Environmental sustainability of palm cluster: A case study in and around Carey Island, Selangor

The main aim of this paper is to evaluate the environmental sustainability of the palm oil industrial cluster in and around Carey Island, Selangor. The main players involved in the upstream activities are oil palm cultivators and palm oil millers, whereas for the downstream activities, palm kernel crushers, refiners and oleochemical manufacturers are encompassed. All the players with the exception of palm kernel crushers belong to the Sime Darby group. The findings of this study indicated that the close physical proximity of all these players has contributed to a low logistic carbon footprint. The replanting of old rubber trees with oil palms in the plantations in Carey Island is not linked to the environmental controversy in relation to the loss of virgin jungle. The adoption of good agricultural practices, biodiversity conservation and oil palm being a high yielding crop, have enhanced environmental sustainability. The close physical proximity between the plantations and palm oil mills has also contributed to the utilization of wastes like treated POME and EFBs as nutrients for the plantations. This in turn contributes to environmental sustainability via minimal chemical intervention. The close physical proximity between the plantations and the mills also contributes to higher oil quality, higher oil extraction rate and a smaller transportation carbon footprint. However, biogas generated from the treatment plant of the palm oil mills is not tapped, at this juncture, for Certified Emissions Reduction under the Clean Development Mechanism. Likewise, solid by-products, like fibre and shell, can advance up the value chain instead of being utilized as solid fuel. Palm kernel crushing, a downstream activity, is very environmentally friendly as there is very minimal waste generated. For downstream activities like refining and oleochemical manufacturing, existing treatment technologies are able to negate the main pollutants. In essence, the entire chain of oil palm industrial cluster from upstream and downstream activities, is environmentally sustainable.