Palm Oil Mill: Just Replacing Boiler? Or Are You Also Looking for a Solution to Address the Problem of Empty Fruit Bunches and Generate Additional Profits?

As palm oil plantations in Indonesia continue to expand—currently covering approximately 17 million hectares—the demand for palm oil mills is also increasing. About 10 years ago, there were approximately 1,000 palm oil mills in Indonesia, but according to the latest data from the Ministry of Agriculture of the Republic of Indonesia, the number of active palm oil mills (POM) in the country is now estimated to be between 1,200 and 1,500. These palm oil mills are primarily located on Indonesia’s two largest islands: Sumatra (52.69%) and Kalimantan (42.71%), while the remainder are in Sulawesi, Papua, and several other islands, where their presence is relatively small (each accounting for less than 3%). In terms of ownership, the majority of palm oil mills in Indonesia are owned by large private companies (93%), with the remainder owned by state-owned enterprises (7%). A single large private company may own a dozen or even dozens of these palm oil mills. 

One of the main equipments for palm oil mill operations is the boiler. In fact, given the current palm oil mill production process, boilers are mandatory for palm oil mills; more details on the reasons can be found here. Boilers can also be considered the "heart" of a palm oil mill, converting water into high-pressure steam to run 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 becomes not only uneconomical due to high maintenance and operational costs, but also dangerous.

The average lifespan, which is the technical and economic life of a palm oil mill boiler, is 20 years. Once this lifespan is exceeded, investing in a new boiler becomes more profitable. The majority of palm oil mills in Indonesia use water tube boilers (e.g., Takuma or Vickers). This type of boiler circulates water through hundreds of externally heated pipes fueled by palm oil waste in the form of shells and fibers. Because these pipes interact directly with extreme heat and water scale, these internal components wear out most rapidly. The three main factors affecting the boiler's lifespan are boiler feedwater quality, fuel characteristics, and regular maintenance.

When the time comes to replace the boiler, and considering the mountains of unused empty fruit bunches (EFB), palm oil mills might consider using them as boiler fuel. But given their large size and high moisture content (>60%), how can they do that? This is certainly a reasonable and innovative idea, given the urgency of replacing the boiler and simultaneously facing the problem of biomass waste. Technically, as biomass waste, it can certainly be used, but is it economically feasible to treat or prepare the empty fruit bunches (EfB) until they are ready for use as fuel? This is the challenge.

Proven evidence will dispel any doubts or theoretical narratives. Likewise, a unit that can process empty fruit bunches (EFBs) and also serve as an additional energy source for boiler operations (cogeneration) at the palm oil mill. With this equipment, not only can the problem of empty fruit bunch (EFB) biomass waste be resolved, but the palm kernel shells (PKS), which have been used as boiler fuel along with the fiber, can be 100% sold directly, providing a source of income. Furthermore, the potassium-rich ash content of empty fruit bunches (up to 30%) also has the potential to be used as fertilizer, including for use on the palm oil plantation. For more details, please read here. Visiting and observing the unit in action can also serve as a means of proving the point, thereby increasing the confidence of palm oil mills interested in this solution.

Beyond technical factors, economic considerations will undoubtedly be a crucial consideration in implementing this equipment. By considering several factors, particularly those currently operating in the palm oil industry, a comprehensive and accurate economic analysis can be conducted to reach a decision on use of the equipment. In an era of renewable fuels, efficiency, zero waste, and increased profitability, this equipment, which serves as a supplemental energy source (cogeneration) for the palm oil mill's boiler, is worth considering for palm oil mills currently facing boiler replacement. 

Not Only Reduce Steam Cost, but Also Reduce Water Treatment Cost for Boiler Feed Water and Even Also Increase Revenue with EFB Cogeneration

Even though biomass waste is abundant in palm oil mills, the use of efficient boilers is also needed. Efficient use of biomass waste according to the type/specifications will also provide additional benefits for palm oil mills. The longer the biomass waste, the more diverse its uses, ideally even zero waste. Apart from mesocarp fiber which is usually used 100% and added with a number of palm kernel shells (PKS) and sometimes also a few empty palm fruit bunches (EFB), an efficient boiler will optimize the type and amount of biomass. For example, PKS as a commodity that can be sold are used as little as possible for boiler fuel, so that more can be sold which increases the profits of the palm oil mill.

Photo taken from here

Is a utility business like buying steam from another company needed? Utility businesses like selling steam, heat, or electricity are indeed starting to emerge; for more details, read here. Certain companies are greatly helped and receive utility products according to their wishes. They do not want the hassle of operating a boiler, including sourcing its fuel. However, for palm oil mills that in their operations produce a lot of biomass waste that can be used as fuel, it is more practical and efficient to operate their own boiler. And this has been a common practice in palm oil mills for a long time. Therefore, cooperating with a utility company to obtain steam and electricity is not an effective solution. The effective solution is the use of an efficient boiler as explained above.

Apart from that, regarding boiler feed water to increase efficiency or reduce costs and be environmentally friendly, AOP (Advanced Oxidation Process) technology, namely an electrochemical device, is used. With this method, apart from not using chemicals so it is environmentally friendly, it will also increase the service life of the RO (reverse osmosis) membrane which is the heart of the water treatment unit. Not only will the RO membrane have a longer service life, but also the activated carbon filter and ion exchange resin, which are stages of water treatment. Apart from being environmentally friendly, this technology is also more in line with the sustainability mission.

And regarding boiler operations, even to increase the volume of PKS that can be sold, cogeneration of empty palm fruit bunches (EFB) can be carried out. In this way, the EFB, which have been waste biomass which pollutes the environment and which most palm oil mills have not yet processed, are then burned to produce heat and potassium ash. The potassium content above 30% in the ash will make quality fertilizer that can be sold or used in your own plantation. Meanwhile, the heat from burning EFB is used as additional energy for the boiler (cogeneration). In this way, 100% of PKS can be sold and even exported.

If the use of PKS for boiler fuel reaches 50% then using this technology means that 50% of the  PKS can be recovered or taken back or 100% of the PKS can be sold or even exported. For example, a palm oil mill under normal conditions can sell 2,000 tons of PKS/month, then by using this technology the palm oil mill can sell 4,000 tons of PKS/month. Of course the increase in PKS supply volume is very significant to increase income, for more details read here. 

Maximizing Palm Oil Mill Profits with Cogeneration Utilization of EFB (Empty Fruit Bunch) and Export of PKS (Palm Kernel Shells)

As a profit-oriented company, maximizing profits is a natural and ongoing endeavor. Besides increasing efficiency, innovation can also be pursued, creating or developing new businesses. This is especially true if the innovations involved in creating new businesses also address environmental issues, such as utilizing palm oil mill biomass waste. In palm oil mills, empty fruit bunch (EFB) waste is generally underutilized, or if utilized, it is still suboptimal or inadequate, such as composting empty fruit bunches (EFB).

Empty fruit bunches (EFB) are a significant biomass waste product from palm oil mills, accounting for approximately 22% of the total production, but are generally underutilized and pollute the environment. Utilizing EFB through cogeneration will not only address the problem of EFB, but also generate heat or energy to replace the use of palm kernel shells (PKS) as boiler fuel, and also produce high-quality organic potassium ash fertilizer.

If the PKS used for boiler fuel reaches 50%, then using this technology means that 50% of the PKS can be recovered, or 100% of the PKS can be sold or exported. For example, a palm oil mill normally sells 3,000 tons of PKS per month. With this technology, the mill can sell 6,000 tons of PKS per month. This would certainly increase the supply of PKS significantly.

Even if applied on a larger/macro scale, namely in Indonesia with CPO production of around 50 million tons/year, the actual production of PKS is around 12.5 million tons/year. However, with the current practice of utilizing PKS as boiler fuel, say reaching 50% of PKS production, the actual amount of PKS that can be sold/exported by palm oil mills is 6.25 million tons/year. Now, with the use of this technology or the installation of equipment (EFB furnace cogeneration), the amount of PKS that can be sold/exported will be close to or equal to the PKS production in the mass balance or diagram above (not subtracting the amount burned in the palm oil mill boiler).

The demand for palm kernel shells (PKS) is increasing in line with the global decarbonization trend. In fact, PKS is a major competitor for wood pellets in the global biomass fuel market. Large PKS users come from Japan and Europe. PKS exports to Japan typically reach around 10,000 tons per shipment, while those to Europe typically reach a minimum of 30,000 tons per shipment due to the longer distances and the use of handymax or even panamax vessels. Cogeneration of empty fruit bunch (EFB) furnaces with palm oil mill boilers will increase the volume of PKS that can be sold or exported. Implementing this technological innovation, besides being the fastest and most practical, also offers multiple benefits, making it worthy of consideration. It could even become a trend and even a standard operating procedure in Indonesia's approximately 1,000 palm oil mills.

EFB Pellets: Indonesia and Malaysia's Huge Potential Ready to be Monetized

Empty oil palm fruit bunches (EFB) are the most abundant solid waste from palm oil mills. Efforts to utilize them have also attracted considerable attention. With hundreds of tons of waste produced daily, it certainly presents a challenge, but also an attractive opportunity. Considerations of investment size and potential profits are key. EFB pellet production is an attractive option given the need for biomass fuel for decarbonization, renewable fuels, and carbon-neutral fuels to achieve Indonesia's Net Zero Emissions (NZE) by 2060.

The global population of palm oil plantations, with Indonesia and Malaysia leading the way, makes processing this material highly attractive. Many machinery companies have focused on empty fruit bunch processing, particularly through size reduction and pressing, but few have focused on producing EFB pellets. This is because empty fruit bunches, with their high fiber content, are more difficult to process than wood materials like sawdust or other agricultural waste biomass. 

Selecting the right, reliable, and experienced production machinery supplier is key to success. Performance guarantees, such as agreed quality and quantity targets, as well as timely machine manufacturing, installation, commissioning, and production, are indicators of the supplier's reliability. A track record is also an important consideration. Furthermore, the high potassium content of empty fruit bunches (EFB) poses a challenge in producing boiler-friendly fuel, particularly for pulverized combustion, commonly used in power plants.

And with the increasing number of companies producing EFB pellets, there will be competition for the supply of empty fruit bunches raw materials, such as PLN EPI (Energi Primer Indonesia) which signed a Memorandum of Understanding (MoU) with PT Biomassa Energi Group (BEG) and G7 Group SP.Z.O.O from Poland which was developed jointly will start operating in February 2026, with an initial production target of 120 thousand tons per year, and will be followed by five additional factories with similar or larger capacities, more details read here. 

Processing of Empty Palm Fruit Bunches (EFB) for Ash Production as Potassium Fertilizer and Energy

Palm oil mills produce a large amount of biomass waste, and one of the largest in their daily operations is empty fruit bunches (EFB). Comprising approximately 22% of the fresh fruit bunches (FFB) processed by the mill, the volume becomes enormous and piles up daily if not managed properly. For example, a palm oil mill with a capacity of processing 60 tons of FFB per hour for 20 hours per day produces 264 tons of empty fruit bunch waste per day (approximately 6,600 tons per month and 79,200 tons per year). This enormous amount would resemble a hill if piled up in one place.

Incinerators have recently become popular, particularly in Indonesia, for processing empty fruit bunches due to their speed and practicality. Furthermore, the ash produced by burning them can be used as fertilizer due to their high potassium content. However, these incinerators produce exhaust emissions that pollute the environment, including black smoke and particulate matter. These emissions, which pollute the environment and exceed the threshold permitted by the Ministry of Environment (KLH), have led to the prohibition of incinerators. This ban has led to an increasing number of unmanaged empty fruit bunches. Using empty fruit bunches for mulch is also less effective, and composting, a biological process, takes a long time.

Video link for conventional EFB incinerator here

This problem demands an immediate and effective solution. The quickest practical solution is to upgrade the incinerator to make it environmentally friendly or to reduce emissions below the required threshold. This can be achieved by using adequate emission control devices to meet these environmental requirements. While many emission control devices are available, cost and target output are crucial considerations when selecting them. This approach not only addresses the problem of empty fruit bunches, but the resulting ash can also be used as a potassium fertilizer.

Furthermore, by upgrading the incinerator with emission controls (basic type), the equipment can be developed into several types, as follows: the second type is a cogeneration boiler for palm oil mills, allowing 100% palm kernel shell (PKS) to be sold, even for export. The third type is by adding a new boiler and steam turbine for electricity production, which is then sold to PLN (Indonesia State Owned Electricity Company) under a power purchase agreement (PPA). The fourth type is equipped with waste heat recovery equipment, allowing for more general use. This also means the combustion process in the upgraded incinerator can also be upgraded so that the combustion process can run optimally. Several combustion technologies, such as chain grates, step grates, or reciprocating grates, can be considered to achieve maximum performance, including the removal and handling of ash product.

Empty fruit bunches (EFB) processing can vary, although the primary focus is addressing environmental pollution caused by them. However, their large volumes certainly represent a potential raw material for processing units. Therefore, in addition to addressing this waste, the technology used must also provide financial benefits. Of the numerous EFB processing technology options, the cost-to-benefit ratio of a technology application will be a crucial consideration for EFB processing.

In addition to combustion using conventional or this upgraded incinerator, thermal processing routes also include pyrolysis, with slow pyrolysis specifically for biochar production and fast pyrolysis for bio-oil production. Another pyrolysis variant is mild pyrolysis or torrefaction for the production of torrified biomass. Then there's gasification to maximize gas (syngas) production from biomass. Furthermore, empty fruit bunches of palm oil can be used as fuel or an energy source. To facilitate handling, storage, and reduce transportation costs, empty fruit bunches need to undergo biomass densification technology, with the final product being pellets or briquettes. 

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. 

Empty Fruit Bunch of Palm Oil Processing: for Pellets, Briquettes or Biochar ?

Empty fruit bunches (EFB) are solid waste from palm oil mills 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 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 pellets, briquettes or even 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 a size of 5-6 mm to be able to make pellets or briquettes, and less than 1 inch for biochar production.

To obtain suitable raw materials for pellet, briquette and biochar production, the EFB that has been cut and pressed still needs to be reduced in size (size reduction) and its water content reduced to about 1/3 so that it is dry enough. Equipments such as a hammer mill or crusher is needed to reduce the size and a drying tool such as a rotary dryer is needed to reduce the water content. The smaller the size of the material (particle size) and the lower the water content or the drier it is, the more energy is needed. Equipment such as hammer mills and rotary dryers have not become an integral part of EFB processing at this time. However, usually EFB palm oil processing producers also produce press equipments for kernels for the production of kernel oil or PKO in kernel processing plants or KCP (kernel crushing plants) with by-products in the form of palm kernel meal or PKE (palm kernel expeller). 

Considerations for selecting pellet, briquette or biochar production from EFB palm oil depend heavily on the readiness of the business. It is estimated that there are 30 million tons per year of dry EFB palm oil in Indonesia and 10 million tons per year of dry EFB palm oil in Malaysia for raw materials for these products. The use of EFB palm oil waste, in addition to being a solution to waste problems in palm oil mills, will also provide additional benefits for the palm oil mill or company. How much profit is usually also proportional to the investment and production capacity made. With the abundance of potential raw materials and the driving force of sustainability and zero waste, EFB palm oil waste will become an attractive new business. 

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.    

The Urgency of IOT and Biochar Applications in Palm Oil Plantations

The sustainability trend in palm oil plantations is increasingly important and urgent, which is of course part of the global solution to environmental and climate problems. The vastness of palm oil plantations and the large production of palm oil are in the spotlight in the industry. Waste management and environmental pollution are important concerns. The large volume of biomass waste has the potential to be a source of environmental pollution and so is the excessive use of chemical fertilizers in palm oil plantations which will also cause environmental pollution. Inappropriate land use, for example deforestation and land conversion, are also other concerns.

Two important issues in the palm oil industry are increasing FFB productivity (yield improvement) and climate change resilience. And thank God, both of these things can be handled at once, namely by applying biochar. Palm oil mill biomass waste (especially palm oil empty fruit bunch) will be converted into biochar and then applied to plantation soil (sustainable soil amendment) with fertilizer so that it becomes a slow release fertilizer that will increase NUE (nutrient use efficiency) and minimize environmental pollution. With the increase in NUE, there will be yield improvement or an increase in FFB productivity. And the application of biochar which will remain in the soil or not decompose for thousands of years will become carbon sequestration / carbon sink which is in line with climate change resilience. A precise solution with one action, of course this should be very interesting and awaited by these palm oil companies.

To ensure that the biochar can work properly, an instrument is needed to measure performance and monitor it. That is why IoT (Internet of things) in this sector is needed. How slow can it goes fertilizer nutrients can be measured and monitored accurately, quickly and precisely. In this way, palm oil productivity can also be predicted. The area of ​​land on palm oil plantations that reaches thousands or tens of thousands of hectares is also not an obstacle. The area of ​​palm oil plantations in Indonesia is currently estimated to reach 17 million hectares and in Malaysia it reaches 5 million hectares, of course these palm oil companies are also trying to achieve their best level of sustainability according to the demands of the times. This is so that the application of biochar on palm oil plantations will become a trend and even its operational standards. The entry point by ensuring biochar performance with IoT is an important consideration.

This biochar application also follows the 4Rs rule, namely the right source (appropriate biochar raw material), right place (appropriate application area), right rate (appropriate dosage) and right timing. The physical and chemical properties of biochar differ depending on the raw material and production process. By following the 4R rule, biochar performance can be maximized. On the other hand, modernization in the palm oil industry also continues to be improved. The public perception of work in oil palm plantations, abbreviated as 3D (dangerous, difficult, dirty), will be gradually changed with mechanization, automation and digitalization. The ratio of workers to plantation land currently around 1: 8 ha will be increased to more than double to 1: 17.5 ha with the above modernization so that workers' wages can also be increased. This modernization is expected to help overcome the two important issues above with the biochar application.   

Why is There No Biochar Production for The Palm Oil Industry Yet?

Even though biomass waste is abundant in the palm oil industry, both in the plantation area and in the palm oil mill area, most of the biomass waste, especially empty fruit bunches or EFB, is still not utilized or is simply piled up or thrown away. In fact, if the palm oil industry has a strong vision about maximizing profits by minimizing the occurrence of waste, especially biomass, and maximizing environmental sustainability as well as being part of the climate solution, then biomass waste, especially empty fruit bunches or EFB, is a big opportunity.  Currently, special department in the palm oil industry that specifically deal with sustainability issues are starting to be created by palm oil companies. Waste management issues including the utilization of EFB, reducing soil and water pollution due to fertilizers and increasing fertilizer efficiency are the concerns of the sustainability department.

The empty fruit bunches or EFB can be used as fuel so that most or all of the palm kernel shells or PKS can be sold directly and even exported. Palm oil mill boiler fuel currently uses fuel in the form of palm fiber (mesocarp fiber) and some palm kernel shells / PKS, which can be replaced using empty fruit bunches (EFB) and palm fiber (mesocarp fiber) and without palm kernel shells / PKS. Palm kernel shells / PKS are a very popular biomass fuel in the global market that competes fiercely with wood pellets. By being able to sell all palm kernel shells / PKS and at the same time utilize empty fruit bunch / EFB waste, the palm oil industry will provide many economic benefits.

The use of empty fruit bunches / EFB and mesocarp fiber as a heat source for the boiler is not burned as usual or as is done by all palm oil mills today but must be gasified or pyrolyzed so that another product is produced in the form of biochar. Although gasification can be used to produce biochar, pyrolysis is more recommended because the quality and quantity of biochar will be better. The biochar can later be used for the palm oil plantation itself. The use of biochar in palm oil plantations will significantly save on fertilizer use as well as reducing water and soil pollution due to inefficient use of fertilizer. The biggest cost in operating a palm oil plantation is fertilizer, so by using biochar these operational costs can automatically be reduced. Biochar will become a slow release agent so that fertilizer use will be more efficient or increase NUE (Nutrients Use Efficiency).

Empty fruit bunches / EFB and mesocarp fiber are solid waste from palm oil mills so the waste is located around the palm oil mill, while biochar is used for palm oil plantations. In palm oil companies, management is generally separated between the plantation and mill departments. The use of biochar in palm oil plantations while the raw material comes from palm oil mills requires special arrangements regarding this matter. This could be, for example, trucks transporting fresh fruit bunch / FFB from the plantation to the palm oil mill, then after the FFB is unloaded at the mill, they then go to the plantation again carrying biochar from the palm oil mill.

Currently, no one is utilizing empty fruit bunches / EFB and palm mesocarp fiber as a source of boiler heat and biochar production. The main factor causing this is the main orientation or vision of the palm oil company itself as described above. This is predicted to change soon as awareness of climate issues increases and reaches all levels, especially in sectors related to energy and sustainibility. Moreover, when biochar is applied to plantation land, it also gets carbon credit as carbon sequestration. The smoke coming out of the boiler furnace will also be cleaner as seen from its opacity. The use of gas and liquid fuels from pyrolysis by-products will produce better combustion quality as well as smoke from the chimney. And even the liquid products from pyrolysis can also be used as biopesticides and organic fertilizers. Boiler efficiency will also increase because it uses boiler feed water (BFW) in the form of hot water from the condenser output of the pyrolysis unit.

Apart from old palm oil mills which really want to upgrade their industrial energy systems and fertilizer efficiency in their plantations including sustaibility according to this vision, new palm oil mills whose status is in the development stage should be able to apply this concept more easily. New palm oil mills can immediately follow developments and demands of the times so that they become trend setters with this vision. Being a pioneer and trend setter is indeed more difficult and even risky than just being a follower, but this will raise the reputation and become a leader in the industry so it should also have a positive impact on the company's business performance. A worthy effort.

Upgrading the Palm Oil Industry in Indonesia

With Indonesia's palm oil plantation area reaching around 15 million hectares and palm oil mills reaching 1000 units, efforts to upgrade the palm oil industry are important and strategic. Indonesia's palm oil or CPO production per year is around 46 million tons (while Malaysia is in second place at around 19 million tons/year). Efforts to upgrade the palm oil industry will increase productivity/efficiency, sustainability and encourage the creation of new products/markets as well as added value for palm oil. Things that can be upgraded include a number of key areas including bioenergy, biomaterials and oleochemicals, food and feed, soil fertility (land, soil and cultivation), post-harvest and processing, waste processing and the environment as well as socio-economics, management and business.

One concrete thing that can be done is the production of biochar from palm oil mill waste, especially empty fruit bunches (EFB) and palm fiber (mesocarp fiber). Biochar production by pyrolysis will produce excess energy (syngas & biooil) which can be used as boiler fuel in palm oil mills. Furthermore, the application of biochar with fertilizer on palm oil plantations will become slow release fertilizer (SRF), thereby increasing nutrient use efficiency (NUE). The condition of many oil palm plantations on acidic soil will also increase in pH when biochar is applied.

In palm oil plantation operations, fertilizer is the highest cost component so that if you can increase fertilizer efficiency it will provide significant benefits. The use of biochar is the solution, namely SRF. SRF also minimizes environmental pollution due to the use of fertilizer. Meanwhile, in palm oil mill operations, energy is a vital component, and if this can maximize the use of waste that has no economic value, it will certainly be very economical apart from of course overcoming environmental problems caused by this waste. Currently, palm oil mills use palm fiber (mesocarp fiber) and some palm kernel shells (PKS/palm kernel shell) for boiler materials, while generally the empty fruit bunches (EFB) have not been used, even though these palm kernel shells (PKS) can be sold directly and sell well. This means that if the energy source only comes from palm fiber (mesocarp fiber) and empty fruit bunches (EFB), 100% of the palm kernel shells (PKS) can be sold. This can be done by pyrolysis.

Biochar in the soil can last hundreds or even thousands of years. Biochar which comes from agricultural waste such as empty fruit bunches (EFB) and palm fiber (mesocarp fiber) will become a carbon sink through carbon sequestration, so that the concentration of CO2 in the atmosphere is reduced as long as the biochar is not decomposed. From a climate perspective, this is very beneficial and later you can get compensation in the form of carbon credits. A number of standards and verification methods to facilitate monetization are currently being developed.

Empty fruit bunches (EFB) and palm fiber (mesocarp fiber) are waste from palm oil mills, whereas biochar is applied in palm oil plantations. Management in the palm oil industry generally separates the mill division and the plantation division, so new management methods are needed if biochar production using pyrolysis is carried out. Apart from using biochar for core plantations (managed by palm oil company), it can also be used for plasma plantations (managed by farmer).