Firm turns to oil palm husks to replace diesel

Firm turns to oil palm husks to replace diesel

Syofiardi Bachyul Jb, The Jakarta Post, Padang

A state plantation company has switched from diesel fuel to oil
palm shells for energy in its black tea production in order to
overcome increased costs due to the Oct. 1 fuel price increases.

PT Perkebunan Nusantara VI Kebun Danau Kembar tea plantation
in Solok regency is thought to be the first company to turn to
oil palm shells for fuel.

The measure is just one of many creative ways found by people
to lessen the impact of the fuel price increases.

"We can save up to Rp 425 million (US$42,500) per month by
using oil palm shells," said the administrator of the company,
Zainal Prayitno.

At least 0.4 liters of diesel was needed to produce one
kilogram of tea. To produce 30 tons of tea daily, 3,000 liters of
diesel was required. With the price of diesel at Rp 6,175 per
liter, the company spent Rp 19 million daily, or Rp 475 million a
month (25 workdays) to produce the company's 875 tons of tea
monthly.

However, the factory now only spends Rp 50 million per month
on oil palm shells, thanks to its three crude palm oil (CPO)
plants in Ophir (Pasaman, West Sumatra), Bunut and Pinang Tinggi
(Sungai Bahar, Jambi).

"Each CPO plant produces 30 tons of waste in the form of oil
palm shells that it has to dispose of. The two plants in Jambi
had to spend Rp 800 million a month for disposing of the oil palm
shells," said Zainal.

The tea factory has been seeking an alternative source of
energy for the past few years. The factory needs to produce heat
to dry tea leaves, for which it used to use diesel fuel in its
ovens.

The management had thought of using firewood as in the 1970s,
but then considered the environmental issues. Then coal was
considered, but that would have affected the taste of the tea.

Oil palm shells were finally decided upon in April.

The state firm used the services of PT TEHA, a machinery
manufacturer in Bandung, to modify its machinery so that it could
use oil palm shells. The cost to convert the machines was Rp 1.7
billion.

"I am very fortunate to have made the right choice because the
government again increased the price of diesel for industry in
August, from Rp 2,600 to Rp 5,500 per liter. But it had no impact
on our business since we no longer use diesel," said Zainal.

Every 1.3 kilogram of palm shell is equivalent to a liter of
diesel. To produce one kilo of black tea, 0.4 liters of diesel is
required, or 0.22 kilos of palm shell.

The factory needs 12 tons of oil palm shells daily, which only
cost Rp 175 per kilo, which means that the company only spends Rp
50 million for fuel per month.

"The company only has to pay costs for transporting oil palm
shells from the CPO plant in Sungai Bahar, Jambi, to Solok, thus
decreasing the plant's waste volume by more than half. The CPO
plant previously spent Rp 800 million on waste disposal each
month," Zainal said.

The company's tea factory in Kayu Aro, Kerinci, will switch
from diesel to oil palm shells next year.