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Biodiesel Pilot Plant Project Presentation - South Sumatera, Indonesia, May 2007

The government of South Sumatera Province presented a biodiesel pilot plant project at the Joint Task Force Meeting under the Indonesia-Korea Economic Cooperation Forum in Jakarta on May 1, 2007. This initiative is part of South Sumatera's strategic development planning for 2003-2008, focusing on establishing the province as a National Energy Center and Food Barn. The project aims to utilize local renewable resources such as Jatropha and crude palm oil for biodiesel production, enhancing energy security and supporting sustainable development in the region.

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Biodiesel Pilot Plant Project Presentation - South Sumatera, Indonesia, May 2007

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  1. BIODIESEL PILOT PLANT PROJECT PRESENTED TO : JOINT TASK FORCE MEETING INDONESIA - KOREA ECONOMIC COOPERATION FORUM JAKARTA, MAY 1ST, 2007 THE GOVERNMENT OF SOUTH SUMATERA PROVINCE

  2. STRATEGIC DEVELOPMENT PLANNING SOUTH SUMATERA PROVINCE SELATAN, 2003 - 2008 10

  3. Development Agenda SOUTH SUMATERA PROVINCE 1 IMPLEMENTATION OF SOUTH SUMATERA AS NATIONAL ENERGY CENTRE 2 IMPLEMENTATION OF SOUTH SUMATERA AS FOOD BARN Agenda Pembangunan 4 3 IMPLEMENTATION OF PUBLIC WEALTH DEVELOPMENT 4 IMPLEMENTATION OF SOUTH SUMATERA "BERSATU TEGUH"

  4. 1 AGENDA Implementation South Sumatera as NATIONAL ENERGY CENTRE DEVELOPMENT PRIORITY : • Increasing Coal Production and Utilization • Increasing Natuiral Gas Production and Utilization • Reneweable Energy Utilization • New Power Plant and Transmission Development • Rural Electrician Development • Human Resource Development

  5. The Importance of Renewable Energy • Total capacity Hidrocarbon Train : 1 milion K.Litre per Day • Fuel Production : 44.5 milion K. Litre (KL), Consumption : 62.3 milion K.Litre (KL)defisit 17.8 juta KL (impor) • Diesel Oil demand (IDO and ADO) : ± 70.000 KL/Day or ± 26 milion KL/annum • Domestic Diesel Oil supplay too tight • Increasing Crude Oil Price

  6. OBJECTIVE OF ENERGI MIX 2025(PERPRES NOMOR: 5 TAHUN 2006)

  7. RAW MATERIAL BIODIESELPROSPECTIVE IN SOUTH SUMATERA STRAIGHT JATROPHA OIL (SJO) CRUDE PALM OIL (CPO) COCONUT OIL NUT OIL

  8. RAW MATERIAL BIOFUEL POTENSTIAL IN SOUTH SUMATERA • Jatropha : 520 ha (50.000 ha potential area, developed on critical forest) • CPO production, 2006 : 1.6 milion ton/annum (plantation area : 620.000 ha) • Coconut, 2006 : 70.000 ton (plantation area 60.000 ha)

  9. RAW MATERIAL BIOFUEL RESOURCES • Biodiesel utilization at 2010 : 720.000 K.Litre/annum (approx. 2 % of total demand). • Biodiesel design implementation :

  10. Jatropha plantation and development (1.5 milion trees equivalent to 500 ha, in Lahat dan OKU Timur) • Palm plantation development conduct by Plantation Revitalization Project : 300.000 ha (on year : 2007-2010) • BIODIESEL PILOT PLANT PROJECT, capacity: 20 ton per day or (6000 ton/annum), at Research and Development Centre , Sembawa. BIODIESEL DEVELOPMENT PROGRAM SOUTH SUMATERA Perpres no. 5 tahun 2006 AND Inpres No.1 tahun 2006 JATROPHA OIL BIO DIESEL CPO

  11. PLANTATION DEVELOPMENT Area Utilization Master Plan 3,2 milion ha Existing Area 2,2 milion ha (Year`2005) Development Area 1 Juta ha Alocation area : Alocation area : Rubber : 944.000 ha Rubber : 250.000 ha Palm Plantation : 561.000 ha (CPO product. : 1.5 milion ton) Palm : 600.000 ha Sugarcane : 75.000 ha Coffe : 272.000 ha Horticulture : 250.000 ha Jatropha : 50.000 ha Other comodity : 173.000 ha Other : 25 ribu ha

  12. Policy : South Sumatera as National Energy Centre Raw Material : CPO is already exist, Jatropha development on going. Supporting system : 42 unit CPO plant existing, capacity 2.020 ton/hr. Supporting organization : Local Government Enterprise (PD PDE) Human Resource: University (UNSRI) as a part of National Energy Research, Indonesian Plantation Research Institute, Plantation Research and Development Centre- Ministery of Horticuluture. Accesibility : transportation, telecomunication and port. Area, plant and technology already exist. Fun : Local government already for sharing budget. PROSPECT FOR BIODIESEL INVESTMENT IN SOUTH SUMATERA

  13. BIODIESEL POTENTIAL MARKET IN SOUTH SUMATERA

  14. BIODIESEL PILOT PROJECT PLAN IN SOUTH SUMATERA • LOCATION : SEMBAWA RESEARCH CENTRE, BANYUASIN • SUPPORTING CONDITION : • Palm Plantation, owner by Sembawa Research Centre, Palm tree 15 years old (TM 11), area: 1.200 Ha • Area for Site Location CPO & Bio Diesel Plant : 2 Ha • CPO Production : 1.6 milion Ton/Annum

  15. Site Location Biodiesel Plant, Sembawa Research Centre

  16. BIODISEL UTILIZATION RESEARCHFOR MACHINERY AND EQUIPMENT FARMING IN SOUTH SUMTERA • Total Biodiesel consumption for machinery and equipment farming in South Sumatera Selatan 4.372 ton litre per annum • Decreasing fuel consumption • Long lifetime machinery and equipment • Biodegradability

  17. BIODIESEL MARKET (50 % eksisting machinery and farming equipment , year 2005)

  18. BIODIESEL ECONOMIC SCALE

  19. BUDGET SCHEME

  20. BIODIESEL RETAILOFF TAKERS Conducted by PD PDE South Sumatera: • Fuel Pump Station (SPBU) • Stationary Plant B100 • Machinery and Farming Equipment B20 • River transportation vehicle

  21. TERIMAKASIH

  22. PRODUCTION COST *) Raw material cost not included, asumption $ 1 = Rp 10.000

  23. Biodiesel Raw Material Resource in South Selatan. • Crude Palm Oil (CPO) • Palm Plantation area (at 2006): 620 ribu Ha • CPO Production (at 2006): 1.6 milion ton/annum • Land Productivity : 3.4 ton CPO/ha • CPO Plant : 42 unit, capacity 2.020 ton/hour • Existing area for development :600.000 ha • Jatropha Oil (J. curcas) • Plantation area : 1.5 milion trees in Lahat and 100 ha in OKU Timur • Productivity : data not available, aproximately 3 – 4 ton/ha.

  24. Potential area in South Sumatera Sembawa Plantation Research Institute (LRPI) • Total area Plantation Research 3250 haa • Palm Palnatation area Luas kebun : 1000 ha • Production at 2006: 20-90 ton TBS/day • Area for site location Bio Diesel Plant already exist • The plantation neigbour : PBN, PBS & PR • CPO plant development 5 ton TBS/hr, dua shifts. • CPO stock ex the neigbour CPO Plant : 20 ton CPO/day, not fulfill for bio diesel plant demand wich capacity 20 ton/day or 6.000 ton/annum. • Prospect for Community Development

  25. Site Location CPO Pilot Plant 500 m 500 m 1000 m S. MUSI Site Location CPO Plant

  26. Biodiesel Plant (20 ton CPO/hari) CPO Mini Plant (5 ton TBS/jam, 2 Shift) Integrated Biodiesel Pilot Plant Designin South Sumatera 2006 9 Billion Rupiah LRPI & PEMDA 12-15 Bilion Rupiah INVESTMENT South Sumatera Province (4 B) Banyuasin County (2 B) 6 B Palm Plantation : CPO (already) Straight Jatropha Oil : SJO (on going development)

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