Startup Business Based on Energy Plantation

Startup business is a trend today and not a few, especially young people who are very interested in this business pattern. Information technology in the form of the internet has made it easier to run the startup business. Today we can see that with this startup pattern a number of large companies have existed and stood by selling their products and services. Innovative products that can provide accurate solutions to the various problems that make the company exist and continue develop. But it turns out that running and developing a startup business is also not easy and without obstacles. The fact is that up to now the possibility of startups appearing and being able to survive is only 8%, meaning that out of 100 startups, only 8 startups can last until the second year. Even if it is counted until the fifth year, only 2 startups can survive. But the fact above is not an obstacle so that it decreases the enthusiasm to continue pursuing the  startup business. On the contrary, it becomes an encouragement about the need for knowledge and sufficient provision to even improve the condition.

Similar to business in general, a startup business will always be able to survive and develop if it continues to be needed by consumers. There are a number of fundamental commodities that will always continue to be needed including food and energy. Food and energy needs are always directly proportional to the human population. Renewable energy, especially biomass-based, which is also one of the focuses of this blog, has bright prospects in the future. Energy plantations can be the basis for a startup business. Energy plantations beside having great benefits for the environment, they also have economic and social benefits. In addition to the fact that there is currently no energy plantation implementation that has yet to work professionally, it needs acceleration. In the early stages of startup, it can focus on commodities that are easy and needed by the market, such as the scheme below.

Startup Business Based on Energy Plantation Phase I

Energy plantations have a number of outputs that can be commercialized or sold, namely wood for wood pellets, leaves for animal feed and flowers for honey production. A number of outputs or yields will clearly maximize the benefits of the energy plantation. The extent of idle land, critical land and a number of unproductive land that reaches tens of millions of hectares is a challenge for the implementation of the energy plantation. The more land is utilized and the higher the level of profits obtained, of course, the more investors invest in this sector. The meat self-sufficiency program from domestic production is also increasingly helped and can be accelerated by forage from the leaves of the energy plantation. The energy plantations use plants such as leguminoceae (legumes) such as calliandra and gliricidae, with roots that are symbiotic with azetobacter microorganism so that it can bind nitrogen from the atmosphere making the leaves rich in protein to become nutritious feed for livestock.

Startup Business Based on Energy Plantation Phase II

In stage 2 such a scheme above the benefits can be further increased. This is because the company does not only produce raw materials used by other industries but furthermore, that is, produce finished products that are ready for consumption. Even so the length of the chain of production processes indeed makes the responsibility of producers increasingly large and complex. Startup businesses that have experienced or have surpassed phase 1 schemes will usually find it easier to run phase 2. The market for this stage is also mostly for exports because up to now the domestic market is not ready, for example wood pellets for fueling fluidized bed technology combustion. PKS (palm kernel shell) are now widely used for the power plant, and because availability is also limited it will be very possible in the future era of wood pellets from the energy plantation as a replacement.

The market for biomass fuels, especially PKS and wood pellets is very open especially in the export market. Japan and Korea are the biggest consumers of biomass fuels today for the Asian region, for more details about the characteristics of the Japanese and Korean markets can be read here. Whereas Europe with the RED program (Renewable Energy Directive) II in 2030 targets that almost 1/3 of energy consumption derived from renewable energy with biomass fuel gets a portion of 80%. The amount is certainly very large, with the current conditions Europe still needs around 5 million tons of wood pellets even though RED I, which applies until 2020, only targets 20 percent of energy consumption from renewable energy and biomass to get a portion of 80 percent.

Enter the Global Wood Pellet Market

In fact the massive growth of wood pellets derived from the encouragement of a number of policies in Europe, more specifically the electricity business in the UK. In 2020 the world consumption of wood pellets is estimated at 22 million tonnes. Two power plants in the UK are 100% use wood pellets that Drax and Eggborough, requiring 10 million tons annually. Other major needs are wood pellets from Western European countries, especially Italy. While in Asia, Japan and Korea are the two countries most widely consumed wood pellets. Whereas in 2024 the production of wood pellets is predicted to reach 50 million tons globally.

Canada is one of the main producers of wood pellets which supply the needs of some countries above. The extent of the forest so abundant source of raw materials that make Canada one of the main producers of wood pellets. Russia is the other major country which began producing wood pellets. The extent of forests and abundance of raw material resources make Russia comparable to Canada in the production of wood pellets but mainly infrastructure problems is still a major barrier to the development of wood pellet industry in Russia. How about Indonesia? Indonesia also has a great opportunity to join in wood pellets business. Although the forest area which can be used as a source of raw materials is not as large as area of Canada and Russia, but the tropical climate in Indonesia that makes the sun shines all year round is a kind of blessing. Thank God, this is one of the pleasures of Allah that we should be. Energy forests or plantations with short rotation crops (SRC) as calliandra can be cultivated with productivity four-fold compared subtropical regions such as Canada or Russia for similar plants such as Willow or Poplar. In addition, users of wood pellets in Asia such as Korea and Japan also will be looking for wood pellets from Asia prior to Canada or Russia.

Natural or environmental sustainability issues are important things that must be considered, so that the business continuity and environmental sustainability are two things simultaneously maintained. The power plant is a major market wood pellets with large and long-term needs for environmental sustainability that needs to be a serious concern. Almost all the buyers of wood pellets for power generation will also require sustainable forest management practices and certification (FSC or SVLK) about the origin of the raw materials that could be accounted means that does not destroy the forest. Specifically for conditions in Indonesia, with an energy plantation or forest with integrated calliandra plantation with goat or cow farming activities will cycle sustainability and nature conservation will be maintained.

Steam power plant with coal fuel is one of the biggest contributors to CO2 in the atmosphere, so if it can be replaced up to 100% or full with wood pellets as a carbon-neutral fuels will reduce CO2 emissions significantly. Rodenhuize 240 MW power plant in Ghent, Belgium is one example. At first Rodenhuize is coal power plant then after that in 2011 using 100% wood pellets. Earlier in 2005 the power plant was modified so that it can work with co-firing of coal and wood pellets and in 2011 the plant switched to 100% of coal (coal) with wood pellets. The shift from coal to wood pellets has made Rodenhuize power generation reduce 1.6 million tons of CO2 emissions. Rodenhuize pattern seemed to be a reference and will be followed by coal power plants more especially in countries that have implemented environmental policies in the energy sector to compete lowering the temperature of the earth.

Potential Mapping the Wood Biomass To Energy

When the need for renewable energy from wood biomass greater, then at a certain level of wood biomass derived from wastes sawmills, or industries wood processing and so be insufficient so that it is necessary other sources are able to fulfill this purpose. Energy plantation or forest by type of short rotation coppice or SRC is the best scenario for the purpose. While this is still very much forest in Indonesia is available when used for the manufacture of energy forests or plantations, such as in the schematic below.

Detailed mapping to identify a variety of things that needed to be urgently needed because it will be linked to the size of the investment for the manufacture of energy forests or plantations. Remote sensing via satellite, aircraft, hot air balloons and the like is one of the stages to get the detailed mapping. The location of the energy forest or plantations had previously been determined, and the remote sensing of the various more detailed information will be sought, such as boundaries, topography, plant species that are already on location, age of the plant, plant height, and the type of soil. Imagery or aerial photography from remote sensing are usually seen only difference in color and form will then be translated to be processed, analyzed and obtained information as desired.

 Further field surveys in the region also needs to be done to improve the accuracy of the information of the previous stages. Field surveys are usually conducted by several teams to make the plot area-an area in a specific area which used as a sample and analyzed to find the information needed. Particular method is also used to determine the location of the plot and the amount, so the more the plot as the samples taken in the area it will be more accurate mapping information.

Furthermore, after the whole information has been obtained then the decision will be made soon. Wood pellets are a form of biomass energy that is very popular for the international market either for electricity or heat generation sector. Increasingly needs wood pellets are expected to be increased, or 2024 global production of wood pellets will be 50 million tons. Old plants in the energy forests or plantations location can also be used for the production of wood pellets if the quality and quantity according to the raw material of wood pellets is approprit before eventually using wood biomass from the energy plantations or the forests.

Wood Pellet Production With Integration of Degraded Land Use For Energy Plantations, Cattle and Biogas Resources

There is a huge demand of wood pellet and on the other hand also the extent of uncultivated land in a number of places in Indonesia potentially be used for energy plantations with an output is wood for raw material of wood pellets. Currently estimated at more than 6 million hectares of unused land in Indonesia. While forage on plants short rotation species such as gliricidae and calliandra be useful as animal feed  of the cows. For every hectare is expected to be a source of cattle feed by approximately 6 tails. If there are 5000 ha of degraded/unused land it will produce around 100,000 tonnes of wet wood as a source of raw material of wood pellets and maintain 30,000 head of cattle. A large number of these cows potential as a source of biogas to meet the energy needs of the business itself.

The roots of the plants short rotation species is able to bind nitrogen that enrich the soil fertility. The root is able to perform a symbiotic relationship with bacteria in the soil, ie Rhizobium spp. Trees provide carbohydrates and energy for rhizobia bacteria, and rhizobia change of atmospheric nitrogen into nitrogen in the soil which can be exploited by tree roots. This process is known as nitrogen fixation, which took place on that form nodules on the roots of trees. Nodule should much, and when it opened in the red or red-pink. If the nodule is green, brown or black, is not binding nodule nitrogen. And plus organic fertilizer from biogas residue so that the land will be fertile and gardens where more can be expected to continue its sustainibility.

Good management supported by a team of professionals will support the future success of your business. Production of wood pellets can be used as first priority , then followed by dairy farms and biogas and organic fertilizer as a supporter. The concept of zero waste, green industry and sustainable implemented in the integration of this business.