Business Model Utilization of Palm Oil Empty Fruit Bunches to Maximize the Profit of the Palm Oil Industry

Palm oil empty fruit bunches  (EFB) are still a problem for the palm oil mills in general. The scenario of utilizing palm oil EFB as the goal should be able to cope well with the environment and provide economic benefits. Overcoming environmental problems is clearly a top priority and must be met, but the best use of EFB scenarios should also benefit the environment, both short term and even long term. Likewise for economic benefits, economic benefits should also be obtained in line with these environmental benefits, not counterproductive. That is the best scenario for the use of palm oil EFB, which is currently still a problem.

Palm oil plantations are the production base for palm oil mills, both CPO mills and PKO mills. Without the palm fruit produced from the palm oil plantation, the palm oil mill will not be able to produce. Operation of palm oil plantations is indeed not an easy and expensive thing. This is mainly a factor of the large usage fertilizer demand, so as to reach around 60% for the operation of the palm oil plantations themselves or with an area of ​​20,000 hectares of palm oil plantations, the cost needs reach more than 70 billion rupiahs ( (around US$ 4,766,667), for more details, please read here. The factor to reduce the cost of fertilizer and maintain the productivity of palm oil fruits or fresh fruit bunches and even increase them is the main target for the utilization or processing of palm oil  EFB. If the cost of palm oil plantation operations can be reduced, the greater the benefits. Biochar is a palm oil EFB processing product that can be used to reduce fertilizer requirements in the palm oil plantation. Biochar production using pyrolysis as shown below.

 

In the process of pyrolysis, besides producing the main product in the form of biochar, then biooil and syngas are also produced. The biooil and syngas are then used as fuel generator to produce electricity. In palm oil mills or CPO mills, fiber waste is also commonly found. The fiber waste is often just piled up and never utilized so it tends to pollute the environment. Though these fibers can be made pellets for export and become fuel for power plants. In addition, currently millions of hectares of old palm oil plantations in Indonesia need to be immediately replanting. Millions of tons of old oil palm trunks are also potential for pellet production. If old oil palm trunks are only left in the plantation so they rot and decay, then it will become lava media and subsequently become a beetle which actually disrupts productive palm oil plantations as well as other plantations, for more details read here. The production of pellets from fiber or palm trunks requires electricity and this can be supplied from the pyrolysis of palm oil EFB like the scheme above. Although palm oil mills also produce electricity, but generally only for the purpose of CPO production, so it is not enough for the production of fiber pellets and oil palm trunk pellets (OPT pellets).

The Urgency Palm Oil Waste Processing Plant

Production process of palm oil mills generate large amounts of waste every day. Untreated palm oil waste will only cause environmental problems. Orientation of the waste processing in addition to overcome the environment problem should also provide great added value for the oil palm business. Commonly palm oil mill waste is a dilemma between palm oil mill division with the palm oil plantation division, it is because the current practice of waste particularly empty fruit bunches (EFB) will generally be returned to the palm oil plantation to increase the soil fertility by composting. It means that palm oil waste is generated by the palm oil mill division, while the use of compost  is palm oil plantation division. Prior to use in plantation the waste also needs to be processed separately.

 

Judging from the process, biological composting process will take longer time and considerable a huge investment. Pyrolysis is a thermochemical process that is the best process for processing the empty fruit bunch. The main product of biochar can be applied as a medium to improve soil fertility and conserve the use of subsidized urea fertilizer in palm oil plantations, while biooil and syngas for energy applications. Application of pyrolysis system can also revolutionize the energy system in palm oil mill, so become more efficient and environmentally friendly.

Palm oil waste processing company that will become a stand-alone as alternative solution of the problem. Palm oil mill division will not be bothered for waste treatment especially empty fruit bunch while palm oil plantation division can directly get the product ready and apply for palm plantations as their responsibilty. The company is like a bridge between the two divisions and could be set up a separately or joint ventures with palm oil mill and palm oil plantations are best for the benefit of optimization.