AI for Palm Oil Mills or New Product Development with New Process Design?

AI applications have penetrated various sectors, including palm oil mills or CPO mills. AI applications for palm oil mills are still relatively new, so few, if any, have implemented them. One palm oil mill that has implemented AI is Minsawi Industries in Kuala Kangsar, Malaysia, with a capacity of 45 tons of fresh fruit bunches (FFB) per hour. The use of AI has resulted in annual savings of RM 1.6 million (Rp 6.24 billion) due to reduced oil loss, reduced maintenance costs, and a 33% reduction in labor. However, there are concerns that using AI for palm oil mills could potentially lead to job losses. Even with fewer workers, incomes are higher.

The cost-to-benefit ratio is certainly a crucial consideration for any new technology, including the use of AI. The amount of money spent must yield equivalent or greater benefits. In the case of the AI ​​application in the palm oil mill, the cost of the AI ​​was RM 5 million (~Rp 19.5 billion), meaning that with savings of RM 1.6 million per year, the investment in the AI ​​equipment would be recovered in approximately three years. This is a reasonable return on investment. However, investing that much to improve efficiency in an existing mill, or for example, 15% of the main mill, requires comprehensive consideration.

Several devices, such as sensors, predictive tools, and AI applications, are integrated to improve the efficiency of palm oil (CPO) production. More specifically, the key components of an AI-based palm oil mill include: first, advanced sensors. These sensors are installed throughout the palm oil mill to obtain real-time data on critical parameters such as temperature, pressure, amperage, and machine performance. Second, AI-enabled CCTV cameras. Several cameras are installed at strategic locations to monitor key areas, such as detecting the volume of fresh fruit bunches (FFB) and their quality, and providing this information to control the production process. Third, an AI-driven control system. These systems automatically optimize processes, manage equipment operations, and utilize resources based on real-time data analysis.

Meanwhile, developing new products means increasing the added value of existing materials. This increased added value can be far greater than that gained from increasing factory efficiency through AI applications. Raw materials that were previously underutilized or even discarded, polluting the environment, can generate significant benefits from developing new products. While optimizing factory performance is crucial for achieving high efficiency, innovation in new product development is equally crucial.

In the palm oil industry, new product development can be achieved by creating various derivatives from crude palm oil (CPO) and processing various biomass waste from palm oil operations, both from mills and plantations. Numerous products can be produced from these processes. For example, CPO derivatives produce biofuels such as biodiesel, cooking oil, stearin, olein, and so on. Biomass waste can be processed into bioenergy, biocarbons, biofuels, biomaterials, and biochemicals.

 

Designing efficient production processes is crucial for producing competitive products. Likewise, low-emission production, minimizing waste, or even zero waste, is also a key focus. Integrating various production processes, particularly for energy savings, including waste heat recovery, is highly feasible, enabling efficiency and lower production costs. The significant benefits of AI applications in palm oil mills or CPO production include the potential for further use in new product development, including designing the most efficient production processes possible.

Ultimately, if the development of these new products can be carried out and AI is integrated, the need for labor will increase in these business units, even if each business unit is operating efficiently. The production of various derivative products, including specialty chemicals, is highly possible with the development of new products that keep pace with the times. Furthermore, on the plantation side, AI and mechanization can also be utilized to reduce 3D (dirty, dangerous, demeaning) jobs, resulting in more efficient work and increased income. Even mechanization in oil palm plantations is still low, making it more urgent than AI applications. 

Replanting Palm Oil Plantations and Utilizing Old Palm Oil Trunks Waste (Presentation Version)

Aging plants are one factor in declining palm oil productivity. Palm oil trees begin to decline in productivity after 20 years and need to be replaced after 25 years. Therefore, rejuvenation or replanting must be carried out periodically according to the age of the trees.

Furthermore, the demand for palm oil continues to grow in line with global population growth. For the domestic market, biofuel use takes the form of a mandatory 40% palm oil blend in biodiesel (B40) this year, which is being reviewed to increase to 50% (B50) by 2026, and a 3% blend for jet fuel by 2026. Demand for the international market also continues to grow. The main destinations for Indonesian palm oil are India, China, Pakistan, Bangladesh, the United States, the Netherlands, Spain, Italy, Egypt, and South Africa.

Replanting palm oil plantations is crucial because it maintains sustainable palm oil productivity and prevents or reduces deforestation for new lands. The potential volume of old palm oil trunk waste generated is enormous, and there are numerous utilization options, including bioenergy, biocarbon, biomaterials, biofuels, and biochemicals.

To read and access the presentation, please download here. 

Biochar and Premium Compost Production from Organic Waste Processing

Biochar and compost production both use organic materials. The difference lies in their compatibility level. Wet, nutrient-rich organic materials with little lignin are more suitable for compost production. Dry, lignin-rich organic materials are more suitable for biochar production. Therefore, sorting these organic materials is necessary to achieve optimal results. With organic waste comprising up to 60% of municipal waste, the raw material requirements for both biochar and compost production are estimated to be substantial.

Biochar production is a thermal process, while compost production is a biological process. A biochar production unit, a pyrolysis unit, can be installed adjacent to and integrated with a compost production unit at municipal waste treatment facilities and similar facilities. The biochar product is then used to produce compost, improving the quality of the compost to premium compost and accelerating composting times. For more details, read here. Premium compost can also be sold at a higher price commensurate with its quality. Excess energy from biochar production or pyrolysis operations can be utilized in the waste processing of RDF fractions or others. 

The production potential of this premium compost is enormous. This makes it suitable for use on critical land from post-mining reclamation, which covers millions of hectares, or even hundreds of millions of hectares of degraded drylands. When premium compost is applied to unproductive or less productive land, it becomes fertile. For example, revegetation of post-mining reclaimed land will yield a variety of agricultural or plantation products that are economically, environmentally, and socially beneficial. Biochar, with its high carbon content, will persist in the soil for hundreds of years and, as a carbon sequestration measure, can be offset by earning carbon credits. 

Compost Production with Biochar to Improve Compost Product Quality and Business Profit

Although compost and biochar production both utilize and recycle organic waste, there are several differences: compost production through aerobic fermentation is a biological process, while biochar production through pyrolysis is a thermal process. Furthermore, regarding raw materials, ideal compost production requires a moisture content of 60–70%, high nutrient content, and low lignin content, such as food waste and animal manure. Conversely, ideal biochar production requires a moisture content of 10–20% and a high lignin content, such as woody biomass.

Recent research suggests that adding biochar to the composting process accelerates composting, reduces greenhouse gas emissions such as methane (CH4) and nitrous oxide (N2O), reduces ammonia (NH3) loss, increases aeration and reduces compost density, and reduces odor. The biochar itself is not damaged or decomposed during the composting process but enriches it with various nutrients.

To achieve optimal results, the biochar dosage must be appropriate to the amount of organic matter used in the compost. Using too much biochar will disrupt the composting biodegradation process, and using too little biochar will diminish the positive effects mentioned above. With the appropriate dosage, biochar can accelerate the composting process. This is because it increases the homogeneity and structure of the mixture and stimulates microbial activity in the composting process.

This increased microbial activity will increase the temperature and speed up the composting process. Several studies have shown that adding 5% to 10% of the biochar volume at the start of composting can speed up the composting process by 20%. While the average compost production time is 2 months (9 weeks), adding biochar at the above dosage can speed up the composting process by 20%, or approximately 1.6 months (7 weeks). With the shorter production time and better compost quality, the added biochar can lead to a higher selling price, potentially equivalent to premium compost. This can offset the cost of adding biochar to the compost production process.

The pores in biochar reduce the bulk density of the compost and aid aeration during composting. For nitrogen-rich compost materials such as livestock manure, adding biochar can reduce N loss during composting, particularly NH3. The unpleasant odor is caused by the release of NH3 during composting, and for this reason, many composting facility developments are rejected by local residents. In a study, adding 20% ​​biochar (mass basis) to poultry litter reduced NH3 concentrations in gas emissions by 64% and N loss by 52% without negatively impacting the composting process.

When used, compost decomposes, with nutrients absorbed by plants, while biochar remains in the soil for centuries. This makes biochar a long-term solution for improving soil quality. Using biochar in compost offers both short-term and long-term benefits. The short-term benefit is as an organic fertilizer, while the long-term benefit is improving or stabilizing soil quality and sequestering carbon. CO2 absorbed through photosynthesis becomes biomass, or organic matter, as the raw material for biochar, and the carbon in biochar remains stable for hundreds of years, and is not released into the atmosphere during this time.

There is no data yet showing the calculated amount of compost production in Indonesia per year. However, the potential for compost production from domestic organic waste is very large, reaching around 60% of the total national waste generation which reaches more than 60 million tons per year or more than 36 million tons of organic waste as raw material for compost. There are a number of parties carrying out compost production in various regions in Indonesia, both government and private parties who contribute to compost production, with varying production capacities. With the very abundant organic raw materials (more than 36 million tons/year), the production of biochar-enriched compost can be carried out so as to maximize the quality of compost and other benefits.

This can be achieved by building a biochar production unit or installing a pyrolysis unit at the organic waste source. Organic waste materials that are less suitable for composting can be used for biochar production. Several companies are already planning to do this. Read the related article here. 

Palm Oil Replanting Movement and Utilization of Biomass Waste

Palm oil trees begin to lose productivity after 20 years and need to be replaced after 25 years, while new trees take about four years to begin bearing fruit. This generally renders the land unproductive during this four-year period, which discourages farmers from replanting their palm oil. However, intercropping during this period can still provide benefits for farmers. Planting short-term crops like upland rice and corn alongside palm oils can help farmers earn additional income while the palm oils bear fruit and mature.

In 2024, Malaysia, the world's second-largest palm oil producer, began implementing land intensification due to limited land area, only replanting 2%, or approximately 114,000 hectares. This is despite the country's target of replanting 5% of its land. The situation in Indonesia is not much different, with replanting predicted to be less than 2%. For example, if only 1.5%, or approximately 246,000 hectares, are replanted, it would be disproportionate to the area of ​​its oil palm plantations, which is nearly three times Malaysia's. Furthermore, replanting should be carried out periodically every year to achieve optimal palm oil production performance.

The reluctance or slow pace of replanting has led to a decline in national crude palm oil (CPO) production. Malaysian palm oil production has even stagnated for more than a decade due to limited land for new plantations and slow replanting. Meanwhile, in Indonesia, concerns about deforestation have also impacted the expansion of new oil palm plantations. Crude palm oil (CPO) production will decline further if labor shortages and the spread of ganoderma fungus reduce yields.

Given the above conditions, the replanting of palm oil plantations must be encouraged to maintain or even increase palm oil production. The issue of biomass waste from palm oil trees, which cover thousands of hectares, also poses a challenge. With such a large volume of old palm oil trees, utilizing them for value-added products is crucial. With an average hectare of palm oil plantations containing 125 trees, each tree yielding an average dry weight of 2 tons, this yields 250 tons of dry weight of biomass per hectare. For 10,000 hectares, this yields 2.5 million tons of dry weight, and for 100,000 hectares, this yields 25 million tons of dry weight. An optimistic estimate would be that Indonesia could replant 5% of its land, or 820,000 hectares, for 205 million tons of dry weight of biomass. Similarly, Malaysia, with 5% replanting, or 285,000 hectares, would yield 71.25 million tons of dry weight.

Business readiness factors, both in terms of technology and the market or user base for the product, need to be carefully assessed. With such a large volume, biomass processing plants or industries can be established and operate optimally without worrying about raw material shortages. Products such as pellets, briquettes, and biochar are made from waste biomass from old palm oil trunks. Dead old palm oil trunks, often left abandoned on land, should be utilized to produce these useful, value-added products.

Firelog Igniter Briquette, a Unique and Specific Product for Wood Briquette Users

The use of biomass fuels for space heating has been around for a long time, from simple open fireplaces to automated stoves equipped with IoT (Internet of Things). From firewood collected from forests to the use of wood pellets and (on a smaller scale) wood briquettes. The driving forces related to decarbonization, climate change, and the environment also play a strong role in the use of biomass fuels, especially wood pellets. Premium-grade wood pellets are an option for space heating with a very low ash content of less than 1%, known as A1/A2 pellets. For more details, read here, as well as for wood briquettes (consumer briquettes). The main difference between wood pellets and wood briquettes is their size, and sometimes their shape, and their production technology is also more diverse than wood pellets. For more details, read here.

For wood briquette (consumer briquette), there are various stoves that can use it, but generally, any stove or oven that uses firewood can use it. Because firewood is no longer readily available in Europe, many people purchase wood briquette from vendors who typically also sell stoves or ovens. In Europe, wood briquette is sold directly to buyers on pallets or through supermarkets.

The size of briquettes makes it difficult to light them directly with a match. Typically, they are lit in a separate place (firestarter), using small twigs or breaking the briquettes to make them ignite more easily. However, this is considered difficult and impractical. This is why innovations have emerged in the form of briquettes enriched with paraffin, making them easy to ignite as starters for briquette stoves. These briquettes (igniter briquettes) can be easily lit with a match and are more practical. Currently, paraffin is generally derived from petroleum, making it a fossil fuel. To be more in line with the aforementioned decarbonization and climate change initiatives, paraffin sources should also be renewable, such as from plants. HRBDPS, or hydrogenated RBD palm stearin, derived from or derived from palm oil, can be a substitute for paraffin from this fossil source.

Biochar for Sustainable Palm Oil Productivity

The Indonesian government emphasized the importance of sustainable palm oil productivity for food and energy security, as conveyed by Deputy Minister of Agriculture Sudaryono, at the opening of ICOPE (International Conference on Palm Oil and Environment) in Sanur, Bali, mid-February 2025. The conference, attended by delegates from various countries, namely Indonesia, Malaysia, India, the Netherlands, France, Finland, Colombia, and Spain, aims to formulate a sustainable transformation for the palm oil industry. Sustainable palm oil productivity can be increased by land intensification and the use of superior seeds. Even if land expansion is necessary, it must be done without causing deforestation. Meanwhile, for replanting in dry land, it can also be combined with upland rice or corn through intercropping methods.

Biochar is a powerful solution
Palm oil productivity can be increased by improving fertilizer efficiency, or Nutrient Use Efficiency (NUE), as part of land intensification. Using the same fertilizer dose with the addition of biochar will increase palm oil productivity by around 20% or more. Fertilizer savings of around 30% with the addition of biochar will keep palm oil productivity relatively stable or at the same level as before. For efforts to increase palm oil productivity while avoiding deforestation, the first option is more appropriate: maintaining the same fertilizer dose as usual, but adding biochar to increase fertilizer efficiency.  

Indonesia's current CPO production reaches approximately 50 million tons/year across 16.4 million hectares, with an average CPO production of 3.55 tons/ha per hectare, or 3.55 million tons per million hectares. If biochar is used and productivity increases by 20%, this means an increase of 10 million tons of CPO per year (a total of 60 million tons of CPO per year), saving approximately 2.8 million hectares of land. The use of biochar will also slow down forest clearing (deforestation) for palm oil plantations.

Besides using biochar to increase palm oil productivity, other benefits from biochar production include the potential for carbon credits (BCR = biochar carbon removal) and the utilization of pyrolysis byproducts for palm oil plantations and palm oil mill operations in CPO production. This method offers several advantages for palm oil companies, such as savings in liquid organic fertilizer and pesticides, and the sale or export of 100% of the palm kernel shells (PKS). In addition to palm oil companies producing their own biochar through pyrolysis, it is also possible to establish separate companies or companies that collaborate with palm oil companies for biochar production under specific agreements.

Global pressure and scrutiny on the palm oil industry to adopt sustainable practices are increasing. Amidst soaring demand for palm oil in both global and domestic markets, increasing palm oil productivity is inevitable. Utilizing biomass waste from palm oil mills and plantations, such as empty fruit bunches (EFB) and trunks (OPT), for biochar production, and using biochar to increase palm oil productivity, is a powerful solution to address these challenges. Even for replanting dryland with upland rice or corn using intercropping methods, the use of biochar will also have a positive and significant impact on these intercrops.