Food Estate or Biochar? Indonesia becomes the Champion of Global Climate Solutions?

Currently, there are millions of hectares of land in Indonesia that are in dire need of biochar, namely dry land 122.1 million ha; post-mining land 8 million ha; critical land 24.3 million ha; total around 154.4 million ha. Meanwhile, the potential raw materials for biochar production are also abundant (agricultural, plantation and forestry waste) such as dry empty fruit bunch of palm oil around 30 million tons/year, baggase 2 million tons/year, corn cobs 5 million tons/year, cassava stems 3 million tons/year, waste wood 50 million tons/year, rice husks 15 million tons/year, cocoa shells and so on. With biochar, agricultural productivity will increase from an average of around 20% to even 100%.

If applied on a macro or national scale, say with a 20% increase in production, for example, rice production will increase to 36 million tons/year from the previous 30 million tons/year, corn will increase to 18 million tons/year from the previous 15 million tons/year, crude palm oil or CPO will increase to 60 million tons/year from the previous 50 million tons/year. This will save land use so that the opening of forest land for food crops and (bio)energy such as food estates may not be necessary or at least slow it down.

For example, Indonesia's current CPO production 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 for palm oil plantations.

There is a rough calculation that with an investment of 10 million US dollars, approximately 200,000 tons of biochar produced with more than 400,000 carbon credits will be produced over a period of 10 years. And for example, with a selling price of biochar of 200 dollars per ton and a carbon credit of 150 dollars per unit (per ton of CO2), then within 10 years, the income will be almost 10 times the investment or it is estimated that in less than 2 years the initial investment has been returned (payback period). Carbon credits sellers or biochar producers also try to get sales contracts for 5-10 years.

Of course when the price of biochar is higher and / or its carbon credit then of course the return on investment will be faster. And that does not include the utilization of liquid and gas products and excess heat from pyrolysis which also have economic potential that is no less interesting.