Monday, July 20, 2020

Why Do Most Palm Oil Mills Not Have Biogas?


Palm oil plantations are the largest plantations in Indonesia with an estimated area of ​​more than 12 million hectares or are the largest palm oil plantations in the world with CPO production reaching more than 40 million tons / year and an estimated more than 1,000 palm oil mills. Malaysia is second ranked for the area of ​​palm oil plantations following CPO production. Biogas energy is the potential energy from the palm oil mill wastewater treatment or POME (palm oil mill effluent). Around 0.7 m3 of liquid waste is produced by the palm oil mill per tonne of FFB (fresh fruit bunch) treated. Biogas usually consists of 50-75% methane (CH4), 25-45% carbon dioxide (CO2), and a number of other gases. If liquid waste management is not controlled, the methane in biogas is released directly into the atmosphere. As a greenhouse gas (GHG), methane has an effect 21 times greater than CO2. Almost all biogas production is used for electricity production. In addition to electricity production, it is environmentally friendly and is also a means of treating waste and preventing climate change. But why are there so few palm oil mills in Indonesia or it is estimated that less than 10% have these biogas units? There are a number of analyzes of why this happens.

A. The prospect of biogas is less attractive

Although it has an abundant source of raw materials in the form of liquid waste (POME), but when electricity products are only bought cheaply, it is not attractive, because for the procurement and installation of biogas units and power plants requires huge costs. The payback period is also getting longer even though operational costs have also increased over time. In addition, the BOT mechanism (built, operated, transferred) after a certain period of time also makes palm oil entrepreneurs less interested.

B. Lack of vision for business development

Electrical energy is energy that is very flexible or easily transformed into other forms of energy. So the availability of electrical energy should be able to encourage the development of other businesses. But with the lack of vision in the business development, the motivation for electricity production from the biogas unit is also weak. A number of businesses can be built if electricity is available, for example a kernel crushing plant (KCP). Palm oil mills are currently only producing CPO, while the kernel or palm kernel which produces palm kernel oil (PKO) is only sold to other mills. EFB or fiber pellets can also be produced if there is enough electricity. Mechanical devices for the production of pellets require adequate and stable electricity supply. Besides CPO derivative plants such as oleochemicals can also be built if electricity supply is available.

C. Unclear environmental regulation

Weak environmental regulations will also hamper the development of biogas units. Untreated liquid wastes will potentially produce dangerous GHGs, especially methane. If this environmental hazard becomes the concern of all parties and produces a number of regulations, the potential for environmental pollution can be reduced and the biogas unit can be a surefire solution to overcome the problem.

Then how is the solution so that palm oil mills protect environmental problems and at the same time provide economic benefits? The biogas unit is still being built and operated with its electricity output for the development of a number of industries mentioned above. Another option that can be done is to create a biogas unit but not for direct electricity production, but for heat production. The heat is used for palm mill boiler operations. With heat coming from biogas, the palm kernel shell (PKS) can be sold or exported.
  For palm oil mills that need biogas units or biogas gas engines (generators), whether new or second / used or only repair and maintenance / service, please send an email to: eko.sbs@gmail.com

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