The palm oil industry is a promising biomass source, as the production generates wastes more than four times that of the main product. In 2020, for 45 MT of crude palm oil production in Indonesia, it was estimated that around 12 MT of palm kernel shell were generated or equivalent to 5.4 MTOE in net calorific value. This high calorific value of solid waste can be used by industries as a source of renewable energy, once it is proven to be technically, environmentally and economically feasible. In this comparative study, the life cycle assessment method was deployed to determine the environmental feasibility of palm kernel shell usage as an alternative renewable energy source to coal and natural gas in ceramic tile production through the application of combustion technology. The novelty of this study lies in a cradle-to-gate approach by comparing the carbon footprint of biomass from agriculture industrial waste with common fossil fuels as sources of energy for a highly energy-intensive industry. This research demonstrates that by evaluating the total life cycle of a fuel, the perspective on environmental impacts can be quite different when compared to looking solely at the end-use process. This study shows how the deployment of life cycle assessment would create managerial implications toward the decision making of fuel selection with carbon footprint considerations.