Reviving the Integrated Coconut Industry Part 3

When continuous pyrolysis is used for processing coconut shells and producing charcoal and is not processed further into activated carbon, excess syngas and biooil can be used as energy sources for processing fruit flesh and coconut water. Fruit flesh and coconut water can be processed into a variety of products needed by the market. The production costs of various processed coconut products have become very competitive because energy costs are very minimal or even zero. In addition, energy needs can also be added from coconut fiber which is used as fuel as well. The energy source can be used for electricity or heat or both depending on industry needs.

If gliricidae is planted as a crop between coconut plantations, wood products will also be obtained. The wood can be used as raw material for wood pellets as an export commodity which is predicted to continue to increase demand in line with awareness of environmental problems and climate change. Gliricidae leaf waste can also be used as animal feed such as goats, sheep and cattle. Maintenance of gliricidae is very easy and planting patterns as intercropping with coconut plantations are also common in Sri Lanka. Land optimization can also be done by using land between coconut plantation and gliricidae as pasture fields such as goats, sheep and cattle and for beekeeping.

To make the business profitable and sustainable, professional management certainly needs to be applied in the business. Management of the upstream sector namely plantations and livestock should be separated from the downstream sector namely factory or plant as a processing unit. This is similar to the organization in the palm oil company which separates the plantation division from the factory or mill division. In addition to facilitating business operations, the business will become efficient and competitive.

Reviving the Integrated Coconut Industries in Indonesia

The absence of a market causes the coconut industry to not develop, stagnate and even tend to die. Although various products can be produced from coconut fruit but with a small product uptake is not able to turn on the coconut industry. When the products that the demanded by market are already obtained, such as CPO in the palm oil industry, it is possible for the coconut industry to stretch and rise and be taken into account. Modernization of technology also needs to be done so that the coconut industry becomes a modern industry even though the production capacity is not as big as the palm oil industry. Another factor needed to revive the integrated coconut industry and this is almost the same experienced by all industries in general that is the availability of energy. So that to meet the energy needs, not all coconut fruit should be processed, but some are used to produce energy, for example coconut fiber, because the economic value is the lowest.

Activated carbon is a product that has a very good market potential and with continuous pyrolysis technology followed by activation, the product can be produced without the need for additional external energy. Thus the activated carbon plant can stand on its own using its coconut shell waste. But to get the coconut shell, someone must process the coconut fruit. Products such as VCO, dedicated coconut, and coconut milk can be the main products so that the processing of the coconut fruit. The coconut water can be processed into isotonic drinks or nata de coco. The use of coir-fired boilers (if in a palm oil mill, high efficient boilers only use the fiber) or even fronds and leaves can be used for electricity and steam production. Similar to operations in palm oil mills as well, namely electricity can be used to move a variety of mechanical equipment for processing coconut and steam as well as a source of heat, especially if the processing of the coconut fruit does need it.

With the above pattern, the coconut industry can be operated even though the location is in a remote area and there is no electricity network there, a place where coconut plantations are located. Indonesia as a seduction country of coconut islands with the plantation area of almost 4 million hectares and the widest in the world today or the equivalent of 1/3 of palm oil plantations should be also the leader in the world coconut industry. 

Which is Better, Efficient Boiler or Pyrolysis System ?

Fiber and palm kernel shells (PKS) are palm oil mill solid wastes that are produced in CPO production in that mill. The amount of fiber and PKS waste is quite a lot, which is around 20% of each fresh fruit bunch (FFB) or almost the same as the CPO produced. A palm oil mill with a capacity of 60 tons / hour FFB can produce fiber as much as 8.1 tons per hour or 194.4 tons per day and PKS of 3.3 tons / hour per hour or 79.2 tons per day. And because both of them are waste, generally the utilization of the waste is not initially considered, including for use as fuel in boilers in palm oil mills for the production of electricity and steam. The use of fiber and PKS for boiler fuel generally uses 100% fiber and about 30% of the PKS. Under these conditions the remaining 70% of the PKS can be used for other things including being sold or even exported.

When the shell becomes a commercial commodity and demand is greater, palm oil mills replace their old inefficient boilers with new boilers that have a high level of efficiency. In this way, 100% of the PKS is no longer used to boiler fuel and only requires fiber as fuel. In this condition a paradigm shift in thinking begins to occur, that is when the solid waste is almost unnoticed and tends to be considered a problem, then it becomes an important part of earning additional income and it can even be estimated that if the shell is successfully sold then it is sufficient to cover the operational costs of the palm oil mill. Certainly something interesting if the production of CPO (crude palm oil) with 0% operational costs so that profit is increasingly attractive especially amid the recent decline in CPO prices.

Another thing that can be done is to use a pyrolysis unit, to run the boiler. With pyrolysis, not only fiber is used but also the empty fruit bunch (EFB). EFB are solid palm oil mill waste which to date have generally not been utilized. Besides producing energy, pyrolysis also produces products in the form of charcoal (biochar). Although charcoal (biochar) can also be used for energy sources, but in the business of palm oil companies the use of biochar for plantations can be more compatible. The use of biochar in palm oil plantations is mainly to  fertilizer saving, which is one of the major cost components (around 30%) in the CPO production business. With an area of ​​20 thousand hectares of oil palm plantations, fertilizer costs are estimated to reach Rp. 71.50 billion (around US$ 5 million) per year or Rp. 35.75 billion (around US$ 2.5 million) per year for every 10,000 hectares, for more details, please read here. Palm oil mills with big vision certainly try to maximize their potential with the aim of maximizing profits from upstream to downstream production activities. With Biochar can also target the increase in productivity of FFB, for more details, please read here.

The application of biochar will be easier to do in Indonesia than in Malaysia, this is because almost all palm oil mills in Indonesia also have palm oil plantations while in Malaysia the mills generally do not have their own palm oil plantations. The palm oil industry also has an important role for the two countries because Indonesia and Malaysia are the largest CPO producers and owners of biggest palm oil plantations in the world today. The palm oil industry contributes around 7% of Malaysian GDP and 3% of Indonesian GDP, so its role cannot be ignored. Both with pyrolysis and high efficient boilers, biomass waste can be used as an energy source and 100% of the PKS can be commercialized, but with pyrolysis is better because waste of EFB can also be processed, there are biochar product (while only ash if only with regular combustion) for Fertilizers saving in the palm oil plantations and the exhaust gases from the palm oil mill boilers are also clean because they burn gas (syngas) produced from the pyrolysis process.