Optimizing Calliandra Energy Plantations for Energy, Food and Feed, Is It Possible?

Calliandra energy plantations as the name implies are indeed prioritized or for the main purpose of producing energy from biomass, either wood pellets or just wood chips. This is because wood is the main product of the energy plantation, while leaves and flower nectar are by-products or are considered waste from the wood pellet or wood chip business. However, if the use of leaves for animal feed and flower nectar for honey production has an economic value that approaches or even exceeds the wood pellet product, then it will be a different story. Calliandra leaves, like indigofera leaves and glicidia / gamal leaves, have a high protein content, while this protein element is the most expensive source of nutrition of all the elements in animal feed products, while calliandra honey is one of the best quality honeys compared to other honey products such as acacia honey, kapok honey, rubber honey and so on.

Synchronization between honey and wood production is very important in the energy plantation to maximize profit. In honey production, the first time the calliandra flowers and the next flower cycle are very important. Don't let it be that just because of ignorance of the flower cycle, many benefits that should have been obtained are lost. In addition, for sustainable and optimal honey production, not only calliandra nectar is needed, but also a number of certain plants as support, both for additional bee feed and for making beehives. When all that is available is calliandra nectar, honey production will be maximized but will not be sustainable because the bee colony will shrink and then disappear. This is the importance of plantation engineering with a number of species or types of certain plants if honey production is also an important product in the calliandra plantation-based business.

Calliandra leaves in abundance will automatically be obtained when the calliandra trees are cut down or harvested. The calliandra leaves need to be separated from the wood and twigs to be used for animal feed. Animal feed products from calliandra leaves can be in the form of fresh leaves or processed leaves in the form of pellets, or hay. This makes it possible to have a leaf pellet factory in addition to the wood pellet factory. With an estimated leaf volume of 1/4 of the wood but the price of leaf pellets is around 3 times the price of wood pellets. So the profit from utilizing leaves into pellets (leaf pellets) is very large, estimated at 1/2 to 3/4 of the wood pellet turnover. This is certainly a serious consideration and cannot be ignored.

A comprehensive understanding of calliandra plantations for energy, food and feed is indeed very important to maximize profits from calliandra plantation-based businesses. This will encourage the calliandra energy plantation to grow further. In addition, the legality aspect and land selection for the location of the calliandra plantation. This is because, especially for wood pellet products in general, it is for export orientation and especially for Japan and Europe, environmental or sustainability certification is very important and even required so that the legality aspect (which is clear and clean) and land selectivity according to its designation including the history of the land are also very important. So optimizing calliandra energy plantations for energy, food and feed is possible if the terms and conditions are met.

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.

Energy Plantation: Wood Pellet or Wood Charcoal Production?

Energy plantations are starting to develop and large-capacity wood pellet production is emerging in line with the development of these energy plantations. It could be that now is the right momentum as predicted several years ago by the author in the following article. It is also possible that the Covid-19 era which has lasted for about 3 years has slowed down this momentum. The vast area of ​​industrial plantation forests (HTI) in Indonesia allows for the creation of energy plantations for large-capacity wood pellet production along with additional products such as animal feed and food (honey). The production of wood pellets as biomass fuel or carbon neutral fuel is mainly made or produced in the context of the energy transition towards the net zero emission era.

Viewed from the business side, the production of wood pellets is demand driven because efforts to achieve the net zero emission target require industries, especially coal-fired power plants, to carry out gradual decarbonization through cofiring biomass fuel (wood pellets) with coal. The target, which is getting closer in time, with various efforts that require planned programs and large costs, does require serious and sustainable efforts. Not only in the power generation industry, especially coal-fired power plants, but also other industries such as the iron and steel industry. Coal-fired power plants contribute 40% of CO2 concentration globally, while the iron and steel industry contributes 9% globally.

In the current power generation industry, more than a third of global electricity production still uses coal. That portion must drop to 4% by 2030 and 0% by 2040 if the world is to limit global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) and prevent the devastating impacts of the climate crisis. Developed countries should be able to reach zero coal faster because they have a stronger financial position than developing countries, most of which still rely on coal. The world has 6 years from now to reduce coal use in power generation to less than 4% by 2030, and a number of countries have taken rapid steps to eliminate coal use, which can be read here.

Meanwhile, in the decarbonization of the iron and steel industry, the fact is that currently it is still far from achieving this goal because the construction of blast furnaces - basic oxygen furnaces (BF -BOF) is still being carried out, which should be EAF (Electric Arc Furnace) or currently only around 30% globally the iron and steel industry uses this EAF. Even the International Energy Association (IEA) highlighted this critical issue to achieve the Paris Agreement's net-zero target by 2050. The CO2 intensity in this industry has only decreased slightly so that the use of renewable energy is becoming increasingly important and accelerated.

Currently, large energy plantations have begun to be created in the context of the energy transition. The main production of energy plantations is wood pellets which can be said to be carbon neutral fuel. Almost none of these energy plantations are designed for charcoal production, even though the need for charcoal is also projected to be very large. The difference is that wood pellets will be used in power plants while charcoal is for the iron and steel industry. The production process for wood pellets is biomass compaction / densification while charcoal is carbonized or pyrolysis. In the future, a number of these energy plantations could be designed for wood pellet production while other energy plantations are designed for wood charcoal production. Given that the agreed time target for net zero emissions is not long away, the creation and utilization of energy plantations for these things will automatically not be long away.

Large Capacity Wood Pellet Production Cannot Be Done on Java Island?

Raw materials are a vital aspect of a production activity. No raw materials means no production. Likewise in the wood pellet industry. The availability of raw materials is absolutely necessary for the continuity of the wood pellet business. To maintain the supply of raw materials, wood pellet factories must have reliable sources of raw materials. Currently, most or even all wood pellet factories on the island of Java rely on sources of raw materials for wood pellet production from wood waste, especially sawdust from sawmills and wood processing industries. 

Currently, coal-fired power plants in Java are running a coal cofiring program with biomass to reduce carbon dioxide emissions or decarbonization. The use of coal in these power plants will be reduced while the use of renewable energy, especially biomass, is increased. The biomass currently used for cofiring is sawdust with a volume of up to hundreds of thousands of tons per year. A very large amount. Wood pellet factories that use sawdust as raw material must compete with the cofiring program in these power plants. This competition increases the price of sawdust because the supply remains the same but demand increases. Disruptions in the supply of raw materials in these wood pellet factories result in disruptions in production and automatically their business aspects.

With these conditions, large-capacity wood pellet production in Java Island becomes less attractive. In fact, the portion of biomass use, especially sawdust, will continue to increase along with the decarbonization program to achieve net zero emissions by 2060. This is increasingly burdensome for wood pellet factories that rely on raw materials from buying sawdust. Wood pellet factories in Java can run well if the availability of raw materials can be maintained and this can only be realized in two ways, namely first using their own raw materials, this can be done by sawmills and wood processing industries that utilize their own waste for wood pellet production, and secondly with raw material sources from energy plantations. Energy plantations that are specifically dedicated to wood pellet production will be able to maintain the stability of the supply of raw materials for wood pellet factories. Wood pellet factories can partner with Perhutani for the second point above.

Decarbonization in the Steel Industry Part 2: Charcoal as Fuel and Reductant in Blast Furnace

Basically, the conditions in each steel industry vary so that the decarbonization process is also carried out using different and gradual routes to achieve net zero emission conditions. The conditions of each steel industry have a unique configuration of production technology, raw materials and energy sources, capacity and yield, regulatory requirements and so on. To achieve Net-zero by 2050, a number of things need to be done, such as efficient use of raw materials, increasing the portion of reuse and recycling, retrofit and advanced technology, and especially efforts to use renewable energy sources as fuel and reductant in the iron and steel industry. But the fact is that the construction of blast furnaces - basic oxygen furnaces (BF -BOF) is still being carried out, which should be EAF (Electric Arc Furnace) or currently only around 30% of the global iron and steel industry uses this EAF, but there are transition efforts that can be made as described below. The transition is influenced by market demand, policy interventions, and incentives given to producers to reduce emissions in steel production.

To create policies related to this transition, providing incentives to reduce emissions for producers and creating market demand for "green steel", a clear definition is needed between low emissions vs. almost zero emissions (near zero emissions) vs zero emissions (net-zero emissions). It is estimated that in 2021 CO2 gas emissions from this industry will be 3.8 Gt globally (this has not even taken into account methane emissions from coal mining). Meanwhile, for Net-zero 2050 conditions, direct CO2 emissions from the global iron and steel industry must be reduced to 1.8 Gt CO2 in 2030 and 0.2 Gt in 2050. It seems that a lot of hard work is still needed to achieve this target, even with the current conditions. Many people are pessimistic.

One use of biomass as a carbon neutral fuel in the iron and steel industry is the use of charcoal as a fuel and reductant. Biomass such as wood must be carbonized or pyrolyzed to become charcoal. The use of charcoal in blast furnaces not only reduces carbon dioxide (CO2) emissions, but also sulfur dioxide (SO2) emissions because the sulfur content of charcoal is very low (around 100 times lower) than coke. Likewise, the use of limestone will decrease so that slag production will also automatically decrease. Likewise, it makes the blast furnace operation acidic.

Apart from a number of advantages obtained as above, it turns out that there are drawbacks to using charcoal in blast furnaces, namely in large blast furnaces which causes operational problems because the strength of charcoal is usually lower than coke. As a solution, there are three methods of using charcoal in the blast furnace process. First, with pulverized charcoal injection (PCI). With this method the charcoal must be crushed into a powder and injected into the blast furnace. Second, with charcoal powder mixed with coke powder into pellets or briquettes called charcoke. By making this charcoke, its strength is sufficient for use in conventional blast furnaces. And third, by replacing coke with lump charcoal for small capacity blast furnaces (inner volume 60 – 550m3). In small capacity blast furnaces, the compression pressure on each charcoal particle is much smaller than in large capacity blast furnaces. Sintering and pelletisation are not required in this case.

Energy plantations or biomass plantations can be created specifically to supply raw materials for charcoal production. The energy plantation will also absorb carbon from the atmosphere (carbon sink) in a certain volume. The volume of carbon from the atmosphere can be maintained in such a way that its function as a carbon sink can be carried out, namely by the amount of wood harvested for charcoal production not exceeding the growth rate of the wood biomass. In this way, the energy plantation cannot be finished in one harvest but is sustainable while maintaining its volume or area.

With continuous pyrolysis technology, charcoal production can be optimized. With this continuous pyrolysis technology, apart from the large charcoal production capacity, multi-use by-products are also produced, such as gas products which can be used as an energy source as well as biooil. Biooil can also be used as a raw material in the chemical industry. Charcoal production of tens to hundreds of tons per day is also possible with continuous pyrolysis technology.

And especially in Indonesia, as the owner of the largest oil palm plantations in the world, which is estimated at more than 15 million hectares and with palm oil mills reaching around 1,000 units, there is a lot of palm oil waste that can be utilized, especially empty palm fruit bunches or EFB (empty fruit bunch). The potential for charcoal production from EFB is also very large. Apart from that, as the 5th largest coal producer in the world with production of around 570 million tons per year, coal also needs to be processed into coke. Charcoal from empty bunches or EFB can be made into powder for PCI or into charcoke by compacting it, namely making pellets or briquettes with coke.

Buy Wood Pellets or PKS (Palm Kernel Shell)?

The need for biomass fuel as a decarbonization effort because it is a renewable fuel that is carbon neutral is increasing. Two biomass fuels that are popular in the world and compete fiercely are wood pellets and palm kernel shell (PKS). Under normal conditions or without a spike in demand, the price of wood pellets is usually more expensive than PKS. This is understandable because wood pellet production requires more effort than PKS. Wood pellet production requires a number of equipment with an expensive investment, while PKS only requires minimal equipment, namely just a screening/sieving machine.

But what if the prices of wood pellets and PKS are almost the same or even PKS is even more expensive? This can happen due to several factors, namely first, the influence of market demand. High market demand, especially PKS from Indonesia and Malaysia, means supply is reduced or inadequate. PKS production in Indonesia and Malaysia is indeed much greater than wood pellet production from these two countries. Apart from the larger production volume, factors such as availability and continuity (long-term security of supply) can be guaranteed more than wood pellets. This is because it is estimated that there are 1500 palm oil mills in Indonesia and Malaysia that produce PKS which is a by-product or waste of palm oil mills. This allows for long contracts between sellers or suppliers (exporters) and buyers who are usually not end users but trading companies in Japan and Korea.

Loading PKS for export with transhipment (ship to ship)

The second factor is levy and tax. PKS exports in Indonesia are subject to levy and tax whose value is correlated with the price of crude palm oil (CPO). This is because PKS in Indonesia is included in the palm oil derivative product category, whereas in Malaysia it is not subject to these levy and tax, because PKS in Malaysia is included in the palm oil waste category. When levy and tax are high, the price of PKS will automatically become expensive. This levy and tax factor is something that PKS exporters cannot control. Through the APCASI organization (Indonesian Palm Kernel Shell Entrepreneurs Association) they are fighting for levy and tax to be more measurable or cheaper, even if they can be eliminated like in Malaysia.

Basically buyers will buy the best possible goods at the cheapest possible prices, or better quality goods but cheaper prices. The quality of wood pellets is better than PKS, namely in terms of calorific value, ash content, shape uniformity and moisture content. However, due to volume factor and continuity (long-term security of supply) which are often or still widely in doubt, the choice to go to PKS is still being made. To overcome this, wood pellets production must meet production capacity with a reliable source of raw material supply. Production of wood pellets from energy plantations is the solution.

With wood raw materials from energy plantations, the supply of raw materials will be more stable, unlike those that rely on collecting wood waste from sawmills or wood processing industries. With Indonesia's production forest area reaching tens of millions of hectares, of course land is not a problem in wood pellet production. Wood pellet production centers can be created on these production forest lands, for more details, you can read here.
 

Palm Kernel Shell (PKS) Exporter Company and Developing Wood Pellet Production Business

PKS loading for export

The decarbonization trend that continues to increase along with the increasing demand for biomass fuel has made a number of palm kernel shell (PKS) exporting companies plan to expand their business into wood pellet production. Established palm kernel shell exporters usually have sales contracts with overseas buyers, which can be short-term or long-term contracts. This palm kernel shell exporters only collect palm kernel shells from a number of palm oil mills/CPO factories, then cleans them and simply dries them before they are ready to be shipped. Indeed, there are also a number of overseas buyers of palm kernel shells which do not need cleaning and drying so the price is also cheaper. Cleaning palm kernel shells usually uses a sieve (screening) machine, either a vibrating screen or a rotary screen, for more details, you can read here. Meanwhile, for drying, it is usually only aired by occasionally turning over the pile of palm kernel shells with an excavator.

Palm kernel shells and wood pellets are two popular biomass fuels in the global biomass fuel market. Palm kernel shells are the main competitor of wood pellet products because they have almost the same properties such as calorific value, ash content, size and so on, but palm kernel shells are usually cheaper because they are a by-product or waste from palm oil mills and only require a simple process to produce then exported. Meanwhile, wood pellets, although the raw material can come from woodworking industry waste or sawmills, require a more complex production process and investment in the equipment required. 

Typical Circulating Fluidized Bed (CFB) power plant in Japan

Palm kernel shells and wood pellets are mostly used as fuel for power plants abroad such as Japan and Korea. Wood pellets can be used in almost all coal power plants by cofiring, while palm kernel shells are more limited. This is mainly because crushing palm kernel shells and mixing them with coal powder (cofiring) in pulverized combustion is more difficult. Palm kernel shells can be used 100% in power plants with fluidized bed or stoker technology. And currently quite a lot of power plants in Japan use fluidized bed technology.

And because they are in the same market, palm kernel shell exporters are also very likely to know the need for wood pellets. Buyers of palm kernel shells abroad are usually also buyers of wood pellets too. The practice of collecting palm kernel shells from palm oil mills is almost the same activity as collecting wood waste from wood processing industries and sawmills, so it should not be difficult for exporters of palm kernel shells. But creating energy plantations as raw material for wood pellet production is the ideal solution. Collecting wood waste or collaborating with the wood industry that produces this waste is an intermediate solution and energy plantations are the ideal solution. Thus, it is very reasonable for palm kernel shell exporters to expand into the wood pellet production business.

Decarbonization in the Steel Industry

World steel production reached 1.9 billion tons in 2020, with China accounting for around half and followed by European Union countries. Germany, with annual production of around 42 million tonnes, is the largest steel producer in Europe or around a quarter of European steel production, while the other quarter is Italy and France, followed by Belgium, Poland and Spain. The steel industry contributes 8% of CO2 globally, each ton of steel production produces an average of 1.85 tons of CO2 emissions and compared to iron ore mining, iron and steel production contributes much more to CO2 emissions. Efforts to decarbonize the steel industry begin with the use of renewable energy for its smelters. Biomass-based fuel in the form of charcoal which has a high carbon value can replace the use of coke derived from coal. And the use of hydrogen from renewable energy sources is the ultimate target for decarbonization in the steel industry. 

Currently, the steel industry mostly uses coal as fuel using blast furnaces. To reduce carbon intensity, natural gas is used as fuel. The use of gas fuel in the form of natural gas is also a transition medium and basically because it comes from fossil fuels it is also a carbon positive fuel. Apart from that, the use of CNG in the form of natural gas is also a transition fuel before switching to hydrogen from renewable energy. The use of biomass-based carbon fuel in the form of charcoal has a better effect on the climate because it is a carbon neutral fuel. Apart from that, technically, because it is a solid fuel, the same as coal, practically there is not much or even no need for changes or modifications to the smelting furnace. The availability of high quality charcoal, large volumes and continuous supply are still the main obstacles.

The use of charcoal for metallurgy or steel making has actually become commonplace for some time. In the early 1900s, world charcoal production experienced its heyday with production of more than 500 thousand tons. In the 1940s, charcoal production decreased to almost half of what it was in the early 1900s, due to other carbon materials, namely coke from coal, replacing charcoal in the manufacture of metals.

With the current conditions of using coal as the main fuel in smelting furnaces or blast furnaces, slag will be produced. Slag or GGBFS (Grounded Granulated Blast Furnace Slag) from the steel plant is used in cement plants as a cement additive or SCM (supplementary cementious material) thereby reducing the portion of clinker in cement production. In the cement plant itself, the more slag or SCM used, the more clinker use is reduced, thereby also reducing CO2 emissions. In cement production, the clinker production section contributes the most to the CO2 emissions produced, so the use of slag or SCM is part of decarbonization in cement plants. It is estimated that around 70% of world steel production uses the blast furnace or BF-BOF process which produces quite a lot of GGBFS, even in China more than 90% of steel production uses the BF-BOF process. It is worth noting that the decarbonization of the steel sector is resulting in a shift away from blast furnaces, which will impact the availability of GGBFS worldwide in the coming decade. However, this change will occur slowly and gradually and, in the meantime, there are a number of GGBFS that will be available for use as SCM to reduce the carbon footprint of cement and concrete.

To be able to produce charcoal in large quantities, raw materials are also needed in large quantities. Raw materials in the form of biomass, especially wood, can be produced from energy plantations. Energy plantations from fast growing species and short rotation crops will be suitable to meet the need for raw materials because apart from the fast harvest period they also have high productivity. Apart from that, there is no need to replant every time it is harvested and it is easy to grow and easy to maintain. To produce steel per ton, an average of 6,000 MJ of energy is required (equivalent to 50 kg of hydrogen) or the equivalent of 200 kg of charcoal and requires around 600-800 kg of wood biomass as raw material. Apart from raw materials from energy plantation wood, raw materials from agricultural and plantation wastes can also be used.

The future palm oil industry could produce hydrogen from biogas. Each ton of steel will require 50 kg of hydrogen, while each palm oil mill with a capacity of 30 ffb/hour can produce 1 MWh of electricity, while the production of 1 kg of hydrogen requires 50 KWh, so that with the capacity of the palm oil mill it can produce 20 kg of hydrogen. Areas with a high concentration of palm oil mills such as Riau province could create a hydrogen pipeline network for environmentally friendly steel mills.

With higher prices for steel produced with renewable energy (green steel), market share is also limited. Currently, only certain uses, such as automotive, buy such premium or green steel. Decarbonization efforts in steel industries can also be carried out in stages, along with the development of renewable energy. With the increasing supply of renewable energy, the price will decrease so that environmentally friendly steel (green steel) will also become more competitive in price. New steel industries can be built close to these cheap renewable energy sources so that green steel production can become competitive.

Coal Companies and New Business Development in Renewable Energy (Wood Pellets and PKS)

Coal is a fossil fuel which is one of the main causes of greenhouse gases, especially CO2, which causes global warming and climate change. Even though this fuel is cheap and available in abundance in Indonesia, its use will be increasingly reduced over time to achieve safe conditions for the earth. Indonesia is the 5th largest coal producer in the world with production of around 570 million tons per year with reserves reaching 38 billion tons, the main production of which is on the islands of Sumatra and Kalimantan. A large coal company in Indonesia can produce 50 million tons of coal every year.

Policies to reduce consumption of fossil fuels, especially coal, also continue to be implemented globally. For Asia, for example, Japan and Korea with their Feed in Tariff and Renewable Portfolio Standard (RPS) are leading the way in the use of renewable energy, especially wood pellets. Meanwhile in Europe, with the Renewable Energy Directive II (RED II), renewable energy is targeted to reach 32% by 2030, biomass fuel is predicted to reach around 75% of the share of renewable energy and the target is that coal will not be used completely by 2050. Germany has announced that it will not use coal. By 2038, the UK is even targeting no longer using coal for its electricity production starting October 2024. North America, namely the United States and Canada as members of the G7, are also committed to reducing coal consumption, in 2018 Canada even announced regulations to no longer use coal for electricity generation by 2030. On the other hand, coal power plant construction projects funded by China in various countries have collapsed. Plus, the G7 countries (Canada, France, Germany, Italy, Japan, England and the United States) are aggressively blocking the use of coal. Countries that still support coal use, such as China and Indonesia, are increasingly isolated and could face more pressure to stop such activities.

Seeing the world energy trend which is starting to decarbonize, many coal companies are then developing new businesses in the renewable energy sector. A number of coal companies are known to have planned to produce large capacity wood pellets and also become palm kernel shell (PKS) exporters. And seeing the global trend in the use of renewable energy which continues to increase, especially biomass fuel, it is possible that in the near future they will immediately execute this plan. With the large profits from the coal business, developing new businesses should also be easier.

For these coal producers whose business sector is in the energy sector, marketing these biomass fuel products should not be difficult. Wood pellets and palm kernel shells / pks can be used as fuel in power plants just like coal. In fact, a number of coal-fired steam power plants also use certain amounts of biomass fuel which is mixed with coal, namely by cofiring. In fact, biomass fuel can be used 100% in certain types of technological power plants such as stokers and fluidized beds. As both products for energy, more specifically solid fuels with the same users, it is indeed easier for coal companies to develop into the wood pellet industry and export palm kernel shells / pks.

In contrast to palm kernel shells / pks which is waste or by-product from palm oil mills or CPO mills which are obtained by collecting from palm oil mills, wood pellet production for large capacities requires a stable and sustainable supply of raw materials with one of the best options being wood from energy plantation. Energy plantations with a certain area need to be created according to the wood pellet production targets to be achieved. Post-mining land can be reclaimed for energy plantations. And for coal companies developing renewable energy also gives a positive image because it contributes to the decarbonization program and if in time the coal business has to be reduced or even stopped, they will be ready with a new business in the form of renewable energy.

Turning on Indonesia's “Green Battery”

With its position on the equator so it has a tropical climate, it will receive sunlight all year round. Energy from sunlight should be utilized optimally in the current era of decarbonization. So that solar energy can be used at any time, this energy must be stored. This is like a battery mechanism for storing energy, so that the energy does not just pass through and disappear. Storing and converting solar energy has been done naturally since life existed, namely in plant biomass. With photosynthesis in plants, solar energy with water and CO2 is converted into biomass in the form of wood, fruit, leaves and various parts of these plants as well as O2 for us to breathe. Solar energy does not just pass and disappear but is stored in the plant as an energy source or "battery" that can be used at any time.

With this paradigm, of course efforts to maximize energy storage in "green batteries" must be maximized as an effort towards low or carbon neutral fuel. With the largest land area in Southeast Asia, of course efforts to maximize "green batteries" become more important and strategic. The use of fast growing species and short rotation coppice will be very suitable for converting and storing solar energy. Moreover, in tropical climates the wood harvest is also faster than in sub-tropical countries or cold areas, due to the abundance of solar energy.

The potential land area for making "green batteries" is very large, reaching tens of millions of hectares. In addition, reclaimed land reaches millions of hectares, more details can be read here. The "green battery" is in the form of an energy plantation whose wood is used for the production of wood pellets. In the form of wood pellet products, biomass energy becomes easier to store and use at any time. Unlike intermittent solar or wind or water power plants, biomass fuel in the form of wood pellets is not like that. It can be used according to your request and desired target, making it more practical and reliable. The reasons why the "green battery" in the form of energy plantations has not been developed can be read here.

Apart from "green batteries" from energy plantations, "green batteries" can also come from production forests in general. In these production forests, the main product is wood which can be used for various purposes such as building wood, furniture, plywood, flooring and so on. The wood industry waste is then used for the production of wood pellets. Wood pellet production basically has to use wood waste or wood that worth as wood waste such as wood from energy plantations, so that the wood pellet industry is economical and profitable. It is estimated that there is 25 million tons/year of wood waste that can be used for the production of wood pellets In Indonesia. And specifically from the plywood industry alone, wood waste is estimated to reach 5 million tons every year.

It is estimated that the Indonesian wood industry can actually be optimized until its production capacity reaches 91 million cubic meters per year, but in reality in 2022 the forest products industry will only be able to produce 42.19 million cubic meters per year or around 48.7% of its optimum capacity. There are 3 factors that cause the low realization of the wood industry, namely, efficiency of the wood industry, problems related to raw materials and market availability.

Research on batteries continues along with the global decarbonization trend and the energy transition is a necessity to achieve the decarbonization target. Large capacity batteries so that electrical energy produced from renewable energy plants such as wind and solar can be stored is the target of this research. This research costs a lot of money and takes a long time, it is estimated that in the next 20 or 30 years, these large capacity batteries will be available. Meanwhile, currently most power plants use fossil fuels, especially coal. Energy transition efforts at power plants can be carried out by substituting coal for wood pellets. Moreover, as a tropical area, biomass energy can remain as the main energy in the future non-carbon era.

Indonesia's "green battery" must be activated and developed, because apart from its function as an energy source, the "green battery" is also a CO2 storage or carbon sink. As long as the amount of wood harvested is smaller or the maximum is equal to the growth of the energy plantation or "green battery", the amount of CO2 absorbed by the plants does not decrease or the CO2 released into the atmosphere does not increase, and the same goes for production forests in general. When at a certain age the growth becomes saturated and begins to decline in CO2 absorption, meaning that the forest cannot permanently store CO2 in a fixed volume, so it needs regeneration/replanting. Meanwhile, in energy plantations, due to the characteristics of the plant species, regeneration/replanting is not necessary every time it is harvested, but can be done decades later. And furthermore, the use of carbon capture and storage (CCS) technology in power plants that use 100% of their fuel from wood pellets means that the CO2 produced is not released into the atmosphere or is carbon negative, which reduces the concentration of CO2 in the atmosphere.

Decarbonization of Coal Mining with Reclamation for Energy Plantations for Wood Pellet Production

Wood pellets are carbon neutral fuel so they do not add CO2 to the atmosphere, which is different from fossil fuels such as coal which are carbon positive, namely adding CO2 to the atmosphere, which is part of the climate solution. Net zero emissions and decarbonization efforts are also accelerated by the use of carbon neutral fuel such as wood pellets. This is an important and main reason for the production of wood pellets in mining companies, especially coal, so that they can reduce CO2 emissions from burning coal. Post-mining land at coal companies can be reclaimed in another form, namely by creating energy plantations as raw material for wood pellet production. There are millions of hectares of ex-mining land that have potential as energy plantations, for more details read here.

Cofiring coal with biomass is an easy and cheap entry point for coal power plants to gradually use renewable fuels. Over time the biomass to coal cofiring ratio can continue to be increased so that CO2 emissions from carbon positive coal are reduced. Technically, a cofiring ratio of up to 5% does not require equipment modifications at the coal power plants. The amount of CO2 that can be replaced (carbon offset) with carbon neutral fuel such as wood pellets also has the opportunity to get carbon credits or other compensation. The implementation of a carbon tax also increasingly encourages a reduction in the use of coal in power plants and vice versa, namely encouraging an increase in the use of renewable fuels, especially wood pellets in these coal power plants or an increase in the cofiring ratio, even ideally fulfiring can be done, namely 100% using renewable fuel.

The implementation of a carbon tax in Indonesia is planned for 2025, after several postponements. The lowest carbon tax rate is IDR 30 per kilogram of carbon dioxide equivalent (IDR 30,000 or around US$ 2 per ton of CO2 equivalent). This tariff is actually much smaller than the initial proposal of IDR 75. With a tariff of IDR 30, Indonesia is one of the countries with the lowest tariff in the world for carbon tax. By burning 1 ton of coal, it will produce around 3 tons of CO2 emissions, so the carbon tax imposed will reach IDR 90,000 per ton of coal. Meanwhile, the use of renewable or carbon neutral fuels such as wood pellets is not subject to the carbon tax. Apart from that, mining companies are also obliged to reclaim their post-mining land, which if not done will be subject to heavy sanctions.

Energy plantation plants are a type of pioneer plant, easy to grow, efficient at using water, fertilize the soil and have strong roots to resist erosion. Legume types such as calliandra and gliricidia are commonly used as energy plantation plants. Integration of energy plantation product processing must be carried out so that optimal benefits are obtained, namely the main product is wood for wood pellet production, leaves as ruminant animal feed and honey as high quality food. The energy plantation must also be created to be able to produce sustainably, namely by maintaining a balance between wood productivity for wood pellet production, environmental functions in the form of maintaining erosion and groundwater, and the volume of wood harvested must not exceed the growth rate or be at least the same (carbon balance) and using by-products for additional revenue, such as using leaves for animal feed and honey from honey bee farms.