Selling Wood Processing Machines and include Wood Waste Processing Machines

Various wood processed products are increasingly diverse and developing today. The utilization of wood is optimized for its function, especially those originating from production forests. To improve the quality and usefulness of the wood, it needs to be processed specifically, which is carried out in wood processing factories. This also includes the selection of wood plant species that are suitable for the purpose of their use or the product to be made. A number of wood processing products are plywood, blockboard, LVL, barecore, FJLB (Finger Joint Laminated Board), MDF (Medium Density Fiberboard), and pulp & paper.

Wood processing in the industry always requires a number of equipment ranging from the simplest, namely sawmills to complex processes such as pulp and paper mills. In addition to the physical or mechanical processing or production process, there is also a chemical process depending on the product to be produced. Sellers or providers of processing equipment or production machines are generally a complete set (complete line) so that they can be used directly and produce when the raw materials are ready. The more efficient and quality the equipment will be comparable to its price which is a fixed investment in the wood processing industry. The cost and benefit ratio factor is very important in selecting the machine or equipment, especially those that are export-oriented with large production volumes.

The concept of zero waste in the wood processing industries has not been fully implemented. There are still many wood processing industries whose waste pollutes the environment and can have social impacts. This includes sellers or providers of these machines, most of whom are still focused on providing machines or production equipment for the main product but not on the aspect of handling and processing waste. In fact, with the potential for waste produced being quite large, processing this waste is important. Pellet and briquette production is one solution to overcome this. Wood waste in the form of wood chips, offcuts, sawdust, slab and bark can be processed into briquettes and pellets. Sellers or providers of machines or production equipment that are innovative and environmentally sustainable will implement this concept. 

Briquette and pellet production will not only solve the waste problem but will also provide economic benefits. With raw materials for briquettes and pellets coming from waste itself, the cost of raw materials can be said to be zero so that in the end it will provide great benefits. Waste production of up to 1000 tons/month is very suitable for the production of briquettes, while if the waste is very large, for example 5000 tons/month or more, pellet production is more recommended. Briquettes can also be charcoaled to become charcoal briquette products which are in high demand from Turkey, Saudi Arabia and the Middle East. Meanwhile, wood pellets are widely used for power plants abroad, the need for which is expected to continue to increase along with the decarbonization trend. If the seller of wood production or processing machines also offers waste processing equipment such as pellet machines and briquette engines, it will make it easier for wood product producers to manage their environmentally friendly industry, namely zero waste and maximize profits because all parts of the wood can be utilized optimally.

PAO and UCO Become Bio-Jet Fuel

Decarbonization has entered all lines including the air transportation sector. Aviation fuel must also gradually shift from fossil fuels to sustainable renewable fuels. However, decarbonization in this sector is still slow, namely currently only around 0.01% of the use of sustainable renewable fuels or SAF (Sustainable Aviation Fuel) globally for these aircraft. These barriers include technological maturity or technological readiness, certification for SAF conversion or production process routes, scale up and commercialization, price gaps with fossil fuels, and competition with biofuels in the land transportation sector. The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) has initiated a reduction in GHG emissions for global aviation. Using the 2019 baseline, it is estimated that around 2.5 billion tonnes of CO2 emissions need to be offset / reduced in the 2021-2035 period to achieve carbon neutral growth. CORSIA also plans its implementation in three phases, namely the pilot phase in 2021-2023, the first phase in 2024-2026 and the second phase in 2027-2035. Participation of member countries is voluntary in the first two phases (2021-2026) and mandatory in the 2027 phase and beyond, except for the least developed countries, small developing countries and landlocked countries.

Until now, HVO / HEFA - SPK (Hydro-processed Esters and Fatty Acids-Synthesized paraffinic kerosene) technology using vegetable oil including waste oil is the only technology that is most ready for the conversion or production of SAF. Currently, the technology readiness level (TRL) and feedstock readiness level (FRL) are at level 9, meaning that it is the most ready among other conversion technology routes. One of the advantages of HVO technology is the flexibility of using various feedstocks / raw materials so that waste oil such as PAO or mico from palm oil mill ponds and also used cooking oil or used cooking oil or UCO are also very potential to be converted into SAF with HVO technology. But in fact, even though HVO technology can directly produce SAF, most of the HVO technology is used for the production of diesel engine fuel for land transportation or commonly called green diesel or renewable diesel. Green diesel or renewable diesel is different from biodiesel or FAME-based biodiesel which is produced by the transesterification process. And green diesel or renewable diesel from HVO also has a number of advantages compared to FAME based biodiesel.

HVO production is also not a new technology. Globally, there are a number of large-capacity commercial HVO plants that use vegetable oil as raw material. The largest plants are Neste in Rotterdam and Singapore with a capacity of 1.28 billion liters per year and Diamond Green Diesel in Louisiana with a capacity of 1.04 billion liters per year. HVO production is closer to petroleum refining technology than conventional diesel production. This is why oil and gas companies may be more interested in developing it than palm oil companies or conventional biodiesel companies. Palm oil mills have raw materials / feedstock, while oil and gas companies may be more relevant to downstream development because of the readiness to adapt technology and develop end products.

HVO is produced by hydrogenation and hydrocracking of vegetable oils and animal fats using hydrogen and catalysts at high temperature and pressure. In this hydrotreating process, oxygen is released from the feedstock consisting of triglycerides and / or fatty acids. This will produce straight chain hydrocarbons (paraffins) with various properties and molecular sizes depending on the characteristics of the raw materials and the operating conditions of the process being carried out. This conversion usually goes through two stages, namely hydrotreatment followed by hydrocracking / isomerization. This hydrotreatment process is usually carried out at a temperature of 300 -390 C and for triglyceride treatment, propane is usually produced as a by-product. The final product of straight chain hydrocarbons can be adjusted according to certain fuel types such as bio jet fuel or SAF. Currently HVO is the third most common biofuel in the world after ethanol and FAME based biodiesel.

PAO is produced as waste or by-product of palm oil mills. PAO will always be produced because palm oil mills cannot have an efficiency level of 100% and the less efficient the palm oil mill, the more oil becomes waste or by-product in the form of PAO. It is estimated that there are currently 1 million tons of PAO in Indonesia and 0.5 million liters in Malaysia or a total of 1.5 million tons. As for UCO or used cooking oil with the use of cooking oil reaching 1.55 million tons/year assuming 10% can be recovered as used cooking oil or UCO, 155 thousand tons/year are produced. In addition to being part of the effort to overcome waste both in palm oil mills and households that pollute the environment, the production of SAF or bio-jet fuel has also contributed to the decarbonization of the air transportation sector. With HVO / HEFA technology that is able to process waste oil such as PAO and UCO, the more PAO and UCO that can be processed, the better.

Energy Plantation: Wood Pellet or Wood Charcoal Production?

Energy plantations are starting to develop and large-capacity wood pellet production is emerging in line with the development of these energy plantations. It could be that now is the right momentum as predicted several years ago by the author in the following article. It is also possible that the Covid-19 era which has lasted for about 3 years has slowed down this momentum. The vast area of ​​industrial plantation forests (HTI) in Indonesia allows for the creation of energy plantations for large-capacity wood pellet production along with additional products such as animal feed and food (honey). The production of wood pellets as biomass fuel or carbon neutral fuel is mainly made or produced in the context of the energy transition towards the net zero emission era.

Viewed from the business side, the production of wood pellets is demand driven because efforts to achieve the net zero emission target require industries, especially coal-fired power plants, to carry out gradual decarbonization through cofiring biomass fuel (wood pellets) with coal. The target, which is getting closer in time, with various efforts that require planned programs and large costs, does require serious and sustainable efforts. Not only in the power generation industry, especially coal-fired power plants, but also other industries such as the iron and steel industry. Coal-fired power plants contribute 40% of CO2 concentration globally, while the iron and steel industry contributes 9% globally.

In the current power generation industry, more than a third of global electricity production still uses coal. That portion must drop to 4% by 2030 and 0% by 2040 if the world is to limit global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) and prevent the devastating impacts of the climate crisis. Developed countries should be able to reach zero coal faster because they have a stronger financial position than developing countries, most of which still rely on coal. The world has 6 years from now to reduce coal use in power generation to less than 4% by 2030, and a number of countries have taken rapid steps to eliminate coal use, which can be read here.

Meanwhile, in the decarbonization of the iron and steel industry, the fact is that currently it is still far from achieving this goal because the construction of blast furnaces - basic oxygen furnaces (BF -BOF) is still being carried out, which should be EAF (Electric Arc Furnace) or currently only around 30% globally the iron and steel industry uses this EAF. Even the International Energy Association (IEA) highlighted this critical issue to achieve the Paris Agreement's net-zero target by 2050. The CO2 intensity in this industry has only decreased slightly so that the use of renewable energy is becoming increasingly important and accelerated.

Currently, large energy plantations have begun to be created in the context of the energy transition. The main production of energy plantations is wood pellets which can be said to be carbon neutral fuel. Almost none of these energy plantations are designed for charcoal production, even though the need for charcoal is also projected to be very large. The difference is that wood pellets will be used in power plants while charcoal is for the iron and steel industry. The production process for wood pellets is biomass compaction / densification while charcoal is carbonized or pyrolysis. In the future, a number of these energy plantations could be designed for wood pellet production while other energy plantations are designed for wood charcoal production. Given that the agreed time target for net zero emissions is not long away, the creation and utilization of energy plantations for these things will automatically not be long away.

Large Capacity Wood Pellet Production Cannot Be Done on Java Island?

Raw materials are a vital aspect of a production activity. No raw materials means no production. Likewise in the wood pellet industry. The availability of raw materials is absolutely necessary for the continuity of the wood pellet business. To maintain the supply of raw materials, wood pellet factories must have reliable sources of raw materials. Currently, most or even all wood pellet factories on the island of Java rely on sources of raw materials for wood pellet production from wood waste, especially sawdust from sawmills and wood processing industries. 

Currently, coal-fired power plants in Java are running a coal cofiring program with biomass to reduce carbon dioxide emissions or decarbonization. The use of coal in these power plants will be reduced while the use of renewable energy, especially biomass, is increased. The biomass currently used for cofiring is sawdust with a volume of up to hundreds of thousands of tons per year. A very large amount. Wood pellet factories that use sawdust as raw material must compete with the cofiring program in these power plants. This competition increases the price of sawdust because the supply remains the same but demand increases. Disruptions in the supply of raw materials in these wood pellet factories result in disruptions in production and automatically their business aspects.

With these conditions, large-capacity wood pellet production in Java Island becomes less attractive. In fact, the portion of biomass use, especially sawdust, will continue to increase along with the decarbonization program to achieve net zero emissions by 2060. This is increasingly burdensome for wood pellet factories that rely on raw materials from buying sawdust. Wood pellet factories in Java can run well if the availability of raw materials can be maintained and this can only be realized in two ways, namely first using their own raw materials, this can be done by sawmills and wood processing industries that utilize their own waste for wood pellet production, and secondly with raw material sources from energy plantations. Energy plantations that are specifically dedicated to wood pellet production will be able to maintain the stability of the supply of raw materials for wood pellet factories. Wood pellet factories can partner with Perhutani for the second point above.

SBE Pyrolysis: A Profitable Waste Management Solution

Spent Bleaching Earth (SBE) which is solid waste produced from the bleaching process in the CPO processing industry into cooking oil and oleochemicals is increasing along with the production of palm oil derivative products or downstream palm oil industries such as cooking oil and oleochemicals. The amount of bleaching earth used generally ranges from 0.5-2.0% of the total CPO refined, depending on the quality of the CPO to be processed in the refining process. SBE is included in category 2 hazardous toxic material (B3) waste from specific sources with waste code B413. SBE is categorized as hazardous toxic material (B3) waste because it contains high oil and has characteristics that are flammable and corrosive. SBE can be categorized as non-B3 waste if its oil content is below 3%.

The classification of SBE status as hazardous toxic material (B3) waste in Indonesia is different from the status of SBE in Malaysia, which is also the second largest palm oil producer in the world. SBE waste produced by the Malaysian refinery industry is not classified as B3 waste but is still categorized as solid waste from refinery factories whose processing is regulated in the Solid Waste Regulation (SWR) so that the waste can be reused into products with high economic value.

According to the Indonesian Vegetable Oil Industry Association (GIMNI, 2021), with a refinery capacity of palm oil/CPO between 600 tons to 2,500 tons per day, and assuming the use of bleaching earth (BE) of 1%-2%, the average will produce 6-50 tons of SBE per day. And according to the Directorate General of Waste Management, Toxic and Hazardous Materials (PSLB3) of the Ministry of Environment and Forestry, the SBE produced from the vegetable oil refining process in Indonesia in 2019 reached 779 thousand tons. Of that amount, 51.47% (401 thousand tons) of SBE was processed, while the remaining 48.39% (378 thousand tons) was stored or stockpiled. A very large amount and has the potential to pollute the environment.

SBE has an oil content of around 20-40%, so it has the potential to be utilized. In addition, SBE also contains color, gum, metals namely Silica, Aluminum oxide, Ferrioxide, Magnesia, other metals and water. Basically, SBE processing is done by separating oil from its solids. The separated oil can then be used as raw material for biodiesel and even aircraft fuel (bio-jet fuel) such as POME / PAO and UCO. With the amount of unprocessed SBE reaching around 378 thousand tons per year, the potential oil that can be extracted reaches around 115 thousand tons per year.

With pyrolysis, the process of separating solid and liquid fractions from SBE is easy to do, as well as oil recovery can be maximized, as well as SBE becomes non-hazardous toxic material (non-B3) waste because its oil content is below 3%. More specifically, with continuous pyrolysis, the volume of SBE waste reaching 50 tons per day in the CPO refinery unit can be easily done. The large potential economic value that can be obtained from the utilization of SBE is a shame if it is not optimized. The market opportunity for processed products from SBE waste is also expected to be bright in the future, along with the development of market preferences that demand the availability of eco-friendly and sustainable products.