Indonesia was once a member of the Organization of Petroleum Exporting Countries (OPEC). However, on 9 September 2008 it exited the organization as it had become a net oil importer.
While its local production has been continually declining, its oil demand has been consistently rising, creating a widening gap that had to be filled by imports.
It is predicted that in the next 20 years, Indonesia’s energy need will increase by four folds that of the current level. Relying only on oil fuels, gas, and coal will not solve the energy problem of Indonesia, as the fossil fuels’ reserves are limited and will deplete in the future.
Can Indonesia avoid the energy crisis in the future?
Considering all available alternative resources, Indonesia should actually not only avoid the crisis, but should build a strong energy resilience. The way to do so is by diversifying its current energy sources away from the fossil fuels to renewable ones such as the palm kernel shells, which are potential in replacing the fuel oils (BBM) in generating power plants.
In 2012, the government has allocated a total of Rp94.6 trillion from the state budget for energy subsidy and for the oil imports. Should we utilize our budget fund for imports and payment of the subsidy? Certainly, it is wiser to allocate the fund to finance the development of infrastructure and human resources.
How to develop the palm kernel shells as the most potential energy alternative to replace fuel oils (BBM)?
Not many people know what are palm kernel shells. Perhaps, also not many people have ever seen the fresh fruit bunches of oil palm trees, from which the shells are taken as wastes.
Currently, all the big islands of Indonesia, from Sumatera to Papua, have oil palm plantations which produce crude palm oil (CPO), the commodity prima donna of Indonesia.
The oil palm plantations produce fresh fruit bunches (FFB), which consist of oil palm fruits. Each individual ripe fruit consists of outer fibrous pulp which is deep red and orange in colour—from which crude palm oil (CPO) is produced, and inner black kernel with white flesh like the inside of the coconut —from which palm kernel oil (PKO) is produced. The CPO is used as raw material to produce soaps, margarine, candles, cosmetics, and pharmaceutical products.
See the illustration below:
Oil palm fruit
In the palm oil mills, there are a number of stages that should be undertaken to produce the crude palm oil (CPO). One of them is the process of separating the white flesh from the kernel. Averagely, each palm oil mill has a processing capacity of 30-50 tons of palm oil per hour, which leave the wastes, consisting of shells and fibres, which is twice the amount. One can imagine how many tons of shells are produced by each of the palm oil mill every month.
If we visit the palm oil mill, then we can easily find piles of tons of shells around the mills. But despite being waste, it does not mean it is useless, as it can be used as boiler fuel. The boiler is the most important part of the mill. Besides being used in the process of boiling the palm oil, the boiler also produces steam which is used to generate turbines, including those in power plants. That is why the palm oil mills can get their power supply although they are located in rural areas.
There is usually a surplus of the shells in the palm oil mills. This surplus can be sold. Currently, the market price of shells range from Rp300 – Rp500 per kg (the price is not directly from the mills). The price of shells is also determined by their quality (wet/dry) and the locations of the palm oil mills . But the price of the shells is still much cheaper than the price of diesel fuel, and even that of coal.
In the Medan industrial area (KIM) 1 – 3, tens of trucks have to queue up to load the shells every day in the mills that utilize the shells as a source for their boiler fuel.
In the middle of last year, Energy and Mineral Resources Minister Jero Wacik inaugurated 2 units of steam power plants (PLTU) owned by the private sector in KIM-3. The power plants use the biomass as its primary energy source, instead of the diesel fuels normally used by such power plants. What makes them special is the fact that they use shells as their main source of primary energy. The PLTU units generate power for their own need and sell the excess power to PT PLN which then, through its grid system distributes it to the public.
Actually, considering the fact that Sumatra is the largest producer of CPO in Indonesia, it is ironical that there is a shortage of power supply in the island. There is an abundant supply of shells that can be used to generate power plants at much cheaper prices. The alternative energy source can be utilized to replace fossil fuels whose reserves and production are decreasing.
But the most important thing about the shells is the fact that it is a renewable energy source that can be used sustainably in compliance with the principles of sustainability.
The government should pay serious attention to this potential energy source. Through the Ministry of Energy and Mineral Resources (MEMR), more developments of biomass-based power plants in Indonesia should be encouraged. It does not matter if the government has to partner with the private sector or foreign investors. The government should also provide incentives and stimulus for investors to develop the renewable-energy-based power plants.
Such developments will certainly require a lot of investments, but it will give much bigger benefits in the future. If each of province of Sumatera and Kalimantan has 20 shells-fired power plants respectively, it will save millions of kiloliter of fuel oils s (BBM). And imagine how much foreign exchange can be saved through the reduction of oil imports? How many trillions of rupiah can be cut from the subsidy? This is not to mention if Sulawesi and Papua will also develop the same power plants.
The availability of power supply for all the people will increase productivity, and then boost economic growth and public welfare. Another important aspect is that the current natural resources can be still enjoyed by the next generation. Even in the next 20-30 years when many countries are expected to suffer from energy crisis, Indonesia will continue to enjoy energy surplus. It is not a pipe dream, if we are serious in starting to diversify the energy sources from now on. One of them is by reducing our dependence on the fuel oils through the utilization of palm shells as an alternative source of energy. (*)
Kompasiana.com
