Exports Of Palm Kernel Shells Are Soaring
The increasing demand for oil palm shell exports has provided fresh air for owners and managers of oil palm plantations in Indonesia. Moreover, now the demand for Palm Shell exports to Japan is getting higher.
Reportedly, the oil palm shell commodity, which was still a source of waste in Indonesia, was not even considered an export commodity at all, in the end, Japan will be transformed into a biomass energy source. Oil palm shells are starting to become an export commodity for many countries, one of which is Japan. These palm oil shells will be used as raw material for biomass power plants
Oil palm shells are starting to become an export commodity for many countries, one of which is Japan. These palm oil shells will be used as raw material for biomass power plants
Potential Exports of Palm Kernel Shells
Japan currently requires 10 million tons of palm kernel shells as fuel for Biomass Power Plants (PLTBM). The export value generated from this commodity is estimated at 100 billion yen or equivalent to Rp. 13.4 trillion.
About biomass, Japan currently needs 10 million tons a year, so companies really need a stable price and supply from abroad.
For this reason, the Japanese Government currently continues to promote the use of new and renewable energy (EBT) that is environmentally friendly, one of which is by utilizing palm kernel shells and wood pellets. By 2030, Japan targets to be able to utilize EBT as much as 25-35 percent of the country’s total electricity production.
Therefore, the potential to export palm kernel shells and wood pellets to Japan is wide open. However, fulfilling this commodity is also not without obstacles, many obstacles need to be resolved by the Indonesian government.
For example, the Japanese also often have difficulty finding stock of goods if they do not pass through large syndicates or agents providing palm kernel shells. So far, his party has also had difficulty setting prices. In fact, as a waste product from processing palm oil, the stock is abundant and the production cost is very cheap.
Distribution Channel for Palm Kernel Shell Commodities
For this reason, to facilitate exports, a distribution channel for these commodities will soon be established so that shipping costs will be cheaper. Because usually other costs will arise and be charged such as transportation, warehouse, shipping costs to Japan, and other costs incurred after being in Japan, therefore there needs to be a logistical structure.
Meanwhile, the Consulate General of the Republic of Indonesia (KJRI) in Osaka, Mirza Nurhidayat, said that the Japanese government would apply EBT about 14 percent of all energy sources used this year. This potential is very large for Indonesia to supply biomass to Japan.
What’s more, the development of PLTBM there is very fast and popular to reduce carbon gas emissions. Of course, this will open up enormous opportunities for cooperation in terms of fuel delivery.
But you need to know that currently palm oil is one of Indonesia’s mainstay commodities and is the largest contributor to foreign exchange after coal. Based on data from the Ministry of Agriculture in 2019, palm oil production (palm oil and palm kernel) in 2018 grew by 6.85 percent to 48.68 million tons from the previous year.
Palm Shell Becomes New Fuel
Palm kernel shell is a bioenergy source that has a high calorific value (4200 Kcal / Kg) and has a very low sulfur content. In addition to reducing carbon emissions, using palm kernel shells as fuel is considered more profitable. Surely this will be a pollution-free future energy source.
Apart from that, the availability of an abundant supply of oil palm shells in Indonesia also does not need to be doubted considering that the oil palm plantation area in Indonesia is still very large.
This is also based on various scientific studies that have proven the benefits of palm shells as an alternative fuel that is environmentally friendly and economical. In comparison, to produce 10 MW of electrical energy, the costs incurred for purchasing palm kernel shells are only around Rp. 762 thousand.
Meanwhile, when viewed from a comparison, using coal will cost around Rp. 1.4 million, whereas if fuel using diesel will cost around Rp. 2.9 million, this is a potential benefit for consumers.
Export of Palm Kernel Shells (PKS) is still the star
Along with the increasing demand for palm kernel shells, there are often difficulties when finding supplies of palm kernel shells. So PT. Bionergy Indonesia takes this business opportunity as one of its superior commodities by cooperating with several palm oil mills both in Sumatra and Kalimantan as suppliers. The commodity is also exploring export markets, especially to Japan, Taiwan, South Korea, China, and several European countries.
Strong Commitment to the use of Environmentally Friendly Energy (green energy)
Currently, the price of export quality palm shells is around the US $ 80-90 per tonne of FOB or US $ 110-120 per tonne of CIF. Data released by the Indonesian Palm Kernel Shell Entrepreneurs Association (APCASI) shows that shell production in Indonesia is not less than 8 million tons per year. Of this amount, the new export quantity is around 1.5 million tons per year with a total export value reaching more than Rp. 2 trillion.
The export demand for palm kernel shells continues to increase from year to year, especially in developed industrial countries, especially Japan. since the explosion of the Fukushima nuclear power plant as a result of the 2011 earthquake and tsunami, the demand for palm kernel shells to Japan has increased by 40%. Even Japan has signed a work contract with Indonesia for the supply of palm kernel shells for the next 10 years.
Bionergy – Supplier of the Best Palm Kernel Shell & Wood Pellets
We are the best supplier of palm shells and wood pellets in Indonesia. Connected with dozens of certified palm oil processing plants and wood pellet processing plants, we supply many industrial needs in Thailand, Korea, Japan, and abroad.
We accept supplies of palm kernel shells to be cleaned and dried according to the set standards. Every day, hundreds of tonnes of PKS enter and leave to be shipped to clients from all over the archipelago. We only guarantee the best quality with the best processing for you, our best buyer.
We guarantee the best quality
We have carefully selected and screened palm kernel shells and wood pellets from verified suppliers. So we only provide the best palm shells and wood pellets from Indonesia
Supply & Fixed Contract
We can supply a fixed amount each month – on a contract basis to ensure the supply of your biomass needs
Please contact us via the contact below :
Free consultation on WhatsApp
(+62) 812 6988 6575
Or it can be via email for faster ordering