Unggul Priyanto Agency for Assessment and Application of Technology

Republic of IndonesiaNovember 1, 2010

INTRODUCTION

World Peak-Oil & Indonesian Oil Production Projection

UNCERTAINTY DEPLETION

4

Gas, 30%

National Energy Mix 2025 (3 billion BOE)(Presidential Decree No. 5/2006)

NATIONAL ENERGY POLICYNATIONAL ENERGY POLICY(PRESIDENTIAL DECREE NO. 5 YEAR 2006)(PRESIDENTIAL DECREE NO. 5 YEAR 2006)

Natural Gas, 28.57%

Coal, 15.34%

Oil51.66%

Geothermal, 1.32%

Hydro Power, 3.11%

CURRENT ENERGY MIX (1 billion BOE)National (Primary) Energy Mix

Energy Elasticity = 1,8

Coal , 35%

Oil 20%

Biofuel, 5%

Geothermal, 5%

wood waste, Nuclear, Hydro, Solar Energy, Wind Power, 5%

RE,15%

Energy Elasticity < 1

Opportunities for Bioenergy

• Bioenergy are available in liquid state• Bioenergy is renewable energy• Bioenergy can give a large contribution to

reducing GHG emissions• Bioenergy is a clean energy source• Bioenergy markets provide major business

opportunities (bio-diesel, bio-ethanol)• Bioenergy can provide a key lever for rural

development and enhanced agricultural production methods

5-20%

Crude bio-oil

Biodiesel

diesel oilBio-Diesel

Diesel Engine: car, Genset

Coconut

palm Jathropa

PURE PLANT OIL(PPO ) and BIODIESEL

Raw materials for Biofuel

BIOETHANOL

Methanol+

Cassava mollases

Hydrolysis + Fermentation

Bioethanol ( 9% )

Dehydration

Bioethanol ( FG )

Gasolin Engine

GasolineBioPremium

5-20%

Lignoselulosa

Pure Plant Oil

diesel oil

Plant Part of Plant Ethanol Productivity(L/ha/yr)

Cassava Root 4,500

Sweet potato Root 7,800

Sugar Cane Stalk 5,000 – 6,000

Corn Grain 5,000 -6,000

Sorghum Grain 3,000 -4,000

Sweet sorghum Stalk 5,500 – 6,000

Sago Stalk 4,000 – 5,000

Palm Sugar/Aren Sap 10,000-20,000

Nipah (Mangrove) Sap 5,000 -15,000

Lontar Sap 8,000 – 10,000

Coconut Sap 8,000 – 10,000

Resource Base of Bioethanol

Resource Base of Vegetable Oil•There are 350 plantation that supply vegetable oil

Plantation Kg oil per Ha L oil per ha

Palm oil 5000 5950

coconut 2260 2689

jatropha 1590 1892

rapeseed 1000 1190

peanuts 890 1059

sunflowers 800 952

soybean 375 446

corn (maize) 145 172

Sector Quantity (t/year)

Sugar industry Bagasse 8,500,000 Leaf cane 1,290,000 Palm oil mill Shell 3,450,000 Fibre 6,700,000 Empty fruit bunches 12,900,000 Palm Oil Mill Effluent (POME)

31,000,000

Rice Mills 12,500,000 Wood waste 8,345,933

Biomass Waste Resources Potential

BIOENERGY POLICY IN INDONESIA

OBJECTIVE OF BIOFUEL DEVELOPMENT

1. Poverty alleviation and job creation2. Encourage enhancement of sustainable economical activities, through biofuel development :

• Reasonable price• Efficient, reliable, save and environmental

friendly3. Reducing domestic fossil fuel consumption

STRATEGY1. Developing investment and finance scheme in biofuel

development2. Developing price mechanism, starting from the feedstock up to

biofuel product that support biofuel development effectively 3. Increasing local content on biofuel development4. Improving feedstock supply and production infrastructure5. Establishing biofuel trading system (59 Gas station use

Bioethanol, E2. 1394 Diesel station use Biodiesel, B2-B10)6. Accelerate land availability 7. Developing Special Biofuel Zone and Self Sufficient Energy

Village 8. Improving Local Government and society participation in biofuel

business

FAST TRACK BIOFUEL DEVELOPMENT

Fast TrackEach Region Developing

its Biofuel Potential

SPECIAL BIOFUEL ZONE

Create Job

Poverty Alleviation

Energy

SHORT RUN LONG RUN

Energy Self Sufficient Village

• Infrastructure• Demplot• On time schedule• Explicit investment employment ratio

• Infrastructure• Demplot• On time schedule• Explicit investment employment ratio

CHALLENGES 1. Land availability for Biofuel Development

Land availability inventory, synchronizing data among Forestry Department, National Land Affairs Agency and Regional Government

2. High price of biodiesel feedstock, especially CPO

Feedstock diversification is needed

3. Improving quality of Biofuel commodities

Agricultural research on biofuel commodities sector

4. Improving national technological capabilities on biofuel processing

Research and Development, technology transfer on biofuel processing with more experienced parties

5. The price of biofuel that has not yet competitive in compare with fossil fuel

Subsidy Fossil fuels/oil

Feedstock diversification and effective technology will decrease the price of biofuel

ROADMAP OF BIOFUEL UTILIZATION

Bio Diesel

Bio Etanol

BiodieselKonsumsi dIESEL 10%

2.41 juta kL

BiodieselKonsumsi dIESEL 10%

2.41 juta kL

Biodiesel15% Konsumsi dIESEL

4.52 juta kL

Biodiesel15% Konsumsi dIESEL

4.52 juta kL

2005-2010 2011-2015 2016-2025

Biodiesel20% Konsumsi dIESEL

10.22 juta kL

Biodiesel20% Konsumsi dIESEL

10.22 juta kL

Bioetanol5% Konsumsi gASOLIN

1.48 juta kL

Bioetanol5% Konsumsi gASOLIN

1.48 juta kL

Bioetanol10% Konsumsi Gasolin

2.78 juta kL

Bioetanol10% Konsumsi Gasolin

2.78 juta kL

Bioetanol15% Konsumsi Gasolin

6.28 juta kL

Bioetanol15% Konsumsi Gasolin

6.28 juta kL

Bio Oil

Bio Fuel

Biokerosin1 juta kL

Biokerosin1 juta kL

Biokerosin1.8 juta kL

Biokerosin1.8 juta kL

Biokerosin4.07 juta kl

Biokerosin4.07 juta kl

Biofuel2% energi mix

5.29 juta kL

Biofuel2% energi mix

5.29 juta kL

Biofuel3% energi mix

9.84 juta kL

Biofuel3% energi mix

9.84 juta kL

Biofuel 5% energi mix22.26 juta kL

Biofuel 5% energi mix22.26 juta kL

- PPO untuk Pembangkit Listrik

- Biokerosin

PPO0.4 juta kL PPO

0.4 juta kL PPO

0.74 juta kL PPO

0.74 juta kL PPO

1.69 juta kl PPO

1.69 juta kl

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Type of Sector

October 2008 until Desember

2008

January 2009

January 2010

January 2015**

January 2020**

January 2025**

Note

Household - - - - - -

PSO Transportation

1%(existing)

1% 2.5% 5% 10% 20%

With respect to total demand

Non PSO Transportation

- 1% 3% 7% 10% 20%

Industrial and Commercial

2.5% 2.5% 5% 10% 15% 20%

Generating electricity

0.1% 0.25% 1% 10% 15% 20%

According to Minister of Energy and Mineral Resources Regulation No. 32/2008

Mandatory of biofuel utilization

Biodiesel (B100)

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Type of Sector

October 2008 until December

2008

January 2009

January 2010

January 2015**

January 2020**

January 2025**

Details

Household - - - - - -

PSO Transportation

3%(existing)

1% 3% 5% 10% 15%With

respect to total

demand

Non PSO Transportation

5%(existing)

5% 7% 10% 12% 15%

Industrial and Commercial

- 5% 7% 10% 12% 15%

Generating electricity

- - - - - -

Mandatory of biofuel utilization according toMinister of Energy and Mineral Resources Regulation No. 32/2008

Biofuel Development in Indonesia

Bioethanol (E100)

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PENTAHAPAN KEWAJIBAN MINIMAL PEMANFAATANPENTAHAPAN KEWAJIBAN MINIMAL PEMANFAATANPURE OLANT OILPURE OLANT OIL

Jenis SektorOktober 2008 s.d Desember

2008

Januari 2009

Januari 2010

Januari 2015**

Januari 2020**

Januari 2025**

Keterangan

House hold - - - - - - Saat ini tidak ditentukan

Industri dan Transportasi(Low and medium speed engine)

Industri - - 1 % 3 % 5 % 10 %

Marine - - 1 % 3 % 5 % 10 %

Power Generation - 0,25 % 1 % 5 % 7 % 10 % * Terhadap kebutuhan total

** Spesifikasi disesuaikan dengan spesifikasi global dan kepentingan domestik

PROGRESS ON BIOENERGY DEVELOPMENT IN INDONESIA

Potensi Lahan Pengembangan TebuRendahSedangTinggiSangat Tinggi

SUGAR GROUP Lampung

70.000 kl/year(Molases, Integrated Industry)

Molindo Raya Malang, Jatim

50.000 kl/year(molases ex-PTPN)

BPPT Lampung2.500 kl/year

(Cassava)

Production of Production of Fuel-Grade BIOETHANOL : Realization till December Fuel-Grade BIOETHANOL : Realization till December 20020088 about about 192.349 kl/yrkl/yr, Commitment , Commitment 3.77 mill. kl/yr in 2010

BLUE & MONONUTU Minsel

2 x 200 litres/day(Sugarpalm)

PANCA Cicurug200 litres/day(Cassava &

Molases)

TRIDAYA Cilegon3.000 litres/day

(Molases)

BLUE Balikpapan200 litres/day

(Molases, Sorghum)

BEKONANG, Solonx100 litres/day

(Molases)

Potensi Lahan Pengembangan TebuRendahSedangTinggiSangat Tinggi

WILMAR GROUP Dumai

990.000 ton/yr(CPO)

ETERINDO Gresik & Tangerang

240.000 ton/yr(CPO)

PTPN 4 & GANESHA

ENERGI Medan4.000 ton/yr

(CPO)

SUMIASIH Bekasi & Lampung

100.000 ton/yr (CPO)

BPPT Serpong 300

ton/yr(CPO)

EAI Jakarta 500 ton/yr

(CPO)

RAP Bintaro 1.650 ton/yr

(CPO)

DHARMEX 100.000 ton/yr

(CPO)

INDO BIOFUELS ENERGY

Merak100.000 ton/yr(CPO)

PLATINUM Serang

20.000 ton/yr(CPO)

Production of BIODIESEL : Install Capacity till December 2008about 2.029.110 kl/yr and and 3 mill. kl/yr in 2010

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Gas Station blendingGas Station blending Biofuel Biofuel byby Pertamina: Pertamina: s/d Juni 2008s/d Juni 2008

Bali11 SPBU Biosolar

14 SPBU Biopertamax

Surabaya19 SPBU Biosolar

7 SPBU Biopertamax

Malang1 SPBU Biopremium3 SPBU Biopertamax

Jakarta202 SPBU Biosolar

22 SPBU BiopertamaxTotal: 279 SPBU untuk: -Biosolar (1%): 232 SPBU-Biopertamax (5%): 46 SPBU-Biopremium (3%): 1 SPBU

PROSPECT ON BIOMASS WASTE UTILIZATION

Combustion GasificationPyrolysis

LiquefactionHTU

Digestion FermentationExtraction(oilseeds)

Thermochemical conversion Biochemical conversion

Gas Gas Oil

Steamturbine

Steam Charcoal Biogas

Gasengine

Gas turbinecombined

cycle, engine

Fuel cell

Methanol/hydrocarbon/

hydrogensynthesis

Heat Electricity Fuels

Upgrading

Diesel

Distillation

Ethanol

Esterification

Bio-diesel PPO

Purification

Technologies of Bioenergy

Fibers

Palm FFB

Steam Process

Palm EFB

Boiler

Electricity

Scheme of Palm Waste Utilization

Bio compost

Kernel sheel

Power Generation

CPO

POME

Bio Gas

20%18% 9%

48%

5%

Molasses

Fermentation

Sugar Cane

Sugar

Distillation

Dehydration

Ethanol 99.5%

Filter cake (mud)Bagasses

GASOHOL

Bio compost Plant

Power Plant

Bio compost

Spent wash

Electricity

Scheme of Sugar Cane Waste Utilization

20% 8% 5%

Biomass To Liquid

Source: NREL

Methanol/ Ethanol

Green Diesel

H2

FT Process

palm

Jathropa

Fuel Additives / Blends Fuels

DMEGasolineDieselEthanol(Biomass)

BiodieselEthanol(Sugar,Grain)

Veg Oil/ Grease

Glycerol

Biodiesel

Trans-esterification

FAME/FAEEBiodiesel

CO

Rice Husk

Wood waste

FLOW PROCESS IN BIOETHANOL PRODUCTIONSugar STARCH LIGNOCELLULOSIC

LIQUIFACTION OF COOKING PRETREATMENT

SUCCHARIFICATION (HYDROLYSIS)

SACCHARIFICATION (HYDROLYSIS)

FERMENTATION 7 PURIFICATION BIOETHANOL

STILLAGE

ANAEROBIC DIGESTER

BIOGAS COMBUSTION

ENZYME STEAM

MICROBE’S CELL

FLOW DIAGRAM BIOETHANOL PRODUCTION USING DIFFERENT RAW MATERIAL

STEAMENZYME

ACID

ENZYMEACIDENZYME

FERTILIZER

Concluding Remarks• When first generation biofuels production is preferred, where

feedstocks used are also competing with food and feed lines, there should be accompanied with intensification of agricultural production and diversification of food crops.

• The fact that the demand of food, feed and fuel are steadily increasing, especially in the developing countries, non-food feedstocks (biomass waste) are preferable. This is in line with second generation biofuels production.

• Promoting public awareness in utilizing renewable energy would be significant contribution for energy efficiency in particular, and sustainable development in general.

• South East Asian Countries are the greatest producer of biofuel feedstocks in Eastern Asian countries

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