Biomass Boiler Testing and Selection of Suitable Biomass Fuel

In line with the trends toward decarbonization and sustainability across various sectors of life, particularly in the processing industries (manufacturing/process industries), the use of biomass boilers has become a realistic option today among boilers that utilize other renewable energy sources. Fossil-fuel-fired boilers—such as solid-fuel boilers (coal), liquid-fuel boilers (industrial diesel), and gas-fired boilers (natural gas)—must be replaced with renewable fuel boilers, namely biomass boilers. Apart from technical factors in the form of operational adjustments from previous fossil-based fuels, the suitability and availability of biomass fuels are important factors. Suitability refers to the technical aspect and availability refers to the economic aspect.

Combustion technology for biomass boilers also continues to develop so that efficiency continues to increase. From the beginning in the form of static grates to dynamic moving grates such as chain grates and reciprocating grates, even fluidized beds. And to get optimal performance, biomass fuel specifications must also match the shape, size, calorific value and dryness. If the specifications do not meet the requirements of the combustion technology in the boiler then of course the performance will not be optimal. For example, chain grates are suitable for using fuel that has a uniform size and low water content such as palm kernel shells, wood chips and wood pellets. Apart from that, biomass fuel with ash content which has a high melting point is highly preferred so that the ash does not melt and clog the chain lattice cavity.

Meanwhile, using a reciprocating grate, this system is very reliable for burning biomass with high moisture content (up to 60%), non-uniform size, and high ash content, such as empty oil palm fruit bunches (EFB), bark, and municipal solid waste (MSW). The combustion system moves back and forth periodically (like a moving staircase that moves back and forth) which functions to mechanically turn and stir the fuel. And for fluidized beds, this system has the highest thermal efficiency (>89%) and is very suitable for biomass with very small size (powder/dust), low calorific value, or fluctuating chemical content such as rice husks, sawdust, and coffee grounds. The biomass particle size must be maintained within certain limits so that it can float and fluidize perfectly with the sand bed media. The ideal particle size for a fluidized bed boiler (FBC) generally ranges from 0.1 mm to 10 mm (maximum 30–50 mm for certain components), depending on the specific type of technology used.

As a country located on the equator with a tropical climate, Indonesia is a biomass paradise in the world; read more here. A wide variety of biomass fuels in large volumes can be sourced in Indonesia. The most readily available biomass fuels in Indonesia today are wood chips, palm kernel shells, and wood pellets. Wood briquettes are also available but in limited quantities. Choosing the right biomass fuel will ensure optimal boiler performance, but of course, the economic factors for each metric ton of high-pressure steam produced are equally important. 

Ideally, biomass fuel is available in large quantities, ensuring affordability and high quality. The price of biomass fuel is influenced by various factors, including availability, location, logistics infrastructure, and transportation costs. Furthermore, if the biomass fuel undergoes processing, such as wood pellets and briquettes, production costs also contribute. Palm kernel shells for industrial boiler use in Indonesia require almost no processing; they are simply collected from palm oil mills or CPO mills, which produce waste in the form of palm kernel shells (PKS).

There is a case study regarding the selection of this biomass fuel involving a multinational company. In a certain country, the company’s boilers operate using wood briquettes—specifically, industrial briquettes produced by a mechanical press. This approach was also planned for the company’s plant in Indonesia. However, because producers of wood briquettes are still very scarce in Indonesia—making it impossible to secure a supply—the company ultimately conducted various experiments and trials with different types of biomass fuels and now operates its boilers using wood pellets. Thus, in addition to technical factors, economic factors are also crucial for ensuring optimal and sustainable biomass boiler operations. The trial phase is a critical step in achieving these conditions. 

Palm Oil Mill: Just Replacing Boiler? Or Are You Also Looking for a Solution to Address the Problem of Empty Fruit Bunches and Generate Additional Profits?

As palm oil plantations in Indonesia continue to expand—currently covering approximately 17 million hectares—the demand for palm oil mills is also increasing. About 10 years ago, there were approximately 1,000 palm oil mills in Indonesia, but according to the latest data from the Ministry of Agriculture of the Republic of Indonesia, the number of active palm oil mills (POM) in the country is now estimated to be between 1,200 and 1,500. These palm oil mills are primarily located on Indonesia’s two largest islands: Sumatra (52.69%) and Kalimantan (42.71%), while the remainder are in Sulawesi, Papua, and several other islands, where their presence is relatively small (each accounting for less than 3%). In terms of ownership, the majority of palm oil mills in Indonesia are owned by large private companies (93%), with the remainder owned by state-owned enterprises (7%). A single large private company may own a dozen or even dozens of these palm oil mills. 

One of the main equipments for palm oil mill operations is the boiler. In fact, given the current palm oil mill production process, boilers are mandatory for palm oil mills; more details on the reasons can be found here. Boilers can also be considered the "heart" of a palm oil mill, converting water into high-pressure steam to run the production process and generate electricity for the mill and its employee housing. Like all production equipment, boilers have a lifespan. When a boiler's lifespan is exceeded, it becomes not only uneconomical due to high maintenance and operational costs, but also dangerous.

The average lifespan, which is the technical and economic life of a palm oil mill boiler, is 20 years. Once this lifespan is exceeded, investing in a new boiler becomes more profitable. The majority of palm oil mills in Indonesia use water tube boilers (e.g., Takuma or Vickers). This type of boiler circulates water through hundreds of externally heated pipes fueled by palm oil waste in the form of shells and fibers. Because these pipes interact directly with extreme heat and water scale, these internal components wear out most rapidly. The three main factors affecting the boiler's lifespan are boiler feedwater quality, fuel characteristics, and regular maintenance.

When the time comes to replace the boiler, and considering the mountains of unused empty fruit bunches (EFB), palm oil mills might consider using them as boiler fuel. But given their large size and high moisture content (>60%), how can they do that? This is certainly a reasonable and innovative idea, given the urgency of replacing the boiler and simultaneously facing the problem of biomass waste. Technically, as biomass waste, it can certainly be used, but is it economically feasible to treat or prepare the empty fruit bunches (EfB) until they are ready for use as fuel? This is the challenge.

Proven evidence will dispel any doubts or theoretical narratives. Likewise, a unit that can process empty fruit bunches (EFBs) and also serve as an additional energy source for boiler operations (cogeneration) at the palm oil mill. With this equipment, not only can the problem of empty fruit bunch (EFB) biomass waste be resolved, but the palm kernel shells (PKS), which have been used as boiler fuel along with the fiber, can be 100% sold directly, providing a source of income. Furthermore, the potassium-rich ash content of empty fruit bunches (up to 30%) also has the potential to be used as fertilizer, including for use on the palm oil plantation. For more details, please read here. Visiting and observing the unit in action can also serve as a means of proving the point, thereby increasing the confidence of palm oil mills interested in this solution.

Beyond technical factors, economic considerations will undoubtedly be a crucial consideration in implementing this equipment. By considering several factors, particularly those currently operating in the palm oil industry, a comprehensive and accurate economic analysis can be conducted to reach a decision on use of the equipment. In an era of renewable fuels, efficiency, zero waste, and increased profitability, this equipment, which serves as a supplemental energy source (cogeneration) for the palm oil mill's boiler, is worth considering for palm oil mills currently facing boiler replacement. 

OPT Briquette and EFB Briquette for Medium Capacity Industrial Biomass Boiler Consumption

The growing utility business, specifically the provision of steam and electricity for renewable energy-based industries, particularly biomass, has led to a growing need for biomass fuel. This also applies to industries using their utility units to produce steam and electricity using biomass fuel. In addition to biomass fuel, water quality, the raw material for steam and electricity production (using steam turbines), is also crucial and must be considered. Good water quality will ensure optimum steam and electricity production performance, and the longevity of equipment (boilers, heat exchangers, steam turbines, and cooling towers), and vice versa. Good water quality is like healthy blood for our bodies, enabling all organs to function optimally.

Palm oil industry solid waste is a potential raw material for biomass fuel. This solid waste is empty fruit bunches (EFB) and oil palm trunks (OPT). EFB is produced from palm oil mill operations with a percentage of approximately 22% of fresh fruit bunches (FFB), while oil palm trunk waste is produced from replanting programs of oil palm plantations, which are also very abundant. For more details, read here. Utilizing both of these biomass wastes for the production of biomass fuel, especially biomass briquettes, would be very good. But why are they processed into briquettes?

The advantage of briquettes over pellets, aside from technical advantages, lies in their scale. Briquette production requires a looser particle size and lower moisture content. Energy consumption per ton of briquette production is also lower than that of pellet production. This makes EFB briquette and OPT briquette production more suitable for a palm oil mill serving medium-sized industries. A palm oil mill with a capacity of 45 tons/hour of FFB will produce approximately 10 tons/hour of EFB. With a 20-hour daily operation, approximately 200 tons will be produced per day. With a moisture content of approximately 60%, this means that after drying, approximately 100 tons/day (10% moisture content) will be produced, or 2,500 tons/month.

Likewise, when using oil palm trunk (OPT) waste as raw material, it depends on the ratio or percentage of land replanted each year. Replanting itself is an effort to continuously maintain the productivity of the oil palm plantation itself, in addition to the use of superior seeds and intensification. For more details, read here. For example, with a land area of ​​10,000 hectares and each year replanting 5% of the land, or 500 hectares. With an average of 125 trees per hectare of oil palm plantation and each tree having an average dry weight of 0.4 tons, then per hectare obtained 50 tons of dry weight of biomass. With an area of ​​500 hectares, this means 25,000 dry palm trunk biomass (10% moisture content) each year or can be processed into OPT briquettes with a capacity of around 2,000 tons/month.

Biomass boilers, used for producing biomass briquettes (EFB briquettes/OPT briquettes), can utilize various combustion technologies, such as moving grates, stokers, reciprocating grates, and so on. The choice depends on the cost or price of the boiler and its efficiency. In addition to biomass fuel, to align with decarbonization and sustainability programs, water for boiler operation, including boiler feedwater and cooling water for heat exchangers (heat exchangers/condensers), is crucial. This is likened to blood for the human body; healthy blood ensures optimal function. If impure blood circulates throughout the body, for example due to kidney failure, organs will automatically be damaged, and a person will soon die.

To maintain water quality for steam production through a boiler, boiler feedwater/demin water must strictly comply with the boiler's operational specifications. The higher the boiler pressure, the higher the water quality or purer the water required. If the steam is used for electricity production, after the steam drives the turbine, it needs to be condensed in a heat exchanger (condenser) so that it changes phase back to liquid and enters the boiler again. This heat exchanger requires cooling water that is continuously used repeatedly, thus requiring a cooling tower. Not only does the boiler feedwater/demin water need to meet the required technical specifications, but so does the cooling water for this condenser. With water volumes circulating up to thousands of tons per hour and operating 24 hours a day (the same as boiler operations) in the cooling tower, a number of water problems in the cooling tower need to be addressed effectively and efficiently. A number of water problems that occur in cooling towers can be read here.

In addition to electricity production, steam is also used for processes within a specific plant. If the steam is then condensed, then liquid, and returned to the boiler, this requires a cooling tower, just as in electricity production. Efficient and environmentally friendly water treatment technology, which eliminates secondary pollution and is easy to operate and maintain, aligns with the vision of decarbonization and sustainability. This vision of decarbonization and sustainability will be even more optimal or ideal for utility units, namely the use of biomass-based renewable energy and environmentally friendly water treatment technology. 

Energy Sources for Data Centers: Between Growth and Sustainability and the Role of Bioenergy

Data centers are physical facilities that house computer systems and related infrastructure, such as servers and storage, used to store and process data. They form the foundation of a nation's computing power and are a core dependency in building large-scale Artificial Intelligence (AI). AI data centers, in particular, are particularly energy-intensive. According to the International Energy Agency (IEA), a typical AI data center currently uses as much energy as 100,000 households, while large AI centers currently consume about 20 times that amount (2 million households).

The computing power needed to support AI growth is also doubling approximately every 100 days. For example, Malaysia, it is not surprising that data center energy consumption in Malaysia is projected to soar to more than 5,000 MW by 2035, which is 40 percent of Peninsular Malaysia's current power capacity, or 11.1 percent of Malaysia's projected power capacity in 2035. Meanwhile, in Indonesia. Meanwhile, the projection of data center electricity consumption in Indonesia has increased significantly, predicted to reach 5,200 MW in 2034 and could even reach 12,000 MW in 2033. And the current capacity in 2025 is only around 274 MW and with a predicted growth of 16.8% per year, it can reach the target of >2,000 MW in 2029.

There are at least two main drivers of growth in the data center industry. First, demand-side factors include the growth of cloud computing and AI, along with the increasing global demand for data storage and processing capacity for everyday tasks like social networking, e-commerce, and data storage. Second, supply-side factors include the availability of resources such as electricity and water, fiber optic connectivity, and land availability.

In the growing data center industry, high or wasteful energy consumption has contributed to rising electricity prices for residents and small businesses. Each country should learn from these case studies as they strive to strike a balance between growth and sustainability. For example, in Georgia, the fastest-growing data center market in the country, Georgia Power reports that 80 percent of the projected 8,200 MW increase in energy demand by 2030 is related to planned data centers opening in the state. To address the increased demand, base electricity rates have been raised and new nuclear power plant (NPP) are under construction.

Georgia is an attractive market for data centers, given its relatively low electricity prices, with industrial electricity rates about 42 percent below the US national average. Significant tax relief was also promised, with at least $163 million in state collections eliminated and local sales tax annually starting in 2022. However, starting in 2023, the average Georgia Power residential customer will pay $43 more per month following a base rate increase. To address this challenge, a Senate bill was introduced to protect residential and commercial customers from higher electricity bills due to the utility's significant investment in AI-powered energy needs.

Efforts to address the increasing energy demand for data centers while reducing their environmental impact are necessary. Typical approaches include optimizing Power Use Effectiveness (PUE) and related metrics, as well as shifting to renewable energy. The use of renewable energy for data centers remains limited, or even at a small capacity of less than 5%. Renewable energy sources still prioritize solar and intermittent wind.

Industry participants also state that the intermittent nature of solar energy (at least without a well-developed battery storage system) does not make it an ideal energy source for data centers, given the need to keep data centers running 24/7. With limited solar generating capacity, data centers often rely on backup diesel generators. While renewable diesel (biodiesel and green diesel) is an available option, there are currently no regulations encouraging this transition.

Biomass as an energy source, or bioenergy, for data centers is still very limited. This biomass can be used directly in biomass power plants, where the CFB type is very common, or through co-firing in coal-fired power plants. Furthermore, biomass can be utilized as an energy source and biochar production through pyrolysis technology, as is the case with this US company. The syngas from pyrolysis serves as a carbon-neutral energy source, and biochar is the primary product for carbon capture and sequestration (CCS), resulting in carbon-negative operations. 

EFB Pellets: Indonesia and Malaysia's Huge Potential Ready to be Monetized

Empty oil palm fruit bunches (EFB) are the most abundant solid waste from palm oil mills. Efforts to utilize them have also attracted considerable attention. With hundreds of tons of waste produced daily, it certainly presents a challenge, but also an attractive opportunity. Considerations of investment size and potential profits are key. EFB pellet production is an attractive option given the need for biomass fuel for decarbonization, renewable fuels, and carbon-neutral fuels to achieve Indonesia's Net Zero Emissions (NZE) by 2060.

The global population of palm oil plantations, with Indonesia and Malaysia leading the way, makes processing this material highly attractive. Many machinery companies have focused on empty fruit bunch processing, particularly through size reduction and pressing, but few have focused on producing EFB pellets. This is because empty fruit bunches, with their high fiber content, are more difficult to process than wood materials like sawdust or other agricultural waste biomass. 

Selecting the right, reliable, and experienced production machinery supplier is key to success. Performance guarantees, such as agreed quality and quantity targets, as well as timely machine manufacturing, installation, commissioning, and production, are indicators of the supplier's reliability. A track record is also an important consideration. Furthermore, the high potassium content of empty fruit bunches (EFB) poses a challenge in producing boiler-friendly fuel, particularly for pulverized combustion, commonly used in power plants.

And with the increasing number of companies producing EFB pellets, there will be competition for the supply of empty fruit bunches raw materials, such as PLN EPI (Energi Primer Indonesia) which signed a Memorandum of Understanding (MoU) with PT Biomassa Energi Group (BEG) and G7 Group SP.Z.O.O from Poland which was developed jointly will start operating in February 2026, with an initial production target of 120 thousand tons per year, and will be followed by five additional factories with similar or larger capacities, more details read here. 

Harvesting Energy from the Sun

The sun is crucial as a source of energy for living things, including plants, animals, and humans. It is an abundant, free, and inexhaustible source of energy, except at the time of judgment. The word "sun" is mentioned 25 times in the Quran and is the name of one of the chapters mentioned by Allah in the Quran. This suggests that Allah intended to signal that there is something for humans to explore through the sun (Asy-Syams).

An American Muslim and environmental activist, Ibrahim Abdul Matin (2012), in his book Green Deen: What Islam Teaches about Protecting the Planet, refers to renewable energy as energy from heaven. According to him, energy from heaven originates from above, meaning it is not extracted from the earth and is renewable. "Extraction causes imbalance (causes climate change), while energy from above is like energy from heaven." 

By 2024, solar power production will reach 453 GW. With wind power generation added, the two sources will account for 97.5% of the total renewable energy, making them the dominant renewable energy source. With wind power production reaching 114 GW, or about a quarter (25%) of solar power, solar energy is crucial due to its competitive cost and rapid development. China is currently the world's leading producer of solar PV. 

China's ambition is to build a "solar great wall" designed to meet Beijing's energy needs. The multi-year project, expected to be completed by 2030, will be 400 kilometers (250 miles) long, 5 kilometers (3 miles) wide, and reach a maximum generating capacity of 100 gigawatts. Currently, the project is reported to have reached a capacity of 5.4 gigawatts. Since 2024, China has led the world in electricity production from solar panels. As of June 2024, China led the world in operating solar power generation capacity with 386,875 megawatts, representing about 51 percent of the global total, according to Global Energy Monitor's Global Solar Power Tracker. The United States ranked second with 79,364 megawatts (11 percent), followed by India with 53,114 megawatts (7 percent). 

Even Elon Musk has been saying it for years, and it's something solar energy pioneers already know: the sun has enough energy to meet all our energy needs. The problem lies not only in ensuring that people have the technology to harvest the sun through solar panels, but in cities and urban centers, one of the biggest issues is storage and what to do with excess energy when the sun is shining, which is why batteries for storing that energy are so important. Consumers and businesses, when possible, typically feed energy back into the grid, where they receive cash or credits for their contribution.

But harvesting solar energy is of course not only done with solar panels (solar PV). Trees or plants also harvest solar energy and convert it into other energy sources, namely biomass-based. Renewable energy sources derived from plants (bio-energy) are also in line with QS. Yaasin (36): 80. To produce these energy sources, whether such as wood, fruit, seeds or other parts of the plant, plants carry out photosynthesis. In addition to water and carbon dioxide (CO2), this photosynthesis process requires sunlight. 

Plants, through the process of photosynthesis, store energy from the sun in the form of biomass, and this is likened to a battery. This green battery of plants can be used as a very large energy source; for more details, read here. Unlike harvesting solar energy with solar panels (solar PV), which is highly dependent on the weather, resulting in intermittent electricity supply, or likewise with wind, which sometimes does not blow, biomass energy from plants will produce stable electricity. Once converted into biomass and harvested as an energy source, the energy will always be available. And to generate electricity from solar panels (solar PV) to overcome weather problems and prevent intermittent electricity supply, very large batteries are required, and currently not available. 

Indonesia is believed to be a tropical country, the biomass heaven. This needs to be translated into more concrete terms so that it can be understood, implemented, proven, and optimally utilized. Its potential is immense and should be used to support the well-being of its people. The simple diagram below illustrates the many possibilities in this tropical "biomass heaven." 

The availability of raw materials is a vital and absolute must for various biomass processing processes to be carried out and be sustainable. On the other hand, there is a huge potential for land that can be utilized for this purpose, amounting to tens of millions of hectares, namely critical land / marginal land, dry land and post-mining land (coal mines, tin mines, nickel mines, copper mines, gold mines and so on). In more detail, it is estimated that for critical / marginal land reaches 24.3 million hectares (Times Indonesia, 2017), while dry land reaches 122.1 million ha consisting of dry acid land covering 108.8 million ha and dry climate dry land covering 13.3 million ha and post-mining damaged land reaching 8 million hectares. Energy plantations or biomass plantations need to be created in these areas and can even be used for various food crops. In fact, currently there are plant species that can only be economically viable in these lands. 

The Quran, as a source of knowledge, teaches how to obtain renewable and sustainable energy that will save humanity and the earth. By delving into and studying the verses of the Quran in detail, we will uncover various important guidance for navigating life. This should motivate and inspire humans, especially Muslims, to conduct beneficial scientific research. Applying existing resources, in line with Quranic guidance, and developing and refining efforts to harvest solar energy must continue. Furthermore, the Quran provides a solid moral, ethical, and legal basis for the balanced and responsible development of science and technology. 

The Quran explicitly emphasizes the importance of knowledge. This is evident in the first verses revealed to the Prophet Muhammad (peace be upon him), which contain the command to read, and the story of Adam being taught the names of all things, signifying humanity's superiority through knowledge. The Quran encourages travel and observation, thus opening minds to scientific discoveries. The Quran provides guidelines to ensure that the knowledge developed is used for good and does not conflict with moral values. 

Export of PKS and Wood Pellets for Biomass Power Plants and BECCS in Japan

In Japan, with approximately 290 biomass power plants, the transition to BECCS should be faster, but it's just a matter of policy and regulation. Installing CCS (Carbon Capture and Storage) units at biomass power plants makes the plant's operation carbon-negative, or carbon dioxide removal (CDR) mode. The amount of carbon captured and stored, separating it from the atmosphere, can earn carbon credits that can be used for CCS operations at biomass power plants. Decarbonization to achieve the 2050 Net Zero Emissions (NZE) climate targets and the Paris Agreement are the driving force.

And because biomass power plants always require biomass fuel for their operations, this presents an opportunity for Indonesia to supply wood pellets and palm kernel shells (PKS). Power plants in Japan, most or the majority of biomass fuel comes from imports, such as the Kanda Biomass Power Plant (Kanda Biomass Energy) in Kanda City, northeast of Chiyoda, Tokyo. Kanda Biomass Energy uses three types of biomass: wood pellets (60 percent), palm kernel shells (PKS) (30 percent), and wood chips (10 percent). Wood pellets are imported from British Columbia, Canada and Vietnam, palm kernel shells (PKS) from Indonesia, and wood chips are imported locally from northern Kyushu. This facility consumes approximately 170,000 tons of wood pellets, then 120,000 tons of palm kernel shells (PKS), and 60,000 tons of wood chips per year.

Biomass power plants in Japan generally use fluidized bed combustion (FBC) technology in their boilers. The reasons for using this technology are higher fuel flexibility, high efficiency due to good mixing, relatively low combustion temperatures, which minimize the problem of ash deposits due to melting and the use of excess air. It also further increases efficiency and reduces flue gas production. FBC technology is suitable for large capacities above 20 MW. Over time, this technology has been divided into two types: bubbling fluidized bed (BFB) and circulating fluidized bed (CFB). Generally, the differences between the two are not significant, such as fuel size, unit construction, and air-fuel ratio. Palm kernel shells (PKS) are more suitable for CFB power plants because they are less than 4 cm in size. Power plants in Japan, in particular, that use PKS or palm kernel shells as fuel because they use CFB technology.

With relatively low operating temperatures of 650-900°C, ash problems can be minimized. Certain biomass fuels sometimes have high ash content and ash chemistry that can potentially damage the generating unit. Furthermore, fuel cleanliness is also very important, this is because technically certain impurities such as metals can block the air pores in the perforated plate of the FBC unit, even though air, especially oxygen, is absolutely necessary for the combustion process and also maintains the fluidized fuel bed condition. These fuel cleanliness requirements must be met by the supplier or seller of the biomass fuel. Therefore, the buyer requires the amount of impurities (impurities/contaminants) that can be accepted is very small, namely around less than 1%. PKS cleaning is done by sieving either manually or mechanically. For more details on biomass fuel cleanliness issues can be read here.

The demand for biomass fuel is predicted to continue to increase. And biomass power plants continue to expand, with an estimated 6 GW of additional power plants projected to be installed in Japan by 2030, with an installed capacity of 7.3 GW by 2024. In fact, 11 new power plants are scheduled to come online by 2025, increasing annual biomass fuel demand by approximately 1.1 million tons. If Indonesia could also supply wood pellets to Japan by maximizing forest residue, sawmill waste, or other wood processing industry waste, that would be extraordinary.

As an estimate of forest waste utilization, for example, a production forest with an area of ​​200,000 hectares (approximately 2,000 km2) and because it is located in a tropical area with an average woody biomass growth rate of 20 tons/hectare/year, then the forest will produce 4,000,000 tons/year of wood every year from new growth. An area of ​​200,000 hectares may seem very large, but with Indonesia having almost 70 million hectares of production forest, an area of ​​200,000 hectares is only 0.29%.

For example, we set the default setting for wood utilization from production forests: 35% for building materials, furniture, flooring, etc., 30% for paper, tissue, and packaging, with 5% of the harvested wood remaining in the forest. Furthermore, 15% of sawmill waste (sawdust, chips, etc.) is used for wood pellet production, and the remaining sawmill waste is sent to pulp and paper mills and engineered wood industries.

And it is estimated that 35.3% of the 3.8 million tons/year of wood waste annually goes to wood pellet factories (approximately 1.34 million tons annually). In some locations the actual percentage is much lower because paper mills and engineered wood industries use more raw materials with the same raw materials as wood pellet factories. Therefore, in general, wood pellet factories are not located in locations that already have demand or existing use for pulp and paper and engineered wood industries. With the high water content, drying is necessary for wood pellet production, so the estimated wood pellet production is 650,000 tons/year. With the size of a handymax vessel that can carry 25,000 tons/shipment, this means 26 shipments are needed to Japan each year, or with a panamax vessel that can carry 50,000 tons/shipment, this means 13 shipments to Japan each year. 

Exploring the Market for Bioenergy and Biocarbon Products in the Era of Global Decarbonization

The demand to lower the earth's temperature by reducing greenhouse gas concentrations through various global agreements such as the Paris Agreement and Net Zero Emissions (NZE) 2050, followed by technical follow-up through decarbonization for various sectors and industries, continues. This is the driving force for increasing renewable fuels, especially those based on biomass or bioenergy products, which have been implemented, but are experiencing dynamics in the form of fluctuations in demand and prices. Bioenergy, with its numerous advantages and uniqueness as a renewable energy, cannot be replaced in this era of global decarbonization, even though in the near future some subsidies for biomass fuels or bioenergy will be eliminated.

This is closely related to a government's decarbonization priorities, particularly among the various emerging options. Bioenergy products can vary in quality, but all have their own market segments within specific industries. Furthermore, the sustainability of biomass sources is also a crucial aspect in the business and use of bioenergy, and is strictly enforced by standards such as GGL, FSC, SBP, RED III, and SURE. Industrial groups such as cement, iron and steel, chemicals, and even the aviation sector, which previously relied 100% on fossil fuels or energy sources, are gradually shifting to renewable energy sources.

Bioenergy products such as industrial wood pellets and industrial wood briquettes are primarily marketed in the power generation industry and as fuel for industrial boilers. Industrial wood pellets are very popular and are produced in larger quantities than industrial wood briquettes. Due to the elimination of subsidies and the implementation of sustainability certification, biomass fuel producers are required to produce better quality products using environmentally friendly and accountable raw materials. This also applies to bioenergy derived from agricultural waste, which generally lacks sustainability certification at large production capacities.

Biomass power plants operating near carbon neutrality can then be upgraded to carbon-negative operation, or atmospheric carbon dioxide removal (CDR) by adding carbon dioxide capture and storage (CCS) equipment. Biomass power plants equipped with CCS devices are popularly called BECCS (Bio-Energy Carbon Capture and Storage). It is predicted that the BECCS era will not be far off, and countries with biomass power plants can easily upgrade to BECCS. Expensive CCS equipment and low carbon credit revenue from CDR remain current obstacles. Japan, with around 300 biomass power plants, has great potential to upgrade to BECCS. And as a biomass power plant, the need for fuel will always be needed, such as wood pellets and PKS (palm kernel shells). For more details, read here.

One successful example of BECCS is the Stockholm Exergi BECCS project. BECCS illustrates how existing biomass power generation infrastructure can be leveraged to generate sustainable carbon dioxide sequestration. The Stockholm project, based on sustainably sourced biomass fuel, secured one of the world’s largest carbon sequestration deals with Microsoft, a significant contract worth SEK 500 million (~89 billion rupiah). Their model integrates carbon capture with a district heating system, maximizing energy efficiency while achieving permanent carbon dioxide sequestration.

Similarly, several other large industries, such as cement, aluminum, and chemicals, are also gradually decarbonizing. Biomass fuels, such as wood pellets and agricultural/plantation waste like palm kernel shells (PKS), are preferred in this sector. Besides their high energy content, these biomass fuels are more affordable than derivatives like torrefied biomass and charcoal/biochar. With the gradual transition or decarbonization of these industries, the demand for biomass fuels will also continue to increase.

Meanwhile, biocarbon products such as torrified biomass (biocoal) and carbonized biomass (biochar/charcoal) are starting to attract attention and are expected to reach mass production levels in the near future. Power plants typically favor biocoal due to its higher energy content, hydrophobicity, which allows it to be stored in open areas like coal, and ease of crushing (high grindability index). Meanwhile, biochar/charcoal, especially in the iron and steel industry, is highly suitable for producing low-carbon steel and even green steel. The reductant for blast furnaces, which previously used coke from coal, can be replaced by charcoal or biochar. Charcoal or biochar with high purity (fixed carbon >85%) and low impurities are required for blast furnace reductants. For more details on this, please read here and here.

Meanwhile, the use of biomass for sustainable aviation fuel or SAF (Sustainable Aviation Fuel) is also very possible. This is because currently there are three leading production processes for SAF production: HEFA (Hydro-processed Esters and Fatty Acids), FT (Fischer-Tropsch), and ATJ (Alcohol to Jet Fuel). Biomass through thermochemical processes, namely in FT (Fischer-Tropsch) and biochemical processes, namely in ATJ (Alcohol to Jet Fuel), can be used as raw material or feedstock. Meanwhile, the raw material or feedstock for the HEFA process is not solid biomass but vegetable oil, used cooking oil, animal fats, and so on. So the broad application of biomass as various important energy sources in the era of global decarbonization is a driving force for biomass production both through the forestry sector and sustainable agriculture/plantations.

 

Hydraulic Press Type Biomass Briquettes, Efficient for Small Capacity

Wood processing factories and sawmills that produce small amounts of wood biomass waste, such as 5-10 tons per day, can process it into value-added products, namely briquettes. Briquettes and pellets both use biomass densification technology, but pellets are far more popular than briquettes. Wood pellets are typically used for large-scale power plants with annual demand of tens or even hundreds of thousands of tons. Briquettes (wood briquettes) are typically used for smaller capacities, and there are also wood briquettes for special applications, such as charcoal and BBQs. The question is, which type of wood briquette is suitable for this small amount of waste?

Compared to wood pellets, which only use one type of production technology—a roller press—wood briquette production uses three types: piston press, mechanical press, and screw press. For more details, read here. Of the three, hydraulic wood briquette is the most suitable type for processing this "small" amount of waste. This is because it uses the least electricity, can operate automatically, and is stable, even for 24/7 operation. The sawmill and wood processing industry, in addition to achieving clean production units (zero waste), also benefits from contributing to renewable energy.

Technically, briquette production is also easier than pellet production, due to the looser moisture content and particle size. Even for abrasive biomass materials, briquetting, particularly with piston presses and hydraulic presses, can handle these materials more effectively than roller-press pelletizing. The wear and tear on equipment in pelletizing these materials is much greater, while in briquetting, this is much less. This is because the contact area during pressing/compaction in pelletizing is much larger than in briquetting. Therefore, in briquetting, it is easier to replace certain machine components that wear out due to abrasive materials, unlike in pelletizing, which requires replacing dies and even rollers.

As the era of decarbonization accelerates, the use of renewable fuels, particularly biomass, such as wood waste, is also growing. Briquetting, particularly hydraulic press briquettes, simplifies handling and use in furnaces. Biomass boilers that feed fuel manually will easily utilize these hydraulic press briquettes. Small and medium-sized industries using small boilers will be able to utilize these hydraulic press briquettes.

Opportunities to Supply Biomass Fuels to Japan

Loading palm kernel shells / PKS for export

Japan currently operates approximately 290 biomass power plants. Its installed capacity is 7.3 GW, but only 4.96 GW (~68% of installed capacity) are actively operating, with peak electricity output reaching 2024. A projected 6 GW of additional power plants are expected by 2030, but several slowdowns have occurred due to power reductions and even closures. This has occurred at the Taketoyo JERA plant, which reduced its operating level or power output, and the Suzukawa plant, which was closed due to economic pressures. Despite this, plans for new biomass power plants remain strong, with 11 new plants scheduled to be operational by 2025, which could increase annual biomass fuel demand by approximately 1.1 million tons. The need for biomass fuel is a business opportunity that must be exploited, especially since biomass fuel for biomass power plants in Japan is largely imported. Here are two examples of brief profiles of biomass power plants in Japan :

1. Renova

Renova is a 75 MW biomass power plant located at Omaezaki Port in the southernmost part of Shizuoka Prefecture. The biomass fuel used in the Renova plant is wood pellets and palm kernel shells (PKS).

Fuel quality and sustainability are key concerns for Renova, for example, in palm kernel shells (PKS), where the presence of foreign impurities and moisture content must be within acceptable limits or as low as possible. Meanwhile, for wood pellets, technical aspects such as density and the percentage of fine particles are of concern. This is why Renova feels the need to encourage investment in fuel testing and analysis.

The renewable energy facility had previously delayed its commercial operation twice due to the need for additional time for final adjustments to the boiler and turbine to ensure stable operation. Initially scheduled for December 2023, Renova stated that the launch was also delayed in December 2024, and finally began operations in early 2025. These modifications were necessary to ensure long-term stable operation.

Renova is the largest shareholder in Omaezakikou with a 38% stake. Chubu Electric Power Co. Inc. is second with 34%, while Mitsubishi Electric Financial Solutions Corp. and Suzuyo Shoji Co. Ltd. hold 18% and 10%, respectively. The company is also exploring alternative biomass fuels, such as empty fruit bunches (EFB), to diversify its biomass fuel supply and control costs with lower purchase prices.

2. Kanda

Biomass Energy in Kanda City, northeast of Chiyoda, Tokyo. Inaugurated in June 2021, this 75 MW facility operates exclusively on biomass. With an annual capacity of approximately 500 million kWh, the plant generates enough renewable electricity to meet the electricity needs of 170,000 households.

Kanda Biomass Energy utilizes three types of biomass: wood pellets (60 percent), palm kernel shells (PKS) (30 percent), and wood chips (10 percent). This fuel mix reduces greenhouse gas emissions into the atmosphere by 670,000 tons per year compared to a coal-fired power plant with the same capacity. Wood pellets are imported from British Columbia, Canada, and Vietnam, palm kernel shells (PKS) from Indonesia, and wood chips are sourced locally from northern Kyushu.

The plant has three dedicated fuel tanks for storing wood pellets. Biomass is fed into a circulated fluidized bed (CFB) boiler, which converts it into superheated steam to drive a power-generating turbine. The steam is then cooled, condensed, and recycled back into the system, ensuring efficient and sustainable electricity generation for residential and industrial users in the region.

The Kanda Biomass power plant is owned by Renova (43.07%), Sumitomo Forestry (41.5%), Veolia Japan (10%), Kyuden Mirai Energy (5%), and Mihara Group (0.43%). The biomass power plant was originally developed by Nippon Steel Engineering, Renova, and Sumitomo Heavy Industries.