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Cited by 64Forest Biomass Utilization and ManagementOil Palm Production and SustainabilityIntegrated Energy Systems Optimization

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Opportunities to Optimize the Palm Oil Supply Chain in Sumatra, Indonesia

Open access
Harahap, Fumi, Leduc, Sylvain, Mesfun, Sennai, Khatiwada, Dilip, Kraxner, Florian, Silveira, Semida·2019·Energies
DOI 10.3390/en12030420
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Abstract

Significant amounts of biomass residues were generated in Indonesia. While untreated, residues emit greenhouse gases during the decomposition process. On the other hand, if efficiently utilized, these residues could be used to produce value-added products. This study investigates opportunities for harnessing the full potential of palm oil residues (i.e., empty fruit bunches, kernel shells, fiber, and mill effluent). As far as we are aware, the study is the first attempt to model the palm oil supply chain in a geographically explicit way while considering regional infrastructures in Sumatra Island, Indonesia. The BeWhere model, a mixed integer linear programming model for energy system optimization, was used to assess the costs and benefits of optimizing the regional palm oil supply chain. Different scenarios were investigated, considering current policies and new practices leading to improved yields in small-scale plantations and power grid connectivity. The study shows that a more efficient palm oil supply chain can pave the way for the country to meet up to 50% of its national bioenergy targets by 2025, and emission reductions of up to 40 MtCO2eq/year. As much as 50% of the electricity demand in Sumatra could be met if residues are efficiently used and grid connections are available. We recommend that system improvements be done in stages. In the short to medium term, improving the smallholder plantation yield is the most optimal way to maximize regional economic gains from the palm oil industry. In the medium to long term, improving electricity grid connection to palm oil mills could bring higher economic value as excess electricity is commercialized.

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  • Storage of oil palm fresh fruit bunches is unnecessary.

    “While the storage of oil palm fresh fruit bunches is unnecessary, their immediate transport to oils mills is crucial in maintaining high quality oil with minimal impurities and in facilitating high oil extraction rates (Harahap et al. 2019).”

    From Bio-aviation Fuel: A Comprehensive Review and Analysis of the Supply Chain Components (2020) · cites this paper as Harahap et al. 2019

  • Immediate transport of oil palm fresh fruit bunches to oil mills is crucial in maintaining high quality oil with minimal impurities and in facilitating high oil extraction rates.

    “While the storage of oil palm fresh fruit bunches is unnecessary, their immediate transport to oils mills is crucial in maintaining high quality oil with minimal impurities and in facilitating high oil extraction rates (Harahap et al. 2019).”

    From Bio-aviation Fuel: A Comprehensive Review and Analysis of the Supply Chain Components (2020) · cites this paper as Harahap et al. 2019

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Metadata

Authors
Harahap, F., Leduc, S., Mesfun, S., Khatiwada, D., Kraxner, F., & Silveira, S.
Affiliations
  • International Institute for Applied Systems Analysis (AT)
  • KTH Royal Institute of Technology (SE)
Corresponding author
Harahap, Fumi
ORCID
Venue
Energies
Publisher
MDPI AG
Published
2019-01-29
Volume
12
Issue
3
Pages
420
ISSN
1996-1073 (ISSN-L)
DOI
10.3390/en12030420
OpenAlex
W2913304666
Cited by
64
References
0
Citations by year
2026: 5 · 2025: 7 · 2024: 10 · 2023: 7 · 2022: 14 · 2021: 6 · 2020: 12 · 2019: 3
FWCI
5.15
Type
journal article
Language
en
Open access
Licence
Locations
  • Energies (publishedVersion, cc-by)
  • IIASA PURE (International Institute of Applied Systems Analysis) (acceptedVersion)
  • KTH Publication Database DiVA (KTH Royal Institute of Technology) (submittedVersion, other-oa)
  • RePEc: Research Papers in Economics (submittedVersion)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
Funders
  • Energimyndigheten (T6473)
  • Ferrero Trading Lux S.A. (-)
Topics
  • Physical Sciences › Energy › Renewable Energy, Sustainability and the Environment › Forest Biomass Utilization and Management
  • Physical Sciences › Environmental Science › Ecology › Oil Palm Production and Sustainability
  • Physical Sciences › Engineering › Electrical and Electronic Engineering › Integrated Energy Systems Optimization
Keywords
palm oil supply chain, palm oil residue, empty fruit bunch, mill effluent, bioenergy, biomass utilization, greenhouse gas emissions reduction, grid connection, energy system optimization, Sumatra

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