Biodiesel plant -  Jatropha curcas  feedstock in Sumbawa   Case Study Biofuels as location spesific solutions >> local cap...
Depot Teknologi Khaula - Denkha  Khaula Karya Foundation <ul><li>A business initiative, distributes  </li></ul><ul><ul><li...
Biodiesel in Indonesia <ul><li>2005; National programme for biodiesel from  Jatropha curcas  feedstock </li></ul><ul><li>P...
Why  Jatropha curcas <ul><li>Non edible - Not conflicting with food  </li></ul><ul><li>Decentralized solutions for remote ...
Indonesia Biodiesel Plants CPO PRICE SPIKE  2006 : US$ 300/ton  2008 : US$ 1,200/ton PT . Industri Tanaman Energi  Sumbawa...
Jatropha based biodiesel production potential area (compiled from various media in Indonesia) SINARMAS Dumai 400,000 kl/ye...
Case Study : Jatropha based Biodiesel plant in Alas, Sumbawa <ul><li>Initiated in 2002 </li></ul><ul><li>Current  Jatropha...
Sumbawa Market Analysis <ul><li>Official petro-diesel retail price on location for industry Rp 8,000/L (US$ 0.9) and for t...
Business model
Overall Product
Community Involvement <ul><li>Assumption :  </li></ul><ul><li>5 ton seed/ha/year </li></ul><ul><li>Seed price  US$ 0.0 9 /...
Plant Progress Plantation during rainy season Plantation during dry season Plant in University (ITB)-Bandung Biodiesel pur...
Plant Progress (Cont’d) Biodiesel finished product Jatropha cake for biogas prod. Jatropha biogas digester ver.1 Jatropha ...
Indonesia Bandung Alas, Sumbawa
Bali, West Nusa Tenggara Alas, Sumbawa
Lombok Island Alas, Sumbawa
Plant location Fishermen island I Fishermen island II
Plant Location 10 hectare Jatropha plantation privately owned
Fishermen Islands
Potential plantation area 3,000 ha Existing Jatropha plants  Local community Plant location
Current Captive Market BTS location Plant location
BTS location
BTS location
Feasibility of biodiesel plant <ul><li>Assumption </li></ul><ul><li>Current captive Market  : Base Transceiver Station (BT...
IMPACT Environment Social Economic <ul><li>1,467 ton CO 2 -eq reduced annually (biodiesel) </li></ul><ul><li>Future revenu...
Next Steps <ul><li>Market development (local market) </li></ul><ul><li>Financing production up scaling to 15,000 L/day </l...
<ul><li>Thank you </li></ul>Erlangga Rismantojo Depot Teknologi Khaula – Khaula Karya Jl. Kemang Utara A-3 [email_address]...
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Biodiesel plant - Jatropha curcas feedstock in Sumbawa 
Case Study

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Talk given by ERLANGGA RISMANTOJO at the TBLI CONFERENCE ASIA 2008.

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Biodiesel plant - Jatropha curcas feedstock in Sumbawa 
Case Study

  1. 1. Biodiesel plant - Jatropha curcas feedstock in Sumbawa Case Study Biofuels as location spesific solutions >> local captive market >> small/medium scale industries ERLANGGA RISMANTOJO <ul><ul><li> DEPOT TEKNOLOGI KHAULA </li></ul></ul><ul><ul><li>“ Serving rural market for better productivity and livelihood” </li></ul></ul>
  2. 2. Depot Teknologi Khaula - Denkha Khaula Karya Foundation <ul><li>A business initiative, distributes </li></ul><ul><ul><li>Renewable energy technologies </li></ul></ul><ul><ul><li>Appropriate technology solutions. </li></ul></ul><ul><li>Products include </li></ul><ul><ul><li>Biogas digesters, </li></ul></ul><ul><ul><li>Rice husk gasifiers </li></ul></ul><ul><ul><li>Biofuel! </li></ul></ul>
  3. 3. Biodiesel in Indonesia <ul><li>2005; National programme for biodiesel from Jatropha curcas feedstock </li></ul><ul><li>Production initiation by palm oil feedstock, Jatropha not ready </li></ul><ul><li>Price unable to compete with subsidized fossil fuel </li></ul>Side effects Booming of Jatropha seedling sales Needs Market guarantee instuments (1) Insentive mechanism, (2) Regulation, (3) Special loan programme, etc
  4. 4. Why Jatropha curcas <ul><li>Non edible - Not conflicting with food </li></ul><ul><li>Decentralized solutions for remote areas </li></ul><ul><li>Inter-cropping to increase land productivity </li></ul><ul><li>Potential reduction of diesel fuel import which is now 10.85 mio kL/year </li></ul><ul><li>Optimize use of marginal land 13 mio ha </li></ul><ul><li>Potential Jatropha biodiesel production </li></ul><ul><li>28 mio kL/year </li></ul>
  5. 5. Indonesia Biodiesel Plants CPO PRICE SPIKE 2006 : US$ 300/ton 2008 : US$ 1,200/ton PT . Industri Tanaman Energi Sumbawa 500 tpy (CJO) PTPN 4 & GANESHA ENERGI Medan 4,000 tpy (CPO) BPPT Serpong 300,000 tpy (CPO) RAP Bintaro 1,650 tpy (CPO) EAI Jakarta 500 ton/year (CPO) WILMAR GROUP Dumai 350,000 tpy (CPO) SUMIASIH Bekasi 40,000 tpy (CPO) DHARMA 4,000 tpy (CPO) PT. INDO BIOFUEL ENERGI 20,000 tpy (CPO) ETHERINDO Gresik 120,000 tpy (CPO)
  6. 6. Jatropha based biodiesel production potential area (compiled from various media in Indonesia) SINARMAS Dumai 400,000 kl/year PERTAMINA Dumai, Balongan, Balikpapan 500,000 kl/year INDOMAL + PTPN Medan, Banten, Pekanbaru 1,500,000 kl/year TOLARAM W. Kalimantan 110,000 ha ASIATIC GROUP West Kalimantan 80,000 ha CLEAN BIOFUEL Gorontalo 50,000 ha BUMN AGRO Riau, Jambi, Sumsel, Kalimantan, Papua 220,000 ha (core) 880,000 ha (plasma) MUTING GROUP Merauke 290,000 ha BAKRIE, INDOFOOD, ASIANAGRO, SUMIASIH Sumatra, Jawa 600,000 kl/year PT. INDO BIOFUELS ENERGY Merak 160,000 kl/year LEMIGAS Jawa 3,000 ton/year INDOMAL Sula, Merauke 300,000 ha SINARMAS W. Kal, Merauke 440,000 ha 9 BADAN USAHA Merauke 340,000 ha APROBI GROUP Kalimantan 100,000 ha BP NTT, Papua, Kalimantan 100,000 ha SWEDEN BIOENERGY NTT 350,000 kl/year 100,000 ha GENTING GROUP Merauke 400,000 ha 1 2 1 2 2 2 2 2 3 3 4 4 5 5 6 6 7 7 8 8 8 9 9 10 10 10 10 11 11 12 12 12 12 13 13 14 14 15 15 16 16 17 17 17 18 18
  7. 7. Case Study : Jatropha based Biodiesel plant in Alas, Sumbawa <ul><li>Initiated in 2002 </li></ul><ul><li>Current Jatropha plantation 500 ha </li></ul><ul><li>Plan to expand extra 3,000 ha with community participation </li></ul><ul><li>Input - Jatropha seeds 6 ton/day </li></ul><ul><li>Current production 600 L/day, with production capacity 1,500 L/day </li></ul><ul><li>Target market of 2,000 fishermen & BTS </li></ul><ul><li>Invested US$ 28,000 </li></ul><ul><li>Plantation investment US$ 390,000 </li></ul>
  8. 8. Sumbawa Market Analysis <ul><li>Official petro-diesel retail price on location for industry Rp 8,000/L (US$ 0.9) and for transportation Rp 5,500/L (US$ 0.6) </li></ul><ul><li>Petro-diesel availability problem, uncertainty in supply </li></ul><ul><li>Due to remote location, real retail price could spike up to Rp 20,000/L (US$ 2.2) </li></ul>
  9. 9. Business model
  10. 10. Overall Product
  11. 11. Community Involvement <ul><li>Assumption : </li></ul><ul><li>5 ton seed/ha/year </li></ul><ul><li>Seed price US$ 0.0 9 /kg </li></ul><ul><li>CJO price US$ 0.4 /L </li></ul><ul><li>Kerosene price US$ 0.4 /liter </li></ul>Scheme B Scheme A 435 Annual revenue (USD) per ha Scheme B Scheme A Source Seed CJO Biogas - 435 476 285 - - Total 761
  12. 12. Plant Progress Plantation during rainy season Plantation during dry season Plant in University (ITB)-Bandung Biodiesel purifying in ITB
  13. 13. Plant Progress (Cont’d) Biodiesel finished product Jatropha cake for biogas prod. Jatropha biogas digester ver.1 Jatropha biogas digester ver.2
  14. 14. Indonesia Bandung Alas, Sumbawa
  15. 15. Bali, West Nusa Tenggara Alas, Sumbawa
  16. 16. Lombok Island Alas, Sumbawa
  17. 17. Plant location Fishermen island I Fishermen island II
  18. 18. Plant Location 10 hectare Jatropha plantation privately owned
  19. 19. Fishermen Islands
  20. 20. Potential plantation area 3,000 ha Existing Jatropha plants Local community Plant location
  21. 21. Current Captive Market BTS location Plant location
  22. 22. BTS location
  23. 23. BTS location
  24. 24. Feasibility of biodiesel plant <ul><li>Assumption </li></ul><ul><li>Current captive Market : Base Transceiver Station (BTS) </li></ul><ul><li>Jatropha seed : US$ 0.1 /kg </li></ul><ul><li>Input Jatropha : 6,000 kg/day </li></ul><ul><li>Sales of biodiesel : US$ 82/L </li></ul><ul><li>Total production cost </li></ul><ul><ul><li>Direct Material : US$ 327,310/year </li></ul></ul><ul><ul><li>Direct Labor : US$ 6,348/year </li></ul></ul><ul><ul><li>Factory overhead : US$ 31,660/year </li></ul></ul><ul><ul><li>Maintenance : US$ 2,174/year </li></ul></ul><ul><li>Discounted rate : 12% </li></ul><ul><li>Annual cost escalation rate : 10% </li></ul><ul><li>Total plant investment : US$ 55,000 </li></ul><ul><li>Payback period : 7 months </li></ul><ul><li>IRR 5 years : 153% </li></ul><ul><li>NPV 5 years : US$ 285,270 </li></ul>
  25. 25. IMPACT Environment Social Economic <ul><li>1,467 ton CO 2 -eq reduced annually (biodiesel) </li></ul><ul><li>Future revenue for plantation US$ 652,000/year </li></ul><ul><li>Future employment of 6,000 people (on farm & off farm) </li></ul><ul><li>Marginal land to be planted 3,000 ha </li></ul><ul><li>Establishment of SMEs in manufacturing </li></ul><ul><li>National subsidy reduced US$ 540,000/year </li></ul><ul><li>Fuel supply guarantee for 1,000 fishermen </li></ul><ul><li>Possible VER sales US$ 33,600/year </li></ul><ul><li>Plant revenue US$ 450,000/year </li></ul><ul><li>1,900 ton CO 2 -eq reduced annually (biogas) </li></ul><ul><li>766.5 ton organic fertilizer produced & used </li></ul>
  26. 26. Next Steps <ul><li>Market development (local market) </li></ul><ul><li>Financing production up scaling to 15,000 L/day </li></ul><ul><li>VER (Verified Emission Reduction) Sales </li></ul><ul><li>Financing to expand community based Jatropha plantation </li></ul>
  27. 27. <ul><li>Thank you </li></ul>Erlangga Rismantojo Depot Teknologi Khaula – Khaula Karya Jl. Kemang Utara A-3 [email_address] Phone +62-21-7182283 <ul><ul><li> DEPOT TEKNOLOGI KHAULA </li></ul></ul><ul><ul><li>“ Serving rural market for better productivity and livelihood” </li></ul></ul>

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