Setting Up a Palm Oil Refinery Plant

A palm oil refinery plant is a specialized industrial facility designed to process crude palm oil (CPO) and crude palm kernel oil (CPKO) into high-quality, safe, and marketable refined products. Derived from the mesocarp (flesh) and inner kernel of oil palm fresh fruit bunches (FFB), these crude oils contain impurities such as free fatty acids (FFAs), gums, pigments, and odor-causing substances that must be removed through systematic refining. The plant’s core goal is to produce refined, bleached, and deodorized (RBD) palm oil, along with derivatives like palm olein and palm stearin, while optimizing production output, efficiency, and sustainability. Production output varies significantly based on the plant’s scale, automation level, and technology, ranging from small-scale units processing 1–20 tons per day (TPD) to large industrial facilities handling over 3,000 TPD, with annual capacities reaching millions of tons globally.

Types of Palm Oil Refinery Plants

Refinery plants are categorized by their automation level and production output, each tailored to specific business needs and market demand:

Batch Refinery Plant

Ideal for mini and small-scale operations, with a production output of 1–20 TPD. These plants are cost-effective, require less land (as little as 50m² for mini units), and are easy to operate, making them suitable for small enterprises or rural areas. They can process various oils beyond palm oil, including animal oils, and have a short cost recovery period.

Semi-Continuous Refinery Plant

A mid-scale option with production output ranging from 10–50 TPD (some models up to 30 TPD). It is an improved version of batch refineries, offering higher efficiency and lower costs than continuous plants. This type is the preferred choice for medium-sized factories looking to balance output and investment.

Continuous Refinery Plant

Designed for large-scale, high-volume production, with output starting from 30 TPD and scaling up to 400 TPD or more. State-of-the-art continuous facilities, such as Cargill’s Lampung refinery in Indonesia, can process up to 3,000 TPD, with an annual capacity of 1 million metric tons. These plants feature fully automated PLC/VFD-based operations, ensuring consistent product quality, low long-term production costs, and compatibility with both physical and chemical refining processes. (Related Post: Turnkey 100TPD Palm Oil Refinery Plant>>)

Palm Oil Refining Processes

Regardless of scale, all palm oil refineries follow core processing stages to remove impurities and enhance oil quality. The choice of process (physical or chemical) depends on crude oil quality and desired output, with physical refining being the industry mainstream due to its higher efficiency and lower environmental impact.

Physical Refining (Preferred for High-FFA Crude Oil)

Physical refining uses steam distillation under high temperature and vacuum conditions, avoiding harsh chemicals. It is suitable for CPO with high acid value (FFA > 5%) and offers advantages like higher refining rates, reduced chemical consumption, and minimal wastewater. The key steps include:

• Degumming: Removes phospholipids, mucus, and proteins using phosphoric or citric acid, followed by centrifugal separation to coagulate and remove gums. This step ensures the oil’s stability for subsequent processing.
• Decolorization (Bleaching): Uses activated carbon or bleaching earth to adsorb pigments, trace metals, and oxidation products, improving the oil’s appearance and taste. The adsorbent is then filtered out, with the amount of bleaching earth controlled (1–3%) to avoid oil loss.
• Deodorization: Heats the oil to 180–270°C under vacuum, using steam to strip volatile FFAs and odor-causing compounds (e.g., aldehydes, ketones). The oil is then quickly cooled to prevent oxidation.

Chemical Refining (Suitable for Low-FFA Crude Oil)

Chemical refining uses alkali (e.g., sodium hydroxide) to neutralize FFAs, forming soapstock that is separated by centrifugation. While mature, this process generates more wastewater and higher chemical costs, making it less ideal for high-FFA crude oil. It is typically used for CPO with FFA < 5%.

Optional Fractionation

Post-refining, RBD palm oil can undergo fractional crystallization to separate into liquid palm olein (low melting point) and solid palm stearin (high melting point), each with specialized applications. This step enhances the plant’s output diversity and market reach.

Key Equipment and Production Efficiency

The efficiency and output of a refinery plant depend heavily on its equipment.

Degumming Tanks: For coagulating gums and impurities.
Centrifuges/Decanters: Critical for separating solids, gums, and soapstock from oil. Advanced models like ANDRITZ’s 3-phase decanter optimize oil recovery and reduce energy consumption.
Bleaching Vessels: For mixing oil with adsorbents, equipped with temperature and pressure controls.
Deodorization Towers: Designed for high-temperature vacuum distillation, ensuring efficient removal of odors and FFAs.
Steam Generators and Thermal Oil Furnaces: Supply heat and steam for deodorization and distillation, with thermal oil furnaces capable of reaching temperatures over 280°C.