The Potential of Zero Liquid Discharge for Sustainable Palm Oil Mill Effluent Management in Malaysia: A Techno-Economic and ESG Perspective

The Malaysian palm oil industry faces significant environmental challenges from Palm Oil Mill Effluent (POME), a high-strength wastewater. Conventional ponding systems for POME treatment are inefficient, land-intensive, and major sources of methane emissions. Zero Liquid Discharge (ZLD) presents a transformative solution by eliminating effluent discharge while recovering water, energy, and nutrients, aligning with circular economy principles. This review provides a critical techno-economic and Environmental, Social, and Governance (ESG) assessment of ZLD integration for POME management in Malaysia. A key contribution is the novel framework for categorizing ZLD integration at three strategic points in the treatment process, supported by comparative quantitative data on performance and costs. The review thoroughly examines hybrid technologies and delivers an in-depth analysis of the Social and Governance implications of ZLD integration, alongside its Environmental benefits, demonstrating ZLD’s role in meeting regulatory demands and advancing the United Nations Sustainable Development Goals (SDGs). The paper concludes by exploring future directions, including digital twin integration and novel financing, positioning ZLD as a strategic imperative for the industry’s long-term viability and global competitiveness.