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Why Choose SRC Energy Plantations Than Palm Oil Plantations?

A number of the people plantations who produce fresh fruit bunches (FFB) was not able to be accommodated by the palm oil mill (POM), meaning that the ratio of the number of the POMs are not comparable with the number of palm oil plantations. Indonesia is the largest of palm oil producer (CPO=Crude Palm Oil) in the world with an area of oil palm plantations reach 10 million hectares by 2013. Palm oil productivity reached 27 tons / ha / year of FFB with a yield of CPO about 3.7 tons / ha / year, with the start of harvest after 4-year-old and productive period of about 25 years. With the average price of TBS IDR 1800/kg for every hectare would produce about IDR 48 million / year, a promising revenue from the plantation business course. But because all the FFB can not be processed due to the absence of plant it will not necessarily provide the desired benefit.

Energy plantation with SRC is an alternative for those who want to develop the plantation business investment is not so great. Plants such as calliandra and gliricidae very easy to grow, easy care, quick harvest, continue to be productive for about 25 years and fertilize the soil. Increasing the value added can be done with eg intercropping with crops. Unused land and marginal land could be pursued to the energy plantaion with thse plants. With the productivity of wood biomass around 20 tons / ha / year, with a price, let’s say, IDR 400/kg it will get a IDR 8 million / year for each hectare, it is far below of the economic aspect of palm oil plantation, but by the age of 1 year can be harvested, seeds and maintenance costs also very cheap, then it could be a consideration.

 The price of modern palm oil mill average price of IDR 4 M for every tonne of FFB / hour. With POM 45 tons FFB / hour capacity  it takes an investment IDR 180 M, a large amount of investment. As for the price of wood pellet mill capacity of 3 tons / hour range from IDR 5 M to become more affordable. Economic analysis of palm oil mill and wood pellet mill is almost the same, with the average ROI (Return on Investment) of 3.5 years.


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