Food Estate or Biochar? Indonesia becomes the Champion of Global Climate Solutions?

Currently, there are millions of hectares of land in Indonesia that are in dire need of biochar, namely dry land 122.1 million ha; post-mining land 8 million ha; critical land 24.3 million ha; total around 154.4 million ha. Meanwhile, the potential raw materials for biochar production are also abundant (agricultural, plantation and forestry waste) such as dry empty fruit bunch of palm oil around 30 million tons/year, baggase 2 million tons/year, corn cobs 5 million tons/year, cassava stems 3 million tons/year, waste wood 50 million tons/year, rice husks 15 million tons/year, cocoa shells and so on. With biochar, agricultural productivity will increase from an average of around 20% to even 100%.

If applied on a macro or national scale, say with a 20% increase in production, for example, rice production will increase to 36 million tons/year from the previous 30 million tons/year, corn will increase to 18 million tons/year from the previous 15 million tons/year, crude palm oil or CPO will increase to 60 million tons/year from the previous 50 million tons/year. This will save land use so that the opening of forest land for food crops and (bio)energy such as food estates may not be necessary or at least slow it down.

For example, Indonesia's current CPO production reaches around 50 million tons per year with a land area of ​​around 17.3 million hectares. This means that the average CPO production per hectare is only 2.9 tons or per million hectares produces 2.9 million tons. If biochar is used and there is a 20% increase, it means there is an increase of 10 million tons of CPO per year and this is equivalent to saving around 3.5 million hectares of land, or the use of biochar will slow down forest clearing for palm oil plantations.

There is a rough calculation that with an investment of 10 million US dollars, approximately 200,000 tons of biochar produced with more than 400,000 carbon credits will be produced over a period of 10 years. And for example, with a selling price of biochar of 200 dollars per ton and a carbon credit of 150 dollars per unit (per ton of CO2), then within 10 years, the income will be almost 10 times the investment or it is estimated that in less than 2 years the initial investment has been returned (payback period). Carbon credits sellers or biochar producers also try to get sales contracts for 5-10 years.

Of course when the price of biochar is higher and / or its carbon credit then of course the return on investment will be faster. And that does not include the utilization of liquid and gas products and excess heat from pyrolysis which also have economic potential that is no less interesting. 

Biochar and Food & Energy Security

As the population increases, so does the need for food and energy. This is why food and energy production must also be increased. Increasing food production is closely related to the quality and quantity of land. However, although the quantity of land is very large, its quality tends to decline so that plant productivity automatically also decreases. The decline in land quality or land damage occurs on very large areas of land up to millions of hectares. With the area of ​​sub-optimal and degraded lands reaching hundreds of millions of hectares consisting of 122.1 million hectares of dry land; 8 million hectares of post-mining land; 24.3 million hectares of critical land; a total of around 154.4 million ha, it can be said that the potential loss of food products also reaches millions of tons. Meanwhile, damaged land will be further damaged if no repair efforts are made. Efforts to upgrade or improve the quality of this land should be an important priority in efforts to achieve food and energy security.

Biochar application is a solution for improving these lands. Raw materials for biochar production are also very abundant, including dry palm oil EFB of around 30 million tons/year, bagasse of 2 million tons/year, corn cobs of 5 million tons/year, cassava stalks of 3 million tons/year, waste wood of 50 million tons/year, rice husks of 15 million tons/year, cocoa shells and so on. With the application of biochar, agricultural productivity can increase by an average of 20% or even up to 100%. If applied on a macro or national scale, say with a 20% increase in production, for example, rice production will increase to 36 million tons/year from the previous 30 million tons/year, corn will increase to 18 million tons/year from the previous 15 million tons/year, crude palm oil or CPO to 60 million tons/year from the previous 50 million tons/year. This will save land use so that the opening of forest land for food crops and (bio)energy such as food estates may not be necessary or at least slow it down. But why until now has biochar not received attention and been used as a solution?

In addition, biochar production with pyrolysis will also produce a number of by-products that can be used for energy applications or others, as in the diagram above. Many agro-industries require drying in their production processes, so this is an additional advantage of using pyrolysis technology for biochar production. While from the environmental aspect, biochar is also a carbon sequestration so that it is a climate solution and can get carbon credit. Likewise in waste management, because the raw material for biochar is biomass waste from agriculture, plantations and forestry, even from organic waste, the pyrolysis and biochar business is also a solution to this problem.

Increasing Food Agriculture Productivity: Biochar Application or Forest Clearing for Food Estate?

Indonesia currently ranks 69th out of 113 countries in 2022 in food security and this is lower than Malaysia and Vietnam with indicator points below the global average. This condition is concerning considering that Indonesia was once self-sufficient in food before and even the price of rice in Indonesia is the most expensive in ASEAN. Efforts to maintain food productivity are indeed a challenge, let alone increasing it. Along with increasing population growth, the need for food automatically increases. The condition of declining food production and productivity is related to a number of factors including land conversion to non-agricultural land, and soil / land damage. A number of regulations have been made to stem the rate of decline in food productivity due to these two things.

Regarding land damage, repair efforts need to be made so that agricultural productivity increases. It is estimated that the area of ​​land damage that occurs is very large with a high level of severity. This requires gradual and sustainable repair efforts with various strategies including improving farming patterns and even a number of incentives. Only with these efforts can the agricultural sector as a source of food be repaired or if not, the damage to agricultural land will get worse so that repair efforts will be more difficult.

Biochar application or forest clearing for food estate ?
Biochar application will be able to repair damaged lands. In addition to being a slow-release fertilizer agent so that fertilizer use becomes efficient and does not pollute the environment, increasing soil pH, increasing soil organic carbon and increasing agricultural productivity, biochar will also help overcome the management of agricultural waste that has so far polluted the environment. The increase in agricultural productivity from the use of biochar is on average around 20%. If Indonesia's current rice production is around 31 million tons per year, then the application of biochar will increase total rice production to 37.2 million tons (an increase of 6.2 million tons). With an average rice production per hectare of 6 tons, the increase of 6.2 million tons is equivalent to increasing the area of ​​agricultural land by 1.03 million hectares. Even damaged land from post-mining can be reclaimed and rehabilitated with the application of biochar, with the land area also reaching millions of hectares. This is certainly better than clearing new forest land for food estates because of its environmental impact. 

As the human population grows, the need for food and energy will continue to increase. Indonesia's population in 2045 is estimated to reach 319 million people and the world's population in 2050 is approaching 10 billion people. The need and urgency of biochar to improve soil quality is increasing. Tens of millions of hectares of all Indonesian acidic soils, which are classified as dry land acidic soils, need to be improved with biochar. This means that the business potential reaches billions of dollars or trillions of rupiah. Meanwhile, rice imports in 2024 are targeted to reach 3.6 million tons (as a buffer), a large amount. With an annual rice requirement of around 31 million tons, the contribution of imported rice reaches more than 10%.

Biochar in addition to repairing soil damage so that it increases its fertility which ultimately increases agricultural productivity is also part of the climate solution, namely by means of carbon sequestration. Biochar applied to the soil will last hundreds or even thousands years, and does not decompose. This is another advantageous factor for biochar producers, namely getting carbon credits. The quality of biochar will determine the acquisition or price of the carbon credit, so that the raw materials of biochar and its production process are affected. The price of carbon credits is increasing so that it is increasingly attractive and also the carbon credit market continues to grow.

Damage to land or agricultural land that occurs is mostly caused by excessive use of chemical fertilizers. If the use of chemical fertilizers can be reduced in dosage or with sufficient use, there will be improvements in land quality. Even if chemical fertilizers are gradually reduced in dosage and organic fertilizers / compost are increasingly added so that in the end chemical fertilizers are not used at all, soil fertility will be optimal as well as agricultural productivity.

The photo from here

Of course, this requires time and continuous effort. Livestock must also be encouraged so that compost / organic fertilizer can also be produced sufficiently from the processing of livestock manure. Integrated farming with livestock is the best solution for improving agricultural land with biochar, especially increasing the efficiency of fertilization. If the above can be implemented properly, then forest clearing for food estate land can also be slowed down / held back by considering all aspects comprehensively so that it is not a short-term solution that tends to be forced, and rushed because of the regime's image efforts even at a cost of hundreds of trillions.