EUDR and Is It Time for the Palm Oil Industry to Consider Biochar ?

Malaysian smallholders cultivate around 27% of the total oil palm plantations or equivalent to 1.54 million hectares, while in Indonesia it reaches 41% or equivalent to 6.72 million hectares. Malaysia chose to increase the yield or productivity of FFB as an effort to increase CPO production, namely by being fostered by large companies with a target increase of 600,000 tons/year without increasing the land area. For Malaysia, opening new plantations is something that is very difficult, even impossible, especially with the implementation of the EUDR on December 30, 2024. Consolidation between palm oil farmers is expected to increase efficiency so that it ultimately increases yield and income. The area of ​​Malaysian palm oil plantations is around 5.7 million hectares or around 1/3 of the area of ​​Indonesian palm oil plantations (currently reaching around 17 million hectares). This is also the main reason why Malaysia chose to intensify its palm oil plantations while Indonesia tends to expand palm oil land, even though both countries face two main issues, namely increasing production and climate resilience.

Biochar application is a solution to overcome the two important issues above. Related to the increasing pressure of environmental issues, climate and sustainability, even renewable energy, it seems that biochar will receive more attention. There are many aspects of land and the environment that can be improved with biochar application which ultimately is a solution to the two main issues. For small plantations, biochar application can be easier to do, but for large plantations managed by various palm oil companies, biochar application requires more complex considerations, especially because of the risk factor of the vast area of ​​palm oil plantations, but this biochar option is still attractive. The use of IoT (Internet of Things) can be used to monitor biochar performance on the land, for more details, read here.

The operational efforts of the palm oil industry to be more environmentally friendly and efficient are a driving force and a challenge in themselves. With the large profits from the palm oil industry business, of course the palm oil industry will not simply ignore demands related to the environment and sustainability, especially the EUDR. Palm oil producers, especially Indonesia and Malaysia, are faced with a standard guideline that applies to countries producing 'edible oil', namely that palm oil to be exported must come from land that has been reforested before 2020. Otherwise, the producing country will be considered a country that does not pay attention to the issue of deforestation and hinders the export of palm oil abroad. Various lobbying and negotiation efforts by Indonesia and Malaysia as the two largest palm oil producing countries in the world to the European Union to be more relaxed in implementing the EUDR include great suspicion as to why rapeseed oil is not treated the same as palm oil. The production of rapeseed oil as a raw material for biofuel in Europe is protected and ignores its environmental impact.

Indonesia as a coconut island seduction country has an experience of coconut oil commodities in the past that can also be a reference for this. The era of the glory of copra or coconut oil was around the transitional decade of the 19th century to the 20th century or more precisely between the 1870s and 1950s and its peak in the 1920s. Why are copra and coconut oil in particular currently slumping and losing out to other vegetable oils? The long history of trade competition is the answer. Several parties, especially the American Soybean Association (ASA) accused coconut oil of being an evil oil containing cholesterol and saturated fat that clogs coronary arteries. The accusation was never proven true, in fact it was proven otherwise, but it became one of the main causes of the destruction of the global copra and coconut trade. The tropical oil campaign and war took about 30 years or in the 1950s to the late 1980s in the United States and so finally the Indonesian coconut industry slumped.

Climate factors in the form of efforts to reject deforestation with its EUDR and economic factors in the form of palm oil production will be a fierce feud but sooner or later it will definitely reach a meeting point that can be accepted by both parties because they need each other. Diverting CPO products to markets that do not require environmental requirements such as the EUDR also seems to be untimely. Furthermore, in the form of addressing two important issues in the palm oil industry, namely increasing production and climate resilience and in line with the EUDR, biochar is the right solution. The question is, will this biochar be an important consideration and even find its momentum to be applied in oil palm plantations, especially for Indonesia and Malaysia? And the implementation of the EUDR as its driving force. Let’s see.

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.   

Biochar and IoT in Palm Oil Plantations

Monitoring until action needs to be done to get optimal results according to the expected target. Ensuring that the supply of nutrients and water is always sufficient for the needs of plants is an important thing to do. Other variables that affect the process of nutrient absorption and plant growth need to be properly monitored. Biochar is a soil amendment to improve soil properties such as soil structure, soil aeration, water and nutrient availability, suppress the development of certain plant diseases, create good habitats for symbiotic microorganisms and reduce soil acidity. Biochar also  adsorbs greenhouse gases in the form of carbon dioxide from the atmosphere, thereby reducing these gases in the atmosphere. It is important that sensors are used to read the variables above. How many sensors are installed and what type is also very dependent on the objectives being achieved. The use of various sensors in large numbers is also a cost in itself, while a production is always looking for the most efficient way to maximize profit. The use of sensors that are effective and efficient is the key to successfully monitoring the conditions of biochar applications in the field with a specified period of time, even real time all the time.

IoT (Internet of Things) is predicted to become a trend in the near future and it cannot be avoided. A number of plantation areas that are located far away in remote villages, such as in palm oil plantations, are generally still constrained by the internet network, this condition makes IoT unable to be applied or still not optimal. Palm oil plantations are one of the ideal locations for biochar applications for large capacities as well as IoT, for more details read here. While waiting for an internet network in the area provided by a telecommunications company, satellite signals can be used even with small data usage so that the information displayed is also less and simpler. This makes only really important information that needs to be monitored, especially on plantation locations that are difficult to reach. At such a stage manual monitoring is still much needed, so the online information from the satellite only helps for verification. Devices such as drones can also be used to monitor growth or general the plantation conditions.

Basically, IoT and its supporting devices such as artificial intelligence and big data are tools to help make decisions, especially for the plantation manager such as palm oil plantations. Knowing the condition of the plantation so that it can maintain the level of plantation productivity performance is an important part of maintaining the company's performance itself. Even though IoT devices help in such a way, the important thing that is still needed is basic knowledge to the characteristics of plantation management itself. These sciences will be very useful for analyzing the data presented by IoT devices more sharply and accurately or on target. Selection of sensors, the number of sensors to the location of the sensor installation must be carried out effectively and this can only be done with an adequate scientific basis. A number of chemical analyzes in general also cannot be done sensory but using reagents and so on. In addition, IoT is also a new thing so that a number of certain activities or practices in certain agriculture or plantations and more specifically in the biochar application have not been identified for IoT developers. This is so that collaboration between researchers, practitioners and IoT developers is needed so that IoT device products will also be more effective and efficient.

Food Energy Water for the World Community

"There will be no doomsday, until wealth has been piled up and abundant, until a man goes everywhere carrying his zakat but he does not get anyone who is willing to accept his zakat. And so that the Arab lands become fertile again prosperous with meadows and rivers "(HR.Muslim).

The earth will once again prosper before doomsday. In general gardens and forests like that also cause springs to appear (QS 36: 34) which in time will flow into the rivers (QS 19: 24-25) and also be your pleasure and your animals ( QS 79: 31). Basically, the earth is very sufficient to meet human needs, especially in 3 main things namely food, energy and water. In the era of bioeconomy that is believed to be in sight and we will soon experience it, a number of technologies will be developed to support these three main sectors in a sustainable manner. The emphasis on something that is sustainable  is increasingly emphasized to increasingly abandon or not at all use fossil sources (fossil free), especially in the energy sector. It is this aspect of sustainability that clearly distinguishes the fossil economy era from bioeconomy.

The Concept of Energy Plantation and Verticulture 

The tropics will be excellent for developing bioeconomy because of the availability of sunshine throughout the year. This tropical region will compete for entrepreneurs engaged in this sector, such as the African continent and Indonesia. The availability of vast land in the area is a key factor in the development of energy plantations. Energy is a vital need for human kind today, especially to drive economic sectors. With energy plantations, massive energy needs can be met. Fast rotation and coppice plants such as calliandra and gliricidae are the mainstay of energy plantations. In addition to the energy plantation will be able to conserve water, livestock business can also be developed by utilizing leaves waste from the energy plantations. Sheep, goat or cattle farms are ideal for utilizing leaves waste from the energy plantations. Honey bee keeping can also be developed by utilizing flowers from the energy plantation.

verticulture with skyscrapers

Calliandra Energy Plantation

Tall buildings were built not even for human habitation, but as agricultural land for food crops (verticulture). Verticulture farming is to meet food needs and facilitate its management. Modern farming techniques are used to maximize the quality and productivity of the farm. To support the success of agriculture, IOT (internet of things) with a number of sensors that can be read online is an integral part of agricultural management. The effectiveness and efficiency of farming can be increased rapidly so that high productivity and quality can be achieved, while large lands mainly for energy plantations. Biochar which can be used to improve the effectiveness and efficiency of fertilization can be applied to verticulture farming.  Apart from being made compost agricultural wastes can also be partially converted into biochar. For large capacity biochar production, the continuous pyrolysis units are the best choice. Compost and biochar production also makes the farming practices zero waste. Even with continuous pyrolysis technology, in addition to biochar, heat and electricity can also be produced. Liquid fuel namely biooil, is also produced from the continuous pyrolysis technology.

With the majority of land used for energy plantations, the energy needs, InshaAllah, can be fulfilled even the meat needs of the livestock business, as well as food production with verticulture. The ideal concept, if it can be implemented, should be a solution to the problems of life today. The concept can be implemented if humanity realizes the importance of the program and supports it. Technically, this can be done, and some have done it even on a smaller scale and it has not been fully integrated.

The coming era of bioeconomy should also be in line with the improvement of the economic system that gives a sense of justice to the world's population. With the current economic model it takes 800 years for the bottom billion people to reach 10% of global income. As a result of the current liberalism and capitalism, the richest 10% control 85% of global wealth. The three richest people in the world have assets of more than 47 GDP, the lowest gross GDP. 1% of the richest people own more than 50% of the world's wealth. This huge inequality should be overcome immediately with a equitable and prosperous economy. The transition from fossil economy to bioeconomy can be both an medium and a momentum for improving the economic system. The tropics, which were previously of a minor economic role, should have been increased and taken into account or even become a major player in the bioeconomy era.