A lot of palm oil companies now have sustainability certificates, such as ISPO (Indonesian Sustainable Palm Oil) and RSPO (Roundtable on Sustainable Palm Oil). To market palm oil and its derivatives to Europe, the European Union has implemented the EUDR, or European Union Anti-Deforestation Regulation. This regulation requires every business actor to prove that their palm oil does not originate from deforested land after the deadline of December 31, 2020. The EUDR itself will be implemented on December 30, 2026, for large and medium-sized companies. Sustainability certifications such as ISPO and RSPO are not the same as EUDR compliance, but they complement each other. This is because ISPO or RSPO serve as important tools to strengthen traceability and due diligence to comply with the EU's anti-deforestation regulations. Once certified, ISPO or RSPO simply add detailed spatial geolocation data to fully comply with the EUDR standard.
As the decarbonization trend continues to penetrate various sectors of life, various efforts aligned and relevant to decarbonization and aspirations will become a concern, even an option, and even an obligation. Sooner or later, these climate-smart efforts will become increasingly accepted and become an integral part of human life. For example, the palm oil industry is currently moving towards the use of electric vehicles in the plantation sector. The use of electric vehicles has the potential to provide added value, especially for companies that have obtained sustainability certifications such as the RSPO and ISPO. The use of electric vehicles allows palm oil companies to claim reduced fossil fuel use and reap sustainability benefits.
Another example is the use of organic fertilizers or biofertilizers. The use of biofertilizers or organic fertilizers can have several positive effects on environmental sustainability, as they can reduce the use of chemical fertilizers by up to 25%. This effort not only reduces environmental pollution and health risks but also enriches biodiversity and supports climate-smart agriculture. In an era where sustainability is a focus and a "selling point" for products (especially in Europe), this effort is very effective. This is especially true given the intense competition from other vegetable oils, such as soybean oil and sunflower seed oil.
This is also closely aligned with water treatment, particularly boiler feedwater treatment, which uses less or no chemicals. This also reduces environmental pollution and health risks. Boilers can be considered the "heart" of palm oil mills, converting water into high-pressure steam to power the production process and generate electricity for the mill and its employee housing. Like all production equipment, boilers have a lifespan. When a boiler's lifespan is exceeded, it is not only uneconomical due to high maintenance and operational costs but also dangerous. Good and well-maintained water quality will ensure the boiler's lifespan meets or even exceeds standards.
The average lifespan, which is the technical and economic life of a palm oil mill boiler, is 20 years, and by maintaining water quality, it is expected to be 20% longer, to 24 years. In addition to the technical and environmental benefits, there are also economic benefits. A palm oil mill with a capacity of 45 tons of fresh fruit bunches (FFB) per hour using electrochemical technology will achieve an estimated annual savings of over 250 million rupiah. For more detailed information, please contact us. Currently, according to data from the Indonesian Ministry of Agriculture, the number of palm oil mills in Indonesia is recorded at around 1,200 to 1,500. This is understandable, considering the increasing area of oil palm plantations, currently reaching nearly 17 million hectares, thus increasing the need for palm oil mills.
Why make calculations or simulations for a palm oil mill with a capacity of 45 tons of fresh fruit bunches (FFB)/hour? This is because this capacity is the average capacity of palm oil mills in Indonesia. For example, one of the largest palm oil companies, PT Astra Agro Lestari (AALI), has 32 palm oil mills with a total capacity of 1,570 tons of fresh fruit bunches (FFB) /hour, or an average of 49 tons of FFB /hour, which is close to a capacity of 45 tons of FFB /hour. And with the number of mills in Indonesia, say 1,500 units and each mill can save 250 million rupiah/year, there will be an estimated savings of 375 trillion rupiah per year from this boiler feed water treatment, in addition to technical and environmental benefits, especially to strengthen sustainability efforts to meet EUDR requirements.
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