Optimizing Pyrolysis and Biochar in the Palm Oil Industry

Indonesia's CPO production currently reaches around 50 million tons per year with a land area of ​​around 17.3 million hectares. This means that the average CPO production per hectare is only 2.9 tons or per million hectares produces 2.9 million tons. If biochar is used and there is a 20% increase, it means there is an increase of 10 million tons of CPO per year and this is equivalent to saving around 3.5 million hectares of land, or the use of biochar will slow down forest clearing (deforestation) for palm oil plantations.

The average speed of Indonesian palm oil plantation area is 6.5% per year or equivalent to about 1 million hectares per year for the last 5 years, while the increase in palm oil fruit production or FFB (fresh fruit bunches) is only 11% on average. Even the largest expansion of palm oil land occurred in 2017, which increased by 2.8 million hectares. By opening 1 million hectares of forest, national CPO production only increased by 11%, while without the need to open forests, namely with the application of biochar, there could be a 20% increase in productivity. And the 20% increase in FFB yield (fresh fruit bunches) using biochar is a low estimate.

With the number of palm oil mills in Indonesia reaching more than 1000 units and tens of millions of tons of biomass waste, especially empty palm fruit bunches (EFB), the volume of biochar production produced is certainly very large. In addition, pyrolysis technology can replace combustion technology which is generally used in palm oil mills to produce steam for electricity production and sterilization of fresh fruit bunches (FFB) in CPO production. With pyrolysis raw materials using palm oil tankos and being able to replace palm kernel shells, 100% of palm kernel shells (PKS) can be sold or exported. The sale of palm kernel shells or PKS (palm kernel shells) will certainly provide additional attractive benefits for the palm oil company. Palm kernel shells or PKS are the main competitors of wood pellets in the global biomass market.

In addition, the use of biochar also saves fertilizer use and the highest operational cost on oil palm plantations is fertilizer so this is very relevant. Tens of billions of costs spent on fertilizer can be reduced by using biochar, especially since the biochar comes from its own waste so that it will automatically become a solution for biomass waste management. Including biopesticides and liquid organic fertilizers can also be produced from the pyrolysis process. Carbon credit is the next business potential. This is because the application of biochar to the soil for agriculture or plantations is an effort for carbon sequestration / carbon sink.

The benefits that can be obtained from this biochar carbon credit are also large, even globally biochar carbon credit ranks first or more than 90% in Carbon Dioxide Removal (CDR) recorded in cdr.fyi. However, there are indeed many large biochar producers who do not sell their carbon credits because of the methodological requirements of standard carbon companies such as Puro Earth and Verra, and these biochar producers are comfortable with their biochar sales business, especially since these producers have existed (established) since before carbon credits were available for biochar.    

Stationary Auger : Industrial Pyrolysis for Indonesia and SE Asia

Global biochar production in 2023 is estimated to reach 350 thousand tons or equivalent to 600,000 carbon credits and is expected to continue to increase. From an economic perspective, revenues from biochar producers, distributors, value-added producers and equipment manufacturers exceeded $600 million in 2023, with a CAGR of 97% between 2021 and 2023. Revenues are projected to grow to nearly $3.3 billion in 2025. The existence of carbon credits is the second largest motivation for biochar production. With the existence of carbon credits, there has been a significant increase in biochar production from before. In 2023, this biochar carbon credit contributed the largest amount, namely 90% of carbon removal in the voluntary carbon market according to data from cdr.fyi.

And even biochar production where the income from direct sales of biochar is not that big or in other words they rely on income from biochar production then it is still a profitable business. As a tropical country, Indonesia can be said to be a biomass heaven both from agricultural / plantation biomass or forestry. If the biomass is converted into biochar then the production will be very large as well as the carbon credit. Direct sales of biochar (physical biochar) can also be done well because there are so many sub-optimal lands that can be repaired or upgraded using biochar, such as dry lands, critical lands, post-mining lands and so on, which amount to tens or even hundreds of millions of hectares.

Nearly 80% of biochar producers in 2023 will fall into the medium, large, and very large categories

The selection of production equipment that can produce certified biochar so that it can get carbon credit is important besides maximizing production capacity, it requires adequate production equipment. Stationary auger pyrolysis equipment is the right choice to meet the above requirements. In addition to producing biochar as the main product, by-products such as excess heat, biooil and syngas are additional benefits of the pyrolysis process with the stationary auger. The utilization and monetization of these by-products are an increasing driving force for biochar production with the stationary auger. Currently, there are still many biochar producers who do not have certification or standards for carbon credit, this also makes them unable to get income from carbon credit or just business as usual with biochar sales. Of course, this is not attractive to companies that will produce large-capacity biochar.

But why is biochar production in Indonesia and Southeast Asia still very small and not many people even know about biochar? This is related to low awareness of climate, sustainability and the environment and more specifically to biochar. Biochar as a solution to improve soil fertility so that productivity increases (both agricultural/plantation crops and forestry) as well as a climate solution with carbon sequestration. But with the high problem of climate awareness, sustainability and the environment, especially with the economic driving force in the form of carbon credits, it seems that the story will be different in the coming years. But there are indeed reasons related to the low participation of biochar producers in the carbon market, namely the costs and difficulties in obtaining certificates to sell carbon credits, as well as the costs of participating in carbon marketplaces. But with the large production capacity of industrial capacity with stationary auger equipment, the costs and difficulties in obtaining carbon credits will be commensurate with the benefits obtained.   

If We Don’t Cut Emissions, Creating Carbon Sinks is Irrelevant

The concentration of CO2 in the atmosphere is already high so it must be reduced to save the earth. Efforts to reduce the concentration of CO2 in the atmosphere apparently cannot simply absorb CO2 from the atmosphere (carbon capture and storage). Maximizing the absorption of atmospheric CO2 but on the other hand CO2 emissions continue to increase, it will be very difficult (read: impossible) to reduce the concentration of CO2 in the atmosphere, let alone to a certain target agreed upon by the global community. So what makes sense is that CO2 emissions are not increased again so that the concentration does not increase further and existing CO2 is reduced to a certain level as targeted.

In practice, the production of wood chips and wood pellets as carbon neutral renewable fuels will complement each other with biochar. Wood chips and wood pellets do not add CO2 emissions and biochar absorbs CO2 as a carbon sink (carbon sequestration) or carbon negative. The application of biochar as part of carbon capture and storage (CCS) is currently developing the fastest compared to other CO2 reduction efforts (CDR / Carbon Dioxide Removal). Biochar leads in CDR credits in the voluntary carbon market (VCM), namely with more than 90% globally in 2023 as stated in the cdr.fyi database. From this data, it is estimated that at least 350 thousand tons of biochar have been produced globally in 2023 with an estimated 600,000 units or more of CDR credits (Carbon Credit).

And as in Europe, namely in 2023 there are a total of 48 new biochar plants, installed and operating, although 7 plants are closed, but a total of 41 biochar plants or an estimated total of 171 biochar plants are operating. And in 2024 there are an estimated 51 new biochar plants in Europe or in 2024 the total number of biochar plants is estimated to grow to more than 220 units. In terms of biochar volume, there is an estimated increase of 75,000 tons in 2023 and in 2024 the increase in production to 115,000 tons. Electricity production with 100% biomass fuel and equipped with carbon capture and storage (CCS) devices will also absorb CO2 or carbon negative, but this method is expensive and slow to develop. While biomass and coal cofiring because the cofiring ratio is small, efforts to reduce CO2 emissions are not too significant but cofiring is indeed the easiest entry point for using renewable energy in , especially in the energy or power generation sector (coal power plants). And in the end, creating a carbon sink, but the emission source is not reduced (cut), then it is the same as a lie or an irrelevant effort.

Maximizing the Rate of CO2 Absorption from the Atmosphere Based on Biomass

Maximizing the rate of CO2 absorption from the atmosphere is very important considering the rate of addition of CO2 concentration to the atmosphere is not comparable to the rate of CO2 absorption. This is what makes the CO2 concentration continue to increase. To balance this speed, a strategy is needed to increase the rate of CO2 absorption. The use of biomass will be very effective and provide multiple benefits for human life. 

CO2 from the atmosphere needs to be captured through biomass production through the process of photosynthesis in plants. Fast-growing species of plants that have high photosynthesis rates are needed for this. Furthermore, biomass, especially wood from fast-growing species of plants, is used as raw material for biochar. Furthermore, biochar is used to improve soil fertility (soil amendment) in various types of agricultural and forestry plants.

Biochar production with slow pyrolysis will also produce excess heat, syngas and biooil that can be used as energy sources. The benefits of biochar production will be obtained from the sale of biochar, the sale of carbon credits and the use of slow pyrolysis by-products. With conditions like this, efforts to increase the speed of CO2 absorption from the atmosphere should be increased. How fast and how much CO2 volume can be absorbed will depend on the type of fast growing species used, the area of ​​planting and the capacity of biochar production.

Biochar or Biocoal Production?

Biochar and biocoal production are basically one breath. Biochar production with full pyrolysis while biocoal with half/mild pyrolysis (torrefaction). The purpose of torrefaction/mild pyrolysis is to increase its energy content and make it hydrophobic so it is called biocoal. While the purpose of full pyrolysis is to produce stable biocarbon material so that it does not decompose in the soil for hundreds or even thousands of years and improve soil fertility so as to increase plant productivity (agriculture and forestry). 

Current biochar applications are mainly for agriculture and biochar production will produce excess heat, syngas and biooil as energy sources. While biocoal only focuses on energy. The benefits of biochar production are obtained from the sale of biochar, the sale of carbon credits and the utilization of by-products (full) pyrolysis. While the benefits of biocoal are only from the sale of biocoal itself.

The selection or development of a business will be related to business readiness (market, technology, investment, etc.) and other benefits, namely benefits in the social and environmental sectors.

Charcoal Production for Activated Carbon Raw Material

Charcoal characteristics are influenced by the raw materials used and the conditions of the production process. The use of charcoal for certain applications or industries also requires certain specifications or characteristics. For example, charcoal used for fuel can have different specification requirements from charcoal specifications for agriculture (biochar), or charcoal used as raw material for activated carbon. A number of parameters that are acceptable in certain applications may not be acceptable in other applications.

Charcoal products used as raw materials for activated carbon production are also the same. Parameters in the form of high fixed carbon (~80%), high hardness, low ash content (~3%) and low volatile matter (<10%) are prerequisites for the specifications or quality of charcoal as a raw material for activated carbon. As a comparison, charcoal for agriculture (soil amendment) or commonly called biochar has a wide range of quality or specifications, namely lower fixed carbon (FC), higher ash content and higher volatile matter, especially in agro type biochar according to WBC (World Biochar Certificate), while premium type biochar according to WBC has a higher or highest quality and can be used for various purposes. While the material type biochar according to WBC has the lowest quality with use mainly in certain industries such as cement, asphalt, plastic, electronics, and composite materials or cannot be used for agriculture, soil applications and consumer products.

Raw materials for charcoal production for activated carbon production because it requires stricter parameters, especially high fixed carbon, low ash content and high hardness so that raw materials suitable for this purpose are more limited or not all biomass can be used for charcoal production for activated carbon raw materials. This is what makes coconut shells the best and most popular raw material for charcoal production as activated carbon raw materials today. And palm kernel shell raw materials (especially from dura variety) are expected to be the next candidate. The availability of abundant palm kernel shells (PKS) is a special attraction. But indeed with this palm kernel shell (PKS) charcoal raw material, there is still the smell of palm oil, so it is a challenge for activated carbon producers.

Biochar For Patchouli Plantation

Indonesia is famous for producing various essential oils, including patchouli oil, clove leaf oil and so on. The main use of essential oils is mainly for food, pharmaceuticals, fragrances (perfumes). The potential of this country to develop essential oils is very large due to climate factors, land area and soil fertility. World export-import statistics data show that consumption of essential oils and their derivatives has increased by around 10% from year to year. Of the 70 types of essential oils traded on the international market, citronella oil, patchouli, vetiver, ylang-ylang, cloves, pepper, and jasmine oils are supplied from Indonesia. Indonesia is the largest country in Southeast Asia producing essential oils and is among the top 10 in the world.

Patchouli production centers in Indonesia are in Bengkulu, West Sumatra, and Nangro Aceh Darussalam. The quality of Indonesian patchouli oil is known to be the best and controls 80-90% of the world's market share or the largest supplier of patchouli oil in the world. This patchouli oil comes from the distillation of dried leaves to extract the oil which is widely used in various industrial activities. Patchouli oil is used as a fixative or binder for other fragrance ingredients in perfume and cosmetic compositions. The area of patchouli planting reaches 21,716 ha spread across 11 provinces in Indonesia, and in 2008 about 2,500 tons of patchouli oil were produced.

Patchouli plants commonly cultivated in Indonesia are Aceh patchouli because the oil content is > 2% and the oil quality is patchouli alcohol (PA) > 30% higher than Java patchouli which has an oil content of <2%. Furthermore, with Aceh patchouli, there are three varieties of patchouli plants found in Aceh, namely Tapaktuan patchouli, Lhokseumawe patchouli, Sidikalang patchouli. The PA levels of the three varieties vary, namely: Tapaktuan (28.69-35.90%), Lhokseumawe (29.11-34.46%), and Sidikalang (30.21-35.20%).

Patchouli Oil Production in Sentra Province 2015-2020**)

One of the factors that support plant growth and optimal production is the availability of sufficient nutrients in the soil. The level of nutrient availability for patchouli plants must be optimal to obtain high growth and oil content. Patchouli is known to be very greedy for nutrients, especially nitrogen (N), phosphorus (P) and potassium (K). Patchouli plants are among those that require quite a lot of nutrients, so that production continues to run optimally, fertilizer application is carried out very seriously. This is so that the level of soil fertility must be maintained optimally if we expect optimal patchouli agricultural production. Therefore, in the shifting patchouli cultivation system, there will be a very rapid decrease in land fertility which will damage the land.

Patchouli can be cultivated on dry land, thus the development of patchouli plants is very relevant to the potential of dry land which is quite extensive in Indonesia compared to rice fields. In fact, dry land is the most widely distributed sub-optimal land, which is around 122.1 million ha consisting of 108.8 million ha of acidic dry land and 13.3 million ha of dry climate dry land. The development of patchouli plants has a dual purpose, in addition to increasing farmers' income, it also increases the productivity of dry land which is widely spread in Indonesia.

To improve land quality, namely by applying biochar. The application of biochar to agricultural land functions as a soil amendment that can improve the chemical properties of the soil (pH, cation exchange capacity, total N, and available P), the physical properties of the soil (bulk density, porosity and the ability of the soil to hold water). Improvement in the quality of the chemical and physical properties of the soil has an impact on the availability of nutrients and water through the ability of biochar to retain nutrients and water. Ultimately, the addition of biochar has implications for increasing the productivity of patchouli plants. In the future, it is hoped that with the application of biochar, more suboptimal and degraded lands which can be restored and plants productivity increased.

Optimizing the use of dry land for food crop cultivation needs to begin with land rehabilitation efforts so that plants can produce optimally. Soil amendments that are cheap, readily available and can last a long time in the soil are expected to be able to trigger the rate of increase in dry land productivity. The potential for agricultural waste to be converted into soil amendments (biochar) in Indonesia is quite large. Biochar applications have been proven to improve the quality of physical and chemical properties of the soil, as well as increase water availability. Crop productivity also increases in line with the recovery of land quality.

Biochar can also be added during composting so that more nitrogen (N) content can be absorbed in the biochar. The higher the nitrogen (N), the better the compost quality will be. Total N is one of the macro elements needed by plants in large quantities, accounting for 1.5% of the dry weight of the plant. Nitrogen is useful in the formation of protein, a component of plant chlorophyll, and if morphologically N plays a role in the formation of leaves and stems of plants or the vegetative formation of plants. Phosphorus is an absolute nutrient needed by plants after nitrogen. Symptoms of phosphorus (P) nutrient deficiency are seen as the color of the plant becomes dark green or purplish green which is then followed by older leaves turning purplish. The addition of biochar and compost, in addition to increasing the productivity of patchouli leaves, can even increase the yield of patchouli oil from an average of 2% to 4% and the patchouli alcohol content of patchouli oil from an average of 32% to 40%.