2019/6/27 Biofuel firm DSJ turning palm waste into biomass fuel in Indonesia - NNA Business News - NNA ENGLISH

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Biofuel firm DSJ turning palmwaste into biomass fuel inIndonesia

2019/6/20 14:03

Japanese company DSJ Holdings Inc. deploys its deoxidization technology to turn residual palm tree waste intobiomass fuel, as explained during a business-matching event in Jakarta, on June 18, 2019. (NNA/Kyodo)

By Masayuki Tada

JAKARTA, NNA - Japanese company DSJ Holdings Inc. is deployingits deoxidization technology to turn residual palm tree waste intobiomass fuel in Indonesia, the world’s largest palm oil producer.

DSJ President Izumi Hara said in Jakarta on Tuesday that his firm’slocal arm, PT. Torrefaction Bioenergy Indonesia, has starteddeoxidization processes at a plant on Batam Island to make palmkernel shell fuel, known as deoxidized PKS.

The Japanese firm says it aims to ship the fuel to meet renewableenergy demand in Japan and Europe.

Palm waste becomes a hotbed of germs and pests and causes problemsin its immediate environment if left to rot.

The Tokyo-based biofuel venture, established in 2015, intends toprovide a solution to such problems through the new project.

DSJ set up the Indonesian subsidiary in May last year and installed thefacilities to produce 1,000 tons of deoxidized PKS per month, Hara

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said at a business-matching event organized by the Japan ExternalTrade Organization.

The facilities can reduce substances such as chlorine and potassium tolower dioxin emissions when palm remains are burned, and make theresidue suitable for wooden biomass fuel.

Hara said the facilities can also deoxidize empty palm fruit bunches andoil palm trunks to be used as biomass fuel.

He also said his firm plans to further invest in Indonesia to raise themonthly PKS output capacity to 20,000 tons by next March to makeshipments to Japan and Europe.

Japan is facing a shortage of imported wood biomass fuels as domesticbiomass fuel power generation capacity expands rapidly on the back ofthe government’s clean energy push following the Fukushima nucleardisaster in 2011, according to the Japan Woody Bioenergy Association.

The DSJ project in Indonesia has prompted Malaysia, the world’s No. 2palm oil producer, to ask for cooperation, Hara added. (NNA/Kyodo)

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The Daily NNA

June 19, 2019

PKS converted into Biomass Fuel by torrefaction

DSJ shortly plans to start its production operation in full swing

DSJ Holdings Inc. (Minato-ku, Tokyo) will soon start full operation of its torrefaction

facilities of PKS. Torrefied PKS will be converted into the alternative fuel to coal.

Although PKS has been so far a serious source of environmental concerns such as

disease-causing germs and noxious insects, which are usually generated while PKS is

being piled up open air, such issues will be completely solved by the torrefaction. Sale

of 3 million tons per month is anticipated to be achieved within five years.

DSJ has started its production of torrefied PKS at Batam island of Riau Islands Province

in May and provided the production samples to the various electric power companies

and trading houses of Japan and Europe. Upon the verification of satisfactory quality as

their fuel, commercial level of production will be launched. Mr. Izumi Hara, the president

of DSJ Holdings Inc., has mentioned about such projection on the 18th at the Business

Meeting of PKS and Wooden Pellet, which was organized at Jakarta by JETRO.

DSJ has developed such a unique Torrefaction machine taking 8 years of time, which is

capable to torrefy EFB and OPT as well. They have developed and completed a special

technology for the first time in the whole world, which will reduce such hazardous

substances below the internationally permissible level, as Chlorine, Potassium and

Natrium, which are contained in EFB and OPT and emit harmful substance such as Dioxin,

when burnt. DSJ is now receiving many inquiries about such unrivalled technology from

large corporations of the world. The close cooperation of DSJ has been also strongly

required by the government of Malaysia, which is also one of the largest palm oil

producing countries as Indonesia is.

DSJ set up the Indonesian subsidiary, PT. Torrefaction Bioenergy Indonesia, in May last

year at Batam island, Indonesia. The monthly production capacity is 1,000 tons per unit.

The cost of each unit is JPY 120 million. By next March, DSJ will establish a production

system with a monthly production capacity of 20,000 tons. The company aims to set up

3,000 units in 5 years and produce 3 million tons of torrefied PKS per month. They expect

80% of its sales will be to Japan and the remaining 20% to Europe.

The calorific value can be adjusted from 4,600 kcal to 7,000 kcal per kilogram, depending

on the temperature of the torrefaction process. The trading price of the torrefied

product at 250 ° C is assumed to be US $130 (JPY 14,000) per ton FOB. Mr. Hara said, “we

can provide our product at a lower price with the same level of calories as coal. The

quality can be variable depending on the production process. That’s the remarkable

aspect of torrefied products.” Torrefied PKS at 350 ° C can be a substitute for coke.

Torrefaction process increases the heat density, which in turn reduces the costs of

transportation and storage compared with raw PKS. Torrefied PKS is classified as a

processed good, thus there will be no export tax to be inposed on such products, and no

fumigation will be required for pest control.

JETRO considering about organizing PKS business meetings regularly:

This was the first time for JETRO to hold a PKS business meeting in Indonesia. Japan’s

imports of wood fuels are expanding due to the increase in the number of biomass

power generations. However, there are limited opportunities to obtain information

about the wood fuel producers in Indonesia. JETRO decided to hold such business

meetings because there are an increasing number of business inquiries from Japanese

companies and local sales companies in Indonesia, who are willing to export their

products to Japan.

About 70 people from 14 producers and 30 Japanese buyers attended this meeting on

18th June. Depending on the responses of the attendants, JETRO will consider about

holding such business meetings continuously.