Bibit Foundation-Phil Rickard
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Transcript of Bibit Foundation-Phil Rickard
Poverty Alleviation through Green Energy Solutions
Combined Group • Over 300 MW of projects.
• Indonesia Focus.
• Diversified Proven Team of professionals.
• Local and Central Government support at the highest
levels.
• On track to become Indonesia’s largest and most
successful renewable energy group. • 8 companies and subsidiaries.
“To provide farmers in developing countries with
sustainable income through production of green,
renewable biofuel from agricultural byproducts.”
| Bibit Foundation 3
WE SEED THE MARKET
| Bibit Foundation 4
Population
Commitment
Over 15% (= 39.33 million) of Indonesia’s 259 million people are
farmers
Most of Indonesia’s farmers grow rice
The income of average Indonesian farmers is less than $3/day;
while 48% of them live in poverty on less than $1.25/day
Farmer’s
Income
Source: BPS Indonesia (2012)
The Base of the Pyramid
| Bibit Foundation 5
Rice Production
| Bibit Foundation 6
| Bibit Foundation 7
| Bibit Foundation 8
There is a Dark Side to the Charm
| Bibit Foundation 9
| Bibit Foundation 10
Indonesia produced approximately
65.39 million tons of rice in 2011
Following bi-annual harvest, the
husk and stalk remain; Indonesian
rice cultivation produces over 100m
tons of this byproduct
Though in some areas, some stalk is
fed to animals, the majority of stalk
is burned
Farmers burn rice stalk to clear
paddy; this represents a health
hazard to individuals in the area
and a waste of potential energy
| Bibit Foundation
Production
11
Current
Disposal
The Bibit press enables point-of-harvest processing of rice byproduct into high-
density pellets that enable efficient, low-cost transportation to the digester site
The Bibit press was designed with the following objectives:
1. Simplicity: easy to use by anyone in the family with minimal training, does not require fuel or electricity
2. Durability: long-lasting, can be left outdoors without issue
3. Affordability: existing units built for less than $50. Can be manufactured in China for ~$25
| Bibit Foundation | Initial Presentation | April 2012 12
| Bibit Foundation | Initial Presentation | April 2012
Transportation
Consistent supply of rice biofuel is essential for successful power generation; there
are two challenges to successfully building this supply chain
Fermentation and energy
production may occur some
distance from rice farming
Transporting unprocessed rice stalk is
logistically unfeasible because of
volume
Farmer Participation in Supply Chain
As rice production in Indonesia is
done by small-holders, thousands of
family farmers will be integral
members of the supply chain
Bibit Foundation has found solutions to
both of these issues
13
| Bibit Foundation
RICE STRAW
Density: 70kg/m3loose,100kg/m3bailed
Energy Density: 1.4GJ/m3
1 hour operation of 1MW engine:
BIBIT BIO-PELLETS
Density: >500kg/m3
Energy Density: 7.7GJ/m3
1 hour operation of 1MW engine:
14
26 m3
5 m3
Profit from sale of fuel pellets made with the Bibit Foundation press can
increase family income by 36%
increase in household income for
many farmers
The average farmer with .4ha paddy can produce 2.8 tonnes stalk from each harvest
This stalk can be processed into 5 cubic meters of biopellets for each harvest, or 13 cubic meters yearly
If Bibit Foundation purchases biopellets from farmers at 200,000 IDR/t, the
average farmer can yield an additional 1.4M IDR per year
An
nu
al In
co
me
(ID
R 1
,000)
| Bibit Foundation | Initial Presentation | April 2012 15
-
1.000
2.000
3.000
4.000
5.000
6.000
Avg Farmer Farmer with SAWA
Pellet Income Farming Income
Bibit Foundation Impact on Farmer Income
| Bibit Foundation
Association/
Cooperative Rice Mill / Rice Processing Complex
16
Farmer
Farmer
Farmer
200 – 300 farmers
Association/
Cooperative
Farmer
Farmer
Farmer
200 – 300 farmers
Option 1: Engage Association or Cooperative
Work with Association or Cooperative leadership to
implement pelletization program – training,
encourage processing, and aggregate pellets
+ Training
+ Potential for many families to share a press
Option 2: Engage Rice Mills or RPC
Contract Rice Mill or RPC to collect pellets
+ Use previously established supply chain
- Will still need Association or Cooperative to ensure
pellet production and help with training
Bibit Foundation is currently
building relationships with both of these points in the supply chain
| Bibit Foundation
Association/Cooperative
17
• MUK collects 20-30 farmers and get
together into a KelompokPetani
• Provides loan (e.g. 2 jt) to each
member of the group at the
beginning of the planting season
• Farmer uses loan to rent paddy, buy
fertilizer, etc
• MUK provides 3-4 trainings to each
group at the beginning of the
planting season
• MUK’s mission is to help increase
farmer livelihoods through extension
of microloans and other non-
financial programming
Kelompok Petani (30 farmers)
Kelompok Petani (30 farmers)
Microfinance
Organization
e.g. Koperasi Mitra
Usaha Kecil
BIBIT
FOUNDATION
• Bibit Foundation could partner with MUK to distribute
presses to each of the groups (could be shared by a
few families)
• MUK would then include training on how to process
pellets in already scheduled group training
• MUK has ongoing relationships with these farmers and
could be a good resource to gain acceptance of the
program by farmers
| Bibit Foundation 18
Meet Pak Ngatijan (50), an
Indonesian farmer
Currently supports his family on
less than US $100 per month
Has created and sold his first
2m3 of Bibit bio-pellets
Sale of Bibit bio-pellets
enabled him to double his
family’s income for August
2012
Health: burning rice stalk produces large amounts of smoke, that can be harmful to the respiratory health of farmers and their families
By providing farmers with a profitable alternative to burning rice byproduct,
famers and their families can reduce risk of respiratory ailments
Ecology: farmers’ local environments benefit from recycling rather than burning rice byproduct
The Bibit press has been field tested by several farmers in Indonesia
| Bibit Foundation 19
| Bibit | In 20
Biomass Power Producers
Eco-friendly Pulp Mills
Horticultural-based company (soil aeration)
Healthy animal bedding manufacturers
Panel Board Manufactureres
Composites industry (WPC decking, materials and furniture)
Potential Sales Outlets
| Bibit Foundation 21
Harvest
Market
$ Seeds
Rice
| Bibit Foundation 22
Harvest
Market
$ Seeds
Rice
Stalk
Burn
Changing a 3,000 year old supply chain
| Bibit Foundation 23
Harvest
Market
$ Seeds
Rice
Stalk
Pellets
$ Seeds
Rice
One of the reasons why the farmers burn the rice husks and stalks is
because they believe that this will fertilize the land
24
Bibit Foundation will help farmers with the fertilizer
issue
| Bibit Foundation
HOW TO DEAL WITH THIS?
STEP 1: Make the farmers understand
that, scientifically, partial or incomplete burning of the rice husk will cause air pollution (smoggy air)
STEP 3: Give the farmers some choices
and offer to provide the necessary and supplementary fertilizer
STEP 2: Educate the farmers on how rice husk is not as effective as manure when
it comes to fertilizing the soil
| Bibit Foundation 25
| Bibit Foundation 26