We verified the profitability improvement effect of a lumber company (large-scale sawmill) in Japan establishing a feed-in tariff (FIT) biomass power generation business using its own sawmill residues. Various profitability indexes were compared between the following two scenarios: Scenario 1, the lumber company sells byproducts such as chips, sawdust, and shavings to other paper companies or stockbreeding companies; and Scenario , the lumber company establishes a power generation company based on FIT near the sawmill and sells its byproducts to own power generation company. In Scenario 2, the calculated IRR and NPV of the power generation company were low because the investment cost of the project was high, and it takes more time to recover the cost of the investment. However, it is guaranteed that the generated electricity will be purchased at a fixed price under FIT for 20 years. In the case of an only 3% reduction in the sales unit sales price of sawmill products, the profits were greatly reduced in Scenario 1, whereas all the evaluation indexes were better in Scenario 2.

Ozone is a powerful oxidant and is reactive toward lignin. Ozone can be used as an oxidant in pre-treatment process of lignocellulose material without producing any toxic residues nor making structural changes in cellulose and hemicellulose during ozonolysis process. This study aims to evaluate the effectiveness of ozone for the delignification of oil palm empty fruit bunch (OPEFB). The effect of 20, 40 and 60 mesh particle size, 30, 40 and 50% moisture content, and 30, 45 and 60 minute reaction time as well as their interactions, on lignin degradation, holocellulose content and reducing sugar concentration is investigated using response surface methodologies (RSM) with Design Expert 10. The total number of pre-treatment variations is determined by Box Behnken. The results show that ozonolysis is an effective method for delignifying lignin up to 63.86% and for increasing cellulose up to 40.95%. The ozonolysis process is able to degrade lignin and hemicellulose without decreasing the cellulose. The optimum condition of lignin degradation after the ozonolysis pre-treatment occurs at the condition with 40 mesh particle size, 50% moisture content and 30 minute reaction time. Enzymatic hydrolysis of OPEFB which has underwent ozonolysis pre-treatment can increase the concentration of reducing sugar. The optimum condition for lignin degradation is 42.42% and the reducing sugar concentration of 0.40 g / L is determined by the condition with 40 mesh particle size, 30% moisture content and 39.6 minute reaction time.

The first pilot plant scale 2nd generation bioethanol production method from waste mushroom bed (or mushroom medium) with continuous steam explosion pretreatment has been documented. Waste mushroom bed is one of the few hopeful feedstocks for ethanol production in Japan. Steam explosion is known as an effective pretreatment for ethanol production from mushroom beds. The optimal condition for the continuous steam explosion was evaluated via fiber analysis and flask-sized saccharification. The exploded mushroom bed was then loaded into an 8 m³ saccharification vessel and saccharized with commercial cellulase for 48 h, then transferred over to a 5 m³ fermenter. The ethanol concentration level for the final product was 1.8 % . Conversion ratio for C6 sugars contained in the pretreated waste mushroom bed was 61 %.

Oil palm plantation is a very potential source of feedstock for biodiesel production in Indonesia. Its productivity is high in terms of biomass, such as fresh fruit bunch (FFB), trunk and frond. FFB can be processed into crude palm oil (CPO) and further into biodiesel. Currently, most CPO productions are exported even though a domestic demand for biodiesel is increased. The problem might be due to a low added value of biodiesel production from CPO/FFB. The objectives of this study were to estimate the potential production of biomass from oil palm plantation and calculate the economic value of FFB as feedstock for biodiesel. Data were obtained from observation and survey at one of large stated-owned oil palm plantation companies in Indonesia. The results showed that potential production of biomass were 42.10 tons/ha/year based on photosynthetical approach. Further, based on conversion return approach, economic value of FFB when processed into CPO was found about USD 121.82 per ton FFB and this value would decrease to USD 95.20 per ton FFB is processed into biodiesel. This indicates that the CPO production is economically more favorable than biodiesel production. If the price of CPO decreases by more than 15%, implying at least 13% decrease in biodiesel production cost; the expansion of FFB use as bioenergy would be expected as the economic value of FFB derived from biodiesel production would be higher than that obtained from CPO production.