Blue Economy & Bioeconomy – Seaweed, Coconut and Nyamplung

With the second longest coastline in the world, located on the equator so it has a tropical climate and the largest coconut producer in the world, maintaining and continuing to develop coconuts is very important and strategic for Indonesia, especially since Indonesia has long been famous as the land of waving coconut trees. The productive life of coconut trees is also very long, namely 60 years, so they can be passed down across generations. The nyamplung tree, which is easy to grow and is often found in coastal areas, should also be developed, as well as the potential for seaweed. With the development of the times to carry out decarbonization in various sectors of life, especially the use of renewable energy, coconut, nyamplung and seaweed can be an effective solution.

Coconut oil, like palm kernel oil (PKO), has a high lauric acid content, so it is very suitable for the production of Sustainable Aviation Fuel (SAF). Currently, Indonesia is planning to increase SAF production from palm oil, namely palm kernel oil, to 3% this year (2026). This policy was accelerated to support the aviation sector's decarbonization targets. Palm kernel oil production is around 5 million tons/year with the main uses currently being very diverse, including the food industry (margarine, chocolate, cakes), cosmetics (soap, shampoo, lipstick), oleochemicals (fatty acids, glycerol), to renewable energy (SAF) - still in the early stages, as well as non-food products such as lubricants. while the potential for coconut oil is 2.9 million tons with the main uses being cooking (cooking oil), processed food industry (biscuits, margarine, ice cream), cosmetics (soap, shampoo, moisturizer), health (consumed directly as Virgin Coconut Oil (VCO)) and pharmaceuticals (ointment base), skin/hair care and oleochemicals. Why coconut oil and palm kernel oil are very suitable for SAF production, read more details here.

In addition to the potential raw material for SAF from coconut, the international civil aviation organization (ICAO) has included non-standard coconut in the ICAO positive list - ICAO document - CORSIA Default Life Cycle Emissions Values for CORSIA Eligible Fuels, 6th Edition on October 28 20024. Non-standard coconut includes very small old coconuts, already sprouted, starting to rot or become moldy and those that are broken. Based on data from a number of research studies, the number of non-standard coconuts in Indonesia is estimated to reach 30% of Indonesia's coconut production.

Regarding coconuts, the government should limit or prohibit exports of round coconuts. This will not only hinder the domestic coconut processing industry but also more specifically the development of SAF. Apart from that, efforts to replant coconut plantations must also be carried out. The area of ​​coconut plantations that must be replanted currently reaches hundreds of thousands of hectares, such as in Riau alone with a coconut plantation area of ​​426,579 hectares (11.4% of the plantation area in the province, read more details here). 72 thousand hectares of coconuts need to be replanted, while the replanting speed is very low so coconut productivity continues to decline. Meanwhile, nyamplung trees and seaweed require socialization and real action so that they can meet production targets and expectations.

Meanwhile, nyamplung oil can be used for biodiesel / FAME production. From the government's plan to increase the biodiesel mixture from B-40 to B-50, this means requiring almost 60 million tons/year of vegetable oil, especially palm oil. Meanwhile, currently crude palm oil or CPO production is around 50 million tons/year and increasing 20% ​​or to 60 million tons/year is certainly not easy. Moreover, currently the expansion of palm oil plantations (extensification) is in the sharp public spotlight with widespread public attention. A number of natural disasters, especially the Sumatran floods, which have claimed the lives of thousands of people, with the extensification of palm oil plantations as the suspect, have made it increasingly difficult to increase palm oil production through expanding this land. And indeed land expansion (extensification) must always be in the corridor of sustainability, so that palm oil can be a blessing and not a disaster.

Nyamplung trees with productivity almost the same as palm oil trees are very interesting to develop for biodiesel production or more practically adding 10 million tons / year to reach the B-50 proportion. Along Indonesia's very long coastline, there are locations for coconut and nyamplung plantations. Apart from that, seaweed from its waste is also a potential raw material for renewable energy, both ethanol, biodiesel and SAF.

Meanwhile, from the seaweed sector, apart from the production of agar, carrageenan and alginate which are widely used for food products, biofuel can be produced from seaweed waste. Seaweed industry waste can reach 65-75% of the fresh raw materials processed. This very large amount is often wasted without further use which can increase added value. Because solid seaweed waste contains a high percentage of cellulose and only a small amount of lignin, this waste has the potential to be processed into bioethanol and sustainable aviation fuel (SAF). 

The process route, namely ATJ or alcohol to jet fuel, can be used to produce sustainable aviation fuel (SAF). Meanwhile, seaweed waste is usually disposed of in landfills, which can cause unpleasant odor problems. Specifications for industrial waste from the E. cottonii species are 3.66% water content; ash 36.84%; protein 1.78%; carbohydrates 11.36%; 0% cellulose; hemicellulose 12.86%; lignin 0%. Meanwhile, industrial waste specifications from the species Gracilaria sp. and Gelidium sp.: cellulose 26.92%; hemicellulose 16.11%; lignin 15.38%; ash 16.72%; water content 12.94%; NaCl 3.77%. 

After their productive life is over or ends, the coconut trees and nyamplung trees are cut down. Coconut tree trunks and nyamplung trees are very suitable for building wood used for housing. This will add economic value and is a necessity that will continue to be needed. In fact, efforts to improve the quality of wood can also be done by engineering the wood material, such as with CLT (cross laminated timber) and so on.

And like palm oil, both coconut and nyamplung also produce shells. Just as palm kernel shells can be used for fuel, so coconut shells and nyamplung shells as well. Even palm kernel shells or known as PKS (palm kernel shell) are the main competitors of wood pellets in the global biomass fuel market. However, because the quality of coconut shells is better or more suitable for the production of charcoal briquettes and activated carbon, coconut shells are generally carbonized or made into charcoal. Charcoal is an intermediate product or raw material for charcoal briquettes and activated carbon. Read more details about the production of activated carbon from coconut shells here. Meanwhile, because nyamplung shells are not widely produced, their use is still limited, but if the quantities are large, such as the production of palm kernel shells, then it could be like palm kernel shells, or perhaps also like the use of coconut shells.

Apart from that, both the production and extraction of coconut oil and nyamplung oil will produce cake. Coconut cake and palm oil cake can be used as animal feed, but nyamplung cake requires additional processing so that it is non-toxic and safe for animal feed. The development of a blue economy on the Indonesian sea coast should be an important concern as an environmentally friendly economic solution that suits the conditions and potential of Indonesian society and is in line with the global community's concerns about decarbonization as mitigation for climate change and global warming. Apart from also supporting food and feed security. 

Biochar for Sustainable Coconut Productivity

Coconut fiber accounts for 30%, or about a third, of the weight of a coconut. This material is generally left in plantations and remains largely unused, potentially polluting the environment. With Indonesian coconut production reaching approximately 2.9 million tons per year, or 15.13 million coconuts per year, the potential for coconut fiber production is enormous, amounting to approximately 1 million wet tons (average moisture content of 60%) or 500,000 dry tons (10%) of moisture.

The volume of coconut husk is largely unaffected by the government's recent policy of exporting whole coconuts, particularly to China, as shown in this video. Many coconut-based industries are struggling to secure raw material supplies, even leading to factory closures. Industries such as dessicated coconut, coconut milk, coconut shell charcoal and charcoal briquettes, and activated carbon are severely impacted by this policy. Selling processed or industrialized coconut products would clearly add greater value and create jobs. Developed countries also export finished or semi-finished goods, not raw materials.

The industrialization of coconut-based products is crucial. Like palm oil, coconut processing products are primarily used for food products. Utilization for energy or biofuel is also very possible, such as for sustainable aviation fuel or SAF (Sustainable Aviation Fuel). Even for palm oil, the use of biofuel is in the form of a mandatory blend of palm oil from CPO (crude palm oil) in biodiesel 40% this year and is being reviewed to be 50% (B50) by 2026, as well as palm oil from PKO (palm kernel oil) for a 3% blend for sustainable aviation fuel or SAF in 2026. The main content of coconut oil is lauric acid, the same as palm kernel oil or PKO. Lauric acid consisting of 12 carbon atoms (C) or MCFA (medium chain fatty acids) is very suitable for the use of sustainable aviation fuel or SAF must have a carbon atom bond or C bond in the range of C10-C15, for more details read here.

 

Coconut productivity continues to decline due to inadequate or slow replanting programs. A similar situation is also experienced by oil palms (for more details, read here), and this presents a unique obstacle. The area of ​​coconut plantations that needs replanting also reaches tens or even hundreds of thousands of hectares. For example, in Riau Province, the target is 43,388 hectares of coconut plantations to be rejuvenated by 2025. In addition to increasing coconut productivity through the use of superior seeds, intensification is also necessary. High coconut productivity and high selling prices are driving this replanting.

Utilizing or producing biochar from coconut fiber is a solution to increase sustainable coconut productivity. Biochar can also significantly support organic coconut plantations. Although coconut trees are generally not fertilized adequately or even not at all, they still bear fruit. Biochar increases fertilizer use efficiency because biochar acts as a slow-release fertilizer agent. Regarding fertilization, coconuts differ significantly from oil palms, which require fertilization for fruiting and are highly dependent on chemical fertilizers. In fact, fertilization is the highest cost component in oil palm plantations. Organic coconut products produce desirable derivative products with high selling prices.

The potential revenue from carbon credits is also very attractive. To obtain carbon credits, or BCR (Biochar Carbon Removal), the biochar application, including the production process, must be verified by a carbon standards agency. Carbon standards agencies such as Puro Earth, Verra, and CSI have developed methodologies that biochar producers must follow to obtain these credits. 

PAO and UCO Become Bio-Jet Fuel

Decarbonization has entered all lines including the air transportation sector. Aviation fuel must also gradually shift from fossil fuels to sustainable renewable fuels. However, decarbonization in this sector is still slow, namely currently only around 0.01% of the use of sustainable renewable fuels or SAF (Sustainable Aviation Fuel) globally for these aircraft. These barriers include technological maturity or technological readiness, certification for SAF conversion or production process routes, scale up and commercialization, price gaps with fossil fuels, and competition with biofuels in the land transportation sector. The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) has initiated a reduction in GHG emissions for global aviation. Using the 2019 baseline, it is estimated that around 2.5 billion tonnes of CO2 emissions need to be offset / reduced in the 2021-2035 period to achieve carbon neutral growth. CORSIA also plans its implementation in three phases, namely the pilot phase in 2021-2023, the first phase in 2024-2026 and the second phase in 2027-2035. Participation of member countries is voluntary in the first two phases (2021-2026) and mandatory in the 2027 phase and beyond, except for the least developed countries, small developing countries and landlocked countries.

Until now, HVO / HEFA - SPK (Hydro-processed Esters and Fatty Acids-Synthesized paraffinic kerosene) technology using vegetable oil including waste oil is the only technology that is most ready for the conversion or production of SAF. Currently, the technology readiness level (TRL) and feedstock readiness level (FRL) are at level 9, meaning that it is the most ready among other conversion technology routes. One of the advantages of HVO technology is the flexibility of using various feedstocks / raw materials so that waste oil such as PAO or mico from palm oil mill ponds and also used cooking oil or used cooking oil or UCO are also very potential to be converted into SAF with HVO technology. But in fact, even though HVO technology can directly produce SAF, most of the HVO technology is used for the production of diesel engine fuel for land transportation or commonly called green diesel or renewable diesel. Green diesel or renewable diesel is different from biodiesel or FAME-based biodiesel which is produced by the transesterification process. And green diesel or renewable diesel from HVO also has a number of advantages compared to FAME based biodiesel.

HVO production is also not a new technology. Globally, there are a number of large-capacity commercial HVO plants that use vegetable oil as raw material. The largest plants are Neste in Rotterdam and Singapore with a capacity of 1.28 billion liters per year and Diamond Green Diesel in Louisiana with a capacity of 1.04 billion liters per year. HVO production is closer to petroleum refining technology than conventional diesel production. This is why oil and gas companies may be more interested in developing it than palm oil companies or conventional biodiesel companies. Palm oil mills have raw materials / feedstock, while oil and gas companies may be more relevant to downstream development because of the readiness to adapt technology and develop end products.

HVO is produced by hydrogenation and hydrocracking of vegetable oils and animal fats using hydrogen and catalysts at high temperature and pressure. In this hydrotreating process, oxygen is released from the feedstock consisting of triglycerides and / or fatty acids. This will produce straight chain hydrocarbons (paraffins) with various properties and molecular sizes depending on the characteristics of the raw materials and the operating conditions of the process being carried out. This conversion usually goes through two stages, namely hydrotreatment followed by hydrocracking / isomerization. This hydrotreatment process is usually carried out at a temperature of 300 -390 C and for triglyceride treatment, propane is usually produced as a by-product. The final product of straight chain hydrocarbons can be adjusted according to certain fuel types such as bio jet fuel or SAF. Currently HVO is the third most common biofuel in the world after ethanol and FAME based biodiesel.

PAO is produced as waste or by-product of palm oil mills. PAO will always be produced because palm oil mills cannot have an efficiency level of 100% and the less efficient the palm oil mill, the more oil becomes waste or by-product in the form of PAO. It is estimated that there are currently 1 million tons of PAO in Indonesia and 0.5 million liters in Malaysia or a total of 1.5 million tons. As for UCO or used cooking oil with the use of cooking oil reaching 1.55 million tons/year assuming 10% can be recovered as used cooking oil or UCO, 155 thousand tons/year are produced. In addition to being part of the effort to overcome waste both in palm oil mills and households that pollute the environment, the production of SAF or bio-jet fuel has also contributed to the decarbonization of the air transportation sector. With HVO / HEFA technology that is able to process waste oil such as PAO and UCO, the more PAO and UCO that can be processed, the better.