DENR CHARCOAL BRIQUETTING Introduction

Charcoal briquettes from wood and non-wood biomass wastes such as leaves, twigs, branches and other cellolusic biomass can lessen wood and wood charcoal consumption of poultry farms, households and domestic business which is about 5.4 million cubic meters/year fuelwood from the forest and woodlands or an equivalent charcoal of 1.35 million metric tons. Such substitution will not only put abandoned biomass and agroforestry wastes into good use but also help mitigate carbon dioxide emission in the atmosphere and lessen the depletion of the countrys forest resources. For every ton of briquettes produced, about 88 trees are conserved.

Our Goals
1. To reduce pressure in cutting/using wood from the natural forest, which is traditionally used for charcoal production in the uplands and mangrove areas; 2. To provide additional source of income and livelihood opportunities to the upland farmers, coastal dwellers and urban poor; 3. To produce charcoal briquettes and other products (such as liquid smoke) from abandoned biomass such as leaves, twigs, grasses and buko wastes for household energy; 4. To utilize plantation prunnings and agricultural and urban cellulosic wastes; and 5. To produce biofuel that is environment-friendly, economically and socially acceptable for domestic and industrial uses.

Current Situation

DENR-ERDB has produced under laboratory and field commercial conditions, charcoal briquettes from different species and material combinations including urban wastes, and has piloted the technology in CBFM areas. Trainings from different regions were conducted as part of the DENRs thrust in bringing the technology to the uplands and urban areas as one of their alternative livelihood. Several species and species combination were already produced and tested with regards to their heating value. For each region, material used depends on what are the materials available for use in charcoal briquette production. At present, about 35 species of wood and non-wood biomass combinations that can be used as raw material were tried and tested. Table 1 shows the projected supply and demand of fuelwood in the Philippines. Table 2 presents the feasibility of a 300-kg/day abandoned biomass charcoal briquetting facility. It is expected to generate a net present value (NPV) of P2,085,085.71 and a 100% internal rate of return (IRR). The sensitivity analysis showed that the effects of inflation and price reduction do not pose an alteration to the feasibility of the project. The project is still feasible even with a simultaneous 20% decrease in gross benefits and 20% increase in total cost. From the analysis, the project was found feasible as a business venture and therefore, a worthwhile investment. In terms of organization, the project only requires a very simple organizational structure and the process is not complicated. Moreover, the project is deemed environmentally sound. It sought to replace the traditional charcoal making in the community which poses great threat to the watershed environment as it necessitates the cutting of trees.

The project has been found to spare 6,970 trees annually (Table 3) as it only requires the utilization of abandoned biomass. Positive externalities are also expected from it, such as its potential for carbon sequestration, the landscape amenities it will provide, protection of biodiversity among others. Table 4 shows the comparative analysis of the type of charcoal requirement per household.

Production of DENR Charcoal Briquettes From Abandoned

Table 1. Fuelwood Supply and Demand (000), 1990-2015 (Master Plan for Forest Development, 2004). Items Supply Household Demand Industrial Demand Total Demand Deficit

Biomass1990
3,025 31,000 7,700 38,700 35,675

1995 3,988 33,000 7,800 40,800 36,812

2000 4,871 36,000 8,400 44,400 39,529

2005 5,363 38,000 8,400 45,400 41,037

2010 5,901 40,000 8,400 48,400 42,499

2015 6,563 43,000 9,100 52,100 45,537

Table 2. Feasibility study of 300 kg/day charcoal briquetting facility.

Source: Shresta, et al. (2008). Note: SI = Sensitivity Index; SV = Switching Value

Economic Parameters Target Competitive Price Break-even Volume Net Present Value (NPV, 12%) Benefit-Cost Ratio (BCR) Internal Rate of Return (IRR) = = = = = Php 15.00/kg 76,107 kg Php 2,085,085.71 1.81 100%

Measures of Financial Viability ------------------------------------------------------------------------------------------------------------Scenario

BASE ASSUMPTIONS A. Decrease in sales by 20%

/ BCR 1.81 1.30

N P V 2,085,085.71 1,006,296.70 994,307.03 1,411,324.17 1,498,122.06 320,545.49

IRR (%) 100 56 56 63 76 25

SI 2.59 5.23 3.23 2.82 8.46

SV (%) 19.328 19.116 30.947 35.523 11.817

B. Decrease gross benefits by 20% 1.30 C. Increase in total cost by 20% D. Increase operating cost by cost by 20% E. Simultaneous occurrence of B and C

1.35 1.38
1.08

Table 3. Environmental Impact of Charcoal Briquetting.

Environmental Impact

CB Produced Per Year Kg/Year Ton/Year 79,200 79.20

Number of Trees Saved Per Year 6,970 10 years 69,697

Carbon Sequestered, kg Per Year 153,331.2 10 Years 1,533,312.0

2009

Total value of timber saved/year/facility = Php 67,320.00

Table 4. Comparative Analysis of Type of charcoal required per household.

REQUIREMENT/HOUSEHOLD

CHARCOAL Ordinary charcoal DENR non-carbonized charcoal DENR carbonized charcoal

(1 day=3 Meals) 3.50 kg 2.01 kg 1.69 kg

Plans and Programs

The Department of Environment and Natural Resources is embarking on a charcoal briquetting program nationwide to create an alternative livelihood from abandoned biomass, reduce solid wastes at the same time conserve our forest resources. . What is Charcoal Briquettes? A solid fuel derived from carbonized leaves, twigs, stem and other farm and urban waste and compacted into briquettes. When burned, the DENR charcoal emits a steady heat with low clean flame. The charcoal is easy to ignite and burns completely in at least 50 min. Charcoal users consume about 5.4 cu.m of fuelwood from the forest or an equivalent of 1.35 million Metric tons of charcoal.

Importance of Charcoal Briquettes

It can lessen wood charcoal consumption of poultry farms, households and other domestic businesses. It helps mitigate carbon dioxide emission in the atmosphere. It lessen the cutting of trees from the countrys forests. It put abandoned biomass and agro-forestry wastes into good use. For every ton of briquettes, about 88 trees are conserved.

Advantages of Charcoal Briquettes

Biomass is a renewable resource which can be managed sustainably. High quality charcoal briquettes can

replace expensive imported fossil fuel. Utilization and conversion of abandoned biomass to charcoal briquettes cleans the community of wastes and can serve as additional/alternative livelihood to alleviate poverty especially for the underprivileged

Examples of Raw Materials Corn Cobs and Stover Coconut husks and shells Banana Wastes Peanuts and Pili Nuts Shell Abandoned biomass/tree branches/trimmings Furniture, sawmill and wood wastes Sugarcane, durian and rice hulls Cogon, pili leaves and driftwoods Bamboo and baho baho species Process Flow - Charcoal Briquetting

Charcoal Briquettes Market

Country
World Estimat e Japan Germany Republic of Korea United Kingdo m USA Belgium Greece Netherlands Italy

Annual growth in Quantity Value of Import Unit value value Imported (US$ '000) (US$/unit) between 2005-2006, 2006 (Tons) %

1,402,666 141,945 142,802 124,173

87,794 80,935 61,372 49,693

348 570 430 400

6 2 3 32

54,611 61,324 64,559 62,662 50,902 63,573

29,096 23,620 3,294 21,209 20,086 19,961

544 385 361 338 395 314

4 5 6 24 3 8

Source: Department of Trade and Industry