Slow-Release Fertilizer: A New Trend in the Palm Oil Industry

Fertilizer is crucial for plant growth, especially for palm oils. Palm oil trees won't even bear fruit without fertilization. Fertilization is the highest cost component of palm oil plantation operations. Fertilizer efficiency is clearly a key consideration. This is why innovation in palm oil fertilization is rapidly developing.

Regarding innovations to increase fertilizer efficiency in palm oil plantations, the concept of slow-release fertilizer (SRF), or controlled-release fertilizer (CRF), is gaining increasing attention. By engineering the slow or controlled release of nutrients, the plant's nutrient use efficiency (NUE) increases. Fertilizer becomes more economical and environmental pollution is reduced. Indonesia's tropical climate, with its high rainfall, also results in high fertilizer leaching.

Several materials have been developed as SRF/CRF agents to achieve the desired nutrient release levels. These include polymers, sulfur, chemical compounds, and even compost. The characteristics of SRF/CRF agents vary depending on the material and product type. In addition to performance, the price of the SRF/CRF agent is also an important consideration.

Biochar is a renewable SRF/CRF agent and a climate solution. Biochar can persist for hundreds of years in the soil as a carbon sequestration. In addition to synthetic materials derived from non-renewable sources, biochar is an alternative SRF/CRF agent derived from renewable sources. Biomass from agricultural, plantation, and forestry waste is the main source of biochar production through the pyrolysis process. A number of SRF/CRFs with slow-release biochar agents have also begun production. This will increase biochar production, which has so far been less popular. It will also provide a solution to the biomass waste problem and be economically valuable. 

Palm Oil Mill Operation with Pyrolysis and Biogas Unit Integration for Zero Waste, Maximizing Profits and Sustainability

The goal of a palm oil mill to achieve zero waste, maximum profit, and sustainability can be achieved, among other things, through the integration of pyrolysis and biogas unit. This is because nearly all solid and liquid waste from the palm oil mill can be processed into products needed by the palm oil industry, both in the palm oil mill for CPO (crude palm oil) production and on the palm oil plantation for FFB production. With pyrolysis, solid waste is converted into biochar, producing excess energy in the form of syngas and biooil for boiler fuel. Biochar is first used to increase biogas production before being applied to plantation or agricultural land. 

The biogas product can also be used as fuel for palm oil mill boiler, along with syngas and biooil. This method allows 100% of the palm kernel shell (PKS) to be sold or even exported, thus providing additional profits for the palm oil industry. Currently, 30-50% of the palm kernel shell (PKS) is generally used for boiler fuel, mixed with mesocarp fiber, and the remainder is sold or exported. Biochar production with pyrolysis. The biogas product can also be used as fuel for palm oil mill boiler, along with syngas and biooil. This method allows 100% of the palm kernel shell (PKS) to be sold or even exported, thus providing additional profits for the palm oil industry. Currently, 30-50% of the palm kernel shell (PKS) is generally used for boiler fuel, mixed with mesocarp fiber, and the remainder is sold or exported. Biochar production by pyrolysis can utilize both coconut fiber (MF) and empty fruit bunches (EFB) of palm oil. The integration scheme is as follows:

 

The use of biochar on plantations and agricultural lands will save or reduce the use of chemical fertilizers. This is especially true for oil palm plantations, where the largest operational cost is the use of chemical fertilizers. Reducing chemical fertilizer use will result in savings in fertilizer costs. Furthermore, it will provide other environmental benefits, reducing environmental impacts by minimizing waste from excessive chemical fertilizer use. Biochar slow-releases chemical fertilizers, increasing fertilizer efficiency or Nutrient Use Efficiency (NUE). Furthermore, when combined with biochar and organic fertilizer from biogas residue, the slow-release capacity of chemical fertilizers is further enhanced, resulting in higher NUE. Furthermore, another pyrolysis byproduct, pyroligneous acid (PA), is also highly beneficial for palm oil plantations as a liquid organic fertilizer and biopesticide.

Another source of income is carbon credits, or BCR (biochar carbon removal). Furthermore, carbon credits are currently a strong motivator for producers to produce biochar. To obtain these credits, biochar producers must register with a carbon standards organization and follow their methodology. Some popular carbon standards organizations include Puro Earth, Verra, and CSI. Meanwhile, for biogas production, carbon credits can also be obtained through methane avoidance mechanisms. However, the price of biogas from methane avoidance is usually lower than carbon credits from carbon removal or carbon sequestration with biochar. However, both can be accumulated and yield greater profits.

The operational potential of palm oil mills with integrated pyrolysis and biogas units for zero waste, maximizing profits, and sustainability is enormous and is predicted to become a trend because financial returns align with environmental benefits. Furthermore, environmental and sustainability issues are currently a global concern. With approximately 17 million hectares of palm oil plantations and 5.5 million hectares in Malaysia, the potential for biomass waste, particularly EFB and mesocarp fiber for biochar production, and POME waste for biogas production, is abundant. Globally, palm oil plantations cover nearly 27 million hectares. By 2024, Indonesia will be the world's top CPO producer with 56%, followed by Malaysia with 26%, and Thailand with 5%. There are more than 1,000 palm oil mills in Indonesia and approximately 500 in Malaysia. 

The Urgency of IOT and Biochar Applications in Palm Oil Plantations

The sustainability trend in palm oil plantations is increasingly important and urgent, which is of course part of the global solution to environmental and climate problems. The vastness of palm oil plantations and the large production of palm oil are in the spotlight in the industry. Waste management and environmental pollution are important concerns. The large volume of biomass waste has the potential to be a source of environmental pollution and so is the excessive use of chemical fertilizers in palm oil plantations which will also cause environmental pollution. Inappropriate land use, for example deforestation and land conversion, are also other concerns.

Two important issues in the palm oil industry are increasing FFB productivity (yield improvement) and climate change resilience. And thank God, both of these things can be handled at once, namely by applying biochar. Palm oil mill biomass waste (especially palm oil empty fruit bunch) will be converted into biochar and then applied to plantation soil (sustainable soil amendment) with fertilizer so that it becomes a slow release fertilizer that will increase NUE (nutrient use efficiency) and minimize environmental pollution. With the increase in NUE, there will be yield improvement or an increase in FFB productivity. And the application of biochar which will remain in the soil or not decompose for thousands of years will become carbon sequestration / carbon sink which is in line with climate change resilience. A precise solution with one action, of course this should be very interesting and awaited by these palm oil companies.

To ensure that the biochar can work properly, an instrument is needed to measure performance and monitor it. That is why IoT (Internet of things) in this sector is needed. How slow can it goes fertilizer nutrients can be measured and monitored accurately, quickly and precisely. In this way, palm oil productivity can also be predicted. The area of ​​land on palm oil plantations that reaches thousands or tens of thousands of hectares is also not an obstacle. The area of ​​palm oil plantations in Indonesia is currently estimated to reach 17 million hectares and in Malaysia it reaches 5 million hectares, of course these palm oil companies are also trying to achieve their best level of sustainability according to the demands of the times. This is so that the application of biochar on palm oil plantations will become a trend and even its operational standards. The entry point by ensuring biochar performance with IoT is an important consideration.

This biochar application also follows the 4Rs rule, namely the right source (appropriate biochar raw material), right place (appropriate application area), right rate (appropriate dosage) and right timing. The physical and chemical properties of biochar differ depending on the raw material and production process. By following the 4R rule, biochar performance can be maximized. On the other hand, modernization in the palm oil industry also continues to be improved. The public perception of work in oil palm plantations, abbreviated as 3D (dangerous, difficult, dirty), will be gradually changed with mechanization, automation and digitalization. The ratio of workers to plantation land currently around 1: 8 ha will be increased to more than double to 1: 17.5 ha with the above modernization so that workers' wages can also be increased. This modernization is expected to help overcome the two important issues above with the biochar application.   

Why is There No Biochar Production for The Palm Oil Industry Yet?

Even though biomass waste is abundant in the palm oil industry, both in the plantation area and in the palm oil mill area, most of the biomass waste, especially empty fruit bunches or EFB, is still not utilized or is simply piled up or thrown away. In fact, if the palm oil industry has a strong vision about maximizing profits by minimizing the occurrence of waste, especially biomass, and maximizing environmental sustainability as well as being part of the climate solution, then biomass waste, especially empty fruit bunches or EFB, is a big opportunity.  Currently, special department in the palm oil industry that specifically deal with sustainability issues are starting to be created by palm oil companies. Waste management issues including the utilization of EFB, reducing soil and water pollution due to fertilizers and increasing fertilizer efficiency are the concerns of the sustainability department.

The empty fruit bunches or EFB can be used as fuel so that most or all of the palm kernel shells or PKS can be sold directly and even exported. Palm oil mill boiler fuel currently uses fuel in the form of palm fiber (mesocarp fiber) and some palm kernel shells / PKS, which can be replaced using empty fruit bunches (EFB) and palm fiber (mesocarp fiber) and without palm kernel shells / PKS. Palm kernel shells / PKS are a very popular biomass fuel in the global market that competes fiercely with wood pellets. By being able to sell all palm kernel shells / PKS and at the same time utilize empty fruit bunch / EFB waste, the palm oil industry will provide many economic benefits.

The use of empty fruit bunches / EFB and mesocarp fiber as a heat source for the boiler is not burned as usual or as is done by all palm oil mills today but must be gasified or pyrolyzed so that another product is produced in the form of biochar. Although gasification can be used to produce biochar, pyrolysis is more recommended because the quality and quantity of biochar will be better. The biochar can later be used for the palm oil plantation itself. The use of biochar in palm oil plantations will significantly save on fertilizer use as well as reducing water and soil pollution due to inefficient use of fertilizer. The biggest cost in operating a palm oil plantation is fertilizer, so by using biochar these operational costs can automatically be reduced. Biochar will become a slow release agent so that fertilizer use will be more efficient or increase NUE (Nutrients Use Efficiency).

Empty fruit bunches / EFB and mesocarp fiber are solid waste from palm oil mills so the waste is located around the palm oil mill, while biochar is used for palm oil plantations. In palm oil companies, management is generally separated between the plantation and mill departments. The use of biochar in palm oil plantations while the raw material comes from palm oil mills requires special arrangements regarding this matter. This could be, for example, trucks transporting fresh fruit bunch / FFB from the plantation to the palm oil mill, then after the FFB is unloaded at the mill, they then go to the plantation again carrying biochar from the palm oil mill.

Currently, no one is utilizing empty fruit bunches / EFB and palm mesocarp fiber as a source of boiler heat and biochar production. The main factor causing this is the main orientation or vision of the palm oil company itself as described above. This is predicted to change soon as awareness of climate issues increases and reaches all levels, especially in sectors related to energy and sustainibility. Moreover, when biochar is applied to plantation land, it also gets carbon credit as carbon sequestration. The smoke coming out of the boiler furnace will also be cleaner as seen from its opacity. The use of gas and liquid fuels from pyrolysis by-products will produce better combustion quality as well as smoke from the chimney. And even the liquid products from pyrolysis can also be used as biopesticides and organic fertilizers. Boiler efficiency will also increase because it uses boiler feed water (BFW) in the form of hot water from the condenser output of the pyrolysis unit.

Apart from old palm oil mills which really want to upgrade their industrial energy systems and fertilizer efficiency in their plantations including sustaibility according to this vision, new palm oil mills whose status is in the development stage should be able to apply this concept more easily. New palm oil mills can immediately follow developments and demands of the times so that they become trend setters with this vision. Being a pioneer and trend setter is indeed more difficult and even risky than just being a follower, but this will raise the reputation and become a leader in the industry so it should also have a positive impact on the company's business performance. A worthy effort.

Upgrading the Palm Oil Industry in Indonesia

With Indonesia's palm oil plantation area reaching around 15 million hectares and palm oil mills reaching 1000 units, efforts to upgrade the palm oil industry are important and strategic. Indonesia's palm oil or CPO production per year is around 46 million tons (while Malaysia is in second place at around 19 million tons/year). Efforts to upgrade the palm oil industry will increase productivity/efficiency, sustainability and encourage the creation of new products/markets as well as added value for palm oil. Things that can be upgraded include a number of key areas including bioenergy, biomaterials and oleochemicals, food and feed, soil fertility (land, soil and cultivation), post-harvest and processing, waste processing and the environment as well as socio-economics, management and business.

One concrete thing that can be done is the production of biochar from palm oil mill waste, especially empty fruit bunches (EFB) and palm fiber (mesocarp fiber). Biochar production by pyrolysis will produce excess energy (syngas & biooil) which can be used as boiler fuel in palm oil mills. Furthermore, the application of biochar with fertilizer on palm oil plantations will become slow release fertilizer (SRF), thereby increasing nutrient use efficiency (NUE). The condition of many oil palm plantations on acidic soil will also increase in pH when biochar is applied.

In palm oil plantation operations, fertilizer is the highest cost component so that if you can increase fertilizer efficiency it will provide significant benefits. The use of biochar is the solution, namely SRF. SRF also minimizes environmental pollution due to the use of fertilizer. Meanwhile, in palm oil mill operations, energy is a vital component, and if this can maximize the use of waste that has no economic value, it will certainly be very economical apart from of course overcoming environmental problems caused by this waste. Currently, palm oil mills use palm fiber (mesocarp fiber) and some palm kernel shells (PKS/palm kernel shell) for boiler materials, while generally the empty fruit bunches (EFB) have not been used, even though these palm kernel shells (PKS) can be sold directly and sell well. This means that if the energy source only comes from palm fiber (mesocarp fiber) and empty fruit bunches (EFB), 100% of the palm kernel shells (PKS) can be sold. This can be done by pyrolysis.

Biochar in the soil can last hundreds or even thousands of years. Biochar which comes from agricultural waste such as empty fruit bunches (EFB) and palm fiber (mesocarp fiber) will become a carbon sink through carbon sequestration, so that the concentration of CO2 in the atmosphere is reduced as long as the biochar is not decomposed. From a climate perspective, this is very beneficial and later you can get compensation in the form of carbon credits. A number of standards and verification methods to facilitate monetization are currently being developed.

Empty fruit bunches (EFB) and palm fiber (mesocarp fiber) are waste from palm oil mills, whereas biochar is applied in palm oil plantations. Management in the palm oil industry generally separates the mill division and the plantation division, so new management methods are needed if biochar production using pyrolysis is carried out. Apart from using biochar for core plantations (managed by palm oil company), it can also be used for plasma plantations (managed by farmer).

Future Palm Oil Mill: Producer of CPO, Biochar and Hydrogen at the Same Time

Efficiency factors, optimizing potential and improving climate should be implemented simultaneously in the palm oil industry. This can be done by replacing the combustion furnace in the boiler with pyrolysis so that the boiler fuel is mainly biooil, a pyrolysis by-product, with the main product being biochar and building a biogas unit for hydrogen production as the final product. Biochar will be used as a soil amendment together with fertilizer so that it becomes slow release fertilizer, so that fertilizer use efficiency (NUE: nutrient use efficiency) increases. The use of biochar as carbon sequestration, namely by using it together with fertilizer, will also provide additional income from carbon credits. Acid soil or dry soil will have better fertility with the application of biochar.

Furthermore, liquid waste or POME (palm oil mill effluent) is used as raw material for biogas. With the main component of biogas being methane (CH4), with steam reforming the methane will react with steam at a temperature of 700-1100 C with a nickel catalyst to become hydrogen/H2 and carbon monoxide/CO. To maximize hydrogen H2 production, the resulting carbon monoxide / CO is then subjected to a shift reaction, resulting in hydrogen / H2 and carbon dioxide / CO2 products. The reaction runs at a temperature of 400-500 C or at a lower temperature, namely 200-400 C. At higher temperatures the shift reaction usually uses an iron oxide or chromium catalyst, while at lower temperatures the catalysts usually used are copper, zinc oxide and alumina. , which helps reduce CO concentrations to below 1%.

Become the Trendsetter of the World's Vegetable Oil Producers

In the vegetable oil market, there are 4 types of vegetable oils that are widely consumed around the world, namely soybean oil, sunflower oil, palm oil and rapeseed oil. Based on USDA data (2018) the total area of the 4 vegetable oil-producing plants in 2017 was around 208 million hectares. Soybean plantations have the largest proportion of area, namely 126 million hectares (61 percent), while the area of palm oil plantations is only 21 million hectares (10 percent). However, with an area of 126 million hectares, soybeans are only able to produce 56 million tons of oil or only 32 percent of the production of the world's 4 main vegetable oils. In contrast, palm oil with an area of 21 million hectares is capable of producing 73 million tons or 42 percent of the production of the world's 4 main vegetable oils.

The high level of palm oil production is obtained from the productivity of palm oil plantations which is much higher than the productivity of other vegetable oil producing plants. According to Oil World (2018), the average productivity of oil palm is 4.27 tons/hectare, while the productivity of other vegetable oil-producing plants is only 0.4 – 0.6 tons/ha. The productivity of palm oil is much higher, around 8-10 times compared to other types, making palm oil have a comparative advantage over other vegetable oils. This comparative advantage can be interpreted as saving deforestation in various regions of the world if palm oil is consumed by the global community or to produce the same amount of oil, the land needed for oil palm is 8-10 times smaller than other crops.

With an average annual productivity of 4.27 tons/hectare of palm oil or 17 tons of FFB/year, this is actually still quite low and productivity can be increased up to around 30 tons of FFB/hectare or 7.5 tons/hectare of oil. Increasing the productivity of palm oil is primarily by increasing soil fertility so that fertilization efficiency increases. Slow release fertilizer (SRF) is an efficient fertilizer that is economical and environmentally friendly. In addition, the use of biochar, apart from being a slow release agent in the fertilizer, will also improve soil quality or fertility by increasing soil porosity, providing organic carbon, raising soil pH, retaining water and nutrients so that they are more available to plants and as a medium for soil microbial colonies. By increasing the productivity of palm oil, followed by saving fertilizer due to increased efficiency, minimizing environmental pollution so that production costs can be reduced, it means that it is equivalent to increasing land efficiency by 76%. This means that the productivity of palm oil per year is 30 tons of FFB/hectare, or 7.5 tons/hectare oil and when compared to other vegetable oils it is 15 times more land-efficient or per tonne of palm oil requires 0.13 hectares while other vegetable oils require 2 hectares of land.

The climate solution in the form of carbon sequestration / carbon sink can also be done simultaneously with the biochar application. Every 1 ton of biochar will store or reduce CO2 (carbon dioxide) in the atmosphere by approximately 3 tons. Carbon credit from the application of biochar is a significant additional income apart from fertilizer efficiency and increased crop productivity, including palm oil yields. Moreover, the value of carbon credit tends to increase and the carbon (CO2) removal mechanism with biochar will become a trend in the future. The amount of income from carbon credit is proportional to the number of biochar applications in the oil palm plantation which will also be proportional to the area of the palm oil plantation.

The area of palm oil plantations ranging from thousands to tens of thousands of hectares owned by a company is common in Indonesia. This indicates the business potential that can be done. With the current area of palm oil plantations in Indonesia reaching around 15 million hectares, as much as 40% (6 million hectares) are smallholder plantations so that the company's plantation area is 60% (9 million hectares) which is divided into owned by Large Private Plantations (PBS), which is 8 .42 million ha (55.8%) and State Large Plantations (PBN) covering an area of 579.6 thousand ha (3.84%), for more details read here. Palm oil trees themselves can only produce well in the tropics because the temperature factor affects production through the rate of biochemical and generative reactions in the plant's body. To some extent, higher temperatures lead to increased fruit production. The temperature of 20°C is referred to as the minimum limit for generative growth and an annual average temperature of 22-23°C is required for continued fruit production. That is why not all locations on earth can be cultivated for palm oil even though the productivity of the oil is the largest compared to other plants, so that it becomes a comparative advantage in itself.

Meanwhile, from biochar production technology, it is also possible to reduce the use of solid fuels such as palm kernel shells (pks) which are commonly used in boilers at palm oil mills. Palm kernel shell which is a biomass fuel and used as boiler fuel in palm oil mills besides fiber (mesocarp fiber), can then be sold directly for both the domestic market (local) and the international market (export). The palm kernel shells can also be further processed into charcoal or activated carbon. The use of energy from biochar production technology (pyrolysis) will also increase the efficiency of boilers at palm oil mills, in addition to additional income from selling palm kernel shells or further processing. Becoming a trendsetter in the world's vegetable oil producers is very possible based on the reasons mentioned above. With Indonesia's current condition in particular, or other palm oil producing countries, with a little improvement, it is very possible to do this. Moreover, the palm oil industry produces a lot of biomass waste which is very potential as raw material for making biochar.

Biochar and N2O Emission in Agriculture

Urea Plant

The world's production of urea fertilizer in 2020 will reach around 181 million tons and this type of urea fertilizer is the most widely used. In practice, the use of urea fertilizer is mostly inefficient, so it is wasted and pollutes the environment. It is estimated that the level of loss of urea and pollution to the environment, in use reaches around 40% or 72.4 million tonnes globally. Efforts to improve fertilization efficiency can be done by modifying it to become a slow release fertilizer (SRF), one of which is highly recommended, namely biochar, as a slow release agent, read more details here. In addition, the use of urea causes N2O emissions. N2O (nitrogen monoxide) is a greenhouse gas and air pollutant, N2O is a dangerous gas because it has a stronger effect about 300 times per unit weight than CO2 in a span of 100 years. In air, N2O reacts with oxygen atoms to form NO, and NO then breaks down ozone.

Urea is one of the conventional fertilizers commonly used in agriculture. Urea has a main content in the form of nitrogen which is absorbed by plants in the form of ammonium (NH4+) and nitrate (NO3−). Loss of nitrogen in the fertilizer occurs due to evaporation as ammonia (NH3), immobilization in the pores of the soil or washed by water, both rainwater and irrigation water. In addition to economic losses, environmental pollution due to excess nitrogen also causes a number of negative effects. Nitrogen from urea can also be lost due to complete denitrification of nitrates to produce nitrogen gas (N2) or through incomplete nitrate denitrification to produce nitrogen monoxide (NO) and nitrous oxide (N2O) gases, which evaporate from the soil. Nitrate, nitrogen monoxide (NO) and nitrous oxide (N2O) gases contribute to environmental problems. Nitrates are harmful substances that cause water pollution. Excess concentration of nitrate in drinking water is harmful to health, especially in infants and pregnant women.

Meanwhile, nitrous oxide (N2O) has now become the largest ozone depleting substance emitted in the 21st century. The main source of global nitrous oxide (N2O) emissions is nitrogen-based fertilizers, especially urea fertilizer. The presence of N2O in the lowest region of the atmosphere (troposphere) can cause a greenhouse effect or global warming because N2O traps infrared radiation emitted from the earth's surface and then warms the atmosphere. In addition, N2O can migrate up into the stratosphere where it reacts with oxygen atoms to produce some nitric oxide (NO). Then, the depletion of the ozone layer occurs because NO reacts with stratospheric ozone (O3) to form NO2 and O2. Furthermore, NO2 reacts with O to form NO again. The depletion of the ozone layer increases the amount of UV rays from the sun that reach the earth's surface.

Biochar application has been suggested as a strategy to reduce nitrous oxide (N2O) emissions from agricultural soils while increasing soil carbon (C) stocks, especially in tropical areas. Climate change, especially temperature increase, will affect soil environmental conditions and thereby directly affect soil N2O volume. Related to climate issues, there are two aspects of the role of biochar, namely as a carbon sequestration / carbon sink and reducing nitrous oxide (N2O) emissions, while related to agriculture, namely increasing soil fertility and increasing the productivity of agricultural products. The multi-benefit application of biochar is predicted to become a trend in the bioeconomy era, when the aspects of sustainability, food adequacy and as a climate solution become a complete package in one action.

The effort to minimize the use of urea fertilizer is by modifying it to become a slow release fertilizer with biochar as the slow release agent. The use of excess doses of urea apart from damaging the environment is also a waste. The use of urea can still be used to a certain extent, namely that all of the urea can be absorbed by plants with minimal loss or environmental pollution. When all the nutrients/fertilizer nutrients can be completely absorbed by the plants, it means that there is no residue in the soil, so that damage or environmental pollution can be minimized even avoided. The residue, especially in the long term, will cause severe soil damage. Slow release with close to the rate of absorption of nutrients by plants is a condition that is pursued or NUE (nutrient use efficiency) as much as possible. The technique of modifying urea fertilizer into SRF is the key.