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.