Interview with Yokogawa Electric (Malaysia) Sdn. Bhd. Driving Sustainable Palm Oil Operations Through Digitalisation, AI and Decarbonisation

As the palm oil industry continues to navigate sustainability expectations, rising operational costs, labour shortages, and increasing digitalisation, many producers are re-evaluating how technology can support long-term operational resilience and environmental performance.

For more than three decades, Yokogawa has been supporting palm oil mills, refineries, and oleochemical plants across and customers globally to accelerate their transformation journeys through automation, instrumentation, operational technologies

and advanced technologies, aimed at improving efficiency, reliability, and plant safety.

 Darrell Lee

Asia Palm Oil Magazine recently spoke with Darrell Lee from Yokogawa Electric (Malaysia) Sdn. Bhd. on the growing role of digitalisation, AI, decarbonisation, and operational sustainability across the palm oil industry.

1. Could you share more about how is Yokogawa supporting palm oil producers in modernising their operations and driving long-term transformation?

Yokogawa has been involved in the palm oil industry for more than three decades, supporting mills, refineries, and oleochemical producers through automation, instrumentation, and digitalisation technologies. In fact, some of the earliest deployments of Yokogawa’s CENTUM Distributed Control System outside the oil and gas sector were in palm oil oleochemical plants.

Across the palm oil value chain, from utilities and biomass power generation to refining and POME treatment, our technologies serve as the backbone of operational excellence. Reliable instrumentation and automation systems deliver the visibility and control needed to enhance safety, improve product quality, optimise energy consumption, reduce emissions, and maximise plant uptime, helping customers achieve both business performance and sustainability goals.

Building on this foundation, we integrate these systems with digital platforms that bridge OT / IT environments, enabling better data visibility, predictive maintenance, and more efficient operations to support our customers in their transformation journey.

2. From Yokogawa’s perspective, what are the key sustainability and decarbonisation challenges currently shaping the palm oil industry?

One of the biggest sustainability challenges facing the industry today is greenhouse gas emissions, particularly methane emissions from Palm Oil Mill Effluent or POME. Traditional open pond systems release methane directly into the atmosphere, and methane has a significantly higher environmental impact compared to carbon dioxide.

As a result, many mills are increasingly investing in biogas capture systems to convert methane into renewable energy for mill operations. This not only reduces emissions but also improves energy efficiency and supports long-term sustainability goals.

At the same time, producers are facing increasing pressure around traceability, land use compliance, and ESG reporting, especially from international markets. Sustainability expectations are no longer limited to certification alone. Buyers and regulators are now looking at operational transparency, emissions reporting, and environmental performance more closely.

Energy efficiency is another important area, particularly in high energy consumption processes such as sterilisation, steam generation, and boiler operations. Even small operational inefficiencies can lead to significant energy losses over time.

Beyond environmental concerns, labour shortages also remain a challenge across the industry. This is one of the reasons why more producers are beginning to explore automation, digitalisation, and smarter operational management systems. Overall, the industry is moving towards stronger measurement systems, better operational visibility, improved emissions management, and more integrated digital operations.

3. We are seeing growing interest in biogas, biomass, and waste-to-energy initiatives across the industry. How is Yokogawa supporting producers in these areas?

Palm oil mills are uniquely positioned within the energy transition because they already generate biomass materials such as empty fruit bunches, fibre, and palm kernel shell. However, converting these materials into stable and efficient energy sources requires proper process optimisation and combustion management.

Yokogawa supports customers through an end-to-end approach that includes instrumentation, analysers, controllers, sustainability monitoring tools, and operational optimisation technologies. In the area of biogas, our solutions help mills capture methane safely, stabilise gas engine performance, monitor emissions, and support Scope 1 and Scope 2 reporting requirements.

We also strengthened our biomass and waste-to-energy capabilities through the acquisition of Dublix Solutions, a Scandinavian company specialising in biomass combustion optimisation. Designed specifically for biomass applications, Dublix solutions help stabilise combustion, improve steam output, and reduce emissions, even when operating with inconsistent fuels such as empty fruit bunches, fibre, and palm kernel shells.

Solutions such as SulfGen and JetClean also help reduce boiler fouling, and improve overall operational reliability. These technologies can be deployed on top of existing control systems, enhancing performance without significant infrastructure changes, while reducing downtime.

4. Many palm oil producers are still in the early stages of digitalisation. How does Yokogawa support companies that are just beginning their digital transformation journey?

Digital transformation should be approached in a practical and phased manner. Not every company is ready to implement advanced AI or fully autonomous systems immediately. At Yokogawa, we first help customers understand their current digital maturity, identify operational gaps, and prioritise areas that can deliver meaningful operational improvements.

One of the frameworks we use is the Smart Industry Readiness Index or SIRI, which was originally developed in Singapore and is now widely recognised globally. Through S.I.R.I assessments and workshops, we evaluate areas such as process maturity, operational readiness, energy management, and technology infrastructure.

What differentiates Yokogawa is that we come from the operational technology environment. We do not only assess organisational readiness, but also actual plant operations, control strategies, and process performance. This allows us to build digitalisation roadmaps that are more practical and aligned with operational realities.

In many cases, the first step is simply improving operational visibility and centralising plant data. Without a proper data foundation, companies will struggle to move towards predictive analytics, optimisation, or AI-driven operations. Transformation does not need to happen overnight. Small and consistent improvements often create the strongest long-term impact.

5. AI is becoming an increasingly discussed topic across the industrial sector. How do you see AI reshaping palm oil operations in the coming years?

AI will continue to play a growing role across mills, refineries, and oleochemical operations, particularly in areas such as predictive maintenance, process optimisation, energy management, and operational decision-making.

At Yokogawa, this evolution is guided by our IA2IA, Industrial Automation to Industrial Autonomy, approach that progressively advance operations from automated systems to more selfoptimising and adaptive environments. AI is also helping address workforce challenges by capturing operational knowledge and supporting more informed, consistent decisionmaking.

However, AI is only as effective as the data it is built on. Without reliable instrumentation and stable data collection, AI cannot generate meaningful or trusted insights. At the same time, the adoption of AI must be underpinned by robust governance. Yokogawa emphasises structured AI governance frameworks to ensure reliability, safety, and transparency, particularly in complex industrial environments where operational risk is critical.

While fully autonomous operations will take time, the adoption of predictive and AIassisted operations is expected to grow steadily, enabling palm oil producers to operate more efficiently, enhance sustainability performance, and respond more proactively to evolving industry demands.

6. Despite the growing focus on AI and digitalisation, you have consistently highlighted safety as a key priority. Why is safety still such an important foundation?

For us, sustainability begins with safety. No matter how advanced digitalisation or AI becomes, plants must first operate safely and reliably. Without a safe working environment and stable operations, digital transformation initiatives cannot succeed. Industrial incidents across the region continue to remind the industry about the importance of operational discipline, proper safety systems, and structured workflows.

At Yokogawa, we support customers through integrated safety solutions that include emergency shutdown systems, fire and gas detection, digital permit-to-work systems, operation management platforms and cybersecurity solutions to defend against arising threats.

We are also seeing increasing interest in digitalising operational processes such as shift handovers, operator logs, maintenance workflows, and permit approvals. These systems improve traceability, reduce human error, and strengthen operational visibility across the plant.

Ultimately, safety, operational discipline, and sustainability are closely connected. A stable and safe operating environment creates the foundation needed for digitalisation and long-term operational improvement.

7 What final message would you like to share with palm oil producers as the industry continues moving towards sustainability and digital transformation?

The palm oil industry is entering a period where sustainability, operational efficiency, and digitalisation can no longer be viewed separately. These areas are becoming increasingly interconnected.

Today, producers are facing growing expectations around emissions reduction, traceability, energy efficiency, and operational resilience. At the same time, labour shortages and rising operational costs continue to push the industry towards smarter and more automated operations.

The first step towards this transformation is data. Without proper operational data, there can be no meaningful AI, optimisation, or predictive insight. Building a strong operational data foundation may not always deliver immediate returns, but it creates the platform needed for future improvements.

The good news is that transformation does not need to happen all at once. Small and consistent improvements in measurement, operational visibility, safety, and process optimisation can already create significant long-term impact.

As the industry continues evolving, producers who invest early in digital foundations, operational sustainability, and smarter plant management will be better positioned to remain competitive and resilient in the years ahead.

At Yokogawa, we support this journey as a long-term partner, bringing together deep operational expertise, trusted measurement and control technologies, and advanced digital capabilities. We help customers build resilient, future-ready operations that are not only more efficient, but also safer, more transparent, and aligned with their sustainability goals.

We believe the future of the palm oil industry will be defined by cleaner operations, stronger operational intelligence, and a steady progression towards more autonomous and sustainable production.