k to product q via
37
38
39 technology j'
40
41
42
43
44
45 Variables
46
47
48
49 EeCon
' total energy requirement of the integrated POPC, MW for electricity and t/h for
50
51
52 steam
53
54
55 EeCon-POM
energy requirement in POM, MW for electricity and t/h for steam
'
56
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4 EeCon
'
-POR
energy requirement in POR, MW for electricity and t/h for steam
5
6
7
8 EeCon
'
-POB
energy requirement in POB, MW for electricity and t/h for steam
9
10
11
12
EeExp
' total excess energy that are sold to any third party plants, MW for electricity
13
14 and t/h for steam
15
16
17
18 EeGen-CHP energy generated in CHP, MW for electricity and t/h for steam
19
20
21
22 EegGen'-CHP energy generated in CHP to technology g', MW for electricity and t/h for steam
23
24
25
26 EeGen
' total energy generated of the integrated POPC, MW for electricity and t/h for
27
28
29
steam
30
31
I
32 Ege energy generated from technology g, MW for electricity and t/h for steam
33
34
35
36 E gII'e ' energy generated from technology g', MW for electricity and t/h for steam
37
38
39
40 EeImp
' total energy that are bought from external facilities, MW for electricity and t/h
41
42
43 for steam
44
45
46 EeImp-POM
energy bought from external to POM, MW for electricity and t/h for steam
'
47
48
49
50 EeImp
'
-POR
energy bought from external to POR, MW for electricity and t/h for steam
51
52
53
54 EeImp
'
-POB
energy bought from external to POB, MW for electricity and t/h for steam
55
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GP gross profit per unit time, USD/year
4
5
6
overall
7 MC overall moisture content of total palm-based biomass fed into boiler
8
9
10
11 NPV net present value, USD
12
13
14 PP payback period, year
15
16
17
18 Wi BIO flowrate of palm-based biomass i , t/h
19
20
21
22
WFFB flowrate of FFB, t/h
23
24
25 W jkI flowrate of intermediate k produced from technology j, t/h
26
27
28
29 W jkI flowrate of intermediate k produced from technology j, t/h
30
31
32
33 W jII'q flowrate of palm green product q produced from technology j', t/h
34
35
36
37 WkjII' flowrate of intermediate k to technology j', t/h
38
39
40
41 WkINT total flowrate of intermediate k, t/h
42
43
44
45 WoOIL flowrate of palm oil o, t/h
46
47
48
49 WobOIL flowrate of crude palm oil o to technology b, t/h
50
51
52
53 W bpOIL flowrate of palm refined product p produced from technology b, t/h
54
55
56
57
WqPR total flowrate of palm green product q, t/h
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4 W pPR total flowrate of palm refined product p, t/h
5
6
7
8
9
10 REFERENCES
11
12
13
14 (1) American Soybean Association (ASA). http://www.soystats.com/2012/page_35.htm
15
16
17
(Accessed on June 21, 2012).
18
19
20 (2) Palm oil & Palm Kernel Oil Applications. Malaysian Palm Oil Council (MPOC): Malaysia,
21
22 2006.
23
24
25
26 (3) Malaysia Palm Oil Board (MPOB). Overview of the malaysian oil palm industry 2011.
27
28 http://www.palmoilworld.org/PDFs/Overview-2011.pdf (Accessed on May 18, 2012).
29
30
31
(4) Husain, Z.; Zainac, Z.; Abdullah, Z. Biomass Bioenergy 2002, 22, 505-509.
32
33
34
35 (5) Malaysia Innovation Agency (AIM). National Biomass Strategy 2020: New wealth creation
36
37 for Malaysia’s palm oil industry. http://innovation.my/wp-
38
39
40 content/downloadables/National%20Biomass%20Strategy%20Nov%202011%20FINAL.pd
41
42 f (Accessed on May 22, 2012).
43
44
45 (6) Thong, S.; Boe, K.; Angelidaki, I. Appl. Energy 2012, 93, 648–654.
46
47
48
49 (7) Basiron, Y.; Simeh, M. D. Oil Palm Ind. Econ. J. 2009, 5, 1-10.
50
51
52 (8) Nasrin, A. B.; Ma, A. N.; Choo, Y.M.; Mohamad, S.; Rohaya, M. H.; Azali, A.; Zainal, Z.
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54
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6 S.; Fakhru’l-Razi, A. Energy Convers. Manage. 2011, 52 (2), 1555-1561.
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8
9 (10) Esfahani, R. M.; Ghani, W. A. W. A. K.; Amran, M.; Salleh, M.; Ali, S. Energy Fuels 2012,
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12 26 (2), 1185-1191.
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15 (11) Idris, S. S.; Rahman, N. A.; Ismail, K.; Alias, A. B.; Rashid, Z. A.; Aris, M. J. Bioresour.
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17 Technol. 2010, 101, 4584-4592.
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21 (12) Sulaiman, F.; Abdullah, N. Energy 2011, 36, 2352-2359.
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24 (13) Salema, A. A.; Ani, F. N. Bioresour. Technol.2011, 102, 3388-3395.
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(14) Bridgwater, A.V. Chem. Eng. J. 2003, 91, 87-102.
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31 (15) Demirbas, M.F. Appl. Energy 2009, 86, S151-S161.
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34 (16) Ministry of Energy, Green Technology and Water (KeTTHA). National Renewable Energy
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36
37 Policy and Action Plan. http://www.seda.gov.my/go-
38
39 home.php?omaneg=00010100000001010101000100001000000000000000000000&s=31
40
41 (Accessed on May 22, 2012).
42
43
44
45 (17) The Star. 1MBAS seeks ways for all to enjoy biomass benefits.
46
47 http://biz.thestar.com.my/news/story.asp?file=/2012/3/23/business/10971028&sec=business
48
49
50
(Accessed on May 22, 2012).
51
52
53 (18) Fernando, S.; Adhikari, S.; Chandrapal, C.; Murali, N. Energy Fuels 2006, 20 (1), 1727-
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55 1737.
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(19) Baliban, R. C.; Elia, J. A.; Floudas, C. A. Ind. Eng. Chem. Res. 2010, 49, 7343–7370.
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7 (20) Elia, J. A.; Baliban, R. C.; Floudas, C. A. Ind. Eng. Chem. Res. 2010, 49, 7371–7388.
8
9
10 (21) Martín M.; Grossmann I. E. AIChE J. 2011, 57(12), 3408 – 3428.
11
12
13
14 (22) Martín M.; Grossmann I. E. Ind. Eng. Chem. Res. 2012, 51(23), 7998–8014.
15
16
17 (23) Ng, D. K. S.; Pham, V.; El-Halwagi, M. M.; Jiménez-Gutiérrez, A.; Spriggs, H. D.
18
19 Proceedings of Seventh International Conference on Foundations of Computer-Aided
20
21
22 Process Design; Breckenridge, CO, June 7 - 12, 2009, 425–432.
23
24
25 (24) Tay, D. H. S.; Kheireddine, H.; Ng, D. K. S.; El-Halwagi, M. M. Clean Technol. Environ.
26
27
28
Policy 2011, 13 (4), 567-579.
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30
31 (25) Santibañez-Aguilar, J. E.; González-Campos, J. B.; Ponce-Ortega, J. M.; Serna-González,
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33 M.; El-Halwagi, M. M. Ind. Eng. Chem. Res. 2011, 50, 8558-8570.
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35
36
37 (26) Ponce-Ortega, J. M.; Pham, V.; El-Halwagi, M. M.; El-Baz A. A. Ind. Eng. Chem. Res.
38
39 2012, 51, 3381−400.
40
41
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44
45 10.1002/ep.10632.
46
47
48 (28) Tay, D. H. S.; Ng, D. K. S. J. Clean. Prod. 2012, 34, 38-48.
49
50
51
52 (29) Shabbir, Z.; Tay, D. H. S.; Ng, D. K. S. Chem. Eng. Res. Des. 2012, 90 (10), 1568–1581.
53
54
55 (30) Myint, L.L.; El-Halwagi, M.M. Clean Technol. Environ. Policy 2009, 11 (3), 263-276.
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4
5
6 Policy 2010, 12 (3), 239-254.
7
8
9 (32) Pokoo-Aikins, G.; Heath, A.; Mentzer, R. A.; Mannan, M. S.; Rogers, W. J.; El-Halwagi,
10
11
12 M. M. J. Loss Prev. Process Ind. 2010, 23 (3), 412-420.
13
14
15 (33) Zamboni, A.; Shah, N.; Bezzo, F. Energy Fuels 2009, 23 (10), 5121-5133.
16
17
18 (34) Zamboni, A.; Bezzo, F.; Shah, N. Energy Fuels 2009, 23 (10), 5134-5143.
19
20
21
22 (35) Piccolo, C.; Bezzo, F. Biomass Bioenergy 2009, 33 (3), 478-491.
23
24
25 (36) Ng, R. T. L; Tay, D. H. S.; Ng, D. K. S. Energy & Fuels 2012, 26, 7316−7330.
26
27
28
29
(37) Kasivisvanathan, H.; Ng, R. T. L.; Tay, D. H. S.; Ng, D. K. S. Chem. Eng. J. 2012, 200-
30
31 202, 697-709.
32
33
34 (38) Malaysia Palm Oil Board (MPOB). Monthly palm oil price 2012.
35
36
37 http://econ.mpob.gov.my/upk/monthly/bh_monthly_12.htm (Accessed on October 18,
38
39 2012).
40
41
42
(39) Vijaya, S.; Chow, M.C.; Ma. A. N. MPOB Palm Oil Engineering Bulletin 2004, 70, 15-22.
43
44
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LIST OF FIGURES
4
5
6
7 Figure 1. Schematic diagram of palm oil mill.
8
9
10 Figure 2. Schematic diagram of palm oil refinery.
11
12
13
14 Figure 3. Conceptual zone Palm Oil Processing Complex (POPC).
15
16
17 Figure 4. Block diagram of the integrated palm oil processing complex (POPC).
18
19
20 Figure 5. Generic superstructure of Block III and Block IV.36
21
22
23
24 Figure 6. Product conversions of palm oil mill and palm oil refinery.
25
26
27 Figure 7. Superstructure of case study.
28
29
30
31 Figure 8. Block diagram of different scenario.
32
33
34 Figure 9. Optimised pathways for Scenario 1.
35
36
37 Figure 10. Optimised pathways for Scenario 2.
38
39
40
41
42
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30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48 Figure 1. Schematic diagram of palm oil mill.
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23
24
25
26
27
28
29
30
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36
37
38
39
40
41
42 Figure 2. Schematic diagram of palm oil refinery.
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21
22
23
24
25
26
27
28
29
30
31
32 Figure 3. Conceptual zone Palm Oil Processing Complex (POPC).
33
34
35
36
37
38
39
40
41
42
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WrOIL Block II: W pPR
9 Palm Oil
10
11 Refinery (POR)
12
13
14 EeImp
'
-POR
EeGen
'
15
16
17 W FFB Block I: Wi BIO W ijI Block III: Wq PR
18 Palm Oil Palm Oil-based
19 Mill (POM) Biorefinery (POB)
20 W igI
21
22 EeImp
'
-POM
EeGen
' EeGen EeImp
'
-POB
'
23
24
25 Block IV:
26 Combined Heat and
27 Power (CHP) EeExp
'
28
29
30
31
32
33
34 Figure 4. Block diagram of the integrated palm oil processing complex (POPC).
35
36
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4
Palm-based Technology, Intermediate, Technology, Palm Green
5
6 Biomass, i j k j’ Product, q
7
i=1 j=1 k=1 j’ = 1 q=1
8
9
10
11 i=2 j=2 k=2 j’ = 2 q=2
12 Block III:
13 Palm Oil-
14 based
15 Biorefinery i=3 j=3 k=3 j’ = 3 q=3
16 (POB)
17
………

………

………

………
………

18
19
20
21 i=I j=J k=K j’= J’ q=Q
22
23
24 Technology, Primary Technology, Secondary
25 g Energy, e g’ Energy, e’
26
27 Block IV:
Combined g=1 e= 1 g’ = 1 e’ = 1
28
29 Heat and
30 Power
31 (CHP) g=2 e=2 g’ = 2 e’ = 2
32
………

………

………
………

33
34
35
36 g=G e=E g’= G’ e’ = E’
37
38
39
40
41
42 Figure 5. Generic superstructure of Block III and Block IV.36
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5 EFB = 0.23 FFB
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7 FFB Block I: PKS = 0.06 FFB
8 Palm Oil
9 Mill (POM) MF = 0.13 FFB
10
11
POME = 0.60 FFB
12
13
14
15
16 RBDPOL = 0.76 CPO
17 Block II:
18 CPO = 0.20 Palm Oil RBDPS = 0.19 CPO
19 FFB Refinery
20 (POR) PFAD = 0.05 CPO
21
22
23
24
25
26 Figure 6. Product conversion of Block I and Block II.
27
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4 Block II:
Palm Oil
5 FFB Block I: POM RBDPS
POR
Refinery
6 PFAD
7 PKS
PKS Market
8 POME Existing Pond
9 System
10
11 Block III: POB Block IV: CHP
12
13
Biomass, Biomass,
14 i
EFB PKS POME
i
POME EFB PKS PMF
15
16
17
18 Technology,
SF
Technology,
19 j g
20 SF SF
HPS
21
22 Intermediate, Primary
k Energy, e
23
24
25 Technology, Technology,
26 j' g'
27
28
29
30
31
32 Product, Secondary
33 q Energy, e'
34
35
36
37
38 Figure 7. Superstructure of case study.
39
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5 Scenario 1 Scenario 2
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10 Block II
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13 Block I Block III
14 Block I Block III
15
16
17 Block IV
18
19 Block IV
20 Electricity export
21 Electricity export
22
23
24
25
26 Material Flow Energy Flow
27
28
29
30 Figure 8. Block diagram of different scenarios.
31
32
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34
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8 Block III: POB Block IV: CHP
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11 Biomass, EFB PKS POME Biomass, EFB PKS PMF
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13 WII0402
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16 Technology, Technology,
SF
j g
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20 Intermediate, Primary
21 k Energy, e
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24 Technology, Technology,
25 j' g'
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31 Product, Secondary
32 q Energy, e'
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38 Figure 9. Optimised pathway for scenario 1.
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3 WP1
4 RBDPOL
5 WFFB WOIL Block II:
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FFB Block I: POM RBDPS
6 POR
Refinery
7 WP3 PFAD
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9 Block IV: CHP
Block III: POB
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13 Biomass, EFB PKS POME Biomass, EFB PKS PMF
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15 WII0402
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17
Technology, Technology,
18 SF
j g
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20 SF
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22 Intermediate, Primary
23 k Energy, e
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26 Technology, Technology,
27 j' g'
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Product, Secondary
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q Energy, e'
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Figure 10. Optimised pathway for Scenario 2.
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LIST OF TABLES
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7 Table 1. Summary of Case Study.
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10 Table 2. Detail of Case Study.
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Table 1: Summary of Case Study.
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5
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7 Unit Scenario 1 Scenario 2
8 Economic Analysis
9
10
Net Present Value Million USD 29.52 43.15
11 Gross Profit Million USD/year 4.31 6.30
12 Raw Material Cost Million USD/year 4.63 133.38
13 Product Sales Cost Million USD/year 10.93 149.61
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15 Operating Cost Million USD/year 3.70 10.16
16 Capital Cost Million USD 8.35 20.00
17 Payback Period year 1.93 3.17
18
19 Block I
20 FFB Inlet t/h 80.00 80.00
21 CPO Production t/h 16.00 16.00
22 EFB Production t/h 18.40 18.40
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24 PKS Production t/h 4.80 4.80
25 POME Production t/h 48.00 48.00
26 PMF Production t/h 10.40 10.40
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28 Block II
29 RBDPOL Production t/h - 12.16
30 RBDPS Production t/h - 3.04
31 PFAD Production t/h - 0.80
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33 Block III `
34 Pellet Production t/h - 2.00
35 DLF Production t/h 5.00 3.00
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37
Briquette Production t/h - -
38 Charcoal Production t/h - -
39 Compost Production t/h 3.00 1.00
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Block IV
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42 Biogas t/h - -
43 Electricity produced from
44
MW - -
Biogas Engine
45 HPS Production t/h 43.75 48.82
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47 MPS Production t/h 17.50 19.53
48 LPS Production t/h 26.25 29.29
49 Electricity produced from
50 MW 3.89 4.35
Steam Turbine
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Table 2: Detail of Case Study.
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7 Term Scenario 1 Scenario 2
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9 Block III
10 EFB to POB WI01J 17.96 12.27
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12 PKS to POB WI02J - -
13 POME to POB WI03J 12.49 4.16
14 EFB to Pellet Production WI0101 - 2.71
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16 SF to Pellet Production WII0102 - 2.49
17 EFB to DLF Production WI0102 13.38 8.03
18 LF to DLF Production WII0202 8.96 5.38
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20 SF produced from DLF production SF 4.15 2.49
21 EFB to Briquette Production WI0103 - -
22 SF to Briquette Production WII0302 - -
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24 PKS to Briquette Production WI0203 - -
25 PKS to Charcoal Production WI0204 - -
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EFB to Compost Production WI0105 4.58 1.53
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28 POME to Compost Production WI0305 12.49 4.16
29 PKS for sales WPKSSALES 0.91 -
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31 POME to pond system WPOMEW 35.51 43.84
32 Block IV
33 EFB to CHP WI01G 0.44 6.13
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35
PKS to CHP WI02G 3.89 4.26
36 POME to CHP WI03G - -
37 PMF to CHP WI04G 10.40 10.40
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39 SF to CHP WII0402 4.15 -
40 POME to Digester WTOG1 - -
41 Palm-based Biomass Feedstock to Boiler WTOG2 18.87 21.33
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43 Energy Balance
44 MPS required in POB MPSTEAMCONPOB 17.50 17.50
45 LPS required in POB LPSTEAMCONPOB 10.50 3.50
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47 LPS required in POM LPSTEAMCONPOM - 24.00
48 Electricity required from POM ELECPOM - 0.96
49 Electricity required from POR ELECPOR - 1.60
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51 Electricity required from POB ELECPOB 1.50 1.48
52 Total Electricity Generated ELECGEN 3.89 4.35
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Total Electricity required ELECON 1.50 4.04
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55 Electricity Import ELECIMP - -
56 Electricity Export ELECEXP 2.39 0.31
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SUPPORTING INFORMATION
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8 Table A. Price of raw material, palm refined product, palm-based biomass and energy.
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Table B. Conversion factor for each pathway.
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13 Table C. Economic data of each technology.
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15 Table D. Energy consumption of each technology.
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Table A. Price of raw material, palm refined product, palm-based biomass and energy.
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6 Item Price (USD)
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8 Raw Material
9 EFB 6 /t
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11 PKS 50 /t
12 PMF 22 /t
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14 CPO 1005.80 /t
15 *Palm Refined Product 38
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17 RBDPOL 1147.50 /t
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19
RBDPS 1019 /t
20 PFAD 813.50 /t
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22 Palm Green Product
23 Pellet 140 /t
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25 DLF 210 /t
26 Briquette 120 /t
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28 Charcoal 380 /t
29 Compost 100 / t
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31 Energy
32 Electricity (Import) 140 /MWh
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34 Electricity (Export) 90 /MWh
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HPS (Import) 26 /t
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37 MPS (Import) 17 /t
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39
LPS (Import) 12 /t
40 *Based on average price in 2011
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Table B. Conversion factor for each pathway and properties of palm-based biomass.
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6 Raw Material/
7
Intermediate/Product
Intermediate Value
8 e or k / e' or q
i / e or k
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10
POB
11 EFB + SF Pellet 0.3846 pellet / (EFB + SF)
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13 EFB LF 0.6695 LF/ EFB
14 EFB SF 0.2400 SF / EFB
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16 LF DLF 0.5580 DLF /LF
17 EFB + PKS +SF* Briquette 0.3846 briquette / (EFB + PKS +SF)
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*Ratio of EFB+SF : PKS = 80 : 20
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20 PKS Charcoal 0.3333 charcoal / PKS
21 EFB + POME* Compost 0.1758 compost / ( EFB + POME)
22 *Ratio of EFB : POME = 22 : 60
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24
CHP
25 POME Biogas 0.2781 biogas / POME
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27 Biogas Electricity 0.026 MW electricity / t/h biogas
28 HPS MPS 0.400 MPS / HPS
29 LPS 0.600 LPS / HPS
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31
Electricity 0.089 MW electricity / t/h HPS
32 Raw Material Moisture Content,
33 Calorific Value (kJ/kg)53
i MCi(%)
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35 EFB 67 18838
36 PKS 12 20108
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38 PMF 37 19068
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Table C. Economic data of each technology.
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7 Description Value
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9 Capital Cost
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11 DLF Production USD 550,000 / (1 t/h DLF)
12 Pellet Production USD 450,000 / (2 t/h pellet)
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14 Briquette Production USD 680,000 / (3 t/h briquette)
15 PKS Charcoal Production USD 450,000 / (1 t/h charcoal)
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17 Compost Production USD 800,000 / (1 t/h compost)
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19
Digester and gas engine USD 1,400,000 / (1 MW electricity)
20 Boiler and turbine USD 2,500,000 / (5 MW electricity)
21 Fixed capital cost of POB (Structural, land, etc.) USD 250,000
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23 Fixed capital cost of CHP (Structural, land, etc.) USD 450,000
24 Palm Oil Refinery Complex USD 650,000 / (1 t/h CPO)
25 Fixed capital cost of POR (Structural, land, etc.) USD 3,500,000
26 Operating Cost
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28 POME treatment in pond system USD 25.00 / (50 t/h POME)
29 DLF production USD 44.00 / (1 t/h DLF)
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31 Pellet production USD 34.00 / (1 t/h pellet)
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Briquette production USD 32.00 / (1 t/h briquette)
34 Charcoal production USD 60.00 / (1 t/h charcoal)
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36 Compost production USD 55.00 / (1 t/h compost)
37 Digester and gas engine USD 105.00 / (1 MW electricity)
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39 Boiler and turbine USD 100.00 / (5 MW electricity)
40 Palm oil refinery USD 58.00 / (1 t/h CPO)
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Table D: Energy consumption of each technology.
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7 Description Product Value
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9 Steam Consumption
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11 Palm Oil Mill CPO 1.5 t/h LPS / t/h CPO
12 DLF Production DLF 3.5 t/h MPS / t/h DLF
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14 Pellet Production Pellet 3.5 t/h MPS / t/h pellet
15 Briquette Production Briquette 3.5 t/h MPS / t/h briquette
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17 Compost Production Compost 3.5 t/h LPS / t/h compost
18 Electricity Consumption
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20 Palm Oil Mill CPO 0.06 MW / t/h CPO
21 Palm Oil Refinery RBDPOL, RBDPS, PFAD 0.1 MW / t/h CPO
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23 DLF Production DLF 0.30 MW / t/h DLF
24 Pellet Production Pellet 0.25 MW/ t/h pellet
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26 Briquette Production Briquette 0.21 MW / t/h briquette
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