Tuesday, July 14, 2020

Why Palm Oil Mills Uninterested in Production of EFB Pellets or Fiber Pellets?


EFB (empty fruit bunch) produced by palm oil mills and even tend to be waste that pollutes the environment. Empty bunches are generally just thrown away around the area of ​​their palm oil plantations. In addition, there are also many palm oil mills that produce fiber waste which also pollute the environment. A number of palm oil mills that use high efficiency boilers generally produce this fiber waste due to reduced fuel consumption for the boiler. From the perspective of biomass energy both types of palm oil waste are potential sources of raw materials. Processing both types of waste into pellets for energy is a surefire solution to addressing environmental problems while providing added value economically. But why are almost all palm oil mills currently not interested in the production of EFBpellets and Fiber pellets from these wastes? There are at least 3 factors of analysis in answer to this question, as described below.

A. Electricity needs for the production of EFB pellets or Fiber pellets
Palm oil mills are generally located in rural areas or in the middle of the palm oil plantations, so they have to meet their own electricity needs. In addition to generating electricity at the palm oil mill, it also produces steam, because the technology used is steam turbine. And there are specific reasons why palm oil mills must use the steam turbine technology, for more details, please read here. The electricity production from the palm oil mills generally only meets the needs for the operation of the palm oil mills, so it will not be sufficient if used for the production of these pellets. Electricity needs for the production of each ton / hour of pellet is estimated to require 300 kW (0.3 MW) so that for production of 3 tons / hour requires almost 1 MW. Electricity production from biogas by utilizing liquid waste (POME: palm oil mill effluent) can be a solution to this, for more details, please read here.

B. Ignorance of the biomass fuel business and specifically fuel pellets
Palm oil mills which produce the main product in the form of crude palm oil (CPO) with the use mainly for food products, so that they tend to be less concerned with the energy sector, especially renewable energy and more specifically biomass energy in the form of pellets. Fuel pellets especially wood pellets are being "hot" and are widely used as an energy source in various parts of the world. Indeed, the characteristics of wood pellets derived from woody biomass differ slightly from pellets derived from agricultural wastes such as empty fruit bunches (EFB) and coir (fiber). This affects the users of electricity generation and also the portion of its use.
Another indication that palm oil mills only focus on CPO production is that they are not interested in exporting palm kernel shells (PKS) themselves. In general, palm oil mills only sell these PKS to exporters in their mills. The exporters will then export the PKS to the users namely power plants. Though PKS is also very much needed and as a competitor of wood pellets, because there are many similarities with wood pellets.

C. Need to create a new department for pellet production

Of course it is common to do that a new business unit would require management with new management. Palm oil mills or companies usually operate in two divisions or departments, namely the mill division for CPO production and the plantation division for the production of palm fruit (fresh fruit bunch) as raw material for CPO. Pellets production from empty fruit bunches and fiber also requires separate management to be effective and efficient.

D. Priority scale with the development of CPO derivative products

CPO or crude palm oil is the raw material for a number of palm-derived products. CPO exports are also urged to be reduced and recommended with various other CPO derivative products such as cooking oil, oleochemicals and biodiesel. In addition to increasing added value, exports of raw materials are also less prestigious. That is because the characteristics of developing countries are exporting raw materials to other countries, while the characteristics of developed countries are exporting final products. That is why the production of various CPO-derived products continues to be encouraged. For palm oil mills that are more focused and familiar with CPO production and the development of the CPO derivative industry, then the option to develop their company towards a variety of CPO derivative products may be a priority, compared to processing empty fruit bunches and fibers to produce pellets.

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