This waste water is produced in the crude palm oil mills during washing & sterilizing fresh fruit bunches, clarification, separation and pressing of the empty fruit bunches. A thin layer of oil settles to the top of the water. This POME oil can be skimmed off and used as feedstock for biofuel production. POME Oil has not been utilized in large quantities in the past because of the relative smaller quantities of this waste produced per Palm Oil Mill and suppliers need to create a collection structure with a central storage tank in an harbour.

POME oil has max 3% of water and impurities and less than 66% fatty acids.