New Development of Ethanol Industry in Indonesia Petrus Panaka PT Gikoko Kogyo Indonesia [email protected] &

M. Arif Yudiarto [email protected]

Starch Technology Center (B2TP) Agency for the Assessment and Application of Technology (BPPT) Asian Science & Technology Seminar Jakarta. March 7. 2007

Outline of Presentation 1. Indonesia biomass potential for Biofuel 2. Road Map of Bioethanol & Industry Plant in Indonesia 3. Ethanol Production and Export in Indonesia 4. Strategy to solve oil price problem : - Increase renewable fuel (biofuel) utilization - Increase value added for energy resources 5. R &D of Gasohol. 6. Conclusions

Potential Biomass Resources in Indonesia Plant

Part of Plant

Ethanol Productivity(L/ha/yr)

Cassava

Root

4,500

Sweet potato

Root

7,800

Sugar Cane

Stalk Molasses

5,000 – 6,000 40

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

Aren

Sap

40,000*)

Nipah (Mangrove)

Sap

5,000 -15,000

Lontar

Sap

8,000 – 10,000

Coconut

Sap

8,000 – 10,000

Paddy

Stalk

1,000 – 2,000

Forest plants

Wood waste

-

Cassava Plantation in Indonesia Area (mil. ha)

Productivity (ton/yr)

Avr production (t/ha)

27.6

411.94

14.90

Lampung

298.48

4,984.62

16.70

West Java

114.69

1,651.48

14.40

CenterJava

215.52

3,469.80

16.10

Jogyakarta

47.48

764.41

16.10

East Java

241.20

3,786.88

15.70

Banten

10.75

154.82

14.40

South Sulawasi

41.88

607.29

14.50

NTB

8.28

88.57

10.70

NTT

75.51

808.00

10.70

Papua

3.83

40.93

10.69

Others

114.44

1,705.23

14.90

1,239.86

18,473.96

14.90

Province North Sumatera

Indonesia Source : BPS. 2004

Incentives for Biofuel Investment 1. Domestic market obligation for feedstock and product of biofuel 2. Pricing policy based on production cost 3. Incentives on value added for both feedstock and product of biofuel 4. In short term. biofuel is categorized as public service obligation product 5. Appointment to PERTAMINA and PLN as standby buyer biofuel 6. Simple procedure for biofuel investment 7. Bank of Indonesia to lower Asset by Risk (ATMR) for biofuel credit 8. Establishment of Green Energy Fund for Biofuel Source : DJLPE. 2007

Biofuel Specification Policy • Fuel specifications were revised on 17th March 2006 for both gasoline and diesel; • Biodiesel and bioethanol are allowed to be blended with diesel and gasoline at maximum 10% v/v. respectively; Technical specifications for biodiesel and bioethanol follow the government standards. Source : DJLPE. 2007

ROAD MAP OF BIOETANOL Year

Market

Product

2006 – 2010

2011-2015

Bioetanol supply 1.48 mil kl (10% of total gasoline consumption)

Bioetanol supply 2.78 mil kl ( 15% of total gasoline consumption)

Gasohol E-10 (Bioetanol from cassava & molasses)

Bioetanol supply 6.28 mil kl ( minimal 20 % of total gasoline consumption)

Gasohol/ FGE (Bioetanol from lignocellulose.starch and cassave )

NATIONAL STANDARAD OF FUELGRADE FOR GASOHOL & ETHANOL (FGE)

Technology Technology Status

Bioetanol production 99.5% (FGE) by chemical dehydration technique and molecular sieving of molasses feedstock based and commercial scale

R & DR&D

Gasohol/ FGE (Bioetanol from cassava. starch & molasses)

2016-2025

Bioethanol Dehydration with adsorben

Bioetanol production 99.5% (FGE) with production rate and high energy ratio based on cassava and starch feedstock for commercial scale

Membrane technology for dehydration Fermentationpr ocess technology

Carbohydrate resources for bioethanol feedstock Strain yeast improvement

Source : DJLPE. 2007

Bioetanol production 99.5% (FGE) from lignocelulose fibre (agriculture/forest waste).starch and cassava (incl. algae) at commercial scale

Lignocellulose as bioethanol feedstock and fuel

Road map for Bioethanol Industry Plant Construction Demo plant BPPT 88KL/day kL/hari

Pembangunan The construction of 104 plant plants@ @60 KL/day 104 60kL/hari

2005

2007

2009

2010

The construction of Pembangunan 62 @60 KL/day 62 plants plant @ 60kL/hari

2013

The construction of114 114plant plants@@60 KL/day Pembangunan 60kL/hari

2015

2018

2020

2023

202 5

Note : 1). 60 kL/day capacity is the lowest capacity of commercial ethanol plant based on starch feedstock. It needs about Rp 150 billion per-plant investment. 2). For efficiency reasons. investors should be encouraged to construct 2-3 times of those capacity. 3). The development of commercial plant under 60 kL/day is possible with local avaiable feedstock (especially starch. sap.’ lontar’. ‘nipah’. sugarcane and sweet sorgum) for rural areas where price of fuel oil is high.

Source : DJLPE. 2007

ETHANOL PRODUCTION IN INDONESIA (2005) Name of Company

Location

Production Capacity (Kiloliter/y)

PT Aneka Kimia Nusantara

Mojokerto

5.000

Molasses

PT Basis Indah

Sulawesi

1.600

Molasses

PT Bukitmanikam Subur Persada

Lampung

51.282

Molasses

PT Indo Acidama Chemical

Surakarta

42.000

Molasses

Yogyakarta

6.720

Molasses

Malang

10.000

Molasses

Bondowoso

6.000

Molasses

Gresik

11.000

Molasses

Lampung

~ 30

Cassava

PT Madu Baru PT Molindo Raya Industrial PT Perkebunan Nusantara XI PT Rhodia Manyar B2TP, BPPT

Source : Kompas. April 19. 2006.

Feedstock

Product : technical grade ethanol and raw spirit (ethanol: 95-97 % v/v)

Indonesia Ethanol Export Country Destination (2004) Destination

Capacity (ton)

Value (US$)

Japan

9,459.5

3,337,018

China

12.8

8,800

Singapore

255.50

Philippines

7,374.405

Malaysia Taiwan

12.8 4,982.963

Thailand

12.8

Others

87.662

Total

22,198.43

Source : Kompas. April 19. 2006

145,726 2,609,972 7,672 2,948,038 7,890 115,382 9,180,498

Indonesia Ethanol Export (2000 – 2004) Year 2000

Capacity (ton) 30,197

In US$ (x 1000) 9,857

2001

18,291

7,257

2002

27,518

10,757

2003

26,536

10,585

2004

22,198

9,180

124,740

476.36

Total

Source : Kompas. April 19. 2006

FUTURE ETHANOL PLANTS IN INDONESIA Location

Production Capacity (Kiloliter/y)

Feedstock

PT Indo Lampung Distillery

Lampung

60,000

Molasses

PT Sampurna

Ponorogo

16,800

Cassava

PT RNI & Choi Biofuel Co.

Pasuruan

11,200

Molasses

Kanematsu Corporation

?

30,000

Cassava

CNOOC & PT Smart & Hongkong Energy

?

?

Cassava & Molasses

PT Medco Energi Internasional Tbk

Kotabumi

?

Cassava

PTPN X & PT Molindo Raya Industri

Kediri

120

Molasses

Name of Company

Source : From Kompas & Sinar Harapan. July 2006 – March 2007.

Example of Countries with Bioethanol Application

Country

Description

Brazil

The largest producer of ethanol from sugar cane in the world with annual production of 18 billion liter from 320 ethanol plants. Currently, from all types of fuel sold at the market, 22 – 26% is ethanol. Production cost is US¢ 14 – 16 per liter.

USA

The second largest producer after Brazil. The annual production is more than 10 billion liter, however, this is only 2% of the total usage of fuel. The new legislation will increase the use of bioethanol.

China

Third biggest producer. The processing method came from Brazil and now is constructing new ethanol plants to increase their production.

Germany

To increase the use of biofuel, the government has issued tax exemption policy.

Austria

To treat used cooking oil collected from McDonald’s to drive public buses at Graz.

Sweden

. The test on ethanol mixed with petrol in public buses at Stockholm showed that big vehicles which have high fuel consumption can also use with the lower cost fuel such as bioethanol.

Ghana

They have biodiesel plants from various grains which can be harvested in short time. From this they can saved imported fuel up to 240 million US$.

Source : Kompas, August 18, 2005 and March 16, 2006

Continue… Country Thailand

Description

Indonesia

“Biopremium” (E5, 5% ethanol & 95% petrol) and “biopertamax” (E5, 5% ethanol & 95% pertamax) products from PT Molindo Raya and Pertamina. As for Aug 2006, only 2 bioethanol filling stations have been operating at Malang and Semarang.

Japan

E3. Ethanol Import from Brazil.

E10, Gasohol. Target from December 2005, increased filling station from 829 to 4,000 stations. 6 ethanol plants (2006) with production of 1,090 kL/day. Another 17 plants permitted with total capacity of 300,000 kL/day.

Source : Kompas, August 18, 2005 and March 16, 2006

Fuel Grade Ethanol (FGE) Production Flow Diagram Based on Cassava Molasses Yeast Amylases

Cassava

Pretreatment

Cooking and Saccharification

Distillation Source : B2TP-BPPT

Dehydration

Fermentation

FGE (Ethanol 99.5%)

1. Cassava from plantation

2. Crusher

3. Cooking tank

Ethanol 95% v/v

6. Distillation column

5. Fermentor

4. Saccharifying tank

Cassava Ethanol Production Flow Diagram Source : B2TP-BPPT

R&D of Bioethanol from Cassava Cassava Fermentation Using Pilot Plant of 8 KL/Day

BPPT’s 8 kL/day Ethanol Pilot Plant at Lampung, Established in 1983

Source : B2TP-BPPT

Ethanol (%)

Ferm.Ratio (%)

Ratio of Cassava/ Ethanol

9.0

97.12

5.27

0.40

9.4

98.50

5.20

14.91

1.80

9.2

92.80

5.34

106.181

15.84

0.50

8.9

87.25

5.87

99.930

13.87

0.30

7.7

86.00

5.42

99.462

11.80

1.40

7.1

93.00

5.26

98.311

13.75

0.40

8.6

97.00

5.27

98.169

14.46

1.20

9.2

98.79

5.19

Average

5.35

Broth volume (liter)

Total Sugar Start

Finish

102.367

14.39

1.81

101.990

14.82

100.196

Engine Performance & Emission Testing using Chassis Dynamometer Light Duty Gasoline Short Modal Typical System Schematic

Ambient & Sample Gas Collection Bags

Driver Aid

CVS Sampler

CVS Control Unit

Ambient Air Filters

Fan

Dyno Control

Dilute Sample

Turbine Exhauster Unit

Tailpipe Sample Autotest

Environmental & Auxiliary Input

Raw Bench

Engine standard test : 80/1269 EEC Emission standard test : UN-ECE 83-04

Source : B2TP-BPPT

Automotive Engine Performance and Emission testing by a Chassis Dynamometer at BTMP-BPPT. Source : B2TP-BPPT

Laboratory Emission Test (no load) Rotation

Premium

Pertamax

E3

E10

E20

Rpm

2500

2500

2500

2500

2500

CO (%)

3.66

2.85

2.44

1.04

0.76

CO2 (%)

12.60

13.00

13.20

14.00

13.70

HC (ppm)

372

351

390

514

673

O2 (%)

0.59

0.45

0.60

0.76

1.23

LAMDA

0.91

0.93

0.94

0.98

1.01

Tengine (oC)

88

87

88

87

87

Tamb (oC)

30

32

33

31.8

32.3

On Road Acceleration & Emission Tests No

Acceleration (km/hr)

Premium (second)

Gasohol E10 (second)

1.

0 -100

19.01

17.16

2.

40 - 80

8.08

7.46

No

Emission

Premium

Gasohol E10

1.

CO

6.97%

5.61%

2.

CO2

10.1%

10.9%

3.

HC

394 ppm

335 ppm

4.

O2

0.74%

0.69%

5.

Lamda

0.827

0.862

Source : Otomotif 18th Ed., Sept 5, 2005

‘Toyota Kijang’ Car Performance Test Using Gasohol

Fuel

Gasohol E-10

Gasohol E-20

Premium

Pertamax

Power (kW)

41.23

42.52

30.97

40.09

Force (N)

1856.1

1913.3

1393.8

1804

Fuel Consumption (L/jam)

30.39

31.24

31.03

27.38

Source : BTMP-BPPT. 2004

R&D Results • The ratio of cassava to ethanol is average of 5.35 • From the test results bioethanol mixed with gasoline (premium) : - The adding of bioethanol (typically 10%) in gasoline (premium) can improve combustion efficiency in car engine since ethanol can improve octane number. • Bioethanol can reduce CO emission both in idle and cycle (load) conditions. • E10 gives the highest performance (power and traction) nearly similar with ‘Pertamax’ even CO emission is lower.

Conclusions •

•

•

•

Indonesia has a big potential in utilizing biomass as biofuel feedstock to produce bioethanol, such as sugarcane (molasses), cassava, sweet potato, corn, etc. At current status, the annual total production of bioethanol is about 200,000 kL from more than 10 major companies whereas the demand is 1.7 million kL per year. With the current price of bioethanol of Rp. 5,300 (US$ 0.58) per liter, the mass utilization of these feedstock to produce bioethanol is anticipated in the near future. The government plans to produce enough biofuel by 2010 to replace 10% of the country’s total oil-based fuel consumption which reached 70 million kiloliter last year. Regarding to this, Government has issued policies & regulations on the supply & utilization of biofuel as alternative fuel and providing incentive and tariff. Government has to establish a commercialization scheme for bioethanol utilization in order to integrate with an existing fossil fuel commercialization and also creating a simple testing system and standard procedure for bioethanol. Starch Technology Center (B2TP), BPPT has initiated R&D of 8 kL per day ethanol pilot plant using cassave in Lampung since 1983. It is expected more private & government owned companies can utilize BPPT’s experiences to develop their commercial plants in Indonesia in the near future.

For more information

PT GIKOKO KOGYO INDONESIA Pulo Gadung Industrial Estate Jl. Pulo Kambing Kav II I/9 Jakarta 13930 Tel: 62 460 9380 Fax: 62 21 21 460 1970 web site: www.gikoko.co.id

STARCH TECHNOLOGY CENTER (B2TP)- BPPT BPPT Building II, 16th fl. Jl. M.H. Thamrin 8, Jakarta Tel. 021 3169598