Sustainable lignocellulosic spent waste rice straw (SWRS) from bioethanol production inventively applied in this study to valorize petroleum production produced water (PPPW). SWRS expressed efficient pollutant removal over a wide range of petroleum concentration, temperature, pH, salinity, and mixing rate reaching approximately 217 mg/g, within four hours contact time. Kinetic studies revealed a pseudo-second-order chemisorption process with a boundary layer control and 16.97 kJ/mol activation energy where the intra-particle diffusion was not the only rate regulatory step. Thermodynamic studies revealed spontaneous, favorable, and endothermic adsorption, with a strong affinity between the SWRS and oil molecules. Biosorption mechanism studies proved the enrollment of SWRS components' lignin, cellulose, and hemicellulose in the oil uptake with the predominance of chemisorption over physisorption onto the rough and highly porous SWRS surface. A single-stage batch biosorption process was designed based on the best fitted Langmuir adsorption isotherm and applied on a real PPPW sample. The Egyptian standard limits for safe industrial effluents discharge into marine environment with a concomitant decrease in scale formation precursors were achieved recommending its safe reuse for enhanced oil recovery. Finally, for accomplishing zero-waste, SWRS disposed of PPPW treatment substantiated valorized solid biofuel with a sufficient calorific value 38.56 MJ/kg.