WasteX – Bina Tani Sejahtera

Investing in Impact

P4G awarded the partnership with US $458,081 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, its 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 December 2024, WasteX distributed 33.1 tons of biochar to 96 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 continues to hold training events with smallholder farmers 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 is currently operating three biochar facilities across East and Central Java. 

Bina Tani Sejahtera is supporting WasteX in reaching farmer groups and to train farmers on biochar benefits and application. The nonprofit is also engaging with government stakeholders on regulatory interventions to help improve the biochar production market. 

The partnership produced a white paper on the context and benefits of biochar application in Indonesia, the impact on climate and incomes, and policy recommendations to support this nascent market. The partnership shared key findings from the paper at an event hosted in collaboration with the Ministry of Agriculture and received commitments from the ministry and other government agencies to support the adoption of biochar on a wider scale. 

WasteX has gathered valuable learning to improve operations in the future such as using feedstock like rice husk that does not pre-drying during Indonesia’s rainy season. This allows the startup to have a consistent supply of prepared feedstock to produce biochar. 

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. 

To date (December 2024), the partnership has created 7 new jobs, distributed about 33 tons of biochar, and reduced 56 tons of carbon emissions. WasteX has three operational facilities and has delivered 5 units to farms and agricultural producers. 

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).