Research Biomass Residuals on Palm-Oil and Rice for Port of Rotterdam in Indonesia and Malaysia

The Amsterdam Research Project

Biomass residuals in the Palm Oil and Rice Industry: A risky business or a huge opportunity?

Port of Ro(erdam

Ewout Kalkman, Sietske Trompert & Rogier StrijbosSupervising professor: Jan Verhoeven


The Research QuesJon

What are poten+al export flows of bio-‐based residuals from Indonesia and Malaysia and how can they be collected, processed, transported to and stored in a local port for export to NW-‐Europe?


Residuals of two commodiJes

Palm oilRice



Rice


Rice residual: Husk


Rice residual: Husk

25% of Rice ProducJon


Rice residual: Husk


Total: 15.8 million tons


Rice residual: Husk



Not used or burned


Rice residual: Husk



Not used or burned

Used for cooking


Rice residual: Husk



Not used or burned

Used for cooking

Interest from: Dutch/ German/Russian parJes


Rice residual: Husk



Not used or burned

Used for cooking

Compressing technique in R&D

Interest from: Dutch/ German/Russian parJes


OpJons for Rice Husk



Op+on 1

DescripJon Central storage/compression of all the husk.

Analysis Best opJon:Analysis

• High amount of husk available• Low transporta+on cost• Low investment in labour• Low investment in machinery• High storage cost



Op+on 1

DescripJon Central storage/compression of all the husk.


• High amount of husk available• Low transporta+on cost• Low investment in labour• Low investment in machinery• High storage cost

Op+on 2

Supply all the Medium and large mills with compressing machinery.

Second best opJon:

• Low amount of husk available• High transporta+on cost• High investment in labour• High investment in machinery• Low storage cost


OpJons for Rice Husk (2)


OpJons for Rice Husk (2)

Op+on 3

DescripJon Supply all the medium and large mills with compressing machinery. Collect the husk from tradi>onal mills at a central storage place.

Analysis Less best opJon:Analysis

• High amount of husk available• High transporta+on cost• High investment in labour• High investment in machinery• High storage cost


CondiJons for the advised opJon



1. Working together with an organization on collection and storage of the rice husk.




2. A central location for storage and compressing.





3. The storage facility needs to be accessible by container trucks.






4. Investments in compression machinery.






4. Investments in compression machinery.

5. Training of local workers to handle the compressing machinery.


SWOT-‐analysis Rice Husk



Strengths

• Largely available quan++es of rice husk; • High energy poten+al;



Strengths


Weaknesses

• Availability of rice husk on scaMered places; • Many smaller RMU which are uneasy to access;• High investments in labour and machinery;



Strengths


Weaknesses


Opportuni+es

•Government will support this development;



Strengths


Weaknesses


Opportuni+es

•Government will support this development;

Threats

• Lack in infrastructure; • Traffic jams; • Corrup+on; • Decentraliza+on;


Advise for Rice Husk

Impor+ng Rice Husk from Indonesia:A risky business or a huge opportunity?


Advise for Rice Husk

Risky Business

Impor+ng Rice Husk from Indonesia:A risky business or a huge opportunity?



Palm oilRice



Palm oil


Palm oil residuals


Palm oil residuals

Empty Fruit Bunch (EFB)


Palm oil residuals

Empty Fruit Bunch (EFB) Palm Kernel Shell (PKS)


Palm oil residuals

Empty Fruit Bunch (EFB) Palm Kernel Shell (PKS) Mesocarp Fibre (MF)


Palm oil residuals


Palm oil mill effluent (POME)


Palm oil residuals



Palm Kernel Cake (PKC)


Palm oil residuals




Residuals 50 % of FFB


Palm oil residuals




Residuals 50 % of FFB

Energy potenJal 20.000 kj per kg


Availability (per year)

Palm oil residuals Malaysia Indonesia

EFB 17.3 million 17.1 million

PKS 5.5 million 5.5 million

POME 55 million m3 54.5 million m3

MF 11 million 10.9 million

PKC 2.2 million No figures available


Local use


Local use



Local use


FerJlizer


Local use


FerJlizer

Illegally dumping

and


Local use


FerJlizer

Energy for boilersIllegally dumping

and


Local use (2)


Local use (2)




Local use (2)



Not used


Local use (2)



Not used

Animal feed


SubsJtutes


SubsJtutes





SubsJtutes




Cost efficient ferJlizer


SubsJtutes





POME


SubsJtutes





POME

Not used so no subsJtute


SubsJtutes





POME

Not used so no subsJtute

Animal feed product


Compressing techniques








Briqueies




Briqueies

ComposJng




Briqueies

ComposJngBurning into Potash


Compressing techniques (2)



Palm Kernel Shell (PKS) Mesocarp Fibre (MF)



No techniques

Palm Kernel Shell (PKS) Mesocarp Fibre (MF)











Liquefying methane gas





Liquefying methane gas

PalleJzing


So much residuals, what now?

Empty Fruit Bunch (EFB) Palm Kernel Shell (PKS) Mesocarp Fibre (FM)




OpJons for Palm Oil


OpJons for Palm Oil

Op+on 1

DescripJon Supply planta>ons with fer>lizer and supply mills with compressing techniques. Transport the EFB to the ports.


• Good energy poten+al• Rela+ve low investments in comparison to the other op+ons


OpJons for Palm Oil

Op+on 1

DescripJon Supply planta>ons with fer>lizer and supply mills with compressing techniques. Transport the EFB to the ports.


• Good energy poten+al• Rela+ve low investments in comparison to the other op+ons

Op+on 2

Supply mills with an energy source and compression techniques. Invest in a biogas plant. Transport the PKS and MF to the ports.

Less best opJon:

• High energy poten+al• Highest investment costs


OpJons for Palm Oil (2)



Op+on 3

DescripJon Invest in a biogas plant. Liquefy the methane gas from the POME and transport it to the ports.


• Highest energy poten+al• Large investment costs



Op+on 3

DescripJon Invest in a biogas plant. Liquefy the methane gas from the POME and transport it to the ports.


• Highest energy poten+al• Large investment costs

Op+on 4

Buy the PKC for market price. Invest in palle>zing techniques and transport the compressed PKS to the ports.

Second best opJon:

• Low energy poten+al• Low investment costs





1. Convince smallholders and plantations about the selling of EFB instead of dumping it.




2. Supply mills with a new fertilizer instead of EFB.





3. Supply the mills with a compressing technique, to compress EFB in to briquettes.





3. Supply the mills with a compressing technique, to compress EFB in to briquettes.

4. Assure that the mills are accessible by large container trucks.


OpportuniJes and Threats Indonesia



Opportuni++es

• Large areas of undeveloped oil palm planta+ons available;• Low land costs;• Increasing of produc+on by smallholders by using fer+lizer and new gene+c stock;• Zero-‐waste policy.



Opportuni++es

• Large areas of undeveloped oil palm planta+ons available;• Low land costs;• Increasing of produc+on by smallholders by using fer+lizer and new gene+c stock;• Zero-‐waste policy.

Threats

• Extremely limited infrastructure• Extremely limited processing capabili+es• Investment climate (corrup+on etc.)• Decentralized government• Less focus on sustainability;• Selling of residuals increases price.


Advise for Palm Oil in Indonesia

Impor+ng palm oil residuals from Indonesia:A risky business or a huge opportunity?


Advise for Palm Oil in Indonesia

Risky Business

Impor+ng palm oil residuals from Indonesia:A risky business or a huge opportunity?


OpportuniJes and Threats Malaysia



Opportuni++es

• Infrastructure;• Expected produc+on growth palm oil; • Research in re-‐use of biomass residuals; • Economically and poli+cally stable; • Sustainability issues / green technology is s+mulated by the government.



Opportuni++es

• Infrastructure;• Expected produc+on growth palm oil; • Research in re-‐use of biomass residuals; • Economically and poli+cally stable; • Sustainability issues / green technology is s+mulated by the government.

Threats

• Short term focus (Red Tape);• Other par+es interested in PKS and PKC.• Selling of residuals increases price.


Advise for Palm Oil in Malaysia

Impor+ng Palm Oil residuals from Malaysia:A risky business or a huge opportunity?


Advise for Palm Oil in Malaysia

Huge opportunity

Impor+ng Palm Oil residuals from Malaysia:A risky business or a huge opportunity?


QuesJons