Economic Analysis of Resource Efficiency Opportunities at the Pagar Merbau Palm Oil Mill

Shahputra ZMA, Arief M, Muda I and Sugianto S

Published on: 2024-07-31

Abstract

This study presents an economic analysis of resource efficiency opportunities at the Pagar Merbau palm oil mill. The analysis identifies significant potential to enhance the efficiency of water and energy use, as well as minimize waste, through a combination of simple and more complex measures. The key identified inefficiencies include leaks at various stations and workplace safety hazards. Addressing these issues can increase energy and water use efficiency, as well as improve the occupational health and safety system. Recommended measures include condensate water recycling, enhanced safety protocols, and utilizing waste for composting and animal feed. Further improvements, such as optimizing processes and investing in biogas and electricity production, require higher-level approval. Of the proposed options, implementing a condensate discharge system is prioritized for quick results, while the others will be pursued upon approval from mill management. The crucial role of mill managers in implementing these improvements is emphasized. By addressing the identified inefficiencies, the mill can achieve significant gains in resource use efficiency and worker safety, leading to enhanced economic and environmental performance.