A Multi-Objective Optimization Approach for Generating Energy from Palm Oil Wastes

Abstract

Palm oil production generates substantial underutilized biomass wastes, including empty fruit bunches, fiber, palm kernel shells, and palm oil mill effluent (POME). Waste-to-energy systems offer a viable pathway to convert these residues into electricity and fertilizer, supporting circular economy goals and sustainability targets. This study takes an example of palm oil waste from the Indragiri Hulu region in Riau Province in Indonesia. It develops a multi-objective optimization framework to evaluate palm oil mill WtE systems from economic, environmental, and energy output. Three scenarios are analyzed: maximal profit (MP), maximal profit with carbon tax (MPCT), and all waste processing (AWP). The MP scenario favors high-return technologies such as gasification and incineration, leading to significant greenhouse gas emissions. The MPCT scenario favors lower-emission technologies like composting and excludes high-emission, low-profit options such as POME digestion. In contrast, the AWP scenario mandates the processing of all wastes, leading to the lowest profits and the highest emissions among all scenarios. The sensitivity analysis reveals that POME processing is not feasible when electricity prices are below the government-set rate, but becomes viable once prices exceed this threshold. These findings offer valuable insights for companies and policymakers seeking to develop and implement effective strategies for optimal waste utilization.