May 28, 2013 ... MAIN POTENTIAL OF BIOFUEL: BIODIESEL. • Potential major biodiesel
feedstock in Indonesia production of 26 million tonnes. Of the total ...
REPUBLIC EPUBLIC OF INDONES INDONESIA MINISTRY OF ENERGY AND MINERAL RESOURCES
Delivered by by:
EDI WIBOWO Directorate General of New, Renewable Energy, and Energy BMZ Conference; Policy Forum Opportunities for Sustainable Bioenergy Developm pment: National Experiences and Global Exchange Berlin, Germany, 28 May 2013
Energy and Mineral Resources for People’s Welfare
ENERGY AND FOOD SECURITY
EMPLOYMENT CREATION AND POVERTY REDUCTION
FOCUSSED OF NATIONAL POLICY
ENVIRONMENT
PRO JOB
PRO POOR
PRO GROWTH
Energy and Mineral Resources for People’s Welfare
PRO ENVIRONMENT
LAW NO. 30 YEAR 2007 concerning on Energy
Priority supply and use of renewable energy, one of them is biofuel.
PRESIDENTIAL REGULATION NO. 5 YEAR 2006 concerning on National Energy Policy
Biofuel target 5% by 2025 from the national energy mix.
PRESIDENTIAL INSTRUCTION NO. 1 YEAR 2006 concerning on Provision and Utilization, of Biofuel as Other Fuel
Instructions related to the Minister, Governor and Mayor to take action in order to accelerate the provision and utilization of biofuel;
MINISTRY OF ENERGY AND MINERAL RESOURCES REGULATION NO. 32 YEAR 2008 concerning on Provision, Utilization, and Procedures of Commerce of Biofuel as Other Fuel
1. Priority of biofuel utilization, 2. Mandatory of biofuel utilization (biodiesel, bioethanol, and biooil) in transportation, industry, commercial, and electricit generation sector, 3. Standard and quality of biofuel, 4. Pricing policy, 5. Commercial activities of biofuel,
Energy and Mineral Resources for People’s Welfare
BIODIESEL (Minimum) Sektor Transportation, PSO
2008
2009
2010
2015
2020
2025
1% (Existing)
1%
2.5%
5%
10%
20%
1%
3%
7%
10%
20%
Transportation, Non PSO Industry
2.5%
2.5%
5%
10%
15%
20%
Electricity Generation
0.1%
0.25%
1%
10%
15%
20%
BIOETHANOL (Minimum) Sektor
2008
2009
2010
2015
2020
2025
Transportation, PSO
3% (Existing)
1%
3%
5%
10%
15%
Transportation, Non PSO
5% (Existing)
5%
7%
10%
12%
15%
5%
7%
10%
12%
15%
Industry
Energy and Mineral Resources for People’s Welfare
Raw Material
Type
Use
Palm oil, coconut, jatropha curcas, “nyamplung”, “kemiri sunan”, and micro-algae
Biodiesel
Substitutes for diesel oil
Sugarcane/molasses, cassava, sago, sorghum, corn, and ligno cellulosic
Bioethanol
substitutes for gasoline
Vegetable oil (straight vegetable oil) Biomass through the process pirolisa and PPO (Pure Plant Oil)
Biooil Biokerosene
- Kerosene substitute Substitute IDO (Industrial Diesel Oil)
MAIN POTENTIAL OF BIOFUEL: BIODIESEL • Potential major biodiesel feedstock in Indonesia on an industrial scale is CPO with a total annual production of 26 million tonnes. Of the total CPO production is only about 8 million tons used in the country for both cooking oil, chemicals, including for biodiesel, while the rest is exported; • With a great potential for the production of CPO is the potential use of biofuel Biodiesel fuel is enormous for fossil fuel substitution. Energy and Mineral Resources for People’s Welfare
The use of biofuels has been started since 2006 with the issuance of Presidential Instruction No. 1/2006 Beginning in 2009, the government imposed a policy of mandatory use of biofuel in the transport, industry and power generation through the Minister of Energy and Mineral Resources No. 32/2008. 2008. Biofuel industry has grown in Indonesia. At present, the installed capacity for the type of biofuel to 4.25 million KL of biodiesel and bioethanol amounted to 153 thousand KL per year. Currently there are 23 producers of biodiesel and 8 producer of bioethanol that have licensed.
1. Utilization BBN currently has carried on: a. Transportation sector (B-7.5 .5), b. Industrial sector (B-2 in subsector mineral and coal mining industries) and will be extended to other industrial sub sub-sectors is gradually c. Electricity generation sector. 2. In 2013 the target of biofuel utilization in the transportation sector will be increased to B-10
Energy and Mineral Resources for People’s Welfare
• Indonesia is the largest palm oil producer in the world.. In 2011, Indonesia's palm oil production amounted to 22.50 million tons, or 44.84% of the world palm oil production. In the last 5 years (2007-2011), Indonesia's CPO production grew with an average of 6.24%. • Based on ownership, the highest productivity of CPO is owned by the government which is 3.04 tons / ha, Following the private and public sectors respectively 2.57 and 2.38. Average productivity of Indonesian palm oil is 2.67 tons / ha. It should be noted that the value is based on ownership of land, not a plant area. Therefore, the productivity is still able to increase. • Meanwhile, MP3EI data showed that the growth of Indonesia's palm oil by 2010 reached 7.8% per year, higher than Malaysia's 4.2% per year. Indonesia's palm oil productivity, according to this book is 3.8 tons / ha, Still far below the potential that is 7 tons / ha, and far from Malaysia that the productivity reach 4.6 tons / ha. • In addition, based on the results obtained on the field, CPO productivity of a company can reach 4.8 tons / ha.
ESDM untuk Kesejahteraan Rakyat
Palm Oil Areas in Indonesia (Ha.) Year
Smallholder
Government
2007
2.752.172
2008
FFB Production in Indonesia (Ton)
Private
TOTAL
606.248
3.408.416
6.766.836
2.881.898
602.963
3.878.986
7.363.847
2009
3.061.413
630.512
4.181.369
7.873.294
2010
3.387.257
631.520
4.366.617
8.385.394
2011 *)
3.620.096
636.713
4.651.590
8.908.399
Palm Oil Productivity (kg/Ha) Year 2004 2005 2006 2007 2008 2009 2010*) 2011*)
Productivit y (Kg/Ha.) 2,833 2,925 3,498 3,634 3,424 3,487 3,552 3,607
ESDM untuk Kesejahteraan Rakyat
Year 2007 2008 2009 2010 2011 *)
Smallhold er 6.358.389 6.923.042 7.517.716 8.458.709 8.627.883
Government 2.117.035 1.938.134 2.005.880 1.890.503 1.937.765
Private
TOTAL
9.189.301 8.678.612 9.800.697 11.608.907 11.942.362
17.664.725 17.539.788 19.324.293 21.958.120 22.508.011
Productivity of palm oil by plantation
Indonesia biodiesel production in 2011 amounted to 1.38 million MT, about 78% for export. Total production is still far from the capacity of the industry which in 2011 counted 3.77 million MT. Calculating the biodiesel productivity to CPO or land area is pretty hard. This is because there is no accurate data on the amount of CPO produced specifically for biodiesel. As we know that in addition to biodiesel, palm oil is also used for other downstream products such as Olein and Stearin. Similarly, palm oil land uses that are not specifically mentioned for the production of biodiesel. However, field study shows that the biodiesel productivity reached 0.97 per MT of CPO or 38,412 MJ / ton CPO with land productivity of 4.64 MT PME / Ha.
No. 1.
Item Productivity of palm oil by plantation
Unit Tonnes per ha per year
Study
National 4,8 2,67 (source: BPS calculated) 3,8 (source: MP3EI)
2. 3. 4.
tonne CPO Biodiesel processing efficiencies by MJ/tonne technology Amount of biodiesel end product (mass of Tonnes Tonnes/ha per energy content) year Production cost per unit of biodiesel
ESDM untuk Kesejahteraan Rakyat
USD/MJ
38.412 4,64 3,28 (source: Aprobi)
COST COMPARISON FOR BIOFUEL PRODUCTION Palm oil has the lowest cost of production amongst other vegetable oils 6
Annual Yield per Hectare (tonnes)
5
Palm Oil
4
3
2
Rapeseed Oil
1
Sunflower Oil
Soybean Oil 0 100
200
300
400
500
Production Cost ($/tonne) Source: Oil Worlld
ESDM untuk Kesejahteraan Rakyat
600
700
800
1. 2.
3.
Biofuel potential for energy supply, climate improvement, and encourage the national development; Biofuel development is too fast and not controlled can lead to: a. Competition for natural resources and rising food prices, b. Deforestation and biodiversity decline, c. Marginalization of land ownership by farmers and land ownership, d. Greenhouse gas emissions in addition to the use of fossil fuels excessive, There needs to be concern about sustainability issue. Consultation planning and monitoring
Conservation & biodiversity
Greenhouse gas emissions
Soil
Legality
Human and labor rights
Water Sustainable Biofuels Rural and social development
Food security
ESDM untuk Kesejahteraan Rakyat
Economic efficiency
Land rights
Air
1. Biofuel sustainability: biofuel production chain in ffrom farm or forest up to the gas station and the final
2.
3.
4.
5.
6.
7.
8.
release of emissions into the air Sustainable development is a mandate of Indonesia Constitution: “national economy based on economic democracy with the principles of togetherness, efficiency of justice, sustainability, environmental friendliness, independence, and balancing economic progress and national unity” Biofuel sustainability in Indonesia: Indonesia Sustainable Palm Oil (ISPO); ISPO declaration on 30 of March 2011 and formally applied since March 2012; Has been establish Regulation of Minister of Agriculture No. 19/Permentan/OT.140/3/2011 concerning on Guidelines Indonesian Sustainable Palm Oil (ISPO); Objective of ISPO: a. Increase awareness of the importance of producing sustainable palm oil, b. Improve the competitiveness of Indonesian palm oil in the world market; c. Indonesia's commitment to supporting pelestaraian Natural Resources and environmental functions as well as results of the Copenhagen Meeting 2009. Because ISPO is based on the laws and regulatio ations in force in Indonesia, this mandatory must be implemented for businesses plantations in Indonesia. ISPO based on Indonesia regulation, law, and constitution ESDM untuk Kesejahteraan Rakyat
Obligations that must be met by sustainable palm oil development industries includes seven principles: 1. Licensing System and Plantation Management, 2. Technical Guidelines for the Application pplication of Cultivation and Processing of Oil Palm, 3. Management and Environmental Monitoring, 4. Responsibilities to Workers, 5. Corporate Responsibility on Individuals ndividuals and Communities, 6. Community Empowerment Economic Activity, 7. Commitment to Continuous Improvement mprovement Economics.
ESDM untuk Kesejahteraan Rakyat
.
ENERGY SECURITY:
2.
ECONOMIC IMPACT IMPACT:
a.
Improved energy access.
b.
Reducing the use of fossil energy.
b.
Reducing dependence on fuel imports.
Enhance investment in supporting industries..
c.
Enhance economic development through local manufacture of products and components, assembly and installation, operation and/or servicing of equipment.
c. d.
Diversifying the energy sources.
e.
Conserve a country’s natural resource base.
a.
3.
Job creation and enterprise development.
Energy and Mineral Resources for People’s Welfare
ENVIRONMENTAL IMPACT: a.
Reduction of greenhouse gases:
– By using biodiesel and bioethano in transportation sector (substitute the fossil fuel);
– By using biodiesel and biooil in industrial sector (substitute the fossil fuel/industrial diesel oil in industrial sector);
– By using biokerosene in domestic/household use (substitute kerosene and fuel wood for cooking and lighting).
b.
Reduction of air pollution levels.
c.
Improving air quality and enhancing the general health and well being of local communities.
GOVERNMENT SIDE 1. Identify the detail environtment impact of biofuel development; 2. Threshold determination of allowable environmental impact. 3. Development of best practice guidelines for feedstock production systems that meet the rules of the environment (biodiversity, water, air, soil, land use) RSPO. 4. Development of Monitoring, Evaluation and Reward to ensure and encourage the achievement of the development of biofuel hat meet environmental rules uses an existing system (PROPER, EIA, Green Industry Award, Certification). 5. Institutional Development System (WHO IS DOING WHAT). BUSINESS SIDE 1. Develop technologies or systems that minimum environmental impact. 2. Self-assessment to ensure achievement of the development of biofuel that comply with environmental rules. ESDM untuk Kesejahteraan Rakyat
Vielen Dank
www. www.ebtke.esdm.go.id
Directorate General of New, Renewable Energy and Energy Conservation Jl. Pegangsaan Timur No. 1A,, Cikini, Jakarta,, Phone/Fax: +62 +62-21 31924585; email:
[email protected] Energy and Mineral Resources for People’s Welfare