Sustainability > Environmental Management

Environmental Management

IOI Oleochemical

Apart from adhering to relevant legislation such as Occupational Safety and Health Act (OSHA) and Environment Quality Act (EQA), we employ a number of environmental friendly and energy efficient processes in our operation to ensure efficient use of natural resources and to minimize the environment impact of our operation and products:

Environmental Footprint

We are reducing our environmental footprint in the area of greenhouse emission, water consumption, wastes reduction and continually improving energy efficiency in our processes through systematic approach. Some of our initiatives include:

  • A solar panel system installed at our facility in Prai, is generating more than 750,000 kWh of electricity annually since 2003. This solar panel system helps us to reduce almost 450 MT of CO2 in a year, equivalent to planting 40,000 trees.
  • IOI Pan-Century Oleochemicals Sdn Bhd has successfully installed a solar thermal system in the medium pressure (MP) boiler house. The system consists of 75 sets of solar thermal collectors and instruments that are installed with the integration of emerging technologies of Internet of Things (IoT), which works to supply the heating demand of the MP boiler house’s feed water system.
  • Instead of letting rainwater go to waste, IOI Pan-Century Edible Oils Sdn Bhd installed a pumping system to pump the rainwater that is collected at our new warehouse into a new buffer tank which can be then utilised at the Distillation 1 steam generator to gain savings in energy use and related emissions.
  • We installed low energy high efficiency vapor adsorption chillers together with a co-generation heat and power plant to reduce the emission of greenhouse gases.
  • We are the first in Penang to convert our heating system from fuel oil to natural gas. Natural gas is clean fuel and thus has lower environmental impact.
  • Our fatty acid esterification process uses continuous reactive distillation technology which is proven to be more energy efficient and uses less chemicals than conventional batch reactor process.
  • Energy-efficient Open Loop spray cooling plant for the new beading plant that is more energy efficient than those utilizing the close loop spray cooling.

Chemical-free technology

Our processes are selected and installed based on the impact on the environment. We invest in various eco-friendly manufacturing processes:

  • Physical separation of glycerine through ultrafiltration instead of chemical-treatment, which remove the likelihood of chemical residue in end product.
  • Replacing the use of detergent in the purification process of oleic acid by using crystallisation technology.
  • Continuous reactive distillation technology in the fatty acid esterification process – proven to be more energy efficient and use less chemicals than conventional process

Responsible Care

In 1994, we voluntarily embraced the Guiding Principles of Responsible Care and adopted the six Codes of Practices as laid down by the Chemical Industries Council of Malaysia (CICM). We are committed to ensure our plants and facilities operate in a way that minimizing environmental impact as well as protecting the health and safety of our employees and the public.

International Benchmarking

Together with our clients, we are working with various international organizations aimed at tackling climate change and reducing environmental carbon emissions in its supply chains. More information about CDP and EcoVadis can be found on the official websites:

We benchmark against industry bests and best practices on environment, safety and health aspects through the e-benchmarking system administered by the Malaysian Productivity Council (MPC) as part of our commitment to systematic and continual improvements.

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