Utility Business for Palm Oil Mills

When the priority is to obtain the maximum profit, good environmental management and ease, efficiency and stability of production as an option, then utility matters at the palm oil mill may be collaborated with other parties. This specialization becomes important because of the priority choices above. The utility problems in question are electricity and steam. Electricity is produced from a steam turbine and steam is produced from a boiler. High pressure steam enters the steam turbine to drive a generator and produce electricity and low pressure steam output from the steam turbine is used for the fresh fruth bunch (FFB) sterilization process. Water treatment for boiler feed is also part of the utility problem, as well as for boiler operations to produce output in the form of electricity and steam.

Regarding cooperation or business models, palm oil mills can pay for the electricity and steam they receive. But because the fuel or energy to produce electricity and steam comes from palm oil mills, of course the price is cheaper. If currently almost all palm oil mills use their boiler fuel from mesocarp fiber and palm kernel shell (PKS), then with this specialization it is possible for palm fiber (mesocarp fiber) and empty palm fruit bunches (EFB) to be used as fuel or energy sources while palm kernel shells (PKS) can 100% sold and even exported. Palm kernel shells (PKS) as biomass fuel can be sold directly and are in great demand, and are also the main competitor for wood pellets in the global biomass fuel market.

Under these conditions, there are efforts to increase the efficiency of utility production such as steam and electricity as optimally as possible, not only combustion technology with static grates, moving grates, reciprocating grates to fluidized beds, but it is even possible to use pyrolysis. EFB or empty palm fruit bunches, which were previously unprocessed and were an environmental problem, can become a potential energy source so that 100% of the palm kernel shells / PKS from palm oil mills can be commercialized/sold. And even if the utility provider uses pyrolysis, biochar will also be obtained. Biochar provides many benefits related to soil fertility and climate.