Abstract
Recent developments in the palm oil industry have encouraged mill operators to expand downstream operations. In this regard, mill operators have considered implementing green technology systems such as biorefineries. Green technology systems significantly alter the way that an industry operates in order to improve economic performance and sustainability of the plant and can expand the firm’s business portfolio. However, there is a challenge in convincing stakeholders to invest in such systems, especially when the technology is still unproven and/or is uncommon. In this chapter, an integrated approach is presented to determine the allocation of incremental profits for green technology systems such as a palm-based biorefinery (PBB) in a palm-based eco-industrial park (PEIP). The integrated approach presented in this chapter consists of cooperative game theory and stability analysis . The results suggest that the optimal allocation of incremental profits is 14% (US$800,000) for the PBB. Subsequent stability analysis determines that the green technology system with the PBB is economically stable for as long as additional investment costs are within the range of 10–30% of the PBB’s raw material costs.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Abbreviations
- u :
-
Index for technology systems
- z :
-
Index for coalitions
- w :
-
Index for coalitions with technology u
- \( {\text{GP}}_{{}}^{\text{OVERALL}} \) :
-
Total gross profit of all technology systems u in USD/yr
- \( {\text{GP}}_{u}^{{}} \) :
-
Gross profit of technology system u in USD/yr
- \( {\text{IP}}_{u}^{{}} \) :
-
Incremental profits of technology system u in USD/yr
- \( {\text{IP}}_{z}^{{}} \) :
-
Incremental profits of a technology coalition in USD/yr
- \( {\text{IP}}_{w}^{{}} \) :
-
Incremental profits of a coalition without technology u in USD/yr
- \( C_{u}^{\text{EIP}} \) :
-
Cost of material in technology u from EIP in USD/yr
- \( C_{u}^{\text{Ext}} \) :
-
Cost of material technology u from external facilities in USD/yr
- \( {\text{PA}}_{u}^{{}} \) :
-
Allocation of incremental profits to technology system u in USD/yr
- \( {\text{AI}}_{u}^{{}} \) :
-
Additional investment cost of technology u in USD
- \( cf_{u}^{{}} \) :
-
Fraction of raw material costs in technology u
- \( {\text{DC}}_{u}^{{}} \) :
-
Distribution coefficient of each technology u
- \( {\text{ADC}}_{u}^{{}} \) :
-
Asymmetric distribution coefficient of each technology u
- AOT:
-
Annual operating time in h/yr
- \( {\text{ADC}}_{u}^{\hbox{max} } \) :
-
Maximum limit for asymmetric distribution coefficient of each technology u
- \( {\text{ADC}}_{u}^{\hbox{min} } \) :
-
Minimum limit for asymmetric distribution coefficient of each technology u
- PRu:
-
Product revenue for technology u
- RMCu:
-
Raw material cost for technology u
References
Abdullah N, Sulaiman F (2013) The oil palm wastes in Malaysia. In: Biomass now—sustainable growth and use. InTech
Ali AAM, Othman MR, Shirai Y, Hassan MA (2015) Sustainable and integrated palm oil biorefinery concept with value-addition of biomass and zero emission system. J Clean Prod 91:96–99
Andiappan V, Ng DKS, Bandyopadhyay S (2014) Synthesis of biomass-based trigeneration systems with uncertainties. Ind Eng Chem Res 53:18016–18028
Andiappan V, Tan RR, Ng DKS (2016) An optimization-based negotiation framework for energy systems in an eco-industrial park. J Clean Prod 129. https://doi.org/10.1016/j.jclepro.2016.04.023
Department of Statistics Malaysia (2017) Gross domestic product third quarter 2017
Holling C (1996) Engineering within ecological constraints. National Academies Press, Washington, DC
Kasivisvanathan H, Barilea IDU, Ng DKS, Tan RR (2013) Optimal operational adjustment in multi-functional energy systems in response to process inoperability. Appl Energy 102:492–500
Kasivisvanathan H, Ng RTL, Tay DHS, Ng DKS (2012) Fuzzy optimisation for retrofitting a palm oil mill into a sustainable palm oil-based integrated biorefinery. Chem Eng J 200–202:694–709
KeTTHA (2010) Definition of green technology (WWW document). http://www.gpnm.org/e/articles/Definition-of-Green-Technology-by-KETTHA-Ministry-of-Energy-Green-Technology-and-Water-a5.html. Accessed 31 Jan 2018
Kronenberg J (2007) Ecological economics and industrial ecology: a case study of the integrated product policy of the European union. Routledge, New York
Maali Y (2009) A multiobjective approach for solving cooperative n-person games. Int J Electr Power Energy Syst 31:608–610
Malaysian Innovation Agency (2011) National biomass strategy 2020 : New Wealth Creation for Malaysia’s Palm Oil Industry
Mayer AL (2008) Ecologically-based approaches to evaluate the sustainability of industrial systems. Int J Sustain Soc 1:117–133
Ng RTL, Hashim MH, Ng DKS (2013) Process synthesis and optimization of a sustainable integrated biorefinery via fuzzy optimization. AIChE J 59:4212–4227
Ng RTL, Ng DKS, Tan RR (2015) Optimal planning, design and synthesis of symbiotic bioenergy parks. J Clean Prod 87:291–302
Ng RTL, Ng DKS, Tan RR (2013) Systematic approach for synthesis of integrated palm oil processing complex. Part 2: multiple owners. Ind Eng Chem Res 52:10221–10235
Ng RTL, Ng DKS, Tan RR, El-Halwagi MM (2014) Disjunctive fuzzy optimisation for planning and synthesis of bioenergy-based industrial symbiosis system. J Environ Chem Eng 2:652–664
Shapley LS (1953) A value for n-person games. In: Contributions to the theory of games. Annals of mathematical studies. Princeton University Press, Princeton, pp. 307–317
Teo KY, Ng TY, Wau CM, Liew JTS, Andiappan V, Ng DKS (2017) Hybrid optimisation model for the synthesis of a central utility system in eco-industrial park. Process Integr Optim Sustain
Waage S (2013) Disruptive innovation is key for a sustainable economy (WWW document). Guard. https://www.theguardian.com/sustainable-business/disruptive-innovation-sustainable-economy
Wang G, Feng X, Chu KH (2013) A novel approach for stability analysis of industrial symbiosis systems. J Clean Prod 39:9–16
Acknowledgements
The financial support from the Ministry of Higher Education, Malaysia through the LRGS Grant (Project Codes: LRGS UPM Vot 5526100 and LRGS/2013/UKM-UNMC/PT/05) are gratefully acknowledged.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Andiappan, V., Ng, D.K.S., Tan, R.R. (2019). Cooperative Game Theory Analysis for Implementing Green Technologies in Palm Oil Milling Processes. In: Foo, D., Tun Abdul Aziz, M. (eds) Green Technologies for the Oil Palm Industry. Green Energy and Technology. Springer, Singapore. https://doi.org/10.1007/978-981-13-2236-5_8
Download citation
DOI: https://doi.org/10.1007/978-981-13-2236-5_8
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-13-2235-8
Online ISBN: 978-981-13-2236-5
eBook Packages: EnergyEnergy (R0)