Processing Palm Oil Trunk Waste for OPT Dust Block Production

Basically, there are many options for processing oil palm trunk waste from palm replanting programs. Small to medium to large capacity processing industries can be created depending on how big the market needs and raw material capacity are. Simple technology to advanced technology can also be applied to this industry. One option for processing oil palm oil trunk waste is the production of OPT dust blocks. OPT dust block is a group of biomaterial products used specifically as animal bedding. Livestock such as cows and horses need animal bedding, especially in winter.

Why is animal bedding for cows and horses suitable for the OPT dust block? The material characteristics of oil palm trunks which have the ability to absorb water quickly are an important factor. Production of OPT dust blocks as a compaction technology (biomass densification) is also not difficult, just like making cocopeat blocks. Compared to cocopeat block which is also superior in water absorption but because the price is much more expensive, OPT dust block is more of an option. Apart from that, cocopeat blocks are generally used as a planting medium.

The volume or production capacity of OPT dust blocks will also not be as high as for energy or fuel needs, for example if oil palm oil trunk waste is processed into pellets (OPT pellets) and as fuel for power plants, read more details here. However, as a solution for utilizing oil palm oil trunk waste so that it is not left alone and polluting the land, of course the production of OPT dust blocks can be an effective solution. The market niche in the livestock sector with animal bedding applications can also continue to increase along with the development of the livestock sector. And as a business that can provide financial benefits and also as a solution to environmental problems, of course this is very interesting and needs to be considered. 

Slowing Palm Oil Land Expansion: Replanting or Biochar ?

The reckless expansion of palm oi plantations is definitely offside sustainability. Instead of palm oil being a blessing due to their highest productivity among other vegetable oil sources (soybeans, sunflowers, rapeseed, coconuts, etc.), growing only in tropical regions and contributing 40% of the global vegetable oil supply, they have instead become a natural disaster. The cost of this disaster is no small matter, costing thousands of lives, in addition to other material losses. This issue was particularly highlighted during the recent floods in Sumatra. Are the profits from palm oil worth the loss of life?

Clearing tens or even hundreds of thousands of hectares of oil palm plantations produces valuable timber. It's even possible to generate substantial profits from land clearing alone, even though palm oil plantations and production haven't even begun. This is what drives entrepreneurs to flock to this plantation sector, driven by the sole goal of maximizing profits without considering their own needs, resulting in widespread disasters. Furthermore, the implementation of mandatory B-40 or even B-50 biodiesel, currently being discussed, will undoubtedly create a new market for palm oil/CPO, much easier and more flexible than exporting to Europe, which is subject to the European Union Deforestation Regulation (EUDR), or to the US, which faces high tariffs.

Moreover, it has already been established that palm oil/CPO consumption for biodiesel has exceeded food demand. The mandatory implementation of the B-50 program also requires a 20% increase in CPO production capacity, or 60 million tons per year. The most profitable and fastest way to do this is through extensive deforestation, as the timber from cleared forests can be sold directly.

When the goal is to increase palm oil production gradually, safely, in a planned, and sustainable manner, adequate consideration is required, not blindly and recklessly clearing forest areas (deforestation) under the guise of land conversion. Besides the use of superior seeds, there are at least two ways to increase palm oil productivity: replanting and biochar application (part of land intensification).

According to Joko Supriyono, former chairman of GAPKI (Indonesian Palm Oil Producers Association) for the 2015-2018 and 2018-2023 periods, in his book "Is Indonesian Palm Oil Still Successful?", it is stated that if replanting of palm oil in Indonesia successfully reaches 300 thousand hectares per year, it is estimated that CPO and CPKO production in 2045 will reach 80 million tons. While currently CPO and CPKO production is around 55 million tons. And with the use of biochar, palm oil productivity will increase by an average of 30% in 5-10 years, meaning that by 2035 CPO and CPKO production will reach 71.5 million tons. Moreover, if the two methods are combined, the results should be even better.

Indonesia's current CPO production reaches approximately 50 million tons/year, covering a land area of ​​16.8 million hectares with an average CPO production of 3.55 tons/ha per hectare, or 3.55 million tons per million hectares. If biochar is used and productivity increases by 30%, this means an increase of 15 million tons of CPO (a total of 65 million tons of CPO/year) and this saves approximately 4.2 million hectares of land, or the use of biochar will slow down forest clearing for palm oil plantations. The application of biochar with compost will improve the quality of the compost to become premium compost. For more details, read here. This allows the palm oil industry to operate by utilizing all its biomass waste.

The replanting movement of palm oil plantations must be encouraged to continuously increase palm oil production. The problem of biomass waste from palm oil trees, which cover thousands of hectares, also poses a challenge. With such a large volume of old palm oil trees, utilizing them for value-added products is crucial. With an average hectare of palm oil plantations consisting of 125 trees, each tree having an average dry weight of 0.4 tons, this yields 50 tons of dry weight of biomass per hectare. For an area of ​​10,000 hectares, this yields 0.5 million tons of dry weight, and for an area of ​​100,000 hectares, this translates to 5 million tons of dry weight. An optimistic estimate suggests that Indonesia could achieve 5% replanting (very optimistic) or 820,000 hectares, which would yield 41 million tons of dry weight of biomass per year. Similarly, Malaysia, with 5% replanting or 285,000 hectares, would produce 14.25 million tons of dry weight per year.

Business readiness factors, both technologically and in terms of the market or user base, need to be carefully assessed. With such a large volume, biomass processing plants or industries can be established and operate optimally without worrying about raw material shortages. Products such as pellets, briquettes, biochar, and other bioproducts, such as other biocarbons, biomaterials, biofuels, and biochemicals, are also possible from this old palm oil trunk biomass waste. Old, dead oil palm trunks, often left unattended on land, should be utilized to produce these useful, value-added products. For more details on utilizing trunk waste for fuel pellet production (OPT Pellets), please read here. 

Replanting Palm Oil Plantations in Indonesia to Maintain Palm Oil Productivity and Potential Utilization of Oil Palm Trunk Biomass Waste

One way to maintain or even increase the productivity of palm oil plantations is through replanting or rejuvenation, which is absolutely necessary. Old palm oil trees will decline in productivity, making them uneconomical. In keeping with the gradual planting of palm oil trees, replanting palm oil plantations is also carried out in stages and periodically. Furthermore, the use of superior seeds is also necessary, and one way to produce superior oil palm seeds is by using high-quality planting media, such as biochar. For more details, read here.

Palm oil companies generally replant 4-5% of their total land area annually. However, smallholders generally do not replant properly. This is due to the cost of replanting and the 4-5-year waiting period for fruiting to resume. However, because old palm oil trees naturally decline in productivity even with additional fertilizer, replanting is the only solution. Of Indonesia's approximately 16.8 million hectares of palm oil plantations, 9 million hectares are managed by private companies, 550,000 hectares are owned by state-owned enterprises (PTPN), 6.1 million hectares belong to smallholders or smallholders, and the remainder has not been verified. Specifically for replanting, the government is targeting 180,000 hectares per year for smallholders, but by 2024, only 38,244 hectares had been realized, far from the target.

Even in 2025, implementation of the replanting program will remain low, reaching only 11,777 hectares in the first quarter. Based on this reality, the government has finally lowered the annual replanting target from 180,000 hectares to 120,000 hectares. To accelerate the replanting program, the government could provide additional replanting funds to smallholder farmers. This additional funding would ideally come from business profits, specifically from the utilization of palm oil waste. Various biomass-based products are produced from the processing of palm oil waste.

For businesses based on the utilization of oil palm trunks, business readiness factors, both technologically and market-specific, require careful assessment. With an average hectare of palm oil plantations containing 125 trees, each tree having an average dry weight of 0.4 tons, per hectare yields 50 tons of dry biomass. For an area of ​​10,000 hectares, this translates to 0.5 million dry tons, and for an area of ​​100,000 hectares, this translates to 5 million dry tons. Optimistically, Indonesia could achieve 5% replanting, or 820,000 hectares, which would yield 41 million dry tons of biomass per year. Malaysia, with 5% replanting, or 285,000 hectares, would yield 14.25 million dry tons per year.

The issue of biomass waste from palm oil trees, which covers thousands of hectares, also presents a unique challenge. With the vast volume of old palm oil trees, utilizing them to create value-added products is crucial. This vast volume allows biomass processing plants or industries to be established and operate optimally without worrying about raw material shortages. Products such as pellets, briquettes, and biochar are made from this old palm oil trunk biomass waste. Old palm oil trunks, which are often left abandoned on land, should be utilized to create these useful, value-added products.

For a presentation on palm oil replanting, click here.