Biomass to Energy Projects in Biomass to Energy Projects in IndonesiaIndonesia

CDMCDM && Sustainable DevelopmentSustainable Development

January 25 –26, 2006January 25 –26, 2006Shangri-la Hotel, Jakarta -IndonesiaShangri-la Hotel, Jakarta -Indonesia

Iwan Sutanto, Iwan Sutanto, PT. LUNTO BIOENERGI PRIMAPT. LUNTO BIOENERGI PRIMA

E-mail : bioenergi@cbn.net.id

Indonesian Electricity DemandIndonesian Electricity Demand

Indonesia has a rapidly growing energy demand,

Demand growth is estimated to be 9% per year.

This is due to: Population growth Economic growth Development of rural areas Increased energy demand per capita

Prediction Electricity Prediction Electricity DemandDemand

Sector1990 2000 2010

GWh % GWh % GWh %

Industry 35.305 68.0 84.822 69.0 183.389 70.0

Household 9.865 19.00 22.2392 18.0 40.789 16.0

Public Facility 3.634 7.0 6.731 6.0 12.703 5.5

Commercial 3.115 6.0 8.811 7.0 21.869 8.5

Total 51919 100.0 122.603 100.0 258.747 100.0

Source : Directorate General of Electricity and Energy Utilization

Indonesian Electricity SupplyIndonesian Electricity Supply

The Indonesian archipelago makes supply on one grid impossible.

Major islands have their own grids

distributed generation is spread throughout the smaller islands

Overall spare capacity was near 50%, but due to poor interconnection many areas are short of supply, and some are classed as “in crisis”

Energy sourcesEnergy sources

The water levels in the dam do not allow full generation in the dry season.

Removal of diesel subsidies makes generation from this source increasingly expensive.

In Indonesia electrical energy is predominantly supplied from Coal fire, Gas, Hydro power and diesel generation.

Biomass is a possible alternative fuel supply

Project ObjectivesProject Objectives

To build wholly renewable energy, independently financed power plants.

To substitute for fossil fired generation

To avoid methane and nitrous oxide emissions from the decomposition of the dumped residues

To provide a waste disposal route for mill owners

To create jobs in the local area

To provide additional electricity to the grid

Potential for RE in SumatraPotential for RE in Sumatra

There is a shortage of electrical generating capacity and an increasing demand.

On the Sumatran grid in 2000 there was an installed capacity of nearly 5,000 MW.

From 2001 –2010 there is expected to be an extra 4,600 MW added to the grid.

Projects :Projects :

10 MW Palm Oil Residue Plant, 10 MW Palm Oil Residue Plant,

In RantauPrapat, North Sumatra.In RantauPrapat, North Sumatra. &&

3 MW Rice Husk Plant,3 MW Rice Husk Plant,

Perbaungan, North SumatraPerbaungan, North Sumatra

10 MW Palm Oil Residue Plant, 10 MW Palm Oil Residue Plant, In RantauPrapat, North Sumatra.In RantauPrapat, North Sumatra.

Project Description Project Description

Palm Oil Sector BackgroundPalm Oil Sector Background

Potential for RE from Palm Oil Mill Potential for RE from Palm Oil Mill ResiduesResidues

Palm oil production in Indonesia is increasing rapidly

Palm oil mill residues are EFB’s, shell and fibre Conventionally the shell and fibre is used to produce steam and electricity to meet mill requirements.

But combustion at mills is often inefficient and contributes to local air pollution

EFB’s are often dumped and burnt producing methane and nitrous oxide

Potential to utilise residues for efficient electricity production and help meet electricity demand

Project DescriptionProject Description

Conventional steam cycle systemThe plant will combust:-

Empty Fruit Bunches: 79%Shell: 21%

100% of the required fuel can be supplied within 60 kmsReduce dumping of 200,000 tonnes of EFB’s annually.Electrical output 10 MWe sold to PLN.

Decomposition Emission ReductionsDecomposition Emission Reductions

Plant will reduce methane and nitrous oxide release from decomposition and inefficient burning of the dumped wastes.

Predicted that the disposal behaviour will continue until environmental regulations change.

Sustainable Development IssuesSustainable Development Issues

Global and Local Environmental Global and Local Environmental BenefitsBenefits

Reduce dumping of 200,000 tonnes EFBs annually

Reduce air pollution

Provide secure disposal route for palm oil milling residues

Socio – Economic BenefitsSocio – Economic Benefits

Approximately 250 jobs created during constructionApproximately 180 Direct and indirect jobs created long term

Revenue for mill owners

Stimulate local economy

Demonstration of more efficient biomass to energy technology

Project Description:Project Description:

3 MW Rice Husk Plant,3 MW Rice Husk Plant,

Perbaungan, North SumatraPerbaungan, North Sumatra

Potential for RE from Rice Husks

Rice production is the main agricultural crop grown in Indonesia

20% of rice paddy remains as husk after milling

Husks are often dumped burnt in open bonfires as a means of disposal

Potential to utilise residues for efficient electricity production and help meet electricity demand

Picture of rice husksPicture of rice husks

Potential for RE in SumatraPotential for RE in Sumatra

There is a shortage of electrical generating capacity and an increasing demand in North Sumatra.

The potential exists to meet these energy demand shortfalls through renewable generation plants, including biomass, such as this rice husk project

Project ObjectivesProject Objectives

To build a wholly renewable energy power plant to combust rice husks to provide a sustainable source of electricity (3MWe)

To reduce carbon dioxide emissions by substituting for fossil fired generation.

To reduce methane and nitrous oxide emissions from dumping and burning husks

To create employment

To provide electricity for 6,000 households

Collect surplus husk residues from rice mills to produce electricity for supply to the grid.

Establish a commercially viable, independently financed power plant.

Rice husk is a low density biomass, with a low moisture content

The husk can be burnt to produce electricity

Rice Husk ash used for beneficial purposes

Fuel transport economics suggest a 3 MW plant to be optimal

Rice HuskRice Husk Project overview Project overview

Technology SelectedTechnology Selected

Unground rice husks as fuel.

Overfed Stoker fired water tube boiler.

Continuous ash discharge from grate.

World Bank/Indonesian Emission Standards.

What are the environmental benefits?

Emission ReductionsEmission Reductions

1. Reduce GHG emissions from fossil fuels emissions and from dumped waste.

2. Project will displace current diesel fuel generation.

Emission ReductionsEmission Reductions

Methane and nitrous oxide from emissions offset by avoiding dumping and burning

Only current use for rice husk is for brick drying and as chicken litter (small)

Practice of dumping set to continue

Total Emission reductions from fossil fuels and avoided dumping

Global and Local Environmental Global and Local Environmental BenefitsBenefits

Electricity supplied to 6,000 households

Reduced air pollution by avoiding dumping and burning of husks

Reduced carbon dioxide emissions by offsetting fossil fuels

Beneficial and secure disposal of husks

Contribute to sustainable development

Socio-Economic AspectsSocio-Economic AspectsDirectDirect

Approximately 50 permanent positions

Revenue for mill owners

During O&M approximately $1-1.5 million spent on local economy

Socio-Economic AspectsSocio-Economic AspectsIndirectIndirect

Indirect job creation (+85) in the communityBenefit local economyDemonstration of advanced clean combustion technologiesTraining BenefitsProvide modern energy serviceRaise awareness of climate change

SummarySummary

3 Mwe electricity generated

Offset fossil fuels and emissions from dumping and burning the husks

Local and global environmental benefits

Jobs

Benefit to local economy

Thank You Thank You

PT. LUNTO BIOENERGI PRIMAPT. LUNTO BIOENERGI PRIMA

E-mail : bioenergi@cbn.net.id