PALMOILMAGAZINE, KUALA LUMPUR — Indonesia’s vast network of oil palm plantations, spanning over 16 million hectares, generates more than 111 million tons of biomass each year—a largely untapped resource that holds massive potential for advancing the country’s renewable energy transition.
Speaking at the 5th International Oil Palm Biomass Conference 2025, organized by Malaysian Export Academy (MEXA) and held at the Berjaya Times Square Hotel in Kuala Lumpur, Dr. M. Windrawan Inantha, Deputy Director of Market Transformation (Indonesia) at the Roundtable on Sustainable Palm Oil (RSPO), emphasized the strategic value of Indonesia’s oil palm biomass.
“Our vision is to transform oil palm biomass from a byproduct into a powerful driver of Indonesia’s clean energy transition—reducing our reliance on fossil fuels, meeting renewable energy targets, and creating inclusive green growth,” Windrawan said.
In 2024, these plantations processed 200.7 million tons of fresh fruit bunches (FFB) to produce 48.17 million tons of crude palm oil, according to the Indonesian Palm Oil Association (GAPKI). This activity, concentrated in Sumatra and Kalimantan, generates vast biomass: empty fruit bunches (46.16 million tons), palm kernel shells (12.04–16.06 million tons), mesocarp fibre (26.09–30.11 million tons), palm oil mill effluent (130.46 million tons), oil palm trunks (22–35 million tons, peaking at 59.7 million during replanting), and oil palm fronds (27.1–30.1 million tons). Together, solid biomass totals 111.39 to 122.33 million tons annually, showcasing the immense output from Indonesia’s 16 million hectares.
This biomass could generate 40–59 terawatt-hours (TWh) of energy yearly, surpassing the 2025 bioenergy target of 33 TWh. Techniques like torrefaction and pyrolysis improve efficiency by reducing moisture in empty fruit bunches from 60% to 10%, yielding 19–30 TWh from solid biomass.
Palm oil mill effluent, through methane capture, produces 16.1–20.1 million barrels of oil equivalent, equating to 15.6–19.5 TWh at 30% generator efficiency. Oil palm trunks add 5–9 TWh. This energy supports co-firing in coal plants, potentially reaching 5 gigawatts and cutting emissions by 10–15% per megawatt. Palm kernel shells, with high energy content (19–23 MJ/kg), drive exports, with 1.5 million tons shipped to Japan in 2023, contributing 2–3 TWh annually.
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Despite its promise, biomass utilization faces significant technical challenges that hinder progress. For instance, the high moisture content in empty fruit bunches, often reaching 60%, combined with 4–12% ash, increases processing costs by 20–30%, making energy production less efficient. Similarly, palm oil mill effluent releases methane, which has 28 times the warming impact of CO₂, yet only 10% of mills are equipped to capture it for biogas.
These technical barriers, compounded by the uneven distribution of biomass plants—mostly located in Sumatra while Kalimantan remains underserved—limit the scalability of biomass energy across Indonesia’s 16 million hectares of plantations.
However, innovative solutions offer a path to overcome these obstacles and unlock substantial economic and environmental benefits. Advanced technologies like torrefaction and pyrolysis can enhance biomass efficiency, while biochar production not only boosts energy output but also stores carbon, potentially adding $1 billion to Indonesia’s GDP by 2030. Expanding exports of palm kernel shells, already a valuable commodity with 1.5 million tons shipped to Japan in 2023, alongside scaling co-firing in 20 coal plants, could generate $500 million in revenue. Moreover, biomass initiatives could create 500,000 jobs by 2030, providing a significant boost to rural communities and supporting sustainable development across Indonesia’s plantation regions.
To fully realize this potential, a clear and actionable strategy is essential. Establishing a national biomass inventory would enable better tracking and management of the 111 million tons produced annually, ensuring efficient use across Indonesia’s plantations. Investing in facilities to process empty fruit bunches and palm kernel shells could help achieve 50 TWh by 2030, while requiring mills to use half their residues for energy by 2028 would drive progress. Developing affordable drying methods to reduce moisture in biomass, alongside implementing a carbon trading system to cut mill emissions by 20% by 2030, would further strengthen the sector and align it with Indonesia’s renewable energy ambitions.
The Kuala Lumpur conference shed light on Indonesia’s opportunity to transform its 16 million hectares of oil palm plantations biomass potential into a renewable energy asset. By tackling technical and policy challenges with practical solutions, the country can convert its abundant biomass into a valuable resource. This approach would not only help meet national energy targets but also foster a sustainable and prosperous future, positioning Indonesia as a leader in the global shift toward cleaner energy. (P3)
