1. January 25, 2006 Tokyo Electric Power Company (TEPCO)
Feasibility Study Using Empty Fruit Bunch as Power Plant in West Kalimantan as CDM scheme
January 25, 2006 Tokyo Electric Power Company (TEPCO)

2. Site location : West Kalimantan in Indonesia
Project Site
Site location : West Kalimantan in Indonesia

3. Project Site in West Kalimantan

4. EFB Transport

5. Project purpose
Promoting utilization of CDM based on TEPCO’s CO2 emissions reduction policy.
Contribution for Indonesian electric power shortage.

6. Background (1)
BPPT(Agency for the Assessment and Application of Technology) introduced PTPN13(PT.Perkebunan Nusantara) to us.
PTPN13 was considering boiler refurbishment and studying new project.

7. Background (2)
This study was executed in accordance with a commission by NEDO.

8. Outline of F/S
Install a Power Plant using EFB(Empty Fruit Bunch) and CH4(Methane) gas from Palm Oil Plantation
F/S Participant : TEPCO, PTPN13 , BPPT , IEEJ

9. System Description Boiler for EFB & CH4 fuel
Steam Turbine and Generator
EFB Pretreatment System
CH4 Collecting System
Grid connection to PLN 20kV

10. System Description (schematic view)

11. Specification of Steam Turbine

12. Specification of Boiler

13. Project scheme

14. Economic Term

15. Barriers for investment at present
Low IRR from High initial cost
Palm waste fired power generation project can not have cost advantage of scale.
Unsure in PPA contract with PLN.
No incentive in the range of over 1 MW renewable power project. No regulation in the contract period & tariff mechanism.

16. Countermeasures to overcome barriers (1)
Low IRR from High initial cost
Utilizing NEDO subsidy and reduction of initial cost.
To make a high efficiency of project implementation and cost reduction, Considering the scheme that we seek local Japanese developer and then we may concentrate to contribute on technical advice mainly.

17. Countermeasures to overcome barriers (2)
Unsure in PPA contract with PLN.
Several model projects by Japanese government
Making Road Map
(Such as making PPA format)

18. After F/S and Future Plan
After this F/S, PTPN13 requested us to give a developed study, and we gave the result.
Now, PTPN 13 is studying based on this result. But not yet conclude.
We are seeking local Japanese developer and investor. But not yet because of above reason.
We are seeking other possibility to help the progress of this project with adding valued option.

19. Summary
We are still placing this project as Typical biomass CDM project in Indonesia.
We may request Indonesian government to establish and enforce regulation which gives incentives up to 10 MW in renewable power supply.
We propose several CDM model projects in each biomass sector by Japanese government.
Besides, we propose the engagement of MOU for promoting CDM between Japanese government and Indonesian government.

20. Contact us
Overseas Project Group, Thermal Power Department, Tokyo Electric Power Company
Kyoto Mechanism Promotion Division
Energy and Environment Technology
Center, NEDO