1. Unggul Priyanto Agency for Assessment and Application of Technology Republic of Indonesia November 1, 2010

2. INTRODUCTION

3. World Peak-Oil & Indonesian Oil Production Projection UNCERTAINTY DEPLETION

4. 4 Gas, 30% National Energy Mix 2025 (3 billion BOE) (Presidential Decree No. 5/2006) NATIONAL ENERGY POLICY (PRESIDENTIAL DECREE NO. 5 YEAR 2006) Natural Gas, 28.57% Coal, 15.34% Oil 51.66% Geothermal, 1.32% Hydro Power, 3.11% CURRENT ENERGY MIX (1 billion BOE) National (Primary) Energy Mix Energy Elasticity = 1,8 Coal, 35% Oil 20% Biofuel, 5% Geothermal, 5% wood waste, Nuclear, Hydro, Solar Energy, Wind Power, 5% RE,15% Energy Elasticity < 1

5. Opportunities for Bioenergy Bioenergy are available in liquid state Bioenergy is renewable energy Bioenergy can give a large contribution to reducing GHG emissions Bioenergy is a clean energy source Bioenergy markets provide major business opportunities (bio-diesel, bio-ethanol) Bioenergy can provide a key lever for rural development and enhanced agricultural production methods

6. 5-20% Crude bio-oil Biodiesel diesel oil Bio-Diesel Diesel Engine: car, Genset Coconut palm Jathropa PURE PLANT OIL(PPO ) and BIODIESEL Raw materials for Biofuel BIOETHANOL Methanol + Cassava mollases Hydrolysis + Fermentation Bioethanol ( 9% ) Dehydration Bioethanol ( FG ) Gasolin Engine Gasoline BioPremium 5-20% Lignoselulosa Pure Plant Oil diesel oil

7. Plant Part of Plant Ethanol Productivity(L/ha/yr) CassavaRoot4,500 Sweet potatoRoot7,800 Sugar CaneStalk5,000 – 6,000 CornGrain5,000 -6,000 SorghumGrain3,000 -4,000 Sweet sorghumStalk5,500 – 6,000 SagoStalk4,000 – 5,000 Palm Sugar/ArenSap10,000-20,000 Nipah (Mangrove)Sap 5,000 -15,000 LontarSap8,000 – 10,000 CoconutSap8,000 – 10,000 Resource Base of Bioethanol

8. Resource Base of Vegetable Oil There are 350 plantation that supply vegetable oil PlantationKg oil per HaL oil per ha Palm oil50005950 coconut22602689 jatropha15901892 rapeseed10001190 peanuts8901059 sunflowers800952 soybean375446 corn (maize)145172

9. Biomass Waste Resources Potential

10. BIOENERGY POLICY IN INDONESIA

11. OBJECTIVE OF BIOFUEL DEVELOPMENT 1. Poverty alleviation and job creation 2. Encourage enhancement of sustainable economical activities, through biofuel development : Reasonable price Efficient, reliable, save and environmental friendly 3. Reducing domestic fossil fuel consumption

12. STRATEGY 1.Developing investment and finance scheme in biofuel development 2.Developing price mechanism, starting from the feedstock up to biofuel product that support biofuel development effectively 3.Increasing local content on biofuel development 4.Improving feedstock supply and production infrastructure 5.Establishing biofuel trading system (59 Gas station use Bioethanol, E2. 1394 Diesel station use Biodiesel, B2-B10) 6.Accelerate land availability 7.Developing Special Biofuel Zone and Self Sufficient Energy Village 8.Improving Local Government and society participation in biofuel business

13. FAST TRACK BIOFUEL DEVELOPMENT Fast Track Each Region Developing its Biofuel Potential SPECIAL BIOFUEL ZONE Create Job Poverty Alleviation Energy SHORT RUNLONG RUN Energy Self Sufficient Village Infrastructure Demplot On time schedule Explicit investment employment ratio

14. CHALLENGES 1.Land availability for Biofuel Development  Land availability inventory, synchronizing data among Forestry Department, National Land Affairs Agency and Regional Government 2.High price of biodiesel feedstock, especially CPO  Feedstock diversification is needed 3.Improving quality of Biofuel commodities  Agricultural research on biofuel commodities sector 4.Improving national technological capabilities on biofuel processing  Research and Development, technology transfer on biofuel processing with more experienced parties 5.The price of biofuel that has not yet competitive in compare with fossil fuel  Subsidy Fossil fuels/oil  Feedstock diversification and effective technology will decrease the price of biofuel

15. ROADMAP OF BIOFUEL UTILIZATION Bio Diesel Bio Etanol Biodiesel Konsumsi dIESEL 10% 2.41 juta kL Biodiesel 15% Konsumsi dIESEL 4.52 juta kL 2005-2010 2011-2015 2016-2025 Biodiesel 20% Konsumsi dIESEL 10.22 juta kL Bioetanol 5% Konsumsi gASOLIN 1.48 juta kL Bioetanol 10% Konsumsi Gasolin 2.78 juta kL Bioetanol 15% Konsumsi Gasolin 6.28 juta kL Bio Oil Bio Fuel Biokerosin 1 juta kL Biokerosin 1.8 juta kL Biokerosin 4.07 juta kl Biofuel 2% energi mix 5.29 juta kL Biofuel 3% energi mix 9.84 juta kL Biofuel 5% energi mix 22.26 juta kL - PPO untuk Pembangkit Listrik - Biokerosin PPO 0.4 juta kL PPO 0.74 juta kL PPO 1.69 juta kl 15

16. 16 Type of Sector October 2008 until Desember 2008 January 2009 January 2010 January 2015** January 2020** January 2025** Note Household------ PSO Transportation 1% (existing) 1%2.5%5%10%20% With respect to total demand Non PSO Transportation -1%3%7%10%20% Industrial and Commercial 2.5% 5%10%15%20% Generating electricity 0.1%0.25%1%10%15%20% According to Minister of Energy and Mineral Resources Regulation No. 32/2008 Mandatory of biofuel utilization Biodiesel (B100)

17. 17 Type of Sector October 2008 until December 2008 January 2009 January 2010 January 2015** January 2020** January 2025** Details Household------ PSO Transportation 3% (existing) 1%3%5%10%15% With respect to total demand Non PSO Transportation 5% (existing) 5%7%10%12%15% Industrial and Commercial -5%7%10%12%15% Generating electricity ------ Mandatory of biofuel utilization according to Minister of Energy and Mineral Resources Regulation No. 32/2008 Biofuel Development in Indonesia Bioethanol (E100)

18. 18 PENTAHAPAN KEWAJIBAN MINIMAL PEMANFAATAN PURE OLANT OIL Jenis Sektor Oktober 2008 s.d Desember 2008 Januari 2009 Januari 2010 Januari 2015** Januari 2020** Januari 2025** Keterangan House hold------Saat ini tidak ditentukan Industri dan Transportasi (Low and medium speed engine) Industri --1 %3 %5 %10 % Marine --1 %3 %5 %10 % Power Generation-0,25 %1 %5 %7 %10 %* Terhadap kebutuhan total ** Spesifikasi disesuaikan dengan spesifikasi global dan kepentingan domestik

19. PROGRESS ON BIOENERGY DEVELOPMENT IN INDONESIA

20. SUGAR GROUP Lampung 70.000 kl/year (Molases, Integrated Industry) Molindo Raya Malang, Jatim 50.000 kl/year (molases ex-PTPN) BPPT Lampung 2.500 kl/year (Cassava) Production of Fuel-Grade BIOETHANOL : Realization till December 2008 about kl/yr, Commitment Production of Fuel-Grade BIOETHANOL : Realization till December 2008 about 192.349 kl/yr, Commitment 3.77 mill. kl/yr in 2010 BLUE & MONONUTU Minsel 2 x 200 litres/day (Sugarpalm) PANCA Cicurug 200 litres/day (Cassava & Molases) TRIDAYA Cilegon 3.000 litres/day (Molases) BLUE Balikpapan 200 litres/day (Molases, Sorghum) BEKONANG, Solo nx100 litres/day (Molases)

21. WILMAR GROUP Dumai 990.000 ton/yr (CPO) ETERINDO Gresik & Tangerang 240.000 ton/yr (CPO) PTPN 4 & GANESHA ENERGI Medan 4.000 ton/yr (CPO) SUMIASIH Bekasi & Lampung 100.000 ton/yr (CPO) BPPT Serpong 300 ton/yr (CPO) EAI Jakarta 500 ton/yr (CPO) RAP Bintaro 1.650 ton/yr (CPO) DHARMEX 100.000 ton/yr (CPO) INDO BIOFUELS ENERGY Merak 100.000 ton/yr(CPO) PLATINUM Serang 20.000 ton/yr(CPO) and Production of BIODIESEL : Install Capacity till December 2008 about 2.029.110 kl/yr and 3 mill. kl/yr in 2010

22. 22 Gas Station blending Biofuel by Pertamina: s/d Juni 2008 Bali 11 SPBU Biosolar 14 SPBU Biopertamax Surabaya 19 SPBU Biosolar 7 SPBU Biopertamax Malang 1 SPBU Biopremium 3 SPBU Biopertamax Jakarta 202 SPBU Biosolar 22 SPBU Biopertamax Total: 279 SPBU untuk: -Biosolar (1%): 232 SPBU -Biopertamax (5%): 46 SPBU -Biopremium (3%): 1 SPBU

23. PROSPECT ON BIOMASS WASTE UTILIZATION

24. Gasification Pyrolysis Liquefaction HTU DigestionFermentation Extraction (oilseeds) Thermochemical conversion Biochemical conversion Gas Oil Steam turbine Steam Charcoal Biogas Gas engine Gas turbine combined cycle, engine Fuel cell Methanol/ hydrocarbon/ hydrogen synthesis HeatElectricityFuels Upgrading Diesel Distillation Ethanol Esterification Bio-diesel PPO Purification Technologies of Bioenergy

25. Fibers Palm FFB Steam Process Palm EFB Boiler Electricity Scheme of Palm Waste Utilization Bio compost Kernel sheel Power Generation CPO POME Bio Gas 20% 18% 9% 48% 5%

26. Molasses Fermentation Sugar Cane Sugar Distillation Dehydration Ethanol 99.5% Filter cake (mud)Bagasses GASOHOL Bio compost Plant Power Plant Bio compost Spent wash Electricity Scheme of Sugar Cane Waste Utilization 20%8%5%

27. Biomass To Liquid Source: NREL Methanol/ Ethanol Green Diesel H2H2 FT Process palm Jathropa Fuel Additives / Blends Fuels DME Gasoline Diesel Ethanol (Biomass) Biodiesel Ethanol (Sugar, Grain) Veg Oil/ Grease Glycerol Biodiesel Trans-esterification FAME/FAEE Biodiesel CO Rice Husk Wood waste

28. FLOW PROCESS IN BIOETHANOL PRODUCTION SugarSTARCHLIGNOCELLULOSIC LIQUIFACTION OF COOKING PRETREATMENT SUCCHARIFICATION (HYDROLYSIS) SACCHARIFICATION (HYDROLYSIS) FERMENTATION 7 PURIFICATION BIOETHANOL STILLAGE ANAEROBIC DIGESTER BIOGAS COMBUSTION ENZYME STEAM MICROBE’S CELL FLOW DIAGRAM BIOETHANOL PRODUCTION USING DIFFERENT RAW MATERIAL STEAM ENZYME ACID ENZYME ACID ENZYME FERTILIZER

29. Concluding Remarks When first generation biofuels production is preferred, where feedstocks used are also competing with food and feed lines, there should be accompanied with intensification of agricultural production and diversification of food crops. The fact that the demand of food, feed and fuel are steadily increasing, especially in the developing countries, non-food feedstocks (biomass waste) are preferable. This is in line with second generation biofuels production. Promoting public awareness in utilizing renewable energy would be significant contribution for energy efficiency in particular, and sustainable development in general. South East Asian Countries are the greatest producer of biofuel feedstocks in Eastern Asian countries

30. 30 THANK YOU