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.    

Biochar as Deforestation Solution in Palm Oil Plantations and EUDR

The development of the palm oil industry and its plantations in Indonesia is very rapid, especially in the last 10 years and currently the area of ​​Indonesian palm oil plantations is estimated to reach 17 million hectares. As the largest vegetable oil producing plant in the world and the largest palm oil plantation area in the world, of course palm oil has a strategic value in the Indonesian economy. The average speed of Indonesian palm oil plantation area is 6.5% per year or equivalent to around 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 land expansion occurred in 2017, which increased by 2.8 million hectares. From 2015 to 2019, the total area of ​​palm oil plantations increased by 3.7 million hectares. The extensification or expansion of palm oil plantations has been widely "accused" and has become the focus of the world as a result of the conversion of forest land, resulting in a lot of deforestation to be converted into palm oil plantations.

Pressure from the European Union in particular, due to these conditions, has worsened the image of Indonesian palm oil, which in turn has affected the selling price of palm oil products, both CPO and its derivative products. Improving this image is also not easy. One effective effort is to stop the extensification efforts so that forest land remains forest land and does not turn into oil palm plantations. The European Union on Deforestation-free Regulation (EUDR), which will come into effect on December 30, 2024, as an effort to prevent deforestation, is also an important consideration. The regulation requires consumers and producers along the supply chain of certain commodities to conduct due diligence and risk assessments to ensure that their products do not contribute to deforestation. The EUDR also applies a tiered inspection and penalty system based on the level of risk perceived in the country of origin.

With the extensification of oil palm land of more than 1 million per hectare each year but the increase in oil palm fruit production is only 11%, it is certainly less attractive and must be avoided, especially with the world's spotlight on the increasingly rapid deforestation. This also increasingly indicates the low productivity of palm oil plantations. In fact, by improving soil quality, palm oil fruit productivity can be increased significantly and the opening of new land for the creation of palm oil plantations can be avoided. Biomass waste in palm oil plantations and in palm oil mills can be used for biochar production as a solution to this problem.

With the increase in productivity of fresh fruit bunches (FFB) with the use of biochar, new palm oil plantations do not need to be opened again. Assuming an average increase in productivity of 20%, CPO production will also increase by 20% or equivalent to 2 million tons. This increase will be equivalent to opening new land covering an area of ​​more than 2 million hectares. Of course, it is not a small area of ​​land. With a 20% increase in production, it is very likely that national needs for CPO in particular have been met and so too for the export market. Another advantage of using biochar is as a climate solution as carbon sequestration/carbon sink. So the two main problems in the palm oil industry in the form of increasing productivity and climate change resilience can be overcome at once with the application of biochar.

The Urgency of IOT and Biochar Applications in Palm Oil Plantations

The sustainability trend in palm oil plantations is increasingly important and urgent, which is of course part of the global solution to environmental and climate problems. The vastness of palm oil plantations and the large production of palm oil are in the spotlight in the industry. Waste management and environmental pollution are important concerns. The large volume of biomass waste has the potential to be a source of environmental pollution and so is the excessive use of chemical fertilizers in palm oil plantations which will also cause environmental pollution. Inappropriate land use, for example deforestation and land conversion, are also other concerns.

Two important issues in the palm oil industry are increasing FFB productivity (yield improvement) and climate change resilience. And thank God, both of these things can be handled at once, namely by applying biochar. Palm oil mill biomass waste (especially palm oil empty fruit bunch) will be converted into biochar and then applied to plantation soil (sustainable soil amendment) with fertilizer so that it becomes a slow release fertilizer that will increase NUE (nutrient use efficiency) and minimize environmental pollution. With the increase in NUE, there will be yield improvement or an increase in FFB productivity. And the application of biochar which will remain in the soil or not decompose for thousands of years will become carbon sequestration / carbon sink which is in line with climate change resilience. A precise solution with one action, of course this should be very interesting and awaited by these palm oil companies.

To ensure that the biochar can work properly, an instrument is needed to measure performance and monitor it. That is why IoT (Internet of things) in this sector is needed. How slow can it goes fertilizer nutrients can be measured and monitored accurately, quickly and precisely. In this way, palm oil productivity can also be predicted. The area of ​​land on palm oil plantations that reaches thousands or tens of thousands of hectares is also not an obstacle. The area of ​​palm oil plantations in Indonesia is currently estimated to reach 17 million hectares and in Malaysia it reaches 5 million hectares, of course these palm oil companies are also trying to achieve their best level of sustainability according to the demands of the times. This is so that the application of biochar on palm oil plantations will become a trend and even its operational standards. The entry point by ensuring biochar performance with IoT is an important consideration.

This biochar application also follows the 4Rs rule, namely the right source (appropriate biochar raw material), right place (appropriate application area), right rate (appropriate dosage) and right timing. The physical and chemical properties of biochar differ depending on the raw material and production process. By following the 4R rule, biochar performance can be maximized. On the other hand, modernization in the palm oil industry also continues to be improved. The public perception of work in oil palm plantations, abbreviated as 3D (dangerous, difficult, dirty), will be gradually changed with mechanization, automation and digitalization. The ratio of workers to plantation land currently around 1: 8 ha will be increased to more than double to 1: 17.5 ha with the above modernization so that workers' wages can also be increased. This modernization is expected to help overcome the two important issues above with the biochar application.

Why is There No Biochar Production for The Palm Oil Industry Yet?

Even though biomass waste is abundant in the palm oil industry, both in the plantation area and in the palm oil mill area, most of the biomass waste, especially empty fruit bunches or EFB, is still not utilized or is simply piled up or thrown away. In fact, if the palm oil industry has a strong vision about maximizing profits by minimizing the occurrence of waste, especially biomass, and maximizing environmental sustainability as well as being part of the climate solution, then biomass waste, especially empty fruit bunches or EFB, is a big opportunity.  Currently, special department in the palm oil industry that specifically deal with sustainability issues are starting to be created by palm oil companies. Waste management issues including the utilization of EFB, reducing soil and water pollution due to fertilizers and increasing fertilizer efficiency are the concerns of the sustainability department. 

The empty fruit bunches or EFB can be used as fuel so that most or all of the palm kernel shells or PKS can be sold directly and even exported. Palm oil mill boiler fuel currently uses fuel in the form of palm fiber (mesocarp fiber) and some palm kernel shells / PKS, which can be replaced using empty fruit bunches (EFB) and palm fiber (mesocarp fiber) and without palm kernel shells / PKS. Palm kernel shells / PKS are a very popular biomass fuel in the global market that competes fiercely with wood pellets. By being able to sell all palm kernel shells / PKS and at the same time utilize empty fruit bunch / EFB waste, the palm oil industry will provide many economic benefits.

The use of empty fruit bunches / EFB and mesocarp fiber as a heat source for the boiler is not burned as usual or as is done by all palm oil mills today but must be gasified or pyrolyzed so that another product is produced in the form of biochar. Although gasification can be used to produce biochar, pyrolysis is more recommended because the quality and quantity of biochar will be better. The biochar can later be used for the palm oil plantation itself. The use of biochar in palm oil plantations will significantly save on fertilizer use as well as reducing water and soil pollution due to inefficient use of fertilizer. The biggest cost in operating a palm oil plantation is fertilizer, so by using biochar these operational costs can automatically be reduced. Biochar will become a slow release agent so that fertilizer use will be more efficient or increase NUE (Nutrients Use Efficiency).

Empty fruit bunches / EFB and mesocarp fiber are solid waste from palm oil mills so the waste is located around the palm oil mill, while biochar is used for palm oil plantations. In palm oil companies, management is generally separated between the plantation and mill departments. The use of biochar in palm oil plantations while the raw material comes from palm oil mills requires special arrangements regarding this matter. This could be, for example, trucks transporting fresh fruit bunch / FFB from the plantation to the palm oil mill, then after the FFB is unloaded at the mill, they then go to the plantation again carrying biochar from the palm oil mill.

Currently, no one is utilizing empty fruit bunches / EFB and palm mesocarp fiber as a source of boiler heat and biochar production. The main factor causing this is the main orientation or vision of the palm oil company itself as described above. This is predicted to change soon as awareness of climate issues increases and reaches all levels, especially in sectors related to energy and sustainibility. Moreover, when biochar is applied to plantation land, it also gets carbon credit as carbon sequestration. The smoke coming out of the boiler furnace will also be cleaner as seen from its opacity. The use of gas and liquid fuels from pyrolysis by-products will produce better combustion quality as well as smoke from the chimney. And even the liquid products from pyrolysis can also be used as biopesticides and organic fertilizers. Boiler efficiency will also increase because it uses boiler feed water (BFW) in the form of hot water from the condenser output of the pyrolysis unit.

Apart from old palm oil mills which really want to upgrade their industrial energy systems and fertilizer efficiency in their plantations including sustaibility according to this vision, new palm oil mills whose status is in the development stage should be able to apply this concept more easily. New palm oil mills can immediately follow developments and demands of the times so that they become trend setters with this vision. Being a pioneer and trend setter is indeed more difficult and even risky than just being a follower, but this will raise the reputation and become a leader in the industry so it should also have a positive impact on the company's business performance. A worthy effort.     

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.