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INDONESIAN CASSAVA-BASED ETHANOL

UTILIZATION
IN LIFE CYCLE ASSESSMENT
AND LIFE CYCLE COST PERSPECTIVE

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Obstacles of biofuel in Indonesia

Economic Issues
Environment Issues
Oil subsidy

High investment cost

Lack of financial institution interested in


biofuel development

Lack of strong and clear action from related


institutions (policy, finance, and technology)

Conflict between bioenergy development Impacts on air, land,


and food security
water, and
Non-monetary characters causes biofuel not biodiversity
to be preceived as useful returns of
investment 3
Holistic
approach

To address these issues, in this study, environmental


performance is assessed by Life Cycle Assessment (LCA) and
Cost performance is Life Cycle Cost (LCC) 4
No Journal Title LCA LCC
1 Life cycle inventory and energy analysis of cassava-based fuel ethanol in √
China
2 Ethanol use in US gasoline should be banned, not expanded √
3 Life cycle assessment of bio-ethanol as an alternative transportation fuel √
in Thailand in Joint Graduate School of Energy and Environment
4 Life cycle environmental and economic impact of using Switchgrass- √ √
derived bioethanol as transport fuel
5 Life cycle cost analysis of fuel ethanol produced from cassava in Thailand √
6 Life cycle assessment and life cycle costing of bioethanol from sugarcane √ √
in Brazil
7 Life cycle economic analysis of fuel ethanol derived from cassava in √
southwest China
8 Fuel ethanol from cane molasses in Thailand: Environmental and cost √ √
performance.
9 Life cycle assessment of fuel ethanol from cane molasses in Thailand. √
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Ethanol condition in Indonesia
Policies to support biofuel:

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Potential biomass resources in Indonesia

Source: B2PT-BPPT 7
• There are about 1,204,933 hectares cassava
agricultural in Indonesia, which is the biggest
amount of them is located in Lampung
(318,969 ha).
• Cassava is grown for its enlarged starch-filled
roots, which contain nearly the maximum
theoretical concentration of starch on a dry
weight basis among food crops
• Cassava has the best land availability and land
use efficiency
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Source: BPS Statistic Indonesia, 2009 9
The purposes of this study are as follows:
• To evaluate whether cassava-based ethanol (E10) is more
environmentally friendly in term of global warming,
eutrophication, acidification and abiotic resource depletion
compared with conventional gasoline by using Life Cycle
Assessment (LCA) methodology.
• To investigate cassava-based ethanol (E10) production and
utilization costs by using Life Cycle Cost (LCC) methodology
including the external cost compared with conventional
gasoline.
• To find which process of cassava ethanol will contribute the
most to the environment and cost and are there possible
options to improve them.

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Biomass
Fuel

Biofuel consider green :


1. Biofuel from biomass is largely carbon
neutral

2. Bioconversion processes in general do


not produce hazardous compounds
3. Biomass production and microbial
conversion can be developed and used
in a more distributed manner avoiding
the need for transport of fuels via cargo
ships or pipelines for long distances.

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Cassava
Ethanol
Ethanol conversion
process

Source : BPPT
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Ethanol conversion process
Amylase Enzyme

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LCA
Life Cycle Assessment :
An environmental assessment tool for evaluation of impacts that a product
(or service) has on the environment over the entire period of its life –
from the extraction of the raw materials from which it is made, through
the manufacturing, packaging and marketing process, and the use, re-
use and maintenance of the product, and on to its eventual recycling
or disposal as waste at the end of its useful life (UNEP, 1999)

Stages of an LCA based on ISO 2006a 15


3 Characterisation
Normalisation 4
SO2
NOx
Acidification
HCl
Selection of u.a
1 impact
Grouping 5
categories
NOx
NH3
Eutrophication INDEX
P
etc
Weighting 6

CO2
CH4
N2O Global Warming
CFC
etc

Mandatory Optional

2 Classification
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• Life cycle costing is a methodology
directed at the evaluation of all costs
associated with an activity or a product
LCC over its entire life cycle, thus assuming the
dual role of a Life Cycle Assessment in
economic terms
• The advantage of an LCC analysis is to
provide a whole cost structure of the
ethanol life cycle
• Economic input factors:
Major : Capital cost, feed stock, energy,
labor
Minor : Enzymes, fresh water, waste
effluent and denaturant
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Externality, arises when the social or economic
activities of one group of persons have an
impact on another group and when that impact
External is not fully accounted, or compensated for, by
Cost
the first group (Europian Commission
Community Research, 2003)

External cost pathway based on ExternE 18


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Cassava Gasoline
cultivation production
E mission
Energy
T
Gasoline Car driving

Feedstock
processing
T

Cassava T
Fermentation Bio ethanol Blending Car driving
crushing

T = Transportation

System boundary of cassava-based E10

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Cassava Ethanol
Blending
cultivation Conversion

Raw Material

Land hiring
Machines &
Land Preparation Crushing Worker Salary Gasoline
fuel
Labor
Insurance
Seed
Seed Ethanol
Planting Chemicals Hydrolisis Fiscal
transportation Gasohol E10 Car Driving
Charges
Labor

Tools Repair and


Labor Maintanance
Farming Enzyme Fermentation
Fertilizer
Capital
Pesticides
Investment

Chemicals Distillation Energy


Harvesting
Labor
Selling
Expenses

Chemicals Second Distillation Profit Margin

Flow chart of cassava ethanol (E-10) cost 21


External Cost
The method is taken from ExternE, developed in
Sweden. Adopted for Indonesia:
WTPSweden  PercapGDP ( PPP) Indonesia
WTPIndonesia 
PercapGDP ( PPP) Sweden

Where:
WTPIndonesia = Willingness To Pay in Indonesia
WTPSweden = Willingness To Pay in Sweden (basic method)
PercapGDP (PPP)Indonesia = GDP percapita of Indonesia in term of PPP
PercapGDP (PPP)Sweden = GDP percapita of Sweden in term of PPP

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The LCI procedure for cassava ethanol production cycle and gasohol use phase

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The LCC procedure for cassava ethanol production cycle and gasohol use phase

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•Evaluating environmental performance in terms of global
warming, eutrophication, acidification potential and
economic performance of cassava-based E10.
•Suggestion about technologies to improve environmental
and cost performance of cassava-based E10
•Recommendation of tax and subsidies for decision maker
can be predicted

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