2. Prospect of Bioenergy Development[1]

LOGO

Prospect of BioenergyDevelopment in Indonesia

and in the World

World Peak-Oil & Indonesian Oil Production Projection

UNCERTAINTY DEPLETION

Gas, 30%

National Energy Mix 2025 (3 billion BOE)

(Presidential Decree No. 5/2006)

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

Natural Gas, 28.57%

Coal, 15.34%

Oil

51.66%

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

palmJathropa

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

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 creation

2. Encourage enhancement of sustainable

economical activities, through biofuel development :

• Reasonable price

• Efficient, reliable, save and environmentally friendly

3. Reducing domestic fossil fuel consumption

STRATEGY

1. Developing investment and finance scheme in biofuel

development

2. Developing price mechanism, starting from the feedstock

up to biofuel product that support biofuel development

effectively

3. Increasing local content on biofuel development

4. Improving feedstock supply and production infrastructure

5. 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 Track

Each 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

CHALLENGES

1. Land availability for Biofuel Development

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

2. Improving quality of Biofuel commodities

Agricultural research on biofuel commodities sector

3. Improving national technological capabilities on biofuel processing

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

4. 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

Biodiesel10% of diesel consumption

2.41 million kl

Biodiesel15% of diesel consumption

4.52 million kl

2005-2010 2011-2015 2016-2025

Biodiesel

20% of diesel consumption

10.22 million kl

Bioethanol5% of gasoline consumption

1.48 million kl


2.78 million kl


6.28 million kl

Bio Oil

Bio Fuel

Biokerosene1 million kl

Biokerosene1.8 million kl

Biokerosene4.07 million kl

Biofuel2% energy mix

5.29 million kl


9.84 million kl


22.26 million kl

- PPO untuk

Pembangkit

Listrik

- Biokerosin

PPO0.4 million kl

PPO0.74 million kl

PPO1.69 million kl

13

14

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

Commercial2.5% 2.5% 5% 10% 15% 20%

Generating

electricity0.1% 0.25% 1% 10% 15% 20%

According to Minister of Energy and Mineral Resources

Regulation No. 32/2008

Mandatory of biofuel utilization

Biodiesel (B100)

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 to

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

Biofuel Development in Indonesia

Bioethanol (E100)

Potensi Lahan Pengembangan TebuRendah

Sedang

Tinggi

Sangat Tinggi

SUGAR GROUP

Lampung

70.000 kl/year

(Molases,

Integrated

Industry)

Molindo Raya

Malang, Jatim

50.000 kl/year

(molases ex-PTPN)

BPPT Lampung

2.500 kl/year

(Cassava)

Production of Fuel-Grade BIOETHANOL : Realization till

December 2008 about 192.349 kl/yr, Commitment 3.77 mill. kl/yr

in 2010BLUE &

MONONUTU Minsel

2 x 200 litres/day

(Sugarpalm)

PANCA Cicurug

200 litres/day

(Cassava &

Molases)

TRIDAYA Cilegon

3.000 litres/day

(Molases)

BLUE Balikpapan

200 litres/day

(Molases, Sorghum)

BEKONANG,

Solo

nx100 litres/day

(Molases)

Potensi Lahan Pengembangan TebuRendah

Sedang

Tinggi

Sangat Tinggi

WILMAR GROUP

Dumai

990.000 ton/yr

(CPO)

ETERINDO

Gresik &

Tangerang

240.000 ton/yr

(CPO)

PTPN 4 &

GANESHA

ENERGI Medan

4.000 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

Merak

100.000 ton/yr(CPO)

PLATINUM

Serang

20.000 ton/yr(CPO)

Production of BIODIESEL : Install Capacity till December 2008

about 2.029.110 kl/yr and 3 mill. kl/yr in 2010

18

Gas Station blending Biofuel by Pertamina:

Bali

11 SPBU Biosolar

14 SPBU Biopertamax

Surabaya

19 SPBU Biosolar

7 SPBU Biopertamax

Malang

1 SPBU Biopremium

3 SPBU Biopertamax

Jakarta

202 SPBU Biosolar

22 SPBU Biopertamax

Total: 279 SPBU untuk:

-Biosolar (1%): 232 SPBU

-Biopertamax (5%): 46 SPBU

-Biopremium (3%): 1 SPBU

PROSPECT ON BIOMASS WASTE UTILIZATION

Combustion Gasification

Pyrolysis

Liquefaction

HTU

Digestion FermentationExtraction

(oilseeds)

Thermochemical conversion Biochemical conversion

Gas Gas Oil

SteamturbineSteamturbine

Steam Charcoal Biogas

Gasengine

Gasengine

Gas turbinecombined

cycle, engine

Gas turbinecombined

cycle, engine

Fuel cell

Methanol/hydrocarbon/

hydrogensynthesis

Methanol/hydrocarbon/

hydrogensynthesis

Heat Electricity Fuels

Upgrading

Diesel

Distillation

Ethanol

Esterification

Bio-diesel PPO

Purification

Technologies of Bioenergy

Scheme of Palm Waste Utilization

Fresh fruit bunches100%

Brondolan66,05 %

Empty fruit bunches+ Water 33,95 %

Mesocarp53,67 %

Nut12,38 %

Kernel5,7 %

Shell6,68 %

CPO24,32 %

Water20,37 %

Fiber8,98 %

RBDPL23,34 %

PFAD0,98 %

PKO2,45 %

PKM2,55 %

(SBRC-IPB, 2009)

RBDPS4,37 %

RBDPO18,97 %

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)Biodiesel

Ethanol(Sugar,Grain)

Veg Oil/ Grease

Glycerol

Biodiesel

Trans-esterification

FAME/FAEEBiodiesel

CO

Rice Husk

Wood waste

FLOW PROCESS IN BIOETHANOL PRODUCTION

Sugar STARCH LIGNOCELLULOSIC

LIQUIFACTION

OF COOKING PRETREATMENT

SUCCHARIFICATION

(HYDROLYSIS)

SACCHARIFICATIO

N (HYDROLYSIS)

FERMENTATION 7

PURIFICATION BIOETHANOL

STILLAGE

ANAEROBIC

DIGESTER

BIOGAS COMBUSTION

ENZYME STEAM

MICROBE’S CELL

FLOW DIAGRAM BIOETHANOL PRODUCTION USING DIFFERENT RAW MATERIAL

STEAM

ENZYME

ACID

ENZYME

ACIDENZYME

FERTILIZER

BIOENERGY DEVELOPMENT

IN THE WORLD

2006 1st Generation Biofuels: ethanol, biodiesel (methylic and

ethylic routes)

2nd Generation Biofuels: Syngas diesel, ethanol

and biofuels from lignocellulose, H-Bio

2010

Complexes of integrated biorefineries

2020

International trends in biofuel

World energy matrix (% composition)

Source: IEA, 2008

Biofuel Technology in the World

Fuel Feedstock Product benefit Technology

maturity

Ethanol

from sugar

Corn, sorghum,

sugarcane

high octane number

made from renewable resources

Commercial

Biodiesel Vegetable oil, fat,

and grass

reduce GHG emission

improve lubricating power of diesel

Commercial

Green

diesel

And green

gasoline

oil and fat low sulfur content In trial on a

commercial scale

(Brazil & Europe)

Ethanol

from

cellulose

Grass, wood, and

agricultural waste

high octane number In trial on a

commercial scale

by DOE program

Buthanol Sorghum, corn,

wheat, and

sugarcane

Low volatility, high density, and high

tolerance to water

Commercial scale

to produce energy

and chemicals

Fuel Feedstock Product benefit Technology

maturity

Bio oil Lignocellulose Can be used as a source of aromatic

and phenol in the future

BP and Dupont

have introduced

in 2007

Syn gas Biomass Can be combined with fossil fuel

high quality diesel and gasoline

In trial

Diesel from

algae

Microalgae High yield per hectare

Use large amounts of CO2

Pilot scale was

introduce in 1990

Hydrocarbon Biomass Can be derived to synthetic gasoline,

diesel, or other fuel products

Laboratory scale

Biofuel Technology in the World (Cont’…)

The Three Primary Needs for Bio-fuel Economy

Separation

Fuel

production

Fuel

utilization

Biomass

growth

CO2

H2O

Light

Air

Energi Nutrient

Transport

Recycle Nutrient

Edible Biomass for food and fuel

Energy

CO2 H2O

Nutrient

Non-Edible Biomass

Energy

Energy

CO2

H2O

Recycle

Recycle

Source: Huber, et al. 2006

PROMOTION

of

Bio-diesel…..

United States

A biodiesel tax incentive was included in the Final

Energy Bill. 1 cent per % point of biodiesel blended

with petroleum diesel.

Europe

EU Finance Minister adopted a political agreement to allow Governments to exempt transport bio fuels,such as biodiesel,from Excise Duties applied to Conventional Fuels.

EU target for bio fuels : At least 2% of total petrol & diesel within transport sector by 2005, to increase by 0.75% each year thereafter to reach 5.75% by 2010.

EU announces exemption of Tax on pure & low Bio fuels for at least 6 years w.e.f. 01.01.2004

Germany

A total exemption from the Excise Duty on Mineral Oil for pure & blended Bio fuels w.e.f. January 2004 up to 31st December 2009,which is based on % of Bio fuels included in Final blend. Higher the proportion,greater the reduction.

No excise tax for biodiesel substituting standard fuels,either unblended or blended with fossil diesel in the vehicle tank.

The 2003 Budget Bill allows for a complete exemption of Excise Duties of up to 409 Euro / Kl on all fuels derived from bio mass including Biodiesel.

Tax incentive for VOME (470 Euro/M3) includes Carbon tax incentive & only applies to pure VOME.

Tax Incentive $ 607/ MT

France

Biodiesel to substitute 5% of Diesel fuel by 2005.

Excise Taxes on Petroleum products do not apply toBio fuels.

Tax incentive adopted for VOME mixed with dieselwithin allotted quota, 320,000 MT/year for Biodiesel.


Austria

The Austrian Law on Tax Reforms 2000 exempts theuse of pure Bio diesel & the blending of it .

100 % tax exemption on pure Biodiesel

100% tax exemption if up to 2% biodiesel is blendedwith diesel fuel.

Currently a tax incentive of 290 Euro/M3 applies topure VOME used in motor fuel blends up to 2%.


United Kingdom

UK Government has EU targets to replace 2% fossil

fuels by renewable fuels by 2005, to reach 5% by

2010.

UK Government offered 20 pence per litre duty

incentive for Biodiesel on January 1,2003.

UK is authorized to apply a differentiated rate of

Excise Duty to fuels containing Biodiesel


Contribution of bioenergy to

Total Primary Energy Supply (TPES)

Source: The World Bank, 2010

Projected bioenergy production (2005-2030)


Forces affecting bioenergy development

Economic FactorsEnergy security

Environmental benefitsRural Development and

Economic opportunities

Forces


Projected TPES from primary solid biomass (2005-2030)


Annual bioethanol consumption for fuel (1975-2008)

Annual biodiesel consumption for fuel (1970-2008)


2. Prospect of Bioenergy Development[1]

Documents

Transcript of 2. Prospect of Bioenergy Development[1]