Business Model Utilization of Palm Oil Empty Fruit Bunches to Maximize the Profit of the Palm Oil Industry

Palm oil empty fruit bunches  (EFB) are still a problem for the palm oil mills in general. The scenario of utilizing palm oil EFB as the goal should be able to cope well with the environment and provide economic benefits. Overcoming environmental problems is clearly a top priority and must be met, but the best use of EFB scenarios should also benefit the environment, both short term and even long term. Likewise for economic benefits, economic benefits should also be obtained in line with these environmental benefits, not counterproductive. That is the best scenario for the use of palm oil EFB, which is currently still a problem.

Palm oil plantations are the production base for palm oil mills, both CPO mills and PKO mills. Without the palm fruit produced from the palm oil plantation, the palm oil mill will not be able to produce. Operation of palm oil plantations is indeed not an easy and expensive thing. This is mainly a factor of the large usage fertilizer demand, so as to reach around 60% for the operation of the palm oil plantations themselves or with an area of ​​20,000 hectares of palm oil plantations, the cost needs reach more than 70 billion rupiahs ( (around US$ 4,766,667), for more details, please read here. The factor to reduce the cost of fertilizer and maintain the productivity of palm oil fruits or fresh fruit bunches and even increase them is the main target for the utilization or processing of palm oil  EFB. If the cost of palm oil plantation operations can be reduced, the greater the benefits. Biochar is a palm oil EFB processing product that can be used to reduce fertilizer requirements in the palm oil plantation. Biochar production using pyrolysis as shown below.

In the process of pyrolysis, besides producing the main product in the form of biochar, then biooil and syngas are also produced. The biooil and syngas are then used as fuel generator to produce electricity. In palm oil mills or CPO mills, fiber waste is also commonly found. The fiber waste is often just piled up and never utilized so it tends to pollute the environment. Though these fibers can be made pellets for export and become fuel for power plants. In addition, currently millions of hectares of old palm oil plantations in Indonesia need to be immediately replanting. Millions of tons of old oil palm trunks are also potential for pellet production. If old oil palm trunks are only left in the plantation so they rot and decay, then it will become lava media and subsequently become a beetle which actually disrupts productive palm oil plantations as well as other plantations, for more details read here. The production of pellets from fiber or palm trunks requires electricity and this can be supplied from the pyrolysis of palm oil EFB like the scheme above. Although palm oil mills also produce electricity, but generally only for the purpose of CPO production, so it is not enough for the production of fiber pellets and oil palm trunk pellets (OPT pellets). 

Replanting Palm Oil and Coconut Destroying Beetles

Rhinoceros Beetle (Oryctes Rhinoceros)

At present it is estimated that millions of hectares of palm oil plantations need to be replanted immediately (replanting). Potential tens of millions of tons of palm oil trunk can be obtained as biomass waste from these plantations. Processing palm oil trunks to become biomass fuels such as pellets (OPT pellets) and OPT charcoal pellets is a positive idea that should be done. Palm oil mill effluent or POME (palm oil mill effluent) can be used as an energy source or electricity source through biogas powerplant for the processing of these palm oil trunk. But if the palm trunk are not cleaned from the plantation so they decay and rot, then the palm trunk will become larval media. The larvae then become beetles which damage not only the palm oil plantations themselves but also the coconut plantations or palmae botanical group in general. There are a number of areas that have palm oil plantations that are side by side or close to coconut plantations, for example in Riau, so that the beetle is destroying coconut plantations. The urgency of processing old palm oil trunk at these locations is higher than other locations.

Palm trunks left behind in the plantation become breeding grounds for horn beetles

Coconut plantations damaged by horn beetles

The productive age of palm oil trees is around 25 years, while coconut trees can reach 80 years. That means it can be said that the age of a coconut tree is more than 3 times that of a palm oil tree, so that it is unfortunate if the replanting activity actually damages the coconut plantation which has a longer productive age. It also means that when planting coconut trees the benefits should be felt in the next 2-3 generations, while palm oil is only one generation. The factor of preserving ecosystem sustainability should also be considered in replanting palm oil plantations especially those close to coconut plantations. Replanting palm oil plantations should also be interpreted as harvesting biomass as a potential raw material to produce value-added products such as oil palm pellets (OPT pellets) and charcoal pellets (OPT charcoal pellets/carbonised pellet).

Catching Up the Great Opportunity of OPT Pellet Part 2

The abundance of old palm trunks left only in the palm oil plantations until they become decay after entering the unproductive period is one form of waste or inefficiency in the utilization of natural resources. These palm trunks are very potential to be processed into pellet or oil palm trunk pellets (OPT Pellets) which is currently also an export commodity. In addition, there are also a lot of waste namely oil palm fronds  that are only stacked in the oil palm plantationns to wait its decay. Of course it is also a kind of waste or inefficient use of natural resources as well as the case of the palm trunks above. Why do we let it linger? Let's find a solution to that.

These oil palm fronds can be used as fuel for drying the palm trunk powder before it is made pellet. Yes, the palm trunks should be reduced the size (size reduction stage) into the size of wood powder (sawdust) and then dried and then pelleted. In this way biomass wastes become utilized instead of polluting the environment and becoming a business unit. The palm fronds can be directly used as fuel in the furnace with hot flue gas for drying the palm trunk powder. Ash from burning palm trunk can also be returned to the plantation as potassium (K)-rich fertilizer.

Currently we have OPT Pellet request for export market with capacity 1,000 ton / month. For oil palm entrepreneurs or the energy sector who are interested in following up the opportunity, can write an email to eko.sbs@gmail.com

Want to Continue Planting Oil Palm or Switch to Energy Plantation?

The number of oil palm plantations in Indonesia and Malaysia that have entered the old age so that is not productive, need to immediately get a solution. The first and most popular solution as many companies do by replanting or replanting the plantation with new oil palm trees. The second solution is to switch to cultivate other plants that are considered more profitable. Energy plantations for wood pellet production is the best solution for that. Why do companies or smallholders take this second solution? This is mainly because the oil palm business does not provide the expected benefits. Many palm plantations do not provide the expected benefits due to the high cost of care(maintenance)  including fertilizer and pest management as well as the selling price of cheap fresh fruit and / or CPO. Moreover, oil palm also takes 5 harvest before it can be harvested fruit.

 Why energy plantation for wood pellet production can be regarded as a good solution? This is because there are several reasons: first, the energy plantations maintenance is very easy and cheap cost. Second, by planting the energy plantations will also restore the fertility of the soil. Third, the need for wood pellets for the energy sector is also increasing. Fourth, the leaves of the plantation can also be used for sheep/lamb or goat farms. This sheep will also be the best treasure for us. Fifth, as a companion plantation of oil palm plantations. The extent of oil palm plantations that reach tens or even hundreds of thousands of hectares are planted in monoculture or only one type of plant vulnerable with various diseases, so by adding a companion plant of leguminoceae group in the energy plantation will reduce or avoid the problem as well as optimize the yield of the oil palm plantation itself. After the old oil palm trees are felled, the stems can also be used as raw material for pellet production or OPT pellet. Only then can it be continued to replant new oil palm trees, or switch 100% with energy plantations or combined  with some remaining as oil palm plantations and partially for energy plantations.

Then how will the energy plantations business also become a profitable and sustainable business? Similar to oil palm plantations so that their CPO products can be sold domestically or exported, which requires processing plant of fruit bunches from oil palm plantation, so also with energy plantations which need factory or processing unit to become wood pellet before marketed in domestic or export . Wood pellet production process is also simpler than CPO production and its factory or machineries price is also much cheaper. Mid-size entrepreneurs are more affordable to produce wood pellets from these energy plantations, for example from energy plantations of 500 hectares, 1000 hectares and so on. The design scheme of wood pellet production from energy plantation can also be read here. For readers who want to get estimation of wood pellet production, please send an email to eko.sbs@gmail.com

Liquid Fuels From Biomass In The Era Of Bioeconomy

Biomass solid fuels, especially wood pellets, have gained great attention so that their use continues to increase, as a means of lowering the temperature of the earth. The estimated use of world wood pellets will reach 50 million tonnes / year by2024 while Korea and Japan alone will reach 20 million tonnes / year in the next 3-4 years. Why is the biomass-fuel solid getting so much attention? This is due to the large coal-fired power plants that have been able to gradually use the wood pellets, even new plants are also built specifically using wood pellets or other biomass fuels such as palm kernel shells or wood chips. What about liquid fuels from biomass? Liquid fuel has a large portion as a vehicle fuel or industry, both derived from fossil and from biomass. Bioenergy (energy from biomass which includes solid, liquid and gas) currently accounts for about 10% of total global energy use, or equivalent about 53 EJ / year (about 6 minutes of solar radiation to the earth). Petroleum consumption accounts for one third of global energy followed by coal and natural gas. Bioenergy supplies the most energy compared to non-fossil energy sources, such as the table below. Liquid fuels from the bioenergy group alone reach about 6% or 3 EJ / year (radiant solar energy to the earth for half a minute). The liquid fuel is mainly used in the transportation sector. Liquid fuels from biomass are vegetable oils (fatty acids), biomethanol, bioethanol, biodiesel and biooil. Among them are bioethanol and biodiesel most attention, as most of the good engines and vehicles use the fuel.

Source : Biomass in the energy industry, BP & Energy Biosciences Institute

Brazil and the United States are the two major producing countries of liquid fuels from biomass in the form of bioethanol from sugarcane and corn. Brazil'ssugarcane plantation area of ​​9 million hectares and corn farming in America 39 million hectares. In addition to the production of fuel, sugarcane and corn partially processed into food products. Indonesia's largest producer of palm oil or CPO with production of 23 million tons / year with a current land area of ​​9 million hectares and is still growing. CPO in addition to biodiesel raw material, can also be as direct fuel, is also an important edible oil. Currently we are witnessing many liquid fuel stations in Indonesia selling Bio-Solar or B-20 for diesel-engined fuel vehicles with 80% petroleum diesel and 20% biodiesel from CPO. For the production of liquid fuels from biomass in Indonesia other than palm  oil trees proclaimed among others with sugar cane, cassava, shorghum, and jatropha. In general, the production of liquid fuels from biomass in Indonesia has not been encouraging. Even jatropha curcas have failed as biodiesel feedstock because the price is still expensive, so its biodiesel products can not compete with diesel oil from petroleum, plus jatropha oil is not a food product. It still needs a lot of effort to achieve the expected conditions in this sector. Moreover, the lands needed for agriculture of the above commodities generally require fertile soils and high maintenance costs. This is in contrast to the energy plantations of theleguminoceae plant for the production of wood pellets that can survive on marginal, critical and abandoned land.

The Qur'an also discusses renewable energy from this biomass, ie from trees in QS Yaasiin: 80, QS Al Waqi'ah: 71-72, and QS An Nuur: 35. In surah Yassiin and Al Waqi'ah the indication of such energy source from the tree, while in the surah An Nuur the indication of the fruit. Details of renewable energy development based on the Qur'an in more detail can be read here. Based on the above information that almost all of the liquid fuel from the biomass turns out to be also food for humans. So how should we respond to such conditions? Moreover, there has been Tortilla riot in Mexico in 2007 ago. The riot occurred because the United States cultivate corn to bio-ethanol fuel, while Mexico as a neighboring country is dependent imports of corn from America as food so that as a result there was food crisis. The two hadiths of Prophet Muhammad became the solution and guide for food and energy issues, for us as followers:

From Aisha she said: "Once the family of Abu Bakr (his father) sent (soup) goat legs to us, then I did not eat, and he (Prophet Muhammad SAW) also did not eat because we have no lights. If  we have some oil at that time, of course we are prioritized to be eaten. " (HR Ahmad).

Another story from Abu Hurairah: "There are times when for months gone by, but the houses of the Messenger of Allah do not have a single day of light, nor the kitchen nor smoke, if there is any oil to use for food."

Finally, with the guidance of the Qur'an and the example of the life of Prophet Muhammad SAW, uswatun hasanah, the people should be able to overcome food and energy conflicts, as well as develop innovative ability to explore the sources of renewable energy.

Search for cheap and abundant energy sources continue to be done to race down theearth's temperature. Liquid waste from CPO factories which still contain oil despite its high free fatty acid (FFA) of up to 60%, provided the moisture content and its impurities (M & I) is less than 2%, or the total oil is at least 98% sought by many countries for biodiesel production. Oil from CPO factory waste that was originally waste or so-called dirty oil or PAO (Palm Acid Oil) has now become a selling commodity for biodiesel raw materials. It basically indeed that all fatty acids can be processed or converted into biodiesel. Indonesia's potential for PAO is also very big considering about 600 CPO factories in Indonesia and not conflict with human food. PAO processing into cheap biodiesel so that it can be used as a power plant or vehicle fuel or industrial machineries in the country should also be a concern and can be implemented in not too distant future. Other PAO utilization can be as direct fuel for various heaters. Processing of empty palm bunches (EFB) and palm trunks into EFB pellets and OPT pellets has a lot of problems because of its very wet raw materials, resulting in expensive drying costs. The use of PAO can be one solution to the problem.

Catching Up the Great Opportunity of OPT Pellet

Most of the palm oil plantations have entered the old age and need to be rejuvenated by replanting. The number of palm oil trunks so much that it needs to be processed so as not to pollute the environment while providing benefits. Production of oil palm trunk pellets (OPT pellets) is the best way of processing these oil palm trunks. Potency of oil palm trunk pellets (OPT Pellet) which can be produced as much as 12 million tons. While the need for wood pellets is also very large, ie globally 50 million tons/year, while for Asia, especially Korea and Japan alone ranges 20 million tons / year, while for the domestic market needs are also quite big which currently have reaches hundreds of thousands of tons/year with a tendency to keep increasing.

After the palm trunks are collected from the plantation then the OPT pellet production process can be done. The high moisture content of the palm trunks becomes a challenge for the production of OPT pellet. Pre-treatment to reduce the moisture content should be done so that the trunks can then be processed into wood pellets. Many ways can be done to dry the trunks of palm oil both naturally, mechanically and physically.

The selection of OPT pellet plant/factory site needs to be considered in such a way that they can be economical as they are adjacent to a palm oil mill so there is a good chance of getting an adequate supply of electricity and even a heat source to help dry the trunks. Since the waste of these palm trunks is not available all the time, the wood pellet manufacturer should consider this including whenever the factory has to move because out of raw materials or prepare the other raw materials for the long term such as making energy plantations.