This blog is derived from : SAWIT INDONESIA VOL.XIII EDISI 160 – 15 FEBRUARI / 15 MARET 2025
. Written by Organics. Any reproduction or distribution of content without permission is prohibited.

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Interested in the full Biochar article? Contact us to download the complete version!

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As awareness of climate change increases, the Indonesian government encourages various industrial sectors to reduce carbon emissions. The government implements regulations and initiatives aimed at reducing greenhouse gas emissions. One solution gaining popularity is carbon credits, which help industries not only reduce their environmental impact but also earn additional revenue.

Carbon credits serve as an incentive for companies to reduce emissions. Companies that follow regulated emissions reduction programs or meet specific criteria can generate or buy carbon credits as compensation for their emissions. One way for companies to obtain carbon credits is by producing biochar, a carbon-rich material created from biomass processing through pyrolysis.

This article will discuss what carbon credits are and how they differ from carbon trading. The production of biochar as an emission reduction solution has great potential. The article highlightshow the industrial sector in Indonesia can take advantage of it.

What is Carbon Credit?

Biochar as One Way to Get Carbon Credits

One way to obtain carbon credits in Indonesia is through biochar production. Biochar is produced through a the process of pyrolysis, in which biomass is heated in conditions without oxygen to produce a highly stable carbon material. The carbon in organic material is locked up within the structure of the resultant biochar. The technology used is therefore carbon negative. Also,  due to its high carbon content, biochar prevents carbon from being released into the atmosphere by stabilizing it in a solid form, making it an effective tool for long-term carbon sequestration and reducing carbon emissions.

The Potential of Biomass in Indonesia

Regulations in Indonesia

Some important regulations that support the reduction of greenhouse gas emissions and energy transition in Indonesia include:

1. 1. 1. Presidential Regulation (Perpres) No. 112 of 2022: Regulates the acceleration of renewable energy development, especially new and renewable energy-based power plants.
      2. Government Regulation (PP) No. 79 of 2014: Directs national energy policies that target significant reductions in carbon emissions and increase the role of renewable energy.
      3. Law (UU) No. 30 of 2007: Regulates energy, including the development of renewable energy as one of the priorities to reduce dependence on fossil fuels.
      4. Regulation of the Minister of Energy and Mineral Resources No. 50 of 2017: Providing incentives for companies that use renewable energy, including special tariffs for renewable energy projects.

How to Get Carbon Credits in Indonesia

For companies that want to benefit from carbon credit schemes in Indonesia, there are several steps that must be followed. Organics, as a reliable EPC in renewable energy and pyrolysis projects, is ready to assist companies in carrying out decarbonization projects to obtain carbon credits. Here are the steps that should be followed (Winrock, 2015) : 

1. Project Development This phase includes several activities, such as selecting a validation methodology, conducting calculations and selections, estimating project emission reductions, and creating project plans and documentation.
2. Validation The validation process is completed before registration. Some voluntary registry bodies allow small-scale projects to be validated alongside verification after registration. 
3. Registration The project must be registered under the UN voluntary registry body mechanism.
4. Monitoring & Verification Monitoring is conducted according to the project plan and verified by an independent verifier.
5. Carbon Credit Issuance Carbon credits are issued for projects that have been verified.

With supportive regulations and great potential in the renewable energy sector, Indonesia is poised to become a major player in global efforts to reduce emissions and harness the potential of renewable energy.

Why Choose Organics to Support Carbon Credits?

Organics’ Advantages in Renewable Energy Projects

1. Global Experience: Organics has a strong track record in renewable energy projects in Asia and Europe, proving itself to be a trusted partner in sustainability-enabled technologies.
2. Leading Technology: The Pyroclast is designed for high efficiency and cost  reduction, ensuring maximum results and reliable post-commissioning systems designed to increase profitability of operations.
3. Cost Effective: We provide innovative cost-effective technical solutions.

Conclusion

Biochar is an effective solution for tackling increasing carbon emissions in Indonesia and is in line with the government’s efforts to reduce greenhouse gases. Carbon credits are an important incentive for companies to reduce emissions, and biochar produced from biomass pyrolysis can improve soil quality as well as store carbon dioxide, which leads to a reduction in emissions.

Organics, with more than 30 years of experience and reliable pyrolysis technology, is ready to be your partner in carbon credit projects. We are committed to providing high-quality and cost-effective solutions.

Contact us today to find out more about our biochar-producing pyrolysis technology as well as other renewable energy opportunities!

Source :

• BPDP. (n.d.). Biomassa sawit: Sumber energi terbarukan. Badan Pengelola Dana Perkebunan Kelapa Sawit. https://www.bpdp.or.id/biomassa-sawit-sumber-energi-terbarukan

• Winrock. (2015). Konversi POME menjadi biogas, pengembangan proyek di Indonesia (USA).

• ABGI. (n.d.). Potensi biomassa di Riau. Asosiasi Bioenergi Indonesia. https://www.abgi.or.id/data-information/?tab=potensi&provinsi=riau#infografis

Carbon credits from biochar are gaining attention in Indonesia, especially among palm oil and agriculture companies. These industries actively seek ways to reduce their carbon footprint and enhance their sustainability image. The market for biochar-based carbon credits in Indonesia is still in its early stages, but it shows promising growth potential.

As awareness about biochar’s benefits and the opportunities for carbon credits rises, we expect demand to increase in the future. In this article, we explore biochar, its production process, and its connection to carbon credits.

What is Biochar and how is it Produced?

Properties of Biochar

Biochar primarily consists of stable carbon, and its composition varies based on the biomass feedstock and the pyrolysis conditions, such as temperature, heating rate, and duration. Key components of biochar include:

Fixed Carbon

This stable form of carbon makes up the majority of biochar. Fixed carbon does not easily vaporize or decompose, contributing to biochar’s long-term stability in soil. This property is crucial for carbon sequestration and reducing decomposition rates.

Volatile Matter

While most volatile compounds are driven off during pyrolysis, some carbon-based chemicals remain that can vaporize more easily. The amount of volatile matter decreases as the pyrolysis temperature increases.

Ash

Though not carbon-based, ash forms a significant part of biochar. It consists of minerals and salts from the original biomass, which can enhance soil fertility when biochar is used as a soil amendment.

Graphitic Carbon

At higher pyrolysis temperatures, some biochar carbon can form highly ordered graphitic structures, which are exceptionally stable and contribute to the durability of biochar.

Other Important Parameters of Biochar:

• • Moisture Content: This affects the drying process and can reduce the overall effectiveness of the biochar.
  • Surface Area and Porosity: These characteristics are essential for water retention and provide a habitat for beneficial microorganisms.
  • pH level: Biochar influences soil pH when used as an amendment, making it important for balancing soil acidity.
  • Nutrient Content: The effectiveness of biochar as a soil enhancer depends on its nutrient content.
  • Stability: This determines how long biochar will last in soil and how effectively it sequesters carbon over time.

Biochar Roles in Environmental Management, Agriculture, and Industry

Biochar Roles in Environmental Management

Biochar plays a crucial role in environmental management by aiding carbon sequestration and reducing greenhouse gas emissions. Through photosynthesis, plants absorb carbon dioxide (CO2), storing carbon within their structures while releasing oxygen into the atmosphere. However, when plants die or are cut down, this stored carbon typically returns to the atmosphere as CO2, contributing to global warming.

Biochar offers a solution through two primary mechanisms:

Carbon Capture

During pyrolysis, organic materials like agricultural waste are heated, releasing volatile gases and leaving behind carbon-rich biochar. This process effectively captures carbon by preventing it from being emitted as CO2.

Long-Term Carbon Storage

Once applied to soil, biochar serves as a long-term carbon sink due to its resistance to decomposition. This durable carbon storage method can sequester carbon for decades or even centuries, preventing its re-entry into the atmosphere through natural decay processes.

Additionally, biochar mitigates nitrous oxide (N2O) emissions, another potent greenhouse gas. When applied to agricultural soils, biochar creates a stable environment for microorganisms involved in nitrogen cycling. Its porous structure and chemical properties help retain nutrients, minimizing the production and release of N2O, which often occurs in nitrogen-rich environments through microbial processes.

In summary, biochar captures carbon during pyrolysis, sequesters it in soils, and reduces harmful N2O emissions. These combined benefits make biochar a powerful tool for combating climate change while enhancing soil health and promoting sustainable agriculture.

Biochar as an Energy Source

Beyond its environmental benefits, biochar can also be utilized for energy production. Pyrolysis produces not only biochar but also syngas and bio-oil, both of which can be harnessed as renewable energy sources. Syngas can power electricity generation, heating systems, or serve as a feedstock for chemical production, while bio-oil can function as an alternative fuel or be refined into various bioproducts. This dual functionality makes biochar production highly sustainable, providing both carbon capture and renewable energy from biomass waste management.

pH Regulation

Biochar influences soil pH depending on its source. It can be neutral, slightly alkaline, or acidic, helping regulate soil pH and optimize conditions for plant growth and nutrient absorption.

Disease and Pest Management

By enhancing microbial diversity in the soil, biochar indirectly helps control diseases and pests. Beneficial microbes thrive in biochar-amended soils, suppressing harmful pathogens, while biochar’s porous structure can act as a barrier against some pests.

Water Management

Biochar significantly boosts soil water retention, reducing evaporation and improving water availability to plants. This makes it particularly beneficial in drought-prone regions or sandy soils with poor water retention.

In addition to sequestering carbon, biochar provides co-benefits like reducing nutrient runoff, enhancing soil fertility, and lowering the need for synthetic fertilizers. These advantages contribute to more sustainable agriculture and offer both environmental and economic benefits.

Applications of Biochar in Industry

Biochar, a carbon-rich byproduct of pyrolysis, is rapidly gaining traction across various industries due to its sustainability and environmental benefits. One promising sector is construction, where researchers are exploring the incorporation of biochar into materials like concrete, cement, and asphalt. This not only improves material properties but also enhances carbon sequestration, making biochar a valuable tool for reducing industrial carbon footprints.

Construction Industry

Pharmaceutical Industry, Healthcare, Research or Laboratory

Case Study: Pyrolysis of RDF, Puerto Montt, Chile

In Puerto Montt, Chile, a pyrolysis project processes Refuse-Derived Fuel (RDF) from fish processing waste, including plastics. This innovative approach significantly reduces landfill waste while generating heat energy for on-site use or export. Additionally, the process dries the RDF, increasing its energy efficiency.

The benefits of this project include reduced waste generation, decreased reliance on fossil fuels, and the recovery of valuable materials. Operating in an oxygen-depleted environment, this process also reduces greenhouse gas emissions compared to traditional waste disposal methods. With the capacity to process up to 1,000 kg per hour of wet RDF, this project serves as a model of sustainable waste management with substantial environmental and economic advantages.

Conclusion

Biochar offers substantial environmental benefits, from carbon sequestration to improved soil health and renewable energy generation. Its applications extend across agriculture, where it enhances soil properties, and industry, particularly in construction and waste management, helping to lower emissions and promote sustainability. As interest in carbon credits from biochar continues to grow in Indonesia, the potential for further market development is significant.

To learn more about how biochar can benefit your business and explore partnership opportunities, reach out to us today!