Potential conversion of oil palm biomass into bio-products by using mixed-integer linear programming (MILP) model

Lim, Kai Loon (2019) Potential conversion of oil palm biomass into bio-products by using mixed-integer linear programming (MILP) model. [Project Paper] (Submitted)

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Abstract

Oil palm biomass’s huge availability is an opportunity to be developed as alternatives for the production of bio-products at lower cost. The conversion can generate more revenue and allow the industry to be sustainable and more environmentally friendly. The prospects of the oil palm biomass industry can be portrayed in figures and numbers to provide clearer picture to encourage investment. Therefore, the study’s objective is to analyze the potential conversion of oil palm biomass into bio-products using a mixed-integer linear programming (MILP) model. For this purpose, General Algebraic Modelling System (GAMS) software version 26.1.0 major release was chosen to optimize the model. The developed model considered factors such as price, cost, conversion ratio and market demands. The developed model is able to eliminate the unprofitable production line. For this case study, the developed model eliminated the option for fertilizer composting if the annual capital and maintenance cost is increased by 30%. The developed model verified that generation of electricity and pulping of paper has good return of investment and short payback period in spite of high startup cost. For the case study in Kota Tinggi, the generation of electricity produced the highest profit (RM 25,856,806.14) compared to paper pulping (RM 10,708,378.18) and fertilizer composting (RM 142.053.51) due to high EFB biomass availability, ability to handle high capacity, high estimated market demand, considerable ratio and market price in spite of high annual capital and maintenance cost.

Item Type:	Project Paper
Faculty:	Faculty of Engineering
Depositing User:	Ms Siti Mariam Giman
Date Deposited:	16 Nov 2022 02:57
Last Modified:	16 Nov 2022 02:57
URI:	http://psaspb.upm.edu.my/id/eprint/481

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