KUALA LUMPUR, Dec 20 — The palm oil industry must always be prepared to embrace changes in terms of new technologies amid these challenging times, Deputy Prime Minister Datuk Seri Fadillah Yusof said.

He, who is also the minister of plantation and commodities, said this included the adoption of the fourth industrial revolution (IR4.0) concept and the usage of artificial intelligence (AI) and Internet of things (IoT) such as digitalisation and automation technologies to improve the current manufacturing processes.

"The concept of smart palm oil mills based on zero discharge is the direction of the palm oil industry and this can give a new dimension in the manufacturing sector, especially in terms of efficiency and continuous operational monitoring and user-friendly,” he said at the opening of the National Seminar on Oil Palm Milling, Refining, Environment and Quality 2022 (POMREQ 2022) here today.

His speech was read by the ministry’s Secretary-General Datuk Zurinah Pawanteh.

He said smart palm oil mills would be developed through the initiative of the Malaysian Palm Oil Board (MPOB) in collaboration with the industry, which is Fusionex Group.

"With the development and demand for environmentally friendly products becoming the demand of the international market, I suggest that efforts to reduce the carbon footprint of palm products be emphasised.

"Malaysia is committed to achieve net zero Greenhouse Gas (GHG) Emissions target as early as 2050,” he said.

He said the palm oil industry has an important role in this effort, especially in increasing biogas capture in palm oil mills.

"For that purpose, MPOB has developed biogas capture technology and cooperated with the industry to expand the application of biogas.

"According to MPOB’s data, 135 oil palm factories have installed biogas systems as of 2021, which is 30 per cent of the total existing oil palm factories, while 15 factories are in the process of construction and 130 factories are in the process of planning for the installation of biogas systems,” he said.

In that regard, Fadillah said he hoped that factories that do not yet have a biogas system would also increase their efforts to do so.

Meanwhile, he said sludge palm oil or palm acid oil has also become very popular for the export market recently, especially to European countries as a raw material for biofuel production.

"Low-quality palm oil from palm oil mills should be separated not only to improve the overall quality of palm oil but also to provide additional income by exporting the sludge oil.

"The sludge oil can also be used as a raw material for the production of biodiesel and biojet for the aviation industry and with this effort, the quality of palm oil can be improved and the issue of contaminants in refined palm oil can be addressed together by the industry and the government using the technology that is available,” he added. — Bernama