Neutura’s Pyrolysis Technology for Carbon Removal and Storage Solutions

Indonesia holds the top position as the largest producer and exporter of palm oil globally. However, the surge in palm oil production comes with consequences, particularly the escalating generation of solid waste during the production process. Empty Fruit Bunch (EFB) is one of the solid by-products of the palm oil processing industry, with approximately 20.8 million metric tons of Empty Fruit Bunch (EFB) waste annually. This biomass is normally burned in incinerators by palm oil mills, which generate environmental pollution problems in nearby localities, resulting in significant methane emissions from these plantations.

One of the largest producers of crude palm oil is located in the North Sumatra region. Pollution resulting from improper biomass waste management from this industry could affect approximately 14 million residents in this area, posing health risks such as respiratory issues.

Existing pyrolysis/gasification solutions to address waste issues in palm oil are not suitable for industrial-scale applications. This is due to the lack of developed pre-processing machinery for treating empty fruit bunches before they can enter the available pyrolysis machines in the market. The difficulty arises from the low density and high moisture content of these waste materials. On the market side, there are currently no carbon removal projects being sold from Southeast Asia. This is primarily attributed to insufficient funding and direct government attention. The absence of such a market also contributes to the slow development of the carbon removal industry in Southeast Asia.

Secondly, the use of fertilizers, especially in Southeast Asia, is expensive and predominantly relies on chemical fertilizers. By introducing an industrial-scale biocarbon production solution, biocarbon can serve as an input for bio-fertilizers that have a minimal negative impact on the soil and can even act as a carbon sink.

Neutura will convert bio waste, in this case, palm oil Empty Fruit Bunch (EFB) from palm oil factory into biocarbon, a carbon-rich soil amendment that will be used at the ex-mining site in Medan, North Sumatra. This site is infamously known for its degraded land, which is no longer functional. We restore these degraded lands for local agricultural use. This ensures the initially removed carbon remains locked in for up to 1000 years. CO2 removal results from biomass conversion to biocarbon with long-term chemical and biological stability, i.e., high resistance to the degradation process when placed in the environment. Carbon captured in biomass by photosynthesis is stabilized in biocarbon and delayed by orders of magnitude compared to parent biomass when it returns to the atmosphere.

The process of stabilizing the palm oil EFB into biocarbon is conducted through pyrolysis technology. Pyrolysis technology offers a promising method for carbon removal by decomposing organic materials into biocarbon, bio-oil, and syngas. This process occurs in the absence of oxygen, typically at temperatures between 400°C to 800°C. During pyrolysis, organic materials break down into volatile gases, liquids, and solid char. The gases, including methane and hydrogen, can be used as energy sources or feedstock for other processes. The liquid fraction, known as bio-oil, can be further processed into biofuels or chemicals. The solid residue, biocarbon, retains carbon from the original feedstock, effectively sequestering it from the atmosphere. Biocarbon's porous structure improves soil fertility and structure, making it a valuable soil amendment.

Through collaboration with local and German pyrolysis experts, we've developed our prototype pyrolysis technology, Neutura A-0. Initial tests are promising: processing 0.5 tons of EFB daily at 500°C yields 0.13 tons of biocarbon, 0.12 tons of liquid smoke (including tar), and a mix of synthesis gases (O2, CO2, H2S, CH4). These gases are captured for use as generator fuel, showcasing our commitment to resource efficiency. Notably, our biocarbon boasts over 70% organic carbon content and an H:Corg ratio below 0.2, indicating high stability and potential for long-term carbon sequestration.

The incorporation of biocarbon into tropical soils yields multifaceted benefits. Enhanced water retention and nutrient availability result from biocarbon's porous structure, fostering optimal conditions for plant growth.

Our solution at Neutura serves a dual purpose, targeting both palm oil companies and the local population living nearby. Firstly, it addresses the environmental concerns stemming from the disposal of palm oil waste, particularly Empty Fruit Bunches (EFB), which often lead to methane emissions and pollution of water reserves. By engaging with palm oil companies, we offer a sustainable method to manage this waste through the process of pyrolysis, converting EFB into biocarbon.

For palm oil companies, our solution represents a significant opportunity to mitigate their negative environmental impact. By reducing the release of methane and preventing pollution of water reserves, they can enhance their environmental stewardship and meet regulatory standards more effectively. 

Simultaneously, our solution directly benefits the local population living near Neutura's production facility. These individuals often face challenges such as limited economic opportunities and exposure to environmental pollutants. By involving them in the collection and delivery of EFB waste to our facility, we empower them to increase their income through participation in the project. This engagement not only provides financial benefits but also fosters a sense of ownership and community involvement.

Furthermore, by reducing the presence of EFB waste in the environment, our solution contributes to improving air and water quality in the surrounding areas. This is particularly crucial for communities reliant on local water reserves for drinking water and agriculture. By minimizing pollution and mitigating methane emissions, we aim to create a healthier and more sustainable environment for these populations to thrive in.

The target population we aim to serve encompasses both the palm oil companies seeking more sustainable waste management solutions and the local communities impacted by the environmental consequences of palm oil production. These communities are often underserved in terms of economic opportunities and environmental protection measures. Our solution directly addresses these needs by providing a viable alternative for waste management while simultaneously offering economic benefits to the local population.

We have developed our project in collaboration with key stakeholders who can leverage our initiatives:

1. Palm Oil Factories: We have established relationships with palm oil companies in Medan, North Sumatra to secure the EFB biomass as our feedstock for pyrolysis technology. By doing so, we assist them in sustainably managing their biomass waste and reducing emissions from palm oil production activities.

2. Biomass and Agriculture Experts: With support from biomass and agriculture experts, we engage with farmer communities to raise awareness about climate change and promote the benefits of sustainable agricultural practices using biocarbon applications.

3. Fertilizer Companies: Collaborating with fertilizer companies linked to communities around ex-tin mining areas in Medan, North Sumatra, we aim to enhance the ex-tin mining’s degraded soil quality. This effort enables local communities to utilize the land for agriculture, thereby improving their prosperity and food security.

We have successfully built the first pyrolysis equipment named Neutura A0, capable of processing 150 tons of palm oil EFB waste into 50 tons of biocarbon per annum, which can potentially sequester up to 75 tons of CO2 per year.

Our biocarbon has undergone testing and analysis by local laboratories to gather information on its chemical and physical properties. The results indicate that our biocarbon meets international standards for biocarbon quality, with approximately 70% organic carbon content and an H:Corg ratio below 0.2, demonstrating the high stability of the carbon. At the same time, our biocarbon is undergoing application testing with users from former tin mining sites in North Sumatra to assess its impact and benefits. 

We plan to scale up our production to meet the potential demand for our biocarbon from these users.

Furthermore, we also secured offtake agreements for our carbon removal credits that require us to deliver 1,000 tons of CO2 removal at a minimum.

Partnering with Solve enables us to secure funds for accelerating our project, specifically directing these funds toward crafting the optimal design for our next equipment iteration.

Additionally, while we have secured some buyers for the carbon credits and biocarbon, local communities are not yet fully aware of the urgency of carbon removal and the benefits of biocarbon. We will require Solve’s assistance in conducting community outreach to ensure impact on local farmers. Further research and development efforts are necessary to raise awareness among local communities and enable us to penetrate the Indonesian market with biocarbon.

Furthermore, partnering with Solve will broaden our reach to other key stakeholders, facilitating awareness of carbon removal and biocarbon benefits. This support will aid us in promoting biocarbon adoption within other mills in Indonesia and across the Southeast Asian market.

Moreover, by leveraging Solve's experience and technological advancements, we can develop MRV (Measurement, Reporting, and Verification) technology eligible for carbon removal certification.

We are the first carbon removal project in Southeast Asia to focus on palm oil:

This will be the first carbon removal project in Southeast Asia and Indonesia that uses Palm Oil Waste. We create machines specifically for Southeast Asia's climate (rust-resistant and humidity-resistant), fully integrated from pre-processing to distribution handling and specially made to enhance high carbon content and keep the toxicity of the produced biocarbon very low. The circular outcome of processing palm oil biomass is also incorporating biocarbon back into degraded soil for remediation, thus enable the soil for agriculture use.

Access to Large-Scale Carbon Removal Scale:

We're launching a pilot project in Sumatera, Indonesia, focusing on large-scale carbon removal. Managing up to 30,000 tons of Palm Oil Empty Fruit Bunches (EFB) Waste annually, this initiative alone could remove about 18,000 tons of CO2e from the atmosphere each year.

Commercially more viable fertilizer for Indonesia’s Agriculture:

Functioning as both a fertilizer and organic pesticide, it offers equivalent effectiveness compared to conventional fertilizers but at a more affordable price point, providing a 35% cost advantage. Through large-scale carbon removal operations, we aim to meet Indonesia's agricultural demands for biofertilizers more efficiently when we are currently dependent on imports from other countries like Egypt or Australia.

Problem Statement:

In the global palm oil industry, Indonesia holds the top position as the largest producer and exporter of palm oil globally. However, the surge in palm oil production comes with consequences, particularly the escalating generation of solid waste during the production process. Empty Fruit Bunch (EFB) is one of the solid by-products of the palm oil processing industry, with approximately 20.8 million metric tons of Empty Fruit Bunch (EFB) waste annually. This biomass is normally burned in incinerators by palm oil mills, which generate environmental pollution problems in nearby localities.

Activities:

1. Set up an end-to-end industrial case for carbon removal and biocarbon production

2. Carbon removal daily operation activities such as EFB Waste Collection and Pre-Process, Pyrolysis Process, and Storage and Permanence

3. R&D to ensure high-quality biocarbon and biofertilizer.

4. Education and raising awareness about the usage and benefits of biofertilizers to farmers.

5. Convening stakeholder meetings between government, business, and academics to share information regarding climate-smart agriculture 

Outputs:

1. Pyrolysis and carbon removal machinery

2. High-quality biocarbon and Biofertilizer

3. Educated and entrepreneurial skill-trained farmers

4. Carbon Credits ready to be commercialized

5. Sector-specific events and discussions to facilitate the transfer of knowledge, regulation, and business solutions for climate-smart agriculture

Short-term outcomes:

1. Producing 1,000 tons of biofertilizer

2. Educating and increasing awareness of at least 1,000 farmers-related communities in Indonesia

3. Reduce greenhouse gas emissions of at least a thousand tons of CO2eq from one facility through the application of EFB-derived biocarbon into the soil

4. Produce to 10 jobs in one facility will be provided to the local communities.

Long-term outcomes:

1. Bigger market size for biofertilizers reaching urban farms in Indonesia and agrotech companies in Singapore presenting a valuable revenue stream for Neutura. 

2. Another revenue stream through carbon credits, is projected to reach $100/ton by 2030 and the EFB waste processing project developing.

3. Collection of Neutura portfolio that consists of bigger market size, various revenue streams, operation value, etc, makes use of more investment ready to scale more impacts.

Impacts:

1. Production Capacity: build a pyrolysis system that can process up to 30 tons of dry EFB waste per day

2. Environmental Impact: Reduce greenhouse gas emissions by approximately 18,000 metric tons annually  through EFB diversion and biocarbon production. Contribute to net zero transition

3. Economic Impact: 35 jobs in one facility will be provided to the local communities.

4. Adoption and Scaling: Foster the adoption of biocarbon technology by 10 palm oil companies in the region, promoting the widespread implementation and replication of the project's success

5. Climate Resilient: Farmers become more climate resilient in their agriculture practices. 50% of farmers in North Sumatra use biocarbon-based biofertilizers. Increase soil health. The balance between restorative and productive land makes land security and therefore food security.

6. Food security: Good quality of agriculture crops from sustainable land use, biofertilizer and climate resilient agriculture practices.

This is one of the ESG principles and strategies we are planning to implement:

Community Outreach for Procedural Equity: Drawing from the Agency for Toxic Substances and Disease Registry (ATSDR) community engagement continuum, Neutura prioritizes 'outreach'. By organizing workshops, educational sessions, and public campaigns, the project ensures that local communities are not only informed but are also equipped to make informed decisions about the project. The approach underscores proactive community involvement, transparent communication, and adaptability to feedback, ensuring the project aligns with local interests and values:

1. Key Objectives:

   1. Educate the local community on biocarbon's environmental and health benefits.

   2. Address and assuage concerns over potential risks.

   3. Cultivate trust and rapport between developers and the community.

   4. Facilitate open communication via dedicated channels.

   5. Enable community involvement in the biocarbon project.

2. Strategies:

   1. Conduct inclusive community meetings and forums.

   2. Establish a representative Community Advisory Board.

   3. Disseminate informational materials like flyers and brochures in the Indonesian language.

   4. Utilize social media for broad outreach, especially targeting younger demographics.

   5. Collaborate with and seek guidance from community leaders.

   6. Maintain a receptive stance towards feedback, ensuring adaptive responses.

3. Timeline Highlights:

   1. Initiate community forums 6 months before construction.

   2. Form the advisory board 3 months ahead.

   3. Distribute informational materials 2 months in advance.

   4. Begin social media engagement 1 month before the project onset.

   5. Engage community leaders starting 3 months before building.

4. Evaluation Metrics:

   1. Track attendance and engagement levels in meetings and online platforms.

   2. Monitor the consumption of informational materials.

   3. Measure community trust and support via feedback mechanisms and surveys.

5. Messaging Focus:

   1. Emphasize biocarbon's role in sustainable palm oil waste management, its environmental benefits, and job creation potential.

   2. Address health and safety aspects, reinforcing biocarbon's positive impact on air quality.

   3. Highlight benefits like improved soil health, water conservation, and reduced fertilizer usage

Pyrolysis technology is a promising approach for carbon removal from the atmosphere. It involves the thermal decomposition of organic materials in the absence of oxygen, resulting in the production of biocarbon, bio-oil, and syngas. This process is not only a means of carbon sequestration but also offers several other environmental and economic benefits.

The core technology of pyrolysis revolves around the principle of thermal decomposition. When organic materials such as biomass, agricultural residues, or even municipal solid waste are heated to high temperatures (typically between 400°C to 800°C) in the absence of oxygen or with limited oxygen supply, they undergo a series of chemical reactions.

One of the key products of pyrolysis is biocarbon, which is a stable form of carbon that can persist in soils for hundreds to thousands of years, effectively sequestering carbon from the atmosphere. Biocarbon has a highly porous structure, which makes it an excellent soil amendment, enhancing soil fertility, water retention, and nutrient uptake by plants. By incorporating biocarbon into agricultural soils, carbon can be stored for extended periods, contributing to long-term carbon removal.

Another product of pyrolysis is bio-oil, which is a liquid mixture of organic compounds derived from the breakdown of biomass. Bio-oil can be further processed into biofuels or used as a precursor for various chemicals, providing alternatives to pesticides, fossil fuels, and reducing greenhouse gas emissions.

Syngas, a mixture of hydrogen, carbon monoxide, and methane, is also produced during pyrolysis. Syngas can be utilized as a fuel for heat and power generation or as a feedstock for the production of chemicals and fuels through further processing such as gasification or Fischer-Tropsch synthesis.

The effectiveness of pyrolysis technology for carbon removal depends on several factors, including feedstock selection, process conditions, and the management of by-products. Different types of biomass have varying carbon contents and properties, influencing the yield and quality of biocarbon and other products. Optimal process conditions, such as temperature, residence time, and heating rate, need to be carefully controlled to maximize carbon sequestration and minimize emissions of greenhouse gases and other pollutants.

Furthermore, the sustainable management of by-products and residues generated during pyrolysis is essential to ensure environmental integrity and economic viability. Proper disposal or utilization of by-products such as ash and tars is crucial to prevent environmental contamination and maximize the overall benefits of the process.

In conclusion, pyrolysis technology offers a promising solution for carbon removal by converting organic materials into stable forms of carbon and valuable products such as biocarbon and bio-oil. By sequestering carbon in soils and displacing fossil fuels, pyrolysis can contribute to mitigating climate change while providing additional environmental and economic benefits. Continued research and development in pyrolysis technology are essential to further optimize its efficiency, scalability, and environmental performance for widespread adoption as a carbon removal solution.

Full-time staff: 5 people

Contractors: 10 people

Our team has been diligently working on our solution for almost 1 year, starting from May 2023.

Diversity in Leadership:

Our leadership team comprises individuals from diverse backgrounds, including different ethnicities, and professional experiences. We believe that diversity at the leadership level is essential for setting the tone and direction of our organization's culture and values.

Goals for Diversity, Equity, and Inclusion:

One of our primary goals is to continue building a team that reflects the rich diversity of the communities we serve. We are committed to creating an equitable environment where all team members have equal access to opportunities for growth, development, and advancement. 

Actions Taken:

To achieve our diversity, equity, and inclusion goals, we have implemented several initiatives:

1. Recruitment Practices: We strive to attract talent from diverse backgrounds by actively seeking out candidates from various groups in our industry. Our recruitment processes are designed to minimize bias and ensure fair consideration for all applicants.

2. Inclusive Culture: We promote a culture of inclusivity where all team members feel welcomed, respected, and valued. We encourage open communication, collaboration, and mutual respect among team members, regardless of their background or identity.

3. Community Engagement: We actively engage with diverse communities to understand their needs, challenges, and aspirations. By building strong relationships with community stakeholders, we ensure that our solutions are inclusive and address the needs of all individuals.

By prioritizing diversity, equity, and inclusion, we believe that we can build a stronger, more resilient organization that is better equipped to address the challenges of climate change and drive impactful carbon removal solutions.

Our business model centers around three main revenue streams: sales of pyrolysis equipment, biocarbon, and carbon credits. 

For palm oil mills, we offer a solution for their waste management by processing their palm oil Empty Fruit Bunches (EFB), which have low value, into biocarbon, adding significant value. 

Farmers and fertilizer companies benefit from our biocarbon sales, which enhance soil health and increase nutrient uptake by crops, thereby improving growth and yield. 

Carbon market players trust us for high-quality carbon credits capable of sequestering carbon for up to 1,000 years.

We provide these products and services as solutions to ongoing issues in Indonesia, such as improper agricultural waste management leading to pollution and health problems. Our solutions also benefit farmers by offering a cost-effective and highly effective fertilizer alternative through combining our biocarbon with fertilizers.

Our strategy for achieving financial sustainability involves capitalizing on various revenue streams to cover operational expenses and fund our initiatives. These revenue streams comprise sustained sales of pyrolysis equipment, biocarbon, and carbon credits, alongside securing grants and investment funding.

To date, we have procured our initial pyrolysis equipment, A-0. Utilizing this equipment, we've produced our first batch of biocarbon and collaborated with fertilizer companies to create a demonstration plot featuring a blend of biocarbon and fertilizer. Once we determine the optimal fertilizer composition, we plan to market it for rehabilitating degraded lands, such as ex-mining sites, restoring soil conditions to enable productive agriculture for local farmers. Furthermore, we've showcased our pyrolysis equipment to industrial mills, including palm oil mills and sugar factories. Additionally, we've garnered angel investments from multiple investors and organizations to bolster our research and development efforts. Moreover, we've secured multiple off-takers for our carbon removal credits.

Looking ahead, our focus is on expanding our customer base and scaling up our sales volume to ensure a consistent revenue stream. We also aim to explore strategic partnerships and investment opportunities to further amplify our operations and foster growth.

In summary, our success is evidenced by our ability to generate revenue through product and service sales, coupled with our track record of securing grants and investment funding. We remain steadfast in our commitment to combating climate change and environmental degradation while ensuring long-term financial sustainability.