Supply chain model for green gasoline production based on palm oil plant

Abstract

Palm oil is used as a raw material for biofuel, one of which is to produce green gasoline. This study examines the appropriate supply chain model for producing palm oil-based green gasoline. The study necessitates a thorough supply chain analysis of palm oil plants including plantations, mills, and green gasoline factories. A state-owned palm oil company in Indonesia conducted case study research. In addition, Focus Group Discussion and in-depth interview were used in this study. This integrates several analytical models, including value stream mapping, capacity planning, and analytical hierarchy process. By value stream mapping, it was found that green gasoline with a capacity of 20,000 barrels oil per day can be produced with 179.5 tons of industrial palm oil per hour. By analytic hierarchy process, it was found that the decision-making variable for the actor was a state-owned enterprise (42%) to implement green gasoline production. For variable criteria, government policy was found (31%). Finally, an integrated system between plantations, palm oil mills, and gasoline plants with centralized administration from raw materials to green gasoline production (67%) was the best alternative. Further research is needed to find the ideal number of palm oil mills to be a green gasoline plant utilizing simulation modeling of application scenarios.

Keywords

• Analytical hierarchy process
• Green gasoline
• Industrial palm oil
• Supply chain
• Value stream mapping

Thanks

We express our sincere gratitude to all those who contributed to the successful completion of this research project, "Supply Chain Model For Green Gasoline Production Based On Palm Oil Plant”. First and foremost, we thank to Decree of the Head of the Energy Research and Manufacturing Organization of the National Research and Innovation Agency (BRIN) in Indonesia Number 13/III.3/HK/2022 concerning Implementation of Research Activities Funding List of Budget Implementation Details of Output Results of Renewable Energy Development in 2023. We are also grateful to Universitas Islam Negeri Sultan Syarif Kasim Riau for support, which made this research possible. Lastly, we acknowledge our colleagues and research team members who contributed tirelessly to data collection, analysis, and the overall execution of this research. This research would not have been possible without the collective efforts and support of everyone mentioned above. Thank you for being an integral part of this endeavour.

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