Urgency of Biochar Production Industrial Capacity

The provision or application of biochar to agricultural land follows the 4Rs rule, namely the right source (appropriate biochar raw material), right place (appropriate application area), right rate (appropriate dosage) and right timing (appropriate time). The physical and chemical properties of biochar differ depending on the raw material and production process. By following the 4R rules, biochar performance can be maximized. The effect of biochar on plants will be clearly visible (significant) when the 4R rules are met. With a dose / rate reaching 20 tons / ha (depending on the influencing condition factors), the need for biochar is also large. This is why biochar products are rarely sold online, namely because of the large volume.

Unlike soil amendments such as compost, the effects of biochar can be felt for quite a long time or for several types of agricultural crops, namely not only in one planting season, but repeatedly. This also makes the provision or application of biochar not as frequent as compost. And in the end, of course, the economic aspect is a determining parameter whether biochar makes agricultural businesses more profitable or not. The price of biochar on the market is an important concern for users or farmers.

The lack of biochar production in Indonesia is currently a barrier to biochar application in large agricultural lands, even when farmers' awareness of biochar is also increasing. This is the driving force for the importance of adequate biochar production, especially industrial capacity. Only with adequate biochar production can biochar application in agricultural lands or degraded lands be carried out optimally. The urgency of industrial capacity biochar production is even greater, especially when the biochar production also gets carbon credit, of course this will be even more interesting.

Stationary Auger : Industrial Pyrolysis for Indonesia and SE Asia

Global biochar production in 2023 is estimated to reach 350 thousand tons or equivalent to 600,000 carbon credits and is expected to continue to increase. From an economic perspective, revenues from biochar producers, distributors, value-added producers and equipment manufacturers exceeded $600 million in 2023, with a CAGR of 97% between 2021 and 2023. Revenues are projected to grow to nearly $3.3 billion in 2025. The existence of carbon credits is the second largest motivation for biochar production. With the existence of carbon credits, there has been a significant increase in biochar production from before. In 2023, this biochar carbon credit contributed the largest amount, namely 90% of carbon removal in the voluntary carbon market according to data from cdr.fyi.

And even biochar production where the income from direct sales of biochar is not that big or in other words they rely on income from biochar production then it is still a profitable business. As a tropical country, Indonesia can be said to be a biomass heaven both from agricultural / plantation biomass or forestry. If the biomass is converted into biochar then the production will be very large as well as the carbon credit. Direct sales of biochar (physical biochar) can also be done well because there are so many sub-optimal lands that can be repaired or upgraded using biochar, such as dry lands, critical lands, post-mining lands and so on, which amount to tens or even hundreds of millions of hectares.

Nearly 80% of biochar producers in 2023 will fall into the medium, large, and very large categories

The selection of production equipment that can produce certified biochar so that it can get carbon credit is important besides maximizing production capacity, it requires adequate production equipment. Stationary auger pyrolysis equipment is the right choice to meet the above requirements. In addition to producing biochar as the main product, by-products such as excess heat, biooil and syngas are additional benefits of the pyrolysis process with the stationary auger. The utilization and monetization of these by-products are an increasing driving force for biochar production with the stationary auger. Currently, there are still many biochar producers who do not have certification or standards for carbon credit, this also makes them unable to get income from carbon credit or just business as usual with biochar sales. Of course, this is not attractive to companies that will produce large-capacity biochar.

But why is biochar production in Indonesia and Southeast Asia still very small and not many people even know about biochar? This is related to low awareness of climate, sustainability and the environment and more specifically to biochar. Biochar as a solution to improve soil fertility so that productivity increases (both agricultural/plantation crops and forestry) as well as a climate solution with carbon sequestration. But with the high problem of climate awareness, sustainability and the environment, especially with the economic driving force in the form of carbon credits, it seems that the story will be different in the coming years. But there are indeed reasons related to the low participation of biochar producers in the carbon market, namely the costs and difficulties in obtaining certificates to sell carbon credits, as well as the costs of participating in carbon marketplaces. But with the large production capacity of industrial capacity with stationary auger equipment, the costs and difficulties in obtaining carbon credits will be commensurate with the benefits obtained.

Biochar from Wood Waste and Forestry Waste

The era of decarbonization and bioeconomy continues and continues to grow over time. While some people focus on the carbon neutral sector such as the production of biomass fuels such as wood pellets, wood briquettes or wood chips, people who focus on negative carbon seem to be fewer, including the use of CCS (Carbon Capture and Storage) and biochar production. Compared to CCS, biochar production with pyrolysis is easier and cheaper so it is projected to become a future trend. Logically, the negative carbon scenario is actually much better because in addition to reducing the concentration of CO2 in the atmosphere, while the neutral carbon scenario only does not increase CO2 emissions in the atmosphere, but does not reduce or absorb CO2 in the atmosphere. CO2 sequestration or biochar carbon removal (BCR) is currently also the most industrially relevant carbon removal technology. BCR is a key solution for real climate change mitigation today and its development is very rapid. BCR also has a vital role in the carbon removal technology portfolio. 

Woody biomass, especially from wood industrial waste and forestry waste, is a potential raw material for biochar production, even this type of wood biomass is the best raw material because it can produce high quality biochar, namely fixed carbon of more than 80%. The potential for wood biomass raw materials in Indonesia is very large, estimated at 29 million m3/year from forest harvesting waste, and 2 million m3/year from wood processing industry waste including 0.78 million m3 in the form of sawdust (the yield of the sawmill industry ranges from 50-60% and as much as 15-20% consists of sawdust). And that does not include if there is a biomass plantation or energy plantation dedicated to biochar production.

With the condition of agricultural land, plantations and forestry which are experiencing a lot of degradation, the need for biochar is also very large. Among the factors causing the decline in land fertility is the use of chemical fertilizers and pesticides for decades continuously and tends to be excessive. This causes a decline in soil quality which has an impact on crop production because it makes the land more acidic and hard which is estimated to reach millions of hectares. In addition, the price of chemical fertilizers is increasingly expensive and difficult to obtain, which results in low agricultural production, so the government is forced to import several agricultural commodities to meet the needs of the community. This actually does not need to happen considering the potential land in Indonesia is very large, it only needs to improve the condition of the land so that it can be optimal again. Making damaged land fertile is not difficult, it only takes perseverance to repair and care for the land so that it continues to be fertile.

Meanwhile, dry land consists of ultisol soil of 47.5 million ha and oxisol of 18 million ha. Indonesia has a coastline of 106,000 km with a potential land area of ​​1,060,000 ha, generally including marginal land. Millions of hectares of marginal land are spread across several islands, have good prospects for agricultural development but are currently not well managed. The land has a low fertility rate, so technological innovation is needed to improve and increase its productivity. Not to mention post-mining land which is almost all very damaged and also covers millions of hectares. And biochar is the right solution that can restore the condition of the land to be fertile again. 

Slow pyrolysis is the best technology for biochar production. But the technology used must be efficient and emissions meet the threshold standards of the country concerned. In addition, excess heat and/or liquid products and gas products from pyrolysis should also be utilized. With the criteria for pyrolysis technology as above, in addition to the quality and quantity of products, namely biochar, can be maximized, the production process also does not cause new problems in the form of environmental pollution. This is very much in line with biochar business activities so that it becomes a solution to the problem of industrial biomass waste from wood and forestry waste as well as a solution to climate problems. Even the utilization of by-products (excess heat and/or liquid products and gas products from pyrolysis) can also encourage the emergence of other environmentally friendly and renewable products.

In economic terms, the outline can be as follows, namely with an investment of 10 million US dollars, approximately 200,000 tons of biochar with more than 400,000 carbon credits will be produced over a period of 10 years. Or if with an investment of 100 million US dollars, almost 2 million tons of biochar and more than 4 million carbon credits will be produced over a period of 10 years. And for example, with a selling price of biochar of 100 dollars per ton and also a carbon credit of 100 dollars per unit (per ton of CO2), then within 10 years the investment has increased 6 times or it only takes about 1.7 years for the initial investment to return (payback period). Of course, when the price of biochar is higher and / or its carbon credits, of course the return on capital will be faster. And that does not include the utilization of liquid and gas products from pyrolysis and excess heat which also have economic potential that is no less interesting. The trend of the future business era will not only focus on financial profit but also provide solutions to environmental problems and climate problems, and of course solutions to social problems by creating jobs.