6th January 2025
Indonesia, as a leading global producer of palm oil, faces significant challenges stemming from the waste generated by its palm oil industry. Each year, vast amounts of agricultural residues such as empty fruit bunches, palm kernel shells, fibres, and fronds are produced. These residues are traditionally disposed of through burning, which contributes to severe air pollution, or left to decay, releasing significant amounts of greenhouse gases like methane and carbon dioxide. Addressing these disposal methods, an innovative and sustainable approach involves converting these residues into biochar via pyrolysis. This process not only effectively manages agricultural waste but also opens avenues for generating carbon dioxide removal credits, thus providing economic benefits alongside environmental conservation.
This blog is derived from : SAWIT INDONESIA VOL.XIII EDISI 158 – 15 December 2024 / 15 January 2025. Written by Organics. Any reproduction or distribution of content without permission is prohibited.
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Understanding Biochar and Pyrolysis
Biochar is a carbon-dense material produced by pyrolysing organic matter, including the biomass waste from palm oil production, under high heat in an oxygen-deprived environment. A typical pyrolyser is shown in Figure 1. This process yields several products:
- Biochar: A solid, carbon-rich material that enhances soil fertility and sequesters carbon over long periods, thus contributing to climate change mitigation.
- Pyrolytic Liquids: These can be refined into biofuels or various chemicals, offering further industrial uses.
- Syngas (Synthesis Gas): A mixture of hydrogen, carbon monoxide, methane and sometimes small amounts of carbon dioxide, which can be used for power generation or as industrial feedstock.
The transformation of palm oil residues into biochar not only helps in waste reduction but also in carbon emissions reduction, providing a sustainable solution to environmental degradation.
Figure 1 Organics Pyroclast® pyrolyser
Palm Oil Sector Waste in Indonesia
Figure 2 Palm sector wastes proven to make biochar in Research & Development trials
Indonesia’s palm oil industry produces over 70 million tons of biomass waste annually. This waste includes:
- Empty Fruit Bunches: Bulky and challenging to manage due to their high moisture content.
- Palm Kernel Shells: These shells have a high calorific value and are dense, making them suitable for energy production.
- Palm Fronds: Typically left in fields to decompose, contributing to methane emissions.
- Fibre: Extracted during the oil milling process and often underutilised.
Traditionally, some of these materials are either incinerated or left to decompose. However, through pyrolysis, these residues can be converted into biochar, diverting them from environmentally harmful disposal methods and instead contributing to carbon sequestration efforts.
The Role of Biochar in Carbon Dioxide Removal (CDR)
Biochar serves as an effective medium for long-term carbon storage. The process of converting organic waste into biochar traps the carbon that would otherwise be released back into the atmosphere, effectively removing it from the carbon cycle for centuries. This stable form of carbon storage is crucial in the fight against climate change, making biochar a valuable tool for carbon dioxide removal.
Generating CDR Credits
To generate CDR credits, biochar producers must adhere to specific standards, such as those of PuroEarth or Carbon Standards International, which ensure that carbon removal activities are genuine, additional, and permanent. Under these standards, the process of biochar production and its subsequent use in agriculture must be accurately measured, monitored, and verified
The process of generating CDR credits from biochar involves several key steps:
1. Business planning: Establish a comprehensive business model that includes production capacity, financial modelling, CAPEX, OPEX, risk management, and market analysis for biochar.
2. Assessment and monitoring: Perform a detailed assessment of the carbon content potential of the biomass and the expected carbon sequestration capability of the produced biochar.
3. Install biochar production facilities: Secure funding through various means such as balance sheet investments, private equity, grants, or pre-sales of CDR credits. Construct and commission the facility.
4. Carbon sequestration measurement and verification: Measure and verify the carbon sequestered in the biochar using third-party verifiers to ensure the accuracy and permanence of the carbon capture.
5. Issuance of credits: Following successful verification, CDR credits are issued, which can then be sold on carbon markets or used to offset emissions from other sources.
6. Ongoing monitoring: Continuous monitoring is essential to maintain the integrity of the CDR credits, involving regular audits and reporting.
Benefits of Biochar Production for Palm Oil Producers and Indonesia’s Economy
The production of biochar from palm oil waste presents several benefits:
• Environmental impact: It significantly reduces greenhouse gas emissions by preventing the burning and decay of biomass.
• Economic opportunities: Biochar production opens new revenue streams through the sale of CDR credits, providing a financial incentive for adopting sustainable practices.
• Agricultural advantages: Biochar improves soil fertility, water retention, and nutrient cycling, reducing the need for synthetic fertilisers and enhancing crop yields.
• Waste management solutions: Provides a sustainable method for handling the vast quantities of waste generated by the palm oil industry.
Challenges and Considerations
Despite the advantages, several challenges may hinder the widespread adoption of biochar production:
- Initial investments: The setup cost for pyrolysis plants and necessary infrastructure can be substantial.
- Market dynamics: The emerging market for CDR credits is still volatile, with fluctuating prices and uncertain demand.
- Regulatory support: A supportive regulatory framework is crucial for encouraging investment in biochar production and ensuring the stability of the CDR credit market.
Conclusion
Biochar production from palm oil waste in Indonesia not only offers a viable solution to manage agricultural waste but also aids in achieving national and global environmental goals. By harnessing the potential of pyrolysis to turn waste into a resource, Indonesia can reduce its carbon footprint, enhance soil health, and create economic opportunities within the palm oil sector. The success of this initiative, however, will depend on continued investment in technology, development of supportive policies, and stabilisation of the biochar market, all of which are essential for realising the full potential of biochar as a tool for sustainable development.
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