Solutions
What can the palm oil industry do differently in the next decades?
Emerging technologies can be powerful tools to help palm oil companies solve business problems and improve sustainability
Palm oil is a versatile oil used in a wide variety of products, including food, cosmetics, and biofuels, which makes it an attractive crop for growers and smallholders in tropical regions.
Global palm oil production has increased significantly, from 24 million tonnes in 2000/2001 to 77 million tonnes in 2022/2023 to satisfy the high demand for vegetable oils. Over the past two decades, the amount of land the world uses to grow oil palm has been close to triple, from 10 million to 28 million hectares. However, the production of palm oil has been associated with deforestation, habitat loss for endangered species, and human rights abuses. Thus, there is a growing interest in sustainable palm oil production and certification schemes that promote responsible management practices.
The world’s top two largest producers of palm oil, Indonesia and Malaysia, are committed to cap total oil palm planted area and making progress towards zero palm oil deforestation, thus jeopardizing the supply chain. To meet the increasing demand for palm oil, other countries have started cultivating oil palm trees, including in Africa and South America. However, these new palm oil estates may also lead to deforestation, land-use conflicts, and social issues. Therefore, it is crucial to ensure that sustainable practices are implemented throughout the entire palm oil supply chain, from plantation to processing and trading, to mitigate the environmental and social impacts of palm oil production.
The Internet of Things could boost production
Oil palm trees have a particular sensitivity to moisture levels. Although they can endure brief periods of drought, extended droughts, such as those brought on by the El Nino climate phenomenon, generally lead to decreased flowering and fresh fruit bunch production. These effects are often observed during the subsequent harvest period, which occurs within the next 6–12 months following drought stress. Rather than accepting low production levels during dry spells, it may be possible to implement a positive change. Notably, the emergence of new technologies such as the Internet of Things and sensors, along with the economies of scale, make it a viable option for bringing water to estates and stabilizing production. These technologies can reduce the impact of climate variability on crop yields and promote responsible land use practices.
Despite much discussion, there has been no salient breakthrough in digital technologies’ potential benefits in oil palm plantation management. However, there is growing interest in exploring new digital tools that can help improve efficiency, increase productivity, and reduce the environmental impact of palm oil production. With advancements in wireless telecommunication wide area networks, companies could capitalize on information and communications technology (ICT) to increase their production efficiency.
The digitalization of palm oil production integrates data acquisition, analysis, and machine learning to create computer- or cloud-based decision models. It provides a comprehensive system for informed decision-making, generating precise reports on oil palm health, pollination timing, ripeness, and harvesting intervals. Embracing digitalization offers real-time, actionable insights into the palm-oil production process.
Enzyme Technology Can Lower the Nature Occupation Impact
Enzyme technology can increase efficiency and improve sustainability while being environmentally friendly. This promising solution could help the palm oil industry meet sustainability challenges while increasing profitability. Enzymes help to soften and break down the matrixes in the oil-bearing cell walls, enabling easier oil release without changing the quality of palm oil.
Enzyme-aided processes can significantly improve the bottom line by adopting a few steps and reasonable capital investment. For industrial-scale application, Sime Darby Plantation, the world’s largest certified sustainable palm oil producer, has been deploying this technology. Full-scale mill operations with an enzyme-aided oil extraction process record promising oil yield increases. This, in turn, extra production indirectly results in lower nature occupation impact.
Machine learning could improve process efficiency
Computing power advancements have made data analysis cheaper and more efficient. Companies use data to improve planning and increase process efficiency, especially in the palm oil milling sector. Data analysis and machine learning can enhance process efficiency, reduce costs, and improve sustainability. This, in turn, provides a competitive advantage for palm oil companies.
Spectral imaging — which is widely used for measuring the internal quality attributes of fruits — can be used to measure fresh fruit bunches' quality when they are delivered to palm oil mills. By utilizing a machine learning algorithm, it is possible to determine the quality of each fruit bunch. This information can be used to create an intelligent system that automatically rejects low-quality crops and adjusts the sterilization process parameters to prevent under- or over-steaming — thus augmenting the milling operation’s efficiency and lowering process losses.
Biotechnology changes the landscape of biodiesel production
Generating biodiesel directly from palm oil has caused concern about the sustainability of crop-based biofuels. This is particularly relevant given the rapid expansion of the palm oil industry and the associated environmental and social impacts, which have led to calls for greater sustainability and responsible management practices. Palm sludge oil could become an attractive natural source for biodiesel production to address global sustainability challenges as opposed to being left in the effluent treatment pond.
Biodiesel production from palm sludge oil typically requires a two-stage chemical process, involving esterification followed by transesterification, due to its higher free fatty acid content. However, this approach has not been widely adopted by the industry due to its complexity. Fortunately, advancements in biotechnology have enabled a more efficient solution for biodiesel production from palm sludge oil, allowing for simultaneous catalysis of transesterification and esterification at low temperatures and ambient pressure. Biotechnology is known to make a difference and is presently used in over 30 biodiesel plants worldwide.
The palm oil industry can do differently to remain competitive and relevant
To achieve sustainability in the palm oil industry, it needs a comprehensive overhaul and the infusion of diverse talent. Innovation and investment in new talent can create a more sustainable and prosperous future. Professionals should embrace change and expand their skill sets to better apply innovative technology to the industry. Traditional education and training must adapt to prepare individuals for the evolving workplace. Innovation and investment in new talent can create a more sustainable and prosperous future.
I firmly believe that the palm oil industry holds immense potential for a bright future. However, to truly unlock its full potential, we must be willing to challenge the status quo and proactively embrace the necessary changes. By adopting innovative approaches, sustainable practices, and fostering collaboration across the industry, we can shape a future where palm oil continues to be a vital contributor to global economic development while ensuring environmental stewardship and social responsibility.
Eur Ing Hong Wai Onn, a chartered chemical engineer and a Fellow of the Institution of Chemical Engineers and the Royal Society of Chemistry. He is also the author of “A Chemical Engineer in the Palm Oil Milling Industry”. Make sure you check out this other interesting article:
Follow Bioeconomy.XYZ, in order to learn more about all the ways biotech is shaping the world around us.
Join Bioeconomy.XYZ’s new Slack Community to build better connections in the new hybrid world and to foster more discussion around the most pressing topics our writers and readers are surfacing.
