WasteX – Bina Tani Sejahtera

Investing in Impact

P4G awarded the partnership with about US $460,000 in grant funding. 

WasteX will transform agricultural and animal waste into biochar that can be used by agricultural and livestock farms. This low carbon solution allows farmers to increase their incomes and improve their farms’ production by converting and utilizing waste that would otherwise be sold cheaply, dumped in landfills or burned. 

Biochar is a charcoal-like substance that’s made by burning organic material from agricultural and forestry waste. When mixed with soil, it can improve crop yields, increase soil water retention, and increase fertilizer effectiveness. It can also be used in animal bedding to reduce disease and be added as a feed supplement to livestock diets to improve animal health. 

WasteX has developed proprietary technology and equipment customized for use in farms in Southeast Asia. The technology allows the equipment to be smokeless and more energy efficient. 

WasteX has two revenue generation strategies: 

1. Providing farms with WasteX equipment and training either through the outright sale (upfront or leasing) of the equipment or through a subscription model where WasteX provides the equipment for free and collects a fee over time through carbon credit proceeds. 

2. Developing larger-scale facilities where WasteX operates a facility at a partner’s location. In this model, the partner provides the space and supply of waste, and participates in profit sharing. Additionally, the smallholders in the area benefit from the biochar application.

WasteX has so far provided its solution to  farms and mills across Indonesia, the Philippines and Thailand. These include a mix of poultry, rice, cacao, corn and more. Through product trials on different farms, it has found that the application of biochar made from its equipment has improved rice yields by 38%, cacao by 61% and corn by 95%, together with a reduction in the use of NPK fertilizer for cacao and corn. As part of an analysis with a veterinary lab, WasteX found that as a feed additive, it biochar has reduced chicken mortality rate by 25% and the presence of E.coli in manure by 99%. 

WasteX is also in the process of getting certified by the Carbon Standards International as a C-Sink Manager under the Global Artisan C-Sink standard. This would enable the company to certify farms and facilitate carbon credits for them. 

From April to September 2024, WasteX distributed 9.4 tons of biochar to 40 farmers. The partnership found that farmers were finding it challenging to transport more than 100 kg of biochar – the weight they can carry on their motorcycles – to their farms and is helping with delivery and transportation. 

WasteX held a training event for more than 80 smallholder farmers in the East Java region to educate them on the benefits of biochar. The startup’s waiting list of interested farmers continues to grow. To keep up with this demand WasteX has signed commercial agreements with three partners for the development of biochar and constructed two biochar production facilities with a third one under progress.  

Bina Tani Sejahtera will support WasteX in reaching farmer groups and to train farmers on biochar benefits and application. It will also engage with government stakeholders for any regulatory interventions that will help improve the biochar production market. The nonprofit is currently working with WasteX on a white paper designed to give the context and benefits of biochar application in Indonesia, the impact on climate and incomes, and policy recommendations that will support this nascent market.  

During the P4G funding period, WasteX aims to raise US $1 million in additional investment for expansion and growth. It will equip between 12 to 16 mid-sized farms with machines and technology, build 5-10 larger facilities onsite with agricultural producers, and provide and distribute 300 tons of biochar to smallholder farmers annually. As part of delivering social and environmental impact, the partnership will create 45 jobs, increase the yields of 300 farmers, and reduce 700 tons of carbon emissions. 

The partnership comprises the following partners: WasteX (lead business partner); Bina Tani Sejahtera (lead administrative partner); Yayasan Agathis Dammara Karbon (biochar expert and training partner).