Palm oil production yields crude palm oil (CPO) and palm kernel oil (PKO), but these are only part of the fruit’s total value. The industry efficiently utilizes nearly every component of the fresh fruit bunch (FFB) as a useful by-product.

Understanding these by-products is key to boosting profitability, enhancing sustainability, and reducing environmental impact. This article outlines the main by-products of palm oil processing and their commercial and environmental uses.

Overview of Palm Oil Processing Stages

To understand by-products, we must first briefly review the palm oil production process:

• Fresh Fruit Bunch (FFB) reception
• Sterilization
• Threshing
• Digestion and pressing
• Clarification
• Kernel recovery

Each of these stages generates solid, liquid, or gaseous by-products that can be reused, recycled, or commercialized.

Major Solid By-Products

Empty Fruit Bunches (EFB)

Origin:

• After sterilization and threshing, palm fruits are separated from the bunch structure. The leftover structure is called the Empty Fruit Bunch (EFB).

Quantity:

• Approximately 20–23% of FFB weight.

Characteristics:

• High fiber content
• High moisture content (60–65%)
• Rich in potassium and organic matter

Applications:

Application	Description
Mulching	Applied in plantations to retain soil moisture
Composting	Mixed with POME sludge to produce organic fertilizer
Biomass fuel	Used in boilers after drying
Fiberboard production	Processed into eco-friendly panels
Biochar production	Converted into soil-enhancing carbon material

EFB represents one of the most valuable biomass streams in the palm oil industry.

Palm Mesocarp Fiber

Origin:

• Generated during pressing when oil is extracted from the fruit.

Quantity:

• Roughly 12–15% of FFB weight.

Characteristics:

• Fibrous
• Moderately dry
• High calorific value

Applications:

Application	Description
Boiler fuel	Primary biomass fuel in mills
Cogeneration	Steam and electricity production
Pellets	Biofuel export market

Most mills use mesocarp fiber as fuel for steam boilers, significantly reducing fossil fuel dependency.

Palm Kernel Shells (PKS)

Origin:

• Produced during kernel cracking and separation.

Quantity:

• Around 5–7% of FFB weight.

Characteristics:

• Hard shell
• High energy density
• Low moisture content

Applications:

Application	Description
Biomass fuel	Exported for power generation
Activated carbon	Processed into filtration media
Biochar	Used for soil improvement
Industrial heating	Cement and power industries

Palm kernel shells have become a globally traded biomass commodity.

Palm Kernel Meal (PKM)

Origin:

• Generated after extracting oil from palm kernels.

Characteristics:

• High protein content
• Suitable for livestock feed

Applications:

Application	Description
Animal feed	Used for cattle and poultry
Aquaculture feed	Fish farming input
Organic fertilizer	Soil amendment

PKM is especially valuable in regions with strong livestock industries

Liquid By-Products

Palm Oil Mill Effluent (POME)

Origin:

• Produced during sterilization, clarification, and hydrocyclone processes.

Quantity:

• About 0.6–1 cubic meter per ton of FFB processed.

Characteristics:

• High biological oxygen demand (BOD)
• Rich in organic matter
• High temperature when discharged

Applications After Treatment:

Application	Description
Biogas production	Methane capture through anaerobic digestion
Organic fertilizer	Land application after treatment
Irrigation water	Controlled reuse

POME management is critical for environmental compliance. In modern mills, POME is treated to generate biogas, creating renewable energy while reducing greenhouse gas emissions.

Spent Bleaching Earth (SBE)

• Origin:
  Generated in the refining stage during oil bleaching.

Characteristics:

• Contains residual oil
• Clay-based material

Applications:

Application	Description
Biodiesel feedstock recovery	Extract residual oil
Brick manufacturing	Mixed into building materials
Energy recovery	Burned under controlled conditions

Proper handling is important due to fire risk from residual oil.

Gaseous By-Products

Biogas (Methane)

• Origin:
  Produced during anaerobic digestion of POME.

Composition:

• Methane (CH₄)
• Carbon dioxide (CO₂)

Applications:

Application	Description
Electricity generation	Gas engines for power
Steam production	Boiler fuel
Upgraded biomethane	Compressed gas use

Biogas capture improves sustainability and reduces the carbon footprint significantly.

Boiler Flue Gas

When fiber and shells are burned, flue gases are generated. With proper emission control systems (cyclones, scrubbers), particulate matter is minimized. Modern plants incorporate emission treatment systems to comply with environmental standards.

Secondary Industrial By-Products

Beyond the mill stage, refining and fractionation generate additional streams.

Palm Fatty Acid Distillate (PFAD)

Origin:

• Produced during deodorization in the refining process.

Characteristics:

• High free fatty acid content
• Dark colored

Applications:

Application	Biodiesel production	Soap manufacturing	Animal feed additives
Description	Major feedstock	Low-cost fatty acid source	Under regulation

PFAD is increasingly valuable in renewable fuel markets.

Glycerol (in Biodiesel Production)

When palm oil is converted into biodiesel, glycerol is generated as a by-product.

Applications:

• Pharmaceuticals
• Cosmetics
• Food additives
• Industrial solvents

Summary of Major By-Products

Below is a consolidated overview:

By-Product	Type	Main Use
Empty Fruit Bunch (EFB)	Solid	Mulch, compost, biomass
Mesocarp Fiber	Solid	Boiler fuel
Palm Kernel Shell (PKS)	Solid	Biomass export
Palm Kernel Meal (PKM)	Solid	Animal feed
POME	Liquid	Biogas, fertilizer
Spent Bleaching Earth	Solid	Oil recovery
PFAD	Liquid	Biodiesel, soap
Biogas	Gas	Renewable energy

Environmental and Sustainability Importance

Palm oil production generates large biomass volumes, but modern integrated plants aim for near-zero waste.

Sustainability Benefits:

• Reduced landfill waste
• Renewable energy generation
• Lower greenhouse gas emissions
• Circular economy integration
• Reduced fossil fuel consumption

The industry increasingly follows sustainability standards such as RSPO, which require responsible by-product management.

Economic Value of By-Products

By-products are no longer viewed as waste but as revenue streams.

Example Value Contribution:

By-Product	Revenue Contribution Potential
PKS export	High
PFAD biodiesel	High
Biogas electricity	Medium–High
PKM animal feed	Medium
Compost	Low–Medium

For integrated complexes, by-products can contribute 10–25% of total revenue depending on market conditions.

Challenges in By-Product Management

While by-products provide opportunities, they also present challenges:

• High moisture content in EFB
• Transportation costs
• Environmental regulations
• Market price fluctuations
• Storage and fire risks (SBE)

Proper planning, equipment investment, and market linkage are essential for maximizing benefits.

Future Trends in Palm Oil By-Product Utilization

The palm oil industry is evolving toward greater resource efficiency.

Emerging Technologies:

• Biochar production from EFB
• Advanced pelletization systems
• Carbon credit trading through methane capture
• Bioplastic development
• Second-generation biofuel production

Digital monitoring systems and sustainability tracking further enhance by-product management efficiency.

Palm oil production creates valuable by-products such as biomass (EFB, fiber, shells), effluents (POME), derivatives (PFAD), and biogas. Properly managed, these materials offer strong economic and sustainability benefits rather than waste.

Modern integrated complexes apply circular economy principles, converting by-products into energy, fertilizer, feed, and industrial materials. Nowadays, effective use is a competitive advantage that increases long-term competitiveness, profitability, and environmental compliance.