Prospect of Bioenergy

Development in Indonesia
and in the World

LOGO

World Peak-Oil & Indonesian Oil Production Projection

UNCERTAINTY

DEPLETION

NATIONAL ENERGY POLICY

(PRESIDENTIAL DECREE NO. 5 YEAR 2006)

CURRENT ENERGY MIX (1 billion BOE)

National (Primary) Energy Mix

National Energy Mix 2025 (3 billion BOE)

(Presidential Decree No. 5/2006)

Hydro Power,
3.11%

Oil 20%

Geothermal,
1.32%
Natural Gas,
28.57%

Gas, 30%

Biofuel, 5%

RE,15%

Geothermal, 5%

wood waste, Nuclear,

Hydro, Solar Energy,
Wind Power, 5%

Oil
51.66%
Coal, 15.34%

Coal , 35%

Energy Elasticity = 1,8

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, bioethanol)
Bioenergy can provide a key lever for rural
development and enhanced agricultural
production methods

Raw materials for Biofuel

PURE PLANT OIL(PPO ) and BIODIESEL

BIOETHANOL
Lignoselulosa

Jathropa

palm

mollases

Cassava

Coconut

Hydrolysis + Fermentation

Crude bio-oil
Bioethanol ( 9% )
Pure Plant Oil

Methanol

Dehydration
Biodiesel

Bioethanol ( FG )

5-20%

diesel oil

Bio-Diesel

5-20%

diesel oil

Diesel Engine: car, Genset

BioPremium

Gasolin Engine

Gasoline

Resource Base of Bioethanol

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

Biomass Waste Resources Potential

Sector
Sugar industry
Bagasse
Leaf cane
Palm oil mill
Shell
Fibre
Empty fruit bunches
Palm Oil Mill Effluent
(POME)
Rice Mills
Wood waste

Quantity
(t/year)
8,500,000
1,290,000
3,450,000
6,700,000
12,900,000
31,000,000
12,500,000
8,345,933

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.
2.

3.
4.
5.
6.
7.
8.

Developing investment and finance scheme in biofuel

development
Developing price mechanism, starting from the feedstock
up to biofuel product that support biofuel development
effectively
Increasing local content on biofuel development
Improving feedstock supply and production infrastructure
Establishing biofuel trading system (59 Gas station use
Bioethanol, E2. 1394 Diesel station use Biodiesel, B2-B10)
Accelerate land availability
Developing Special Biofuel Zone and Self Sufficient Energy
Village
Improving Local Government and society participation in
biofuel business

FAST TRACK BIOFUEL DEVELOPMENT

Energy Self Sufficient

Village

Fast Track

Each Region
Developing its Biofuel
Potential

SPECIAL BIOFUEL
ZONE
Infrastructure
Demplot
On time schedule
Explicit investment
employment ratio

SHORT RUN

LONG RUN

Create Job
Energy
Poverty
Alleviation

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

2005-2010

Bio Diesel

Bio Etanol

Bio Oil
- Biokerosin
- PPO untuk
Pembangkit
Listrik

Bio Fuel

2011-2015

2016-2025

Biodiesel

Biodiesel

10% of diesel consumption

2.41 million kl

15% of diesel consumption

4.52 million kl

Biodiesel
20% of diesel consumption
10.22 million kl

Bioethanol

Bioethanol

Bioethanol

5% of gasoline consumption
1.48 million kl

10% of gasoline consumption

2.78 million kl

15% of gasoline consumption

6.28 million kl

Biokerosene

Biokerosene

Biokerosene

1 million kl

1.8 million kl

4.07 million kl

PPO

PPO

PPO

0.4 million kl

0.74 million kl

1.69 million kl

Biofuel

Biofuel

Biofuel

2% energy mix
5.29 million kl

3% energy mix
9.84 million kl

5% energy mix
22.26 million kl
13

Mandatory of biofuel utilization

According to Minister of Energy and Mineral Resources
Regulation No. 32/2008
Biodiesel (B100)
October
2008 until
Desember
2008

January
2009

January
2010

January
2015**

January
2020**

January
2025**

PSO
Transportation

1%
(existing)

1%

2.5%

5%

10%

20%

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%

Type of Sector

Household

Note

With
respect to
total
demand

14

Biofuel Development in Indonesia

Mandatory of biofuel utilization according to

Minister of Energy and Mineral Resources Regulation No. 32/2008
Bioethanol (E100)
October
2008 until
December
2008

January
2009

January
2010

January
2015**

January
2020**

January
2025**

PSO
Transportation

3%
(existing)

1%

3%

5%

10%

15%

Non PSO
Transportation

5%
(existing)

5%

7%

10%

12%

15%

Industrial and
Commercial

5%

7%

10%

12%

15%

Generating
electricity

Type of Sector

Household

Details

With
respect to
total
demand

Production of Fuel-Grade BIOETHANOL : Realization till

December 2008 about 192.349 kl/yr, Commitment 3.77 mill. kl/yr
in 2010
BPPT Lampung
2.500 kl/year
(Cassava)

TRIDAYA Cilegon
3.000 litres/day
(Molases)

Potensi Lahan Pengembangan

Tebu
BLUE &
Rendah
MONONUTU Minsel
BLUE Balikpapan
Sedang
2 x 200 litres/day
Tinggi
200 litres/day
Sangat (Sugarpalm)
Tinggi
(Molases, Sorghum)

SUGAR GROUP
Lampung
70.000 kl/year
(Molases,
Integrated
Industry)
PANCA Cicurug
200 litres/day
(Cassava &
Molases)

BEKONANG,
Solo
nx100 litres/day
(Molases)

Molindo Raya
Malang, Jatim
50.000 kl/year
(molases ex-PTPN)

Production of BIODIESEL : Install Capacity till December 2008

about 2.029.110 kl/yr and 3 mill. kl/yr in 2010
PTPN 4 &
GANESHA
ENERGI Medan
4.000 ton/yr
(CPO)

WILMAR GROUP
Dumai
990.000 ton/yr
(CPO)

INDO BIOFUELS
ENERGY
Merak
100.000 ton/yr(CPO)

BPPT
Serpong
300 ton/yr
(CPO)
RAP
Bintaro
1.650 ton/yr
(CPO)

EAI Jakarta
500 ton/yr
(CPO)

SUMIASIH
Bekasi &
Lampung
100.000
ton/yr (CPO)

DHARMEX
100.000
ton/yr
(CPO)

ETERINDO
Gresik &
Tangerang
240.000 ton/yr
(CPO)

Potensi Lahan Pengembangan Tebu

Rendah
PLATINUM
Sedang
Serang
Tinggi
20.000
ton/yr(CPO)
Sangat Tinggi

Gas Station blending Biofuel by Pertamina:

Malang
1 SPBU Biopremium
3 SPBU Biopertamax

Bali
11 SPBU Biosolar
14 SPBU Biopertamax

Jakarta
202 SPBU Biosolar
22 SPBU Biopertamax
Surabaya
19 SPBU Biosolar
7 SPBU Biopertamax

Total: 279 SPBU untuk:

-Biosolar (1%): 232 SPBU
-Biopertamax (5%): 46 SPBU
-Biopremium18(3%): 1 SPBU

PROSPECT
ON BIOMASS WASTE UTILIZATION

Technologies of Bioenergy
Biochemical conversion

Thermochemical conversion
Combustion

Pyrolysis
Liquefaction
HTU

Gasification

Gas Oil

Steam

Gas

Steam
turbine

Gas turbine
Methanol/
combined
hydrocarbon/
cycle, engine
hydrogen
synthesis

Fuel cell

Heat

Charcoal

Upgrading

Diesel

Electricity

Digestion

Extraction
(oilseeds)

Fermentation

Biogas

Gas
engine

Distillation

Ethanol

Esterification Purification

Bio-diesel

Fuels

PPO

Scheme of Palm Waste Utilization

Fresh fruit bunches
100%

Empty fruit bunches+

Water 33,95 %

Brondolan
66,05 %

Nut
12,38 %
Kernel
5,7 %
PKO
2,45 %

(SBRC-IPB, 2009)

Mesocarp
53,67 %
Shell
6,68 %

PKM
2,55 %

CPO
24,32 %
RBDPL
23,34 %
RBDPO
18,97 %

Water
20,37 %
PFAD
0,98 %

RBDPS
4,37 %

Fiber
8,98 %

Scheme of Sugar Cane Waste Utilization

Sugar Cane

Bagasses
20%

Sugar

Filter cake (mud)

Molasses

8%

5%

Fermentation
Power Plant
Distillation
Bio compost Plant

Spent wash
Dehydration

Electricity

Bio compost

Ethanol 99.5%

GASOHOL

Biomass To Liquid

Biodiesel
Methanol/
Ethanol

Jathropa

Rice Husk

Veg Oil/
Grease
H2

Trans-esterification

palm
Wood waste

FT Process

FAME/FAEE
Biodiesel Glycerol

Green
Diesel

Fuel Additives / Blends

Ethanol
(Sugar,
Grain)
Source: NREL

Biodiesel

CO

Ethanol
(Biomass)

Fuels
Diesel

Gasoline

DME

FLOW PROCESS IN BIOETHANOL

PRODUCTION

Sugar

STARCH

ENZYME STEAM

ENZYME

MICROBES CELL

LIQUIFACTION
OF COOKING

SUCCHARIFICATION
(HYDROLYSIS)

FERMENTATION 7
PURIFICATION

LIGNOCELLULOSIC

PRETREATMENT

STEAM
ENZYME
ACID

SACCHARIFICATIO
N (HYDROLYSIS)

ENZYME
ACID

BIOETHANOL

STILLAGE

ANAEROBIC
DIGESTER

BIOGAS

FLOW DIAGRAM BIOETHANOL PRODUCTION USING DIFFERENT RAW MATERIAL

FERTILIZER

COMBUSTION

BIOENERGY DEVELOPMENT
IN THE WORLD

International trends in biofuel

2020
Complexes of integrated biorefineries

2010
2nd Generation Biofuels: Syngas diesel, ethanol
and biofuels from lignocellulose, H-Bio

2006

1st Generation Biofuels: ethanol, biodiesel (methylic and

ethylic routes)

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 high octane number

agricultural waste

Buthanol

Sorghum, corn,
wheat, and
sugarcane

Low volatility, high density, and high

tolerance to water

In trial on a
commercial scale
by DOE program
Commercial scale
to produce energy
and chemicals

Biofuel Technology in the World (Cont)

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

The Three Primary Needs for Bio-fuel Economy

CO2
H 2O

Recycle

CO2 H2O
Recycle
Nutrient
Non-Edible
Biomass
CO2
H 2O
Light

Fuel
utilization

Fuel
production

Energy

Energy

Energy
Biomass
growth

Separation
Transport

Air
Energi

Recycle
Nutrient Nutrient

Edible
Biomass for
food and fuel
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 to

Bio fuels.
Tax incentive adopted for VOME mixed with diesel
within allotted quota, 320,000 MT/year for Biodiesel.

Tax Incentive $ 490/ MT

Austria
The Austrian Law on Tax Reforms 2000 exempts the
use of pure Bio diesel & the blending of it .
100 % tax exemption on pure Biodiesel
100% tax exemption if up to 2% biodiesel is blended
with diesel fuel.
Currently a tax incentive of 290 Euro/M3 applies to
pure VOME used in motor fuel blends up to 2%.

Tax Incentive $ 431/ MT

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

Tax Incentive $ 205/ MT

Contribution of bioenergy to
Total Primary Energy Supply (TPES)

Source: The World Bank, 2010

Projected bioenergy production (2005-2030)

Source: The World Bank, 2010

Forces affecting bioenergy development

Economic Factors

Energy security

Forces

Rural Development and

Economic opportunities

Environmental benefits

Projected TPES from primary solid biomass (2005-2030)

Source: The World Bank, 2010

Annual bioethanol consumption for fuel (1975-2008)

Source: The World Bank, 2010

Annual biodiesel consumption for fuel (1970-2008)

Source: The World Bank, 2010

LOGO