Palm Oil Replanting Movement and Utilization of Biomass Waste

Palm oil trees begin to lose productivity after 20 years and need to be replaced after 25 years, while new trees take about four years to begin bearing fruit. This generally renders the land unproductive during this four-year period, which discourages farmers from replanting their palm oil. However, intercropping during this period can still provide benefits for farmers. Planting short-term crops like upland rice and corn alongside palm oils can help farmers earn additional income while the palm oils bear fruit and mature.

In 2024, Malaysia, the world's second-largest palm oil producer, began implementing land intensification due to limited land area, only replanting 2%, or approximately 114,000 hectares. This is despite the country's target of replanting 5% of its land. The situation in Indonesia is not much different, with replanting predicted to be less than 2%. For example, if only 1.5%, or approximately 246,000 hectares, are replanted, it would be disproportionate to the area of ​​its oil palm plantations, which is nearly three times Malaysia's. Furthermore, replanting should be carried out periodically every year to achieve optimal palm oil production performance.

The reluctance or slow pace of replanting has led to a decline in national crude palm oil (CPO) production. Malaysian palm oil production has even stagnated for more than a decade due to limited land for new plantations and slow replanting. Meanwhile, in Indonesia, concerns about deforestation have also impacted the expansion of new oil palm plantations. Crude palm oil (CPO) production will decline further if labor shortages and the spread of ganoderma fungus reduce yields.

Given the above conditions, the replanting of palm oil plantations must be encouraged to maintain or even increase palm oil production. The issue of biomass waste from palm oil trees, which cover thousands of hectares, also poses a challenge. With such a large volume of old palm oil trees, utilizing them for value-added products is crucial. With an average hectare of palm oil plantations containing 125 trees, each tree yielding an average dry weight of 2 tons, this yields 250 tons of dry weight of biomass per hectare. For 10,000 hectares, this yields 2.5 million tons of dry weight, and for 100,000 hectares, this yields 25 million tons of dry weight. An optimistic estimate would be that Indonesia could replant 5% of its land, or 820,000 hectares, for 205 million tons of dry weight of biomass. Similarly, Malaysia, with 5% replanting, or 285,000 hectares, would yield 71.25 million tons of dry weight.

Business readiness factors, both in terms of technology and the market or user base for the product, need to be carefully assessed. With such a large volume, biomass processing plants or industries can be established and operate optimally without worrying about raw material shortages. Products such as pellets, briquettes, and biochar are made from waste biomass from old palm oil trunks. Dead old palm oil trunks, often left abandoned on land, should be utilized to produce these useful, value-added products.

Biochar for Sustainable Palm Oil Productivity

The Indonesian government emphasized the importance of sustainable palm oil productivity for food and energy security, as conveyed by Deputy Minister of Agriculture Sudaryono, at the opening of ICOPE (International Conference on Palm Oil and Environment) in Sanur, Bali, mid-February 2025. The conference, attended by delegates from various countries, namely Indonesia, Malaysia, India, the Netherlands, France, Finland, Colombia, and Spain, aims to formulate a sustainable transformation for the palm oil industry. Sustainable palm oil productivity can be increased by land intensification and the use of superior seeds. Even if land expansion is necessary, it must be done without causing deforestation. Meanwhile, for replanting in dry land, it can also be combined with upland rice or corn through intercropping methods.

Biochar is a powerful solution
Palm oil productivity can be increased by improving fertilizer efficiency, or Nutrient Use Efficiency (NUE), as part of land intensification. Using the same fertilizer dose with the addition of biochar will increase palm oil productivity by around 20% or more. Fertilizer savings of around 30% with the addition of biochar will keep palm oil productivity relatively stable or at the same level as before. For efforts to increase palm oil productivity while avoiding deforestation, the first option is more appropriate: maintaining the same fertilizer dose as usual, but adding biochar to increase fertilizer efficiency.  

Indonesia's current CPO production reaches approximately 50 million tons/year across 16.4 million hectares, with an average CPO production of 3.55 tons/ha per hectare, or 3.55 million tons per million hectares. If biochar is used and productivity increases by 20%, this means an increase of 10 million tons of CPO per year (a total of 60 million tons of CPO per year), saving approximately 2.8 million hectares of land. The use of biochar will also slow down forest clearing (deforestation) for palm oil plantations.

Besides using biochar to increase palm oil productivity, other benefits from biochar production include the potential for carbon credits (BCR = biochar carbon removal) and the utilization of pyrolysis byproducts for palm oil plantations and palm oil mill operations in CPO production. This method offers several advantages for palm oil companies, such as savings in liquid organic fertilizer and pesticides, and the sale or export of 100% of the palm kernel shells (PKS). In addition to palm oil companies producing their own biochar through pyrolysis, it is also possible to establish separate companies or companies that collaborate with palm oil companies for biochar production under specific agreements.

Global pressure and scrutiny on the palm oil industry to adopt sustainable practices are increasing. Amidst soaring demand for palm oil in both global and domestic markets, increasing palm oil productivity is inevitable. Utilizing biomass waste from palm oil mills and plantations, such as empty fruit bunches (EFB) and trunks (OPT), for biochar production, and using biochar to increase palm oil productivity, is a powerful solution to address these challenges. Even for replanting dryland with upland rice or corn using intercropping methods, the use of biochar will also have a positive and significant impact on these intercrops. 

Palm Oil Mill Operation with Pyrolysis and Biogas Unit Integration for Zero Waste, Maximizing Profits and Sustainability

The goal of a palm oil mill to achieve zero waste, maximum profit, and sustainability can be achieved, among other things, through the integration of pyrolysis and biogas unit. This is because nearly all solid and liquid waste from the palm oil mill can be processed into products needed by the palm oil industry, both in the palm oil mill for CPO (crude palm oil) production and on the palm oil plantation for FFB production. With pyrolysis, solid waste is converted into biochar, producing excess energy in the form of syngas and biooil for boiler fuel. Biochar is first used to increase biogas production before being applied to plantation or agricultural land. 

The biogas product can also be used as fuel for palm oil mill boiler, along with syngas and biooil. This method allows 100% of the palm kernel shell (PKS) to be sold or even exported, thus providing additional profits for the palm oil industry. Currently, 30-50% of the palm kernel shell (PKS) is generally used for boiler fuel, mixed with mesocarp fiber, and the remainder is sold or exported. Biochar production with pyrolysis. The biogas product can also be used as fuel for palm oil mill boiler, along with syngas and biooil. This method allows 100% of the palm kernel shell (PKS) to be sold or even exported, thus providing additional profits for the palm oil industry. Currently, 30-50% of the palm kernel shell (PKS) is generally used for boiler fuel, mixed with mesocarp fiber, and the remainder is sold or exported. Biochar production by pyrolysis can utilize both coconut fiber (MF) and empty fruit bunches (EFB) of palm oil. The integration scheme is as follows:

 

The use of biochar on plantations and agricultural lands will save or reduce the use of chemical fertilizers. This is especially true for oil palm plantations, where the largest operational cost is the use of chemical fertilizers. Reducing chemical fertilizer use will result in savings in fertilizer costs. Furthermore, it will provide other environmental benefits, reducing environmental impacts by minimizing waste from excessive chemical fertilizer use. Biochar slow-releases chemical fertilizers, increasing fertilizer efficiency or Nutrient Use Efficiency (NUE). Furthermore, when combined with biochar and organic fertilizer from biogas residue, the slow-release capacity of chemical fertilizers is further enhanced, resulting in higher NUE. Furthermore, another pyrolysis byproduct, pyroligneous acid (PA), is also highly beneficial for palm oil plantations as a liquid organic fertilizer and biopesticide.

Another source of income is carbon credits, or BCR (biochar carbon removal). Furthermore, carbon credits are currently a strong motivator for producers to produce biochar. To obtain these credits, biochar producers must register with a carbon standards organization and follow their methodology. Some popular carbon standards organizations include Puro Earth, Verra, and CSI. Meanwhile, for biogas production, carbon credits can also be obtained through methane avoidance mechanisms. However, the price of biogas from methane avoidance is usually lower than carbon credits from carbon removal or carbon sequestration with biochar. However, both can be accumulated and yield greater profits.

The operational potential of palm oil mills with integrated pyrolysis and biogas units for zero waste, maximizing profits, and sustainability is enormous and is predicted to become a trend because financial returns align with environmental benefits. Furthermore, environmental and sustainability issues are currently a global concern. With approximately 17 million hectares of palm oil plantations and 5.5 million hectares in Malaysia, the potential for biomass waste, particularly EFB and mesocarp fiber for biochar production, and POME waste for biogas production, is abundant. Globally, palm oil plantations cover nearly 27 million hectares. By 2024, Indonesia will be the world's top CPO producer with 56%, followed by Malaysia with 26%, and Thailand with 5%. There are more than 1,000 palm oil mills in Indonesia and approximately 500 in Malaysia. 

Optimization of Palm Oil Mill Operations to Maximize Profits by Utilizing EFB Waste

As a profit-oriented company, palm oil companies will also do various things necessary to maximize their profits, both in the operations of their palm oil mills and on their plantations. The more efficient the operations of the palm oil mill, as well as on its plantations, the higher the profits obtained. Minimizing the environmental impact of waste produced, even zero waste, and becoming part of responsible and sustainable environmental management practices, including part of climate solutions, are important parts of this industry that cannot be abandoned. That is why palm oil mills must innovate to achieve optimal conditions. To achieve these conditions, it can be done by evaluating current practices and finding better solutions.

CPO (crude palm oil production) requires steam for the sterilization process. This is why palm oil mills definitely need boilers for their production process, for more details read here. Steam from the boiler is also used for power generation with steam turbines to drive generators. The operation of the boiler is generally carried out by burning fiber (mesocarp fiber) and some palm kernel shells / PKS, so that some palm kernel shells /PKS can still be sold or even exported. This common practice in palm oil mills has also been running for decades, but it turns out that there is still a lot of biomass waste from palm oil mills that has not been utilized, especially empty fruit bunches or EFB (empty fruit bunches) which account for around 23% of the fresh fruit bunches (FFB) processed. These EFBs are usually only piled up behind the palm oil mill and tend to pollute the environment.

The EFB can be processed into biochar. Biochar production with thermal processes, either pyrolysis or gasification, will produce energy as cogeneration in palm oil mills. Cogeneration is the right solution for biochar production while supplying energy needs for boiler operations. In this way, 100% of palm kernel shells / PKS can be sold or even exported, meaning that palm oil companies' profits are greater. But to maximize biochar production, pyrolysis is the right choice. This is because gasification technology is to maximize gas products while pyrolysis is to maximize solid products (biochar). By-products from pyrolysis are also beneficial for the palm oil industry.

Empty fruit bunches (EFB) are solid waste from palm oil or CPO production which is the largest in number. This is what makes many machine manufacturers make these EFB processing machines. Most of the machines made are equipments for cutting and pressing the EFB so that the water content decreases and the material size becomes smaller. However, both the water content and the size of the EFB as the output of the machine or equipment still do not meet the requirements to be further processed into biochar. The typical output is more than 4 inches and the water content is more than 45%. EFB must have a low water content of 10% and can be less than 1 inch for biochar production or as fuel in the boiler.

  

To obtain the EFB with a dryness level or water content of 10%, waste heat recovery from palm oil mills can be utilized for the drying process. Other biomass waste from the palm oil industry can be utilized as fuel or a source of heat energy for drying the EFB. By utilizing these biomass wastes, mill operations can be more efficient so that profits are maximized and environmentally friendly with zero waste. 

Biochar as Deforestation Solution in Palm Oil Plantations and EUDR

The development of the palm oil industry and its plantations in Indonesia is very rapid, especially in the last 10 years and currently the area of ​​Indonesian palm oil plantations is estimated to reach 17 million hectares. As the largest vegetable oil producing plant in the world and the largest palm oil plantation area in the world, of course palm oil has a strategic value in the Indonesian economy. The average speed of Indonesian palm oil plantation area is 6.5% per year or equivalent to around 1 million hectares per year for the last 5 years, while the increase in palm oil fruit production or FFB (fresh fruit bunches) is only 11% on average.

Even the largest land expansion occurred in 2017, which increased by 2.8 million hectares. From 2015 to 2019, the total area of ​​palm oil plantations increased by 3.7 million hectares. The extensification or expansion of palm oil plantations has been widely "accused" and has become the focus of the world as a result of the conversion of forest land, resulting in a lot of deforestation to be converted into palm oil plantations.

Pressure from the European Union in particular, due to these conditions, has worsened the image of Indonesian palm oil, which in turn has affected the selling price of palm oil products, both CPO and its derivative products. Improving this image is also not easy. One effective effort is to stop the extensification efforts so that forest land remains forest land and does not turn into oil palm plantations. The European Union on Deforestation-free Regulation (EUDR), which will come into effect on December 30, 2024, as an effort to prevent deforestation, is also an important consideration. The regulation requires consumers and producers along the supply chain of certain commodities to conduct due diligence and risk assessments to ensure that their products do not contribute to deforestation. The EUDR also applies a tiered inspection and penalty system based on the level of risk perceived in the country of origin.

With the extensification of oil palm land of more than 1 million per hectare each year but the increase in oil palm fruit production is only 11%, it is certainly less attractive and must be avoided, especially with the world's spotlight on the increasingly rapid deforestation. This also increasingly indicates the low productivity of palm oil plantations. In fact, by improving soil quality, palm oil fruit productivity can be increased significantly and the opening of new land for the creation of palm oil plantations can be avoided. Biomass waste in palm oil plantations and in palm oil mills can be used for biochar production as a solution to this problem.

With the increase in productivity of fresh fruit bunches (FFB) with the use of biochar, new palm oil plantations do not need to be opened again. Assuming an average increase in productivity of 20%, CPO production will also increase by 20% or equivalent to 2 million tons. This increase will be equivalent to opening new land covering an area of ​​more than 2 million hectares. Of course, it is not a small area of ​​land. With a 20% increase in production, it is very likely that national needs for CPO in particular have been met and so too for the export market. Another advantage of using biochar is as a climate solution as carbon sequestration/carbon sink. So the two main problems in the palm oil industry in the form of increasing productivity and climate change resilience can be overcome at once with the application of biochar.    

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.
 

Biofuel or Electric Vehicle First?

The decarbonization trend continues and has penetrated almost all lines, including the transportation sector. In the transportation sector, there are 2 things that can be done, namely the use of fuel from renewable energy or biofuel and the use of emission-free vehicles such as electric vehicles. In vehicles with 100% renewable energy or biofuel, the emissions produced are carbon neutral (even though the emissions contain CO2) while electric vehicles produce no emissions at all because there is no combustion process in the operation of the electric vehicle.

Currently, the majority of vehicles are vehicles with internal combustion engine technology, so they use fuel for their operations and the most widely used fuel is fossil fuel, especially in liquid form or liquid fuel. To achieve carbon neutral conditions, this fuel must be replaced with 100% biofuel. But currently, even though the use of biofuel has been carried out, the portion is not yet 100%. Indeed, technically there are restrictions on the use of biofuel so that it cannot be 100% like bioethanol, so this is also a concern. However, of course efforts to use 100% biofuel will also be the main target, apart from the emissions factor to achieve carbon neutral conditions, internal combustion engine technology is also the majority so it only needs minor modifications or even no modifications at all.

Another fact is that currently most electric vehicles still use electrical energy sources from fossil fuel power plants, especially coal. Even though these electric vehicles are non-emissions, basically the energy source is fossil energy, only the locations are far apart. Electric cars as a new product are also generally more expensive, even double or more than cars in general. This condition also affects the amount of use of the cars or electric vehicles themselves.

Indonesia as a tropical country has enormous potential as a biofuel producer because various plants or trees can grow well. Even though palm oil is currently the largest vegetable oil producing crop and Indonesia is ranked first in the world with an area of palm oil plantations reaching around 15 million hectares, the oil from palm oil competes with edible oil and the maintenance costs are high. not cheap. Meanwhile, vegetable oil from energy trees such as nyamplung (calophyllum inophyllum), apart from its oil productivity, is not inferior to palm oil, and the oil does not compete with edible oil, read more details here. Apart from that, the nyamplung tree, which grows well in areas near the coast, also provides its own advantages, namely because Indonesia has the second longest coastline in the world after Canada, namely 99,093 km and the nyamplung tree is also a multi-purpose tree. Meanwhile, biofuel from biomass waste can also be done, but because production costs are still expensive, it still requires a number of stages for implementation.

Under these conditions, the development of biofuel, especially from trees such as nyamplung, should be prioritized. Meanwhile, even though electric vehicles are emission free, their electricity source still uses fossil fuels. Efforts to reduce fossil fuels in power plants by cofiring have been carried out but the portion is still very small, so the climate benefits are not yet significant. If the source of electrical energy can be 100% renewable energy, then the use of electric vehicles can also be said to be like the use of 100% biofuel in internal combustion engines.

2nd Generation Biofuel with Biodiesel Production from Calophyllum Inophyllum and the Like

Biodiesel production from CPO is a 1st generation biofuel where the raw material competes with food products, which of course is not good. Biodiesel production from oils that do not compete with food products will be much better. The image of producers and even their country will also be improved if the program can be carried out on a massive scale. There are a number of trees that produce oil for biodiesel production. The selectivity of plant types related to productivity, climatic conditions and so on is certainly a serious consideration if production is on an industrial scale. Nyamplung oil (calophyllum inophyllum oil) is one of the best solutions because apart from high oil productivity, the productive period is long, and the logs after the productive period are also economical or have high selling value.

The productivity of calophyllum inophyllum oil competes with palm oil, whose productivity is around 6 tons/hectare/year, but caring for calophyllum inophyllum trees is easier and cheaper. Meanwhile, jathropha has lower productivity so it is less attractive and profitable to develop. Calophyllum inophyllum trees that grow well in the lowlands or on the coast will be very suitable for Indonesia as an archipelagic country. Indonesia has a coastline of 99,093 km or the second longest in the world after Canada. And it would be even better if the calophyllum inophyllum plantations on the coast also coincided with coconut planting. Indonesia is famous for its land of coconut islands, which generally grow well in coastal areas. Coconut trees also have many benefits from almost all their parts. If this happens, optimization of renewable energy production, namely biofuel in the form of biodiesel from calophyllum inophyllum oil and food products, especially those based on coconuts.

The transportation sector itself contributes 14% of CO2 emissions globally or 27% in Indonesia. Biodiesel produced by transesterfication reaction (C6-C22 chain) has very similar properties to diesel oil so it can be used 100% in diesel engines without the need for modification or mixing/blending with certain portions. Biodiesel contains 10% oxygen and zero sulfur, which makes engine combustion more complete and efficient. Liquid fuel also has its own advantages over gas fuel, including easy use and storage, and most existing vehicles use liquid fuel, so they can be used straight away. The development of biofuel as a carbon neutral fuel needs to be prioritized as part of decarbonization, especially for 2nd Generation Biofuel because it does not conflict or compete with food.

For 2nd generation biofuel from biomass or lignocelullosic biomass (such as wood waste), biodiesel production is still high cost. There are two process routes for biodiesel production from lignocelullosic biomass, namely gasification for syngas production followed by the Fischer-Tropsch (FT) process and fast pyrolysis for biooil production followed by hydrotreating and catalytic cracking processes. This is what makes biodiesel production in this way not possible even though it is technically possible. The raw materials for lignocellulosic biomass are much cheaper because they are generally categorized as biomass waste. However, the complexity of the production process makes production costs expensive, so it is not yet an option.

Meanwhile, for 3rd generation biofuel, namely from microalgae, even though the potential is huge, the productivity can even be more than 16 times the productivity of palm oil or calophyllum inophyllum oil (6 tons/hectare/year for palm oil and calophyllum inophyllum, while oil from microalgae reaches 100 tons/hectare/year ) but it seems that it still takes time to enter the commercialization stage. Problems related to cultivation, harvesting and oil extraction also still require extensive research. By producing biodiesel from calophyllum inophyllum oil, biodiesel production from CPO can be gradually reduced. The larger the calophyllum inophyllum plantation, the greater the biodiesel product produced, so that palm oil or CPO can be specialized as edible oil or specifically a food product. Likewise, it is hoped that oil from coconut will increase along with the growth and development of biodiesel production from calophyllum inophyllum oil.

Future Palm Oil Mill: Producer of CPO, Biochar and Hydrogen at the Same Time

Efficiency factors, optimizing potential and improving climate should be implemented simultaneously in the palm oil industry. This can be done by replacing the combustion furnace in the boiler with pyrolysis so that the boiler fuel is mainly biooil, a pyrolysis by-product, with the main product being biochar and building a biogas unit for hydrogen production as the final product. Biochar will be used as a soil amendment together with fertilizer so that it becomes slow release fertilizer, so that fertilizer use efficiency (NUE: nutrient use efficiency) increases. The use of biochar as carbon sequestration, namely by using it together with fertilizer, will also provide additional income from carbon credits. Acid soil or dry soil will have better fertility with the application of biochar.

Furthermore, liquid waste or POME (palm oil mill effluent) is used as raw material for biogas. With the main component of biogas being methane (CH4), with steam reforming the methane will react with steam at a temperature of 700-1100 C with a nickel catalyst to become hydrogen/H2 and carbon monoxide/CO. To maximize hydrogen H2 production, the resulting carbon monoxide / CO is then subjected to a shift reaction, resulting in hydrogen / H2 and carbon dioxide / CO2 products. The reaction runs at a temperature of 400-500 C or at a lower temperature, namely 200-400 C. At higher temperatures the shift reaction usually uses an iron oxide or chromium catalyst, while at lower temperatures the catalysts usually used are copper, zinc oxide and alumina. , which helps reduce CO concentrations to below 1%.

Is Palm Oil Land Expansion Still Needed?

The area of Indonesian palm oil plantations is currently around 15 million hectares, with CPO or crude palm oil production reaching 46.73 million tonnes in 2022. Indonesian palm oil producers are located in 26 provinces with the province producing the most palm oil namely Riau, followed by Central Kalimantan followed in second place, then North Sumatra. While the province that produces the least palm oil is the Riau Archipelago and above it are North Maluku and Maluku. The CPO product is processed into derivative or downstream products and part of it is exported. In general, the classification of CPO derivative products (downstream products) is grouped into, such as: oleochemicals, oleofood, and bioenergy.

The high demand for vegetable oil, especially crude palm oil or CPO, is driving efforts to expand oil palm plantations or extensification in Indonesia. But is this extensification really needed and the only way to increase CPO production? Meanwhile, permits issued for palm oil plantations have reached more than 25 million hectares as shown in the table below.

Biochar should be encouraged to use it rather than extensification of the land. The use of biochar will improve soil fertility and also make fertilization more efficient so that NUE (Nutrient Use Efficiency) increases, for more details read here. FFB production increase of 30% or more is possible with biochar. CPO production is estimated to increase by 30% to around 60 million tonnes annually. This is also equivalent to saving land reaching 5 million hectares. The problem of land disputes that reach hundreds of cases throughout Indonesia, land conversion, deforestation and so on can be overcome by using this biochar. Of course this should be a serious consideration for the intensification of palm oil plantations compared to the extensification of the land. Apart from that, a climate solution in the form of carbon sequestration / carbon sink can also be carried out simultaneously with the application of the biochar. Every 1 ton of biochar will store or reduce CO2 (carbon dioxide) in the atmosphere by approximately 3 tons. And the price of carbon credits from carbon removal is also increasing.

Become the Trendsetter of the World's Vegetable Oil Producers

In the vegetable oil market, there are 4 types of vegetable oils that are widely consumed around the world, namely soybean oil, sunflower oil, palm oil and rapeseed oil. Based on USDA data (2018) the total area of the 4 vegetable oil-producing plants in 2017 was around 208 million hectares. Soybean plantations have the largest proportion of area, namely 126 million hectares (61 percent), while the area of palm oil plantations is only 21 million hectares (10 percent). However, with an area of 126 million hectares, soybeans are only able to produce 56 million tons of oil or only 32 percent of the production of the world's 4 main vegetable oils. In contrast, palm oil with an area of 21 million hectares is capable of producing 73 million tons or 42 percent of the production of the world's 4 main vegetable oils.

The high level of palm oil production is obtained from the productivity of palm oil plantations which is much higher than the productivity of other vegetable oil producing plants. According to Oil World (2018), the average productivity of oil palm is 4.27 tons/hectare, while the productivity of other vegetable oil-producing plants is only 0.4 – 0.6 tons/ha. The productivity of palm oil is much higher, around 8-10 times compared to other types, making palm oil have a comparative advantage over other vegetable oils. This comparative advantage can be interpreted as saving deforestation in various regions of the world if palm oil is consumed by the global community or to produce the same amount of oil, the land needed for oil palm is 8-10 times smaller than other crops.

With an average annual productivity of 4.27 tons/hectare of palm oil or 17 tons of FFB/year, this is actually still quite low and productivity can be increased up to around 30 tons of FFB/hectare or 7.5 tons/hectare of oil. Increasing the productivity of palm oil is primarily by increasing soil fertility so that fertilization efficiency increases. Slow release fertilizer (SRF) is an efficient fertilizer that is economical and environmentally friendly. In addition, the use of biochar, apart from being a slow release agent in the fertilizer, will also improve soil quality or fertility by increasing soil porosity, providing organic carbon, raising soil pH, retaining water and nutrients so that they are more available to plants and as a medium for soil microbial colonies. By increasing the productivity of palm oil, followed by saving fertilizer due to increased efficiency, minimizing environmental pollution so that production costs can be reduced, it means that it is equivalent to increasing land efficiency by 76%. This means that the productivity of palm oil per year is 30 tons of FFB/hectare, or 7.5 tons/hectare oil and when compared to other vegetable oils it is 15 times more land-efficient or per tonne of palm oil requires 0.13 hectares while other vegetable oils require 2 hectares of land.

The climate solution in the form of carbon sequestration / carbon sink can also be done simultaneously with the biochar application. Every 1 ton of biochar will store or reduce CO2 (carbon dioxide) in the atmosphere by approximately 3 tons. Carbon credit from the application of biochar is a significant additional income apart from fertilizer efficiency and increased crop productivity, including palm oil yields. Moreover, the value of carbon credit tends to increase and the carbon (CO2) removal mechanism with biochar will become a trend in the future. The amount of income from carbon credit is proportional to the number of biochar applications in the oil palm plantation which will also be proportional to the area of the palm oil plantation.

The area of palm oil plantations ranging from thousands to tens of thousands of hectares owned by a company is common in Indonesia. This indicates the business potential that can be done. With the current area of palm oil plantations in Indonesia reaching around 15 million hectares, as much as 40% (6 million hectares) are smallholder plantations so that the company's plantation area is 60% (9 million hectares) which is divided into owned by Large Private Plantations (PBS), which is 8 .42 million ha (55.8%) and State Large Plantations (PBN) covering an area of 579.6 thousand ha (3.84%), for more details read here. Palm oil trees themselves can only produce well in the tropics because the temperature factor affects production through the rate of biochemical and generative reactions in the plant's body. To some extent, higher temperatures lead to increased fruit production. The temperature of 20°C is referred to as the minimum limit for generative growth and an annual average temperature of 22-23°C is required for continued fruit production. That is why not all locations on earth can be cultivated for palm oil even though the productivity of the oil is the largest compared to other plants, so that it becomes a comparative advantage in itself.

Meanwhile, from biochar production technology, it is also possible to reduce the use of solid fuels such as palm kernel shells (pks) which are commonly used in boilers at palm oil mills. Palm kernel shell which is a biomass fuel and used as boiler fuel in palm oil mills besides fiber (mesocarp fiber), can then be sold directly for both the domestic market (local) and the international market (export). The palm kernel shells can also be further processed into charcoal or activated carbon. The use of energy from biochar production technology (pyrolysis) will also increase the efficiency of boilers at palm oil mills, in addition to additional income from selling palm kernel shells or further processing. Becoming a trendsetter in the world's vegetable oil producers is very possible based on the reasons mentioned above. With Indonesia's current condition in particular, or other palm oil producing countries, with a little improvement, it is very possible to do this. Moreover, the palm oil industry produces a lot of biomass waste which is very potential as raw material for making biochar.