Green Aluminum and the Role of Biomass-Based Energy

The need for aluminum is predicted to increase, including in the construction, transportation (including aircraft), automotive, household appliances, and electronic equipment sectors. Green aluminum production from bauxite mining, then processed into alumina as an intermediate product from bauxite refining and into the final product in the form of aluminum, is very ideal. Aluminum production, especially from the processing of alumina into aluminum, requires very large electrical energy. For the production of around 300,000 tons/year of aluminum, approximately 1 GW (1,000 MW) of electrical energy is needed. To meet these electrical energy needs, very large power plants need to be built. And if using fossil-based energy sources, especially coal, the need will be very large.

PT Inalum in North Sumatra is an example of green aluminum production in the production of aluminum from alumina. This is because the aluminum production from alumina uses energy from hydroelectric power plants (PLTA) to meet its electricity needs. However, for more than 40 years, the aluminum plant has imported millions of tons of alumina as its raw material. And once the alumina plant from bauxite in Mempawah, West Kalimantan, is operational, the majority of the alumina used as PT Inalum's raw material will be supplied from the alumina plant in Mempawah, West Kalimantan. Approximately 1 million tons of alumina will be produced from the alumina plant in Mempawah, West Kalimantan, or more than 80% of PT Inalum's alumina needs in North Sumatra.

Alumina production from bauxite also requires significant electrical energy, necessitating a power plant capable of meeting the plant's operational needs. Most alumina plants still rely on fossil fuels for electricity production. For decarbonization efforts, renewable energy sources, such as biomass-based wood pellets, are feasible. Wood pellets can be used with a gradual cofiring ratio, ultimately leading to full-firing, or 100% use of wood pellets or other biomass-based energy.

 

The demand for renewable energy, particularly biomass-based energy, is enormous and sustainable, necessitating biomass sources capable of meeting this demand. These biomass sources can be woody biomass or agricultural waste. Woody biomass sources include forestry waste, wood processing industry waste, and wood produced by energy plantations. Meanwhile, agricultural waste sources include agricultural and plantation waste, as well as agro-industrial waste. Sustainability certification also requires attention, and in the near future, it could become mandatory regarding the origin of biomass-based energy sources. 

Biochar for Sustainable Coconut Productivity

Coconut fiber accounts for 30%, or about a third, of the weight of a coconut. This material is generally left in plantations and remains largely unused, potentially polluting the environment. With Indonesian coconut production reaching approximately 2.9 million tons per year, or 15.13 million coconuts per year, the potential for coconut fiber production is enormous, amounting to approximately 1 million wet tons (average moisture content of 60%) or 500,000 dry tons (10%) of moisture.

The volume of coconut husk is largely unaffected by the government's recent policy of exporting whole coconuts, particularly to China, as shown in this video. Many coconut-based industries are struggling to secure raw material supplies, even leading to factory closures. Industries such as dessicated coconut, coconut milk, coconut shell charcoal and charcoal briquettes, and activated carbon are severely impacted by this policy. Selling processed or industrialized coconut products would clearly add greater value and create jobs. Developed countries also export finished or semi-finished goods, not raw materials.

The industrialization of coconut-based products is crucial. Like palm oil, coconut processing products are primarily used for food products. Utilization for energy or biofuel is also very possible, such as for sustainable aviation fuel or SAF (Sustainable Aviation Fuel). Even for palm oil, the use of biofuel is in the form of a mandatory blend of palm oil from CPO (crude palm oil) in biodiesel 40% this year and is being reviewed to be 50% (B50) by 2026, as well as palm oil from PKO (palm kernel oil) for a 3% blend for sustainable aviation fuel or SAF in 2026. The main content of coconut oil is lauric acid, the same as palm kernel oil or PKO. Lauric acid consisting of 12 carbon atoms (C) or MCFA (medium chain fatty acids) is very suitable for the use of sustainable aviation fuel or SAF must have a carbon atom bond or C bond in the range of C10-C15, for more details read here.

 

Coconut productivity continues to decline due to inadequate or slow replanting programs. A similar situation is also experienced by oil palms (for more details, read here), and this presents a unique obstacle. The area of ​​coconut plantations that needs replanting also reaches tens or even hundreds of thousands of hectares. For example, in Riau Province, the target is 43,388 hectares of coconut plantations to be rejuvenated by 2025. In addition to increasing coconut productivity through the use of superior seeds, intensification is also necessary. High coconut productivity and high selling prices are driving this replanting.

Utilizing or producing biochar from coconut fiber is a solution to increase sustainable coconut productivity. Biochar can also significantly support organic coconut plantations. Although coconut trees are generally not fertilized adequately or even not at all, they still bear fruit. Biochar increases fertilizer use efficiency because biochar acts as a slow-release fertilizer agent. Regarding fertilization, coconuts differ significantly from oil palms, which require fertilization for fruiting and are highly dependent on chemical fertilizers. In fact, fertilization is the highest cost component in oil palm plantations. Organic coconut products produce desirable derivative products with high selling prices.

The potential revenue from carbon credits is also very attractive. To obtain carbon credits, or BCR (Biochar Carbon Removal), the biochar application, including the production process, must be verified by a carbon standards agency. Carbon standards agencies such as Puro Earth, Verra, and CSI have developed methodologies that biochar producers must follow to obtain these credits. 

AI for Palm Oil Mills or New Product Development with New Process Design?

AI applications have penetrated various sectors, including palm oil mills or CPO mills. AI applications for palm oil mills are still relatively new, so few, if any, have implemented them. One palm oil mill that has implemented AI is Minsawi Industries in Kuala Kangsar, Malaysia, with a capacity of 45 tons of fresh fruit bunches (FFB) per hour. The use of AI has resulted in annual savings of RM 1.6 million (Rp 6.24 billion) due to reduced oil loss, reduced maintenance costs, and a 33% reduction in labor. However, there are concerns that using AI for palm oil mills could potentially lead to job losses. Even with fewer workers, incomes are higher.

The cost-to-benefit ratio is certainly a crucial consideration for any new technology, including the use of AI. The amount of money spent must yield equivalent or greater benefits. In the case of the AI ​​application in the palm oil mill, the cost of the AI ​​was RM 5 million (~Rp 19.5 billion), meaning that with savings of RM 1.6 million per year, the investment in the AI ​​equipment would be recovered in approximately three years. This is a reasonable return on investment. However, investing that much to improve efficiency in an existing mill, or for example, 15% of the main mill, requires comprehensive consideration.

Several devices, such as sensors, predictive tools, and AI applications, are integrated to improve the efficiency of palm oil (CPO) production. More specifically, the key components of an AI-based palm oil mill include: first, advanced sensors. These sensors are installed throughout the palm oil mill to obtain real-time data on critical parameters such as temperature, pressure, amperage, and machine performance. Second, AI-enabled CCTV cameras. Several cameras are installed at strategic locations to monitor key areas, such as detecting the volume of fresh fruit bunches (FFB) and their quality, and providing this information to control the production process. Third, an AI-driven control system. These systems automatically optimize processes, manage equipment operations, and utilize resources based on real-time data analysis.

Meanwhile, developing new products means increasing the added value of existing materials. This increased added value can be far greater than that gained from increasing factory efficiency through AI applications. Raw materials that were previously underutilized or even discarded, polluting the environment, can generate significant benefits from developing new products. While optimizing factory performance is crucial for achieving high efficiency, innovation in new product development is equally crucial.

In the palm oil industry, new product development can be achieved by creating various derivatives from crude palm oil (CPO) and processing various biomass waste from palm oil operations, both from mills and plantations. Numerous products can be produced from these processes. For example, CPO derivatives produce biofuels such as biodiesel, cooking oil, stearin, olein, and so on. Biomass waste can be processed into bioenergy, biocarbons, biofuels, biomaterials, and biochemicals.

 

Designing efficient production processes is crucial for producing competitive products. Likewise, low-emission production, minimizing waste, or even zero waste, is also a key focus. Integrating various production processes, particularly for energy savings, including waste heat recovery, is highly feasible, enabling efficiency and lower production costs. The significant benefits of AI applications in palm oil mills or CPO production include the potential for further use in new product development, including designing the most efficient production processes possible.

Ultimately, if the development of these new products can be carried out and AI is integrated, the need for labor will increase in these business units, even if each business unit is operating efficiently. The production of various derivative products, including specialty chemicals, is highly possible with the development of new products that keep pace with the times. Furthermore, on the plantation side, AI and mechanization can also be utilized to reduce 3D (dirty, dangerous, demeaning) jobs, resulting in more efficient work and increased income. Even mechanization in oil palm plantations is still low, making it more urgent than AI applications.