PKS (Palm Kernel Shell) Export Business and New Varieties of Superior Palm Oil Seeds

PKS loading for export

The demand for biomass fuels as renewable energy, including PKS (palm kernel shells), is growing in line with the global decarbonization trend. Likewise, the use of biofuels such as biodiesel is also increasing. Biomass fuels like PKS and biofuels like biodiesel are both carbon-neutral bioenergy products. Both can be produced from palm oil trees. Biofuels like biodiesel are primarily used in the transportation sector, while biomass fuels like PKS are used for power generation or industrial boiler fuel. Palm oil produces its primary product namely crude palm oil and crude palm kernel oil (CPO and CPKO), while the PKS are byproducts or waste, such as EFB (empty fruit bunches) and mesocarp fiber.

Over time, the demand for palm oil has also increased, commensurate with population growth, and its use in the energy sector (biofuel) is even greater than in the food sector. To stabilize prices and avoid sharp fluctuations in palm oil prices, the Indonesian government launched the B-50 program, which uses 50% biodiesel from palm oil and 50% diesel from petroleum. With the B-50 program, palm oil demand has increased by approximately 20% over current average production.

This necessitates increasing palm oil productivity. One such effort is the use of superior seeds. By maximizing CPO production from mesocarp fiber, these superior seeds have thick fiber, thin shells (even shellless), and small kernels. The Psifera variety, with its various unique names by seed producers, is an option for this purpose. These superior seeds are even certified to assure consumers of their quality.

The initially thick PKS of the dura variety, which are favored and most sought after by PKS exporters for use in power plants, will gradually decline. However, considering the slow pace of replanting programs and minimal extensification efforts, the transition from dura to psifera PKS will be lengthy. PKS exporters can still safely export thick dura PKS. The less thin tenera PKS, as a transition to psifera, will likely become more common.

If very thin psifera PKS become commonplace, their calorific value will be low and they will be less desirable for energy applications. If this occurs, special treatment is required to make the psifera PKS more technically and economically viable for energy use. This can be achieved through compaction/densification or processing through torrefaction or pyrolysis to produce higher fixed carbon and calorific value. Furthermore, they can be compacted/densified into pellets or briquettes. 

Energy Sources for Data Centers: Between Growth and Sustainability and the Role of Bioenergy

Data centers are physical facilities that house computer systems and related infrastructure, such as servers and storage, used to store and process data. They form the foundation of a nation's computing power and are a core dependency in building large-scale Artificial Intelligence (AI). AI data centers, in particular, are particularly energy-intensive. According to the International Energy Agency (IEA), a typical AI data center currently uses as much energy as 100,000 households, while large AI centers currently consume about 20 times that amount (2 million households).

The computing power needed to support AI growth is also doubling approximately every 100 days. For example, Malaysia, it is not surprising that data center energy consumption in Malaysia is projected to soar to more than 5,000 MW by 2035, which is 40 percent of Peninsular Malaysia's current power capacity, or 11.1 percent of Malaysia's projected power capacity in 2035. Meanwhile, in Indonesia. Meanwhile, the projection of data center electricity consumption in Indonesia has increased significantly, predicted to reach 5,200 MW in 2034 and could even reach 12,000 MW in 2033. And the current capacity in 2025 is only around 274 MW and with a predicted growth of 16.8% per year, it can reach the target of >2,000 MW in 2029.

There are at least two main drivers of growth in the data center industry. First, demand-side factors include the growth of cloud computing and AI, along with the increasing global demand for data storage and processing capacity for everyday tasks like social networking, e-commerce, and data storage. Second, supply-side factors include the availability of resources such as electricity and water, fiber optic connectivity, and land availability.

In the growing data center industry, high or wasteful energy consumption has contributed to rising electricity prices for residents and small businesses. Each country should learn from these case studies as they strive to strike a balance between growth and sustainability. For example, in Georgia, the fastest-growing data center market in the country, Georgia Power reports that 80 percent of the projected 8,200 MW increase in energy demand by 2030 is related to planned data centers opening in the state. To address the increased demand, base electricity rates have been raised and new nuclear power plant (NPP) are under construction.

Georgia is an attractive market for data centers, given its relatively low electricity prices, with industrial electricity rates about 42 percent below the US national average. Significant tax relief was also promised, with at least $163 million in state collections eliminated and local sales tax annually starting in 2022. However, starting in 2023, the average Georgia Power residential customer will pay $43 more per month following a base rate increase. To address this challenge, a Senate bill was introduced to protect residential and commercial customers from higher electricity bills due to the utility's significant investment in AI-powered energy needs.

Efforts to address the increasing energy demand for data centers while reducing their environmental impact are necessary. Typical approaches include optimizing Power Use Effectiveness (PUE) and related metrics, as well as shifting to renewable energy. The use of renewable energy for data centers remains limited, or even at a small capacity of less than 5%. Renewable energy sources still prioritize solar and intermittent wind.

Industry participants also state that the intermittent nature of solar energy (at least without a well-developed battery storage system) does not make it an ideal energy source for data centers, given the need to keep data centers running 24/7. With limited solar generating capacity, data centers often rely on backup diesel generators. While renewable diesel (biodiesel and green diesel) is an available option, there are currently no regulations encouraging this transition.

Biomass as an energy source, or bioenergy, for data centers is still very limited. This biomass can be used directly in biomass power plants, where the CFB type is very common, or through co-firing in coal-fired power plants. Furthermore, biomass can be utilized as an energy source and biochar production through pyrolysis technology, as is the case with this US company. The syngas from pyrolysis serves as a carbon-neutral energy source, and biochar is the primary product for carbon capture and sequestration (CCS), resulting in carbon-negative operations. 

OPT Pellets for Biomass Power Plants and BECCS in Japan and Europe (Presentation Version)

One way to maintain or even increase the productivity of palm oil plantations is through replanting , which is absolutely necessary. Old palm oil trees will decline in productivity, becoming uneconomical. Just as palm oil planting is carried out in stages, replanting oil palm plantations is also carried out in stages and periodically.

Most palm oil companies affiliated with GAPKI have been replanting regularly, or annually, on an area of ​​4-5%. GAPKI currently has 731 members, while according to Statistics Indonesia (BPS) in 2023, the number of palm oil companies in Indonesia reached 2,446, spread across 26 provinces.

Of Indonesia's approximately 16.8 million hectares of oil palm plantations, 9 million hectares are managed by private companies, 550,000 hectares are owned by state-owned companies (PTPN), 6.1 million hectares are owned by smallholders, and the remainder has not been verified. Specifically for replanting, the government is targeting 180,000 hectares per year for smallholders, but by 2024, only 38,244 hectares had been realized, far short of the target.

With an average hectare of palm oil plantation containing 125 trees, each tree having an average dry weight of 0.4 tons, per hectare yields 50 tons of dry biomass. For an area of ​​10,000 hectares, this translates to 0.5 million tons of dry biomass, and for an area of ​​100,000 hectares, this translates to 5 million tons of dry biomass. Optimistically, Indonesia could achieve 5% replanting, or 820,000 hectares, which would yield 41 million tons of dry biomass per year. Malaysia, with 5% replanting, or 285,000 hectares, would produce 14.25 million tons of dry biomass per year.

To read and access the presentation, please download here. 

Harvesting Energy from the Sun

The sun is crucial as a source of energy for living things, including plants, animals, and humans. It is an abundant, free, and inexhaustible source of energy, except at the time of judgment. The word "sun" is mentioned 25 times in the Quran and is the name of one of the chapters mentioned by Allah in the Quran. This suggests that Allah intended to signal that there is something for humans to explore through the sun (Asy-Syams).

An American Muslim and environmental activist, Ibrahim Abdul Matin (2012), in his book Green Deen: What Islam Teaches about Protecting the Planet, refers to renewable energy as energy from heaven. According to him, energy from heaven originates from above, meaning it is not extracted from the earth and is renewable. "Extraction causes imbalance (causes climate change), while energy from above is like energy from heaven." 

By 2024, solar power production will reach 453 GW. With wind power generation added, the two sources will account for 97.5% of the total renewable energy, making them the dominant renewable energy source. With wind power production reaching 114 GW, or about a quarter (25%) of solar power, solar energy is crucial due to its competitive cost and rapid development. China is currently the world's leading producer of solar PV. 

China's ambition is to build a "solar great wall" designed to meet Beijing's energy needs. The multi-year project, expected to be completed by 2030, will be 400 kilometers (250 miles) long, 5 kilometers (3 miles) wide, and reach a maximum generating capacity of 100 gigawatts. Currently, the project is reported to have reached a capacity of 5.4 gigawatts. Since 2024, China has led the world in electricity production from solar panels. As of June 2024, China led the world in operating solar power generation capacity with 386,875 megawatts, representing about 51 percent of the global total, according to Global Energy Monitor's Global Solar Power Tracker. The United States ranked second with 79,364 megawatts (11 percent), followed by India with 53,114 megawatts (7 percent). 

Even Elon Musk has been saying it for years, and it's something solar energy pioneers already know: the sun has enough energy to meet all our energy needs. The problem lies not only in ensuring that people have the technology to harvest the sun through solar panels, but in cities and urban centers, one of the biggest issues is storage and what to do with excess energy when the sun is shining, which is why batteries for storing that energy are so important. Consumers and businesses, when possible, typically feed energy back into the grid, where they receive cash or credits for their contribution.

But harvesting solar energy is of course not only done with solar panels (solar PV). Trees or plants also harvest solar energy and convert it into other energy sources, namely biomass-based. Renewable energy sources derived from plants (bio-energy) are also in line with QS. Yaasin (36): 80. To produce these energy sources, whether such as wood, fruit, seeds or other parts of the plant, plants carry out photosynthesis. In addition to water and carbon dioxide (CO2), this photosynthesis process requires sunlight. 

Plants, through the process of photosynthesis, store energy from the sun in the form of biomass, and this is likened to a battery. This green battery of plants can be used as a very large energy source; for more details, read here. Unlike harvesting solar energy with solar panels (solar PV), which is highly dependent on the weather, resulting in intermittent electricity supply, or likewise with wind, which sometimes does not blow, biomass energy from plants will produce stable electricity. Once converted into biomass and harvested as an energy source, the energy will always be available. And to generate electricity from solar panels (solar PV) to overcome weather problems and prevent intermittent electricity supply, very large batteries are required, and currently not available. 

Indonesia is believed to be a tropical country, the biomass heaven. This needs to be translated into more concrete terms so that it can be understood, implemented, proven, and optimally utilized. Its potential is immense and should be used to support the well-being of its people. The simple diagram below illustrates the many possibilities in this tropical "biomass heaven." 

The availability of raw materials is a vital and absolute must for various biomass processing processes to be carried out and be sustainable. On the other hand, there is a huge potential for land that can be utilized for this purpose, amounting to tens of millions of hectares, namely critical land / marginal land, dry land and post-mining land (coal mines, tin mines, nickel mines, copper mines, gold mines and so on). In more detail, it is estimated that for critical / marginal land reaches 24.3 million hectares (Times Indonesia, 2017), while dry land reaches 122.1 million ha consisting of dry acid land covering 108.8 million ha and dry climate dry land covering 13.3 million ha and post-mining damaged land reaching 8 million hectares. Energy plantations or biomass plantations need to be created in these areas and can even be used for various food crops. In fact, currently there are plant species that can only be economically viable in these lands. 

The Quran, as a source of knowledge, teaches how to obtain renewable and sustainable energy that will save humanity and the earth. By delving into and studying the verses of the Quran in detail, we will uncover various important guidance for navigating life. This should motivate and inspire humans, especially Muslims, to conduct beneficial scientific research. Applying existing resources, in line with Quranic guidance, and developing and refining efforts to harvest solar energy must continue. Furthermore, the Quran provides a solid moral, ethical, and legal basis for the balanced and responsible development of science and technology. 

The Quran explicitly emphasizes the importance of knowledge. This is evident in the first verses revealed to the Prophet Muhammad (peace be upon him), which contain the command to read, and the story of Adam being taught the names of all things, signifying humanity's superiority through knowledge. The Quran encourages travel and observation, thus opening minds to scientific discoveries. The Quran provides guidelines to ensure that the knowledge developed is used for good and does not conflict with moral values. 

Laboratory-Scale Pyrolysis Equipment for Biochar Production Trials and Research

The decarbonization trend continues to grow across all sectors of life as part of a global consensus to save the earth. Biomass plays a strategic role through biotransition, where biomass acts as a carbon-neutral fuel, thus preventing it from contributing to increased CO2 emissions in the atmosphere, and through carbon-negative programs with carbon sequestration. Substantively, decarbonization through carbon-negative programs (CDR/carbon dioxide removal) will be effective if biomass fuel, as a carbon-neutral fuel, or the use of other renewable energy sources, is also increased. In other words, efforts to reduce atmospheric CO2 concentrations cannot simply involve absorbing CO2 from the atmosphere (carbon capture and storage). In the context of biomass-based renewable energy, the practical application of wood chip and wood pellet production as carbon-neutral renewable fuels will complement biochar (carbon-negative). Read more details here.

Biochar, a product of biomass pyrolysis, or biocarbon products used as a medium for climate change mitigation through carbon sequestration/carbon sinks, is not yet as popular as the use of biomass as a renewable energy source, such as wood chips, wood pellets, or palm kernel shells (PKS). For comparison, global biochar production in 2023 was 350,000 tons, while wood pellet production was 47 million tons. With a conversion of biomass to biochar of approximately 30%, the amount of dry biomass processed into biochar in 2023 was 1.2 million tons, compared to 47 million tons of wood pellets in the same year, or only about 2.6% of the biomass used for wood pellets—a significant gap. However, biochar is predicted to gain momentum and be produced on a large scale globally. The application of biochar as part of carbon capture and storage (CCS) is currently experiencing the fastest growth compared to other CO2 reduction (CDR) efforts. Biochar leads in CDR credits in the voluntary carbon market (VCM), with over 90% globally by 2023 as per the cdr.fyi database.

Furthermore, carbon capture and storage (CCS) applications using absorber-stripper columns, where the captured carbon dioxide is stored in the Earth's crust, remain expensive. Pyrolysis technology for biochar production, meanwhile, is increasingly developing, making it easy to operate, efficient, and environmentally friendly, with the potential to produce various by-products that offer additional benefits. These pyrolysis units can even be integrated with processing plants, such as palm oil mills. For more details, read here.

Including the BECCS (Bioenergy with Carbon Capture and Storage) application which is overall a carbon negative program or CO2 removal from the atmosphere (CDR / Carbon Dioxide Removal) but building a bioenergy unit such as a biomass power plant itself is also not cheap, especially with the addition of carbon capture and storage (CCS) equipment. A number of countries that already have many biomass power plants, for example Japan with around 300 biomass power plants, to become carbon negative operations or part of CO2 removal from the atmosphere (CDR / Carbon Dioxide Removal) will be easier by upgrading them with the installation of carbon capture and storage (CCS) equipments. But in general, to absorb CO2 in the atmosphere and achieve climate targets, the application of biochar produced with pyrolysis units is easier, cheaper and strategic.

To anticipate and prepare for the growing era of CO2 removal from the atmosphere (CDR), biochar research must also be enhanced. Pyrolysis equipment that can cover or carry out comprehensive biochar production trials under all measurable production process operating conditions is crucial. Biochar product quality parameters are determined by three factors: the raw material or type of biomass, the production process, and the biomass pretreatment. For more details, read here. Important variables in the biochar production process in the pyrolysis unit, such as duration/residence time, temperature, and heating rate, must also be able to be handled with this equipment.

Furthermore, the issue of exhaust emissions is also crucial. This is because carbon standards organizations like Puro, Verra, and CSI require exhaust emissions to meet certain thresholds. Furthermore, excess heat from pyrolysis and/or liquid and gaseous products must be utilized. This means that laboratory-scale pyrolysis equipment must be sophisticated enough to meet these requirements. Following the methodologies developed by these standards organizations is essential for producing certified biochar to earn carbon credits. With each ton of CO2 equivalent removed from the atmosphere, or CO2 Removal Certificates (CORCs), worth over $150, this is certainly very attractive.

The diverse uses of biochar, such as in agriculture, animal husbandry, and even for concrete construction, further encourage its implementation in the future. Even if there is a question, for example, about the use of biochar in the agricultural sector: should biochar be prioritized for soil fertility or climate solutions first? This is certainly not a dichotomous question, but rather a driving force for its application, which is strongly influenced by factors that are problematic in the region or area. For more details, read here. To achieve the best performance while minimizing the risks of biochar production, increasing biochar production capacity is necessary, starting from the laboratory scale, pilot scale, demo scale, and finally commercial plants. By understanding the characteristics of the production process gradually and in depth, the hope is that the success rate of large-scale or commercial production will also be high. 

Exploring the Market for Bioenergy and Biocarbon Products in the Era of Global Decarbonization

The demand to lower the earth's temperature by reducing greenhouse gas concentrations through various global agreements such as the Paris Agreement and Net Zero Emissions (NZE) 2050, followed by technical follow-up through decarbonization for various sectors and industries, continues. This is the driving force for increasing renewable fuels, especially those based on biomass or bioenergy products, which have been implemented, but are experiencing dynamics in the form of fluctuations in demand and prices. Bioenergy, with its numerous advantages and uniqueness as a renewable energy, cannot be replaced in this era of global decarbonization, even though in the near future some subsidies for biomass fuels or bioenergy will be eliminated.

This is closely related to a government's decarbonization priorities, particularly among the various emerging options. Bioenergy products can vary in quality, but all have their own market segments within specific industries. Furthermore, the sustainability of biomass sources is also a crucial aspect in the business and use of bioenergy, and is strictly enforced by standards such as GGL, FSC, SBP, RED III, and SURE. Industrial groups such as cement, iron and steel, chemicals, and even the aviation sector, which previously relied 100% on fossil fuels or energy sources, are gradually shifting to renewable energy sources.

Bioenergy products such as industrial wood pellets and industrial wood briquettes are primarily marketed in the power generation industry and as fuel for industrial boilers. Industrial wood pellets are very popular and are produced in larger quantities than industrial wood briquettes. Due to the elimination of subsidies and the implementation of sustainability certification, biomass fuel producers are required to produce better quality products using environmentally friendly and accountable raw materials. This also applies to bioenergy derived from agricultural waste, which generally lacks sustainability certification at large production capacities.

Biomass power plants operating near carbon neutrality can then be upgraded to carbon-negative operation, or atmospheric carbon dioxide removal (CDR) by adding carbon dioxide capture and storage (CCS) equipment. Biomass power plants equipped with CCS devices are popularly called BECCS (Bio-Energy Carbon Capture and Storage). It is predicted that the BECCS era will not be far off, and countries with biomass power plants can easily upgrade to BECCS. Expensive CCS equipment and low carbon credit revenue from CDR remain current obstacles. Japan, with around 300 biomass power plants, has great potential to upgrade to BECCS. And as a biomass power plant, the need for fuel will always be needed, such as wood pellets and PKS (palm kernel shells). For more details, read here.

One successful example of BECCS is the Stockholm Exergi BECCS project. BECCS illustrates how existing biomass power generation infrastructure can be leveraged to generate sustainable carbon dioxide sequestration. The Stockholm project, based on sustainably sourced biomass fuel, secured one of the world’s largest carbon sequestration deals with Microsoft, a significant contract worth SEK 500 million (~89 billion rupiah). Their model integrates carbon capture with a district heating system, maximizing energy efficiency while achieving permanent carbon dioxide sequestration.

Similarly, several other large industries, such as cement, aluminum, and chemicals, are also gradually decarbonizing. Biomass fuels, such as wood pellets and agricultural/plantation waste like palm kernel shells (PKS), are preferred in this sector. Besides their high energy content, these biomass fuels are more affordable than derivatives like torrefied biomass and charcoal/biochar. With the gradual transition or decarbonization of these industries, the demand for biomass fuels will also continue to increase.

Meanwhile, biocarbon products such as torrified biomass (biocoal) and carbonized biomass (biochar/charcoal) are starting to attract attention and are expected to reach mass production levels in the near future. Power plants typically favor biocoal due to its higher energy content, hydrophobicity, which allows it to be stored in open areas like coal, and ease of crushing (high grindability index). Meanwhile, biochar/charcoal, especially in the iron and steel industry, is highly suitable for producing low-carbon steel and even green steel. The reductant for blast furnaces, which previously used coke from coal, can be replaced by charcoal or biochar. Charcoal or biochar with high purity (fixed carbon >85%) and low impurities are required for blast furnace reductants. For more details on this, please read here and here.

Meanwhile, the use of biomass for sustainable aviation fuel or SAF (Sustainable Aviation Fuel) is also very possible. This is because currently there are three leading production processes for SAF production: HEFA (Hydro-processed Esters and Fatty Acids), FT (Fischer-Tropsch), and ATJ (Alcohol to Jet Fuel). Biomass through thermochemical processes, namely in FT (Fischer-Tropsch) and biochemical processes, namely in ATJ (Alcohol to Jet Fuel), can be used as raw material or feedstock. Meanwhile, the raw material or feedstock for the HEFA process is not solid biomass but vegetable oil, used cooking oil, animal fats, and so on. So the broad application of biomass as various important energy sources in the era of global decarbonization is a driving force for biomass production both through the forestry sector and sustainable agriculture/plantations.

 

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. 

Replanting Palm Oil Plantations and Utilizing Old Palm Oil Trunks Waste (Presentation Version)

Aging plants are one factor in declining palm oil productivity. Palm oil trees begin to decline in productivity after 20 years and need to be replaced after 25 years. Therefore, rejuvenation or replanting must be carried out periodically according to the age of the trees.

Furthermore, the demand for palm oil continues to grow in line with global population growth. For the domestic market, biofuel use takes the form of a mandatory 40% palm oil blend in biodiesel (B40) this year, which is being reviewed to increase to 50% (B50) by 2026, and a 3% blend for jet fuel by 2026. Demand for the international market also continues to grow. The main destinations for Indonesian palm oil are India, China, Pakistan, Bangladesh, the United States, the Netherlands, Spain, Italy, Egypt, and South Africa.

Replanting palm oil plantations is crucial because it maintains sustainable palm oil productivity and prevents or reduces deforestation for new lands. The potential volume of old palm oil trunk waste generated is enormous, and there are numerous utilization options, including bioenergy, biocarbon, biomaterials, biofuels, and biochemicals.

To read and access the presentation, please download here. 

The Urgency of a Justice Energy Transition part 2

The sun is the source of energy for all living things on Earth. It is an abundant, free, and inexhaustible source of energy, except at the end of the world. The word "sun" is mentioned 25 times in the Quran and is one of the chapters mentioned by Allah in the Quran. This indicates that Allah wants to signal that there is something that humans need to explore through the sun or asy-syams. Utilizing the sun for electricity production has attracted the attention and focus of scientists worldwide. And Muslim scientists, in particular, with this divine motivation from the Quran, should be motivated and driven to research and implement it. This driving force is especially strong in the era of decarbonization, or the substitution of fossil fuels for renewable energy to address climate change and global warming.

Ibrahim Abdul Matin (2012), a Muslim from the United States (US) and environmental activist, in his book Green Deen: What Islam Teaches about Protecting the Planet, refers to renewable energy as energy from heaven. According to him, energy from heaven comes from above, meaning it is not extracted from the earth and is renewable. "Extraction causes imbalance (causes climate change), while energy from above is like energy from heaven."

In practice, solar energy has been widely utilized to generate electricity. Humanity is challenged to develop the best science and technology to maximize the harvest and utilization of solar energy. Technology and supporting infrastructure have even been widely used as a powerful weapon to address climate change and global warming. However, in practice, not all implementations of this technology have been successful and yield significant financial returns. The Ivanpah project in California, USA, is one such project. The electricity production project, utilizing solar heat with CSP (Concentrated Solar Plant) technology, failed to achieve its business objectives and lost out to the more accessible and affordable solar PV (photovoltaic) technology.

CSP technology, or solar thermal technology, uses mirrors to concentrate sunlight, generating heat to produce steam to drive turbines, generating electricity. Meanwhile, in solar PV, the solar panels will directly absorb sunlight using semiconductor materials. The Ivanpah project, which cost 2.2 billion USD (more than 35 trillion rupiah), became a bitter pill for the development of solar energy utilization technology. The Pacific Gas & Electric (PG&E) company, as the main buyer, even terminated its long-term contract (PPA / Power Purchase Agreement) for purchasing electricity from the previous 14-year agreement from the Ivanpah project, forcing 2 of its 3 units to shut down. This was because the Ivanpah project with CSP technology was unable to produce adequate performance or performance, even for its operations still with additional natural gas.

For solar PV power generation, China is currently the world's leader or largest producer of solar power. China's ambition is to build a "solar great wall" designed to meet Beijing's energy needs. The multi-year project, estimated to be completed in 2030, will be 400 kilometers (250 miles) long, 5 kilometers (3 miles) wide, and reach a maximum generating capacity of 100 gigawatts. Currently, the project is reported to have reached a capacity of 5.4 gigawatts. Since 2024, China has led the world in electricity production from solar panels. As of June 2024, China led the world in operating solar power generation capacity with 386,875 megawatts, representing about 51 percent of the global total, according to Global Energy Monitor's Global Solar Power Tracker. The United States ranked second with 79,364 megawatts (11 percent), followed by India with 53,114 megawatts (7 percent).

In the coming decades, large-capacity batteries, up to several MW, are predicted to be widely used in solar PV power plants. These batteries will enable solar PV power plants to continue supplying electricity at night or on cloudy days. Research and development of these batteries is ongoing, and it would be preferable if some of the battery components were derived from renewable sources, such as electrodes made from biographite (which is made from biochar), rather than synthetic graphite derived from fossil fuels, which are currently dominated by China.

Climate and weather factors significantly influence the operation of solar PV power plants. When weather conditions, such as cloudy days without sunlight, occur, electricity production is hampered or intermittent. Furthermore, the use of large-capacity batteries is not yet available and requires considerable time. This is why renewable energy sources that are ready at any time and are not affected by the weather are highly needed. Biomass energy sources such as wood pellets are one such energy source. Renewable energy sources derived from plants (bio-energy) are also in line with QS. Yaasin (36): 80. To produce these energy sources, whether from wood, fruit, seeds, or other parts of the plant, plants carry out photosynthesis. In addition to water and carbon dioxide (CO2), this photosynthesis process requires sunlight. The sun is very important as an energy source for living things, especially for plants. Renewable energy sources from biomass (bio-energy) are like "green batteries" that have great potential as a means of capturing solar energy, and for more details, please read here.  

Wood Chip Production First, Then Wood Pellets

Many biomass energy entrepreneurs start their business with wood chip production. This is quite reasonable because in addition to the easy production process, cheap investment in equipment and easy market. But over time to increase profits, wood pellet production becomes an option. Technically, wood pellet production requires a series of equipment more than wood chip production, even wood chip production can be one of the stages of the overall wood pellet production process, namely the size reduction stage, especially if the raw material for wood pellets is from logs or pieces of wood. The wood pellet production process is more complex, production equipment is more expensive but also provides better profit expectations. This is certainly a driving force in itself and is considered commensurate between the costs incurred and the profits obtained.

Wood chip and wood pellet products also have the same use, namely for fuel or energy sources. With experience in the wood chip business, it will also provide experience in the dynamics of the renewable energy business, especially biomass energy. Along with the high awareness and demand for renewable energy, especially energy from biomass, a number of fossil energy companies have begun to develop renewable energy as an effort to the energy transition. And a justice energy transition with gradual implementation is the best route, for more details read here. In addition, wood chip production that requires a certain particle size will also produce waste (undersize) that can be used for wood pellet production, for more details read here.

Bioeconomy in a Tropical Country “Biomass Heaven”

Indonesia is believed to be a tropical country of biomass heaven so this needs to be translated into a more concrete form so that it can be understood, executed so that it is proven and the potential can be utilized optimally. There is so much potential that should be used to support the welfare of its people. The simple diagram below illustrates so many things that can be done in a tropical country "biomass heaven".

The availability of raw materials is a vital and absolute factor so that various biomass processing can be carried out and sustainable. On the other hand, there is a lot of land potentials that can be utilized for this purpose, the amount of which reaches tens of millions of hectares, namely critical land / marginal land, dry land and post-mining land (coal mines, tin mines, nickel mines, copper mines, gold mines and so on). In more detail, it is estimated that for critical / marginal land it reaches 24.3 million hectares (Times Indonesia, 2017) while dry land reaches 122.1 million ha consisting of dry acid land covering 108.8 million ha and dry climate dry land covering 13.3 million ha and post-mining damaged land reaching 8 million hectares. Energy plantations or biomass plantations need to be created in these land areas and can even be used for various food crops. Even now there are plant species that can only be economically viable on these lands.

Both energy and biomass plantations can be planted with various plants that support sustainable bioeconomy in line with decarbonization, including calliandra, gliricidia, bamboo, calophyllum inophyllum, coconut and even oil palm, including food crops such as rice, corn and soybeans. The selection of plant species will be adjusted to the product to be made, land conditions, and technological and business readiness.

Meanwhile, biomass waste that is currently produced annually, especially from the agricultural and forestry sectors, which also amounts to millions of tons, can be optimized so that in addition to reducing or avoiding environmental pollution, it will also provide added economic value, environmental and social benefits. The utilization of biomass, both from agricultural and forestry waste or from energy plantations and biomass plantations, will be a sustainable bioeconomy activity and in line with the global decarbonization trend that is in line with climate solutions.