Utilization of Palm Oil Processing Waste (Palm Oil Mill Effluent/POME) As A Biogas Raw Materials in Indonesia Endro Gunawan Indonesian Agency for Agricultural Research and Development Ministry of Agriculture 2017

Outline Methodology Introduction II Methodology III National Energy Policy IV Policy Implementation for Biomass Energy V Utilization of POME for Biogas VI Conclusion

I. Introduction The growth average energy consumption in Indonesia  7% in the last 10 Years Caused by growth of population (250 million) Petroleum and coal is the main fuel in Indonesia

…continued Indonesia is the largest producer of CPO in the world  have a huge of palm oil processing waste (POME) POME  waste as a pollutant in the water  as a material for biogas The objective : identify potential, constraints and opportunities for POME, as well as economic and institutional analysis of biogas from processing of palm oil waste in Indonesia.

New Paradigm of Bioenergy Management in Indonesia ENERGY SUPPLY SIDE MANAGEMENT ENERGY DEMAND SIDE MANAGEMENT SUPPLY DEMAND DEMAND SUPPLY Need Energy Sectoral efficient : Household Transportation Industru commmercial Maximal Utilization of renewable energy (Diversification) Fosil Energy (High cost, full subsidy) Need Energy Sectoral Not efficient : Household Transportation Industru commmercial Energy Fosil As balancing Renewable Energy As Alternatif CONSERVATION In the future : Utilization energy  efficient Use renewable energy  maximalization Renewable energy  as a balancing Existing : Utilization energy  In-efficient Use fossil energy  high cost Renewable energy  only alternative

II. Methodology Location : Rokan Hulu District, Riau Province in 2015 Riau Province is the main producer palm oil in Indonesia Primary data  were collected through direct interviews to oil palm farmers and users of oil palm biogas. Data analysed  quantitatively and qualitatively analysis. Economic analysis  comparison between Biogas Power Plant vs Diesel Power Plant.

III. National Energy Policy Improve the installed capacity of power generation /energy production; Energy growth around 7% per year; require any additional capacity to meet energy demand; through geothermal and hydro. Improve the access to modern energy for isolated area from PLN’s grid, particularly the remote areas and small island; On going program: electricity/rural energy with microhydro, solar, biomass, biogas.

…continued Reduce Fuel/electricity subsidies (energy) Diesel  Solar, Microhydro, Biomass, Biodiesel; Diesel substitution with renewable energy could reduce subsidies. Reduce greenhouse gas emissions; Efficiency improvement and utilization of new and renewable energy will minimize greenhouse gas emissions. Energy saving Saving 1 kWh is cheaper and easier than generate 1 kWh.

Grand Design Bioenergy Development 23% 2014 2020 2025 290 Juta TOE 215 450 Million TOE Bussiness As Usual TARGETED 2025 400 EBT Coal Gas Oil 30% 22% 25% 17% 29% 32% 6% 24% 41% Current BIOFUEL: 4,7% BIOFUEL: 3% Totaly National Primary Energy : 215 MTOE Renewable Energy: 13 MTOE Geothermal : 6 MTOE BIOFUEL : 4 MTOE BIOMASSA : 2 MTOE Water : 1 MTOE

Target of the Energy Policy 2025 Gas 22% Coal 30% Oil 25% Renewable 23% Renewable Energy : Biofuel (5%) Biomass (5%) Geotherm (7%) Water (3%) New Energy (3%) Strategy : Decreasing intensity of energy 1% per year Energy elasticity < 1 in 2025 Optimalization the source of renewable energy

The policy of national energy  the Indonesian legislation and some regulation from the Minister of Energy and Mineral Resources Contains : the priority of the supply and use of renewable energy, the target of renewable energy in 2025 amounted to 23% mix of energy, mandatory use of biofuel on the transportation , industrial, commercial sectors and power plant electricity. Prioritized on three types of biofuel: biodiesel, bioethanol and vegetable oils.

IV. Policy Implementation for Biomass Energy

Biofuel Mandatory Roadmap MEMR Regulation No.21 Year 2015

Biomass Potential for Electricity

Biomass Potential for Electricity

Potensi of Palm Oil for Energy Riau

FIT for Biomass Power Plant MEMR Regulation No.21 Year 2016

FIT for Municipal Solid Waste Power Plant MEMR Regulation No.44 Year 2015

The Development of Bioenergy Power Plant Biomass in Indonesia can generate electricity up to 32 GW Installed Capacity of Biomass and Biogas Power Plant up to May 2016 is 128,6 MW, consist of: Solid Palm Oil Waste: 102,4 MW Liquid Palm Oil Waste/POME: 8,6 MW MSW: 17,6 MW

V. Utilization of POME as Biogas

a. Potential of POME as Biogas Resources The processing of fresh fruit bunches (FFB) into crude palm oil (CPO) and the entire palm oil mill production activities  produced biomass, both in solid and liquid waste (known as Palm Oil Mill Effluent / POME). Waste of palm oil processing industry : POME as a source of bioenergy. The potential of POME in Riau  608 palm oil processing industry 2015 palm oil processing industry in Riau reached 223 units, with an average capacity of 9,670 tons/hour. The potential of waste  29.01 million tonnes (Table 1). PT ARP in Rokan Hulu district, where waste is managed by the village with government support has been able to generate 1 MW of electricity for the needs of rural communities (about 1,500 home).

Waste Palm in Riau Province, 2015 Tabel 1. Area, Production Potential, and Availability of Palm Oil Factory (PKS) and Waste Palm in Riau Province, 2015 District Area (Ha) Production Potential Fresh Bunch (000 Ton) Palm Oil Processing (Units)   Capacity of Palm Oil Processing (Ton/hours) Need of Fresh Bunch Potential of POME Kampar Rokan Hulu Pelalawan Indragiri Hulu Kuansing Bengkalis Rokan Hilir Dumai Siak Indragiri Hilir Pekanbaru 387.263 423.545 306.145 118.970 128.538 198.642 273.145 36.345 287.782 228.053 10.745 7.745,26 8.470,90 6.122,90 2.379,40 2.570,76 3.972,84 5.462,90 726,90 5.755,64 4.561,06 214,90 35 39 22 23 18 12 28 2 25 1 1.550 1.605 1.040 975 720 505 1.190 120 1.105 830 30 9.300 9.630 6.240 5.850 4.320 3.030 7.140 6.630 4.980 180 4.650 4.815 3.120 2.925 2.160 1.515 3.570 360 3.315 2.490 90 Riau Province 2.3999.173 47.983,46 223 9.670 58.020 29.010

Need high cost for investment b. Obstacles and Opportunities for Development of POME as Biogas Power Plant. Obstacle : Need high cost for investment Need agreement with Palm oil factory and community used of POME Need collaboration with National Electricity Company Opportunity : Abundant of POME and not utilized Availability of biogas processing technology Need a large number of electricity for the community

Biogas Project utilizing POME

c. Economic Feasibility of POME as a Biogas Power Plant The cost of subscriber biogas electricity is much cheaper, which is Rp. 45,000/month compared to diesel electricity (Rp 120,000/month); The price of electricity per KWh is cheaper (Rp 1,900/ KWh) than diesel electricity (Rp 4,000/KWh); Non-stop biogas lighting for 24 hours The quality of electric current from biogas is very stable; and If there is a power failure, it can be handled immediately.

VI. Conclusion Riau province has a large of POME and most of it has not been utilized with a potential of around 29.01 million tonnes by 2015. From the processing of fresh fruit bunches of 1 ton of palm oil can produce about 0.6 to 1 m3 POME. Indonesia has about 608 palm oil mills potentially generating up to 1,000 MW of electricity The economic feasibility of biogas power generation from POME waste is: (a) the cost of abudemen and the price of electricity per KWh is cheaper than diesel electricity, (b) non stop time for 24 hours; (c) the quality of the electric current is more stable and (d) easier in the maintenance and handling of installation. The institutional biogas management system of POME needs to be integrated with the oil palm plantation for sustainability of row material

THANK YOU….gracias 27