Biochar as a Solution to Deforestation in Indonesian Palm Oil Plantations

Palm oil trees are not native to Indonesia but come from West Africa and were brought by the Dutch colonialists in the mid 19th century. At first they brought 4 grains and planted them in the Bogor Botanical Garden which is now a palm oil monument. The first palm oil plantation were established in Indonesia in the early 1900's in North Sumatra. The development of the palm oil industry and its subsequent plantations is very rapid, especially in the last 10 years and it is currently estimated that the area of Indonesian palm oil plantations reaches 15 million hectares. As the largest vegetable oil-producing plant in the world and the area of palm oil plantations is also the largest in the world, of course, palm oil has a strategic value in the Indonesian economy. The average rate of growth for Indonesian palm oil plantations is 6.5% per year or the equivalent of about 500 thousands up to 1 million hectares per year for the last 5 years, while the increase in palm oil fruit production or FFB (fresh fruit bunches) is only 11% in average. In fact, the largest increase occurred in 2017 which increased by 2.8 million hectares. From 2015 to 2019, the total area of palm oil increased by 3.7 million hectares. Extensification or expansion of palm oil plantations turned out to be many "accused" and became the world's spotlight as from the conversion of forest land functions, so that there was a lot of deforestation to be converted into palm oil plantations.

Pressure from the European Union in particular, due to these conditions worsened the image of Indonesian palm oil which in turn affected the selling price of palm oil, both CPO (crude palm oil) and its derivative products. Improving the image is also not easy. One of the effective measures is to stop the extensification effort so that forest land remains as forest land and does not turn into palm oil plantations. Biochar can be an effective solution to this problem. By increasing the productivity of fresh fruit bunches (FFB) from the usage of biochar, new palm oil plantations do not need to be opened again. Assuming an average productivity increase of 20% occurs, CPO production will also increase by 20% or equivalent to 2 million tons. The increase would be equivalent to new land clearing of more than 2 million hectares. Certainly not a small land area. With the 20% increase in production, it is very likely that the national needs for CPO needs have been met and the same goes for the export market.

With the extensification of palm oil land of more than 1 million per hectare every year but the increase in palm oil fruit (FFB/fresh fruit bunch) production is only 11%, it is certainly less attractive and must be avoided, especially when the world's attention on deforestation is getting stronger. This also indicates the low productivity of the palm oil plantations. In fact, by improving soil quality, the productivity of palm oil fruit can be significantly increased and the clearing of new land for palm oil plantations can be avoided. Biomass wastes in palm oil plantations and in palm oil mills can be used for the production of biochar.

In palm oil mills, this biomass waste is easier to process in large quantities, especially empty fruit bunches (EFB). An average palm oil mill can produce 200 tons of waste per day of EFB. Meanwhile, in palm oil plantations, biomass waste, such as palm fronds, leaves and stems, is the raw material for the production of biochar. Palm oil trunks even have a lot of negative impacts when they are not treated adequately or are only left to rot in the plantation, giving rise to horn beetle pests, for more details read here. Optimizing the utilization of biomass waste has multiple benefits, not only preventing environmental pollution by the waste, and can be described as the scheme below.

In terms of technology, biochar production technology is also very varied, from simple technology (low tech, low cost) that is cheap to advanced high technology that is efficient, precise process control but at a higher price. In the palm oil mill, it will be effective to use high technology so that it can be integrated with the operations of the palm oil mill. The excess energy from the pyrolysis process will also replace boiler fuel which has been using fiber and palm kernel shells (PKS). There are indeed many advantages of palm oil mills when doing the production of biochar, for more details, please read here. Production of biochar with empty fruit bunches or EFB biochar is also more profitable than EFB pellets, a more detailed explanation can be read here. Meanwhile, for people who have palm oil plantations as part of society palm oil producers (Plasma) or independent plantations, they can use simple technology (low tech, low cost) for the production of biochar. Biochar production in a simple way can also take advantage of excess energy for various small business activities such as those carried out in Tanzania, Africa. In this way, the community in addition to producing biochar also gets a source of energy including reducing the use of firewood which can be obtained from cutting down trees in protected forests or reducing deforestation pressures.

Fertilizer is the highest cost component in the palm oil plantation operations. Besides being able to increase the productivity of palm oil fruit or FFB, Biochar can also reduce the need for the use of fertilizers. An increase in soil pH makes nutrients easily absorbed by palm oil trees and also increases soil microbial activity which increases fertility is one of the benefits of using biochar. And when the performance of the productivity level of palm oil plantations has been able to be achieved and maintained, a number of other improvements can also be made. From the industry point of view, raw materials are a vital factor in terms of availability, continuity of supply and quality, including palm oil mills. Moreover, the plantation aspect of CPO production holds a portion of 80% while the factory or the mill aspect is only 20%. This confirms that the plantation aspect plays a vital role in the supply of these raw materials, so that efforts to maximize productivity, including maintaining productivity level performance, are very important and a top priority. Meanwhile, the change in palm oil plantations from monoculture to polyculture (mixed plantation) is one of the further improvement that can be made. Extensive monoculture plantations have the potential to be susceptible to disease, so they need to be avoided. Technically, how much monoculture area is still effective, especially for palm oil plantations, there are no convincing findings.

Benefits of Palm Oil Company When Produce Biochar

There are at least four things that become motivation for biochar production, namely as in the chart above. There are a number of slices that make the impact of biochar application multi-benefits, which is very much in line with today's world problems, namely climate change and global warming. Biochar has also been accepted as an instrument to reduce the concentration of CO2 in the atmosphere which causes the two big problems above, namely in 2018 biochar was included in the Intergovermental Panel on Climate Change (IPCC) as one of the negative emissions technologies (NETs). Biochar application is a carbon negative scenario because biochar can absorb CO2 from the atmosphere. This is slightly different from the use of biomass fuels such as wood pellets, wood briquette and palm kernel shell (PKS) in industrial boilers or power plants, which are carbon neutral scenarios. Indeed, basically there are 3 big scenarios to reduce the concentration of CO2 in the atmosphere, namely increasing the efficiency of equipment that uses fossil fuels, using carbon neutral fuels and carbon negative scenarios such as biochar.

Palm oil trees are known to require a lot of water and fertilizer to maintain the life sustainability and productivity of their fruit, so practical efforts in the form of increasing fertilizer nutrient efficiency and increasing fruit productivity are important. Besides that, palm oil mills produce a lot of biomass waste, especially empty fruit bunches (EFB ) and mesocarp fiber, which are very potential for biochar raw materials. The biochar is then applied in palm oil plantations which can be used with chemical fertilizers or with compost / organic fertilizers.

Pyrolysis and gasification technologies are commonly used for the production of the biochar. Apart from producing biochar by pyrolysis or gasification, energy is also produced which can be used for the business development of the palm oil industry or for electricity production. Production of PKO (Palm kernel oil) from kernel processing at KCP (kernel crushing plant) or production of torrefied PKS from PKS processing with torrefaction can be done by utilizing excess energy from the production of biochar. Most of the palm oil mills or CPO mills do not have kernel processing or KCP to produce PKO. And by making torrefied PKS, the caloric value of PKS will increase, it is easy to downsizing (increased grindability), for example in the use of cofiring and does not absorb water (hydrophobic property). In general, palm oil mills will have many advantages, both economically / financially and environmentally, with this biochar production.

Apart from being used for business development like the diagram above, excess energy from pyrolysis or gasification can also be used as boiler fuel in the palm oil mill. In this way the energy to heat the boiler, which is usually with palm kernel shell and mesocarp fiber, can be replaced by energy from pyrolysis or gasification. After that, all of the palm kernel shells / PKS can be sold or exported, thus providing additional profits for the palm oil company. The need for biomass fuel, especially palm kernel shell / PKS, is predicted to increase, both in the domestic market and in the export market. Japan is currently the largest consumer or user of palm kernel shells and it is predicted that the demand will also increase. Japan will also impose stricter standards on imports of palm kernel shells to ensure environmental sustainability by applying the GGL (Green Gold Label) certification which will be effective starting April 2023. This is like the wood pellets with FSC certification. If anyone is interested in an economic analysis of the use of biochar in palm oil business, please contact us.