Green Prosperity: Potential Investment Partnership …kadin-indonesia.or.id/biogasindonesiaforum/8....
Transcript of Green Prosperity: Potential Investment Partnership …kadin-indonesia.or.id/biogasindonesiaforum/8....
Green Prosperity:
Potential Investment Partnership in
Power Generation from Palm Oil Mill
Effluent (POME)
Poppy Ismalina, Ph.D
Associate Director, Green Knowledge
“In Indonesia, Millennium Challenge Corporation
supports “Green Prosperity” program for 5 years, to support
low-carbon development program at local level”
President Obama
Climate Action Plan, Juni 2013
What is Green Prosperity? Development program to promote..
low carbon economic growth at district level
Thru assistance and ‘investment’ in:
Land use planning, low-emission development path
Sustainable agriculture & forestry
Renewable energy
Green knowledge
Reducing Poverty Through Low Carbon Economic Growth
Increased Household Income and Sustained Natural Capital
Reduce Reliance on Fossil Fuels
Promote Sustainable Landscape
Increase Productivity
Commercial Renewable Energy
Provision
Community Renewable Energy
Provision
Improved Natural Resource
Management
Improved Land-Use Practices
Agriculture Commodity
Intensification
Forest Products and Services Development
Spatial Certainty and Participatory Process for Sustainable Land-Use
Reduce poverty through low carbon economic growth:
provide renewable energy, maintain sustainable landscape and increase productivity
GP Logical Framework
GP model projects in 4 starter districts
GP is developing eight studies of projects based in real communities within the four “starter”Green Prosperity districts, and represent different combinations of renewable energy (RE) and natural resources management (NRM) projects. These studies are intended to provide examples: what kinds of projects does the GP program seek to fund, and what requirements must be met, while provide technical, economic, environmental and social impacts analysis.
1. Berbak National Park Integrated Natural Resource and Energy Management (Muaro Jambi)
2. Rantau Suli Integrated Micro-hydropower/Forestry/Agriculture (Merangin)
3. Grid-connected Electricity Generation from Methane Captured from Palm Oil Mill Wastes(Muaro Jambi)
4. Cacao Intensification (Mamuju)
5. Community Forestry in Bonehau Kalumpang(Mamuju)
6. Grid-connected Mini-hydropower in Mambi (kabupaten Mamasa, provinsi Sulawesi Barat)
7. Aggregated Micro-hydropower around Sumarorong (Mamasa)
8. Karampuang Island electrification (Mamuju)
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Proyek yang Memenuhi Syarat
• Pembangkit Tenaga Listrik dari Energi Terbarukan seperti a Hydro Power
Plant, Biomass Power Plant, PV & PV Hybrid Power Plant atau a
Methane Capture Power Plant dengan kapasitas KURANG DARI 10MW
jika offtaker adalah PLN dan telah disetujui untuk aplikasi pinjaman
komersial dan non komersial;
• Masing-masing proyek yang memenuhi syarat memiliki biaya total proyek
dalam nilai rupiah yang senilai dengan US$ 35 million (i.e. jumlah dari
seluruh Hard & Soft Costs termasuk IDC dan financing fees), kecuali ada
ketetapan lain dari MCA-I;
• Masing-masing proyek harus secara individual disetujui oleh Komite
Investasi;
• Ekuitas: 30%, Pinjaman 70%
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Keunggulan Skema
1. Suku bunga pasar dalam US dollar sebesar 3% – 4 % (suku bunga untuk kredit PRODUKSI dalam Rupiah sebesar 9% - 10%);
2. Tenor (jangka waktu) berdasarkan kesepakatan;
3. Collateral/Jaminan tidak berdasarkan Aset Tetap (Fixed Assets/Permanent Assets) tetapi berdasarkan arus kas yang dijamin oleh “power purchasing agreement dari Offtaker”;
4. Technical Assistance dari MCA-I dalam bentuk Pre-Feasibilty Study dan Feasibility Study untuk menyiapkan pemenuhan kriteria-kriteria investasi (investment criteria);
5. Fasilitasi pembentukan SPP dan pencarian Off-taker (itulah sebabnya multi-stakeholders forum dan investment forum diselenggarakan)
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RE projects
• Off-grid hydro [Rantau Suli- Merangin, Jambi]
• Biogas-POME [Muaro Jambi & Merangin, Jambi]
• On-grid hydro [Mamasa, West Sulawesi]
• Aggregate microhydro [SumarorongPana, West Sulawesi]
• Solar PV [Mamuju, West Sulawesi]
NRM projects
• Peatland and forest conservation [Berbak-Muaro Jambi, Jambi]
• Cacao intensification [West Sulawesi & South Sulawesi]
• Community forestry [Mamuju, West Sulawesi]
GP Project Models
Green Prosperity has $242million financing facility to support low emission projects
Rantau Suli, Merangin• Merangin is a remote area with a hilly
topography, 2 main rivers and 6 sub rivers. These characteristics make the district well suited for small hydro projects. A NGO stated that there were 43 hydro projects with a total capacity of 2.3 MW.
• The goal of this project is to improve economic conditions in the area surrounding Rantau Suli through a project that incorporates hydropower, agriculture, and forest protection under a mutually-reinforcing system of economic growth and environmental management-- the core principles of GP program.
• The team will consider potential economic uses of additional energy, such as for agricultural processing and small businesses, and also the electrification of village facilities such as the school, health clinic, and mosque.
• Opportunities to encourage and incentivize protection of the upper catchment area forestfor the hydropower project will be examined through appropriate productive land use along with institutions for protection such as community forestry licenses and village regulations (peraturan desa).
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Biomass Pome,Sengiti MuaroJambi
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BBIP Mill
• This study evaluates the production of electricity from palm oil mill wastewater.
• The mill will use electricity profits to pay a premium to oil palm smallholders.
• Local villages will receive grid electricity, cheaper than diesel generation currently used.
• Palm mills generally do not invest in electricity projects due to a lack of familiarity with energy and a focus on expanding their profits through expansion of oil palm plantations or palm oil production.
Cacao intensification• The goal is to improve the income of
Indonesia cacao farmers in Sulawesi. Cocoa is an important commodity of Indonesia, which is the third largest producer of cocoa beans in the word.
• The most significant reasons for the decline in production are aging trees and pest infestation.
• Indonesia implemented an export tax on cocoa beans in April 2010 which led to significant growth in grinding capacity over the past two years.
• Many associated companies including traders, processors, and manufacturers have invested in the livelihood of farmers to ensure a continuous supply of cocoa beans.
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Community forestry in Bonehau Kalumpang
• This study will evaluate a community forestry project in the villages of Keang and Lumika, focuses on crop shifting to timber cultivation on community forestry lands.
• This community-driven approach to forestry will ensure increased income for local people; equitable sharing of costs and profits between individuals, the community, and the project sponsor; and increase the sustainability/health of the village ecosystem.
• Four activities are central to the project’s success: Community engagement (Participatory Action Research); crop shifting from current cultivation to timber; establishment of an agreed upon payment structure; and ensuring sustainable land use through appropriate harvesting techniques.
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On-grid minihydro and cacao intensification inMambi, Bambang• The site for the hydro energy project is
located near the village of Bambang sub-district, near the city of Mambi, consists of rugged hilly terrain and has 6,569 acres of forest land; 75% is protected forest.
• This project site is very close to PLN distribution lines allow for easier interconnection. The estimated energy production is 4-5 MW will be to provide green power to PLN.
• Other potential projects include cacao intensification, and community forestry. Bambang is the number one producing district of cacao in Mamasa producing 33% of the 5,212 total tons, while a significant fraction of the total cacao produced in Indonesia comes from West Sulawesi, 11-18%.
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Aggregated microhydro,sustainable agriculture -Sumarorong Pana
• Aggregation of small micro-hydropower projects can result in a project of more attractive size with accompanying economies of scale.
• Establishment of a knowledge and training center that will provide operations and maintenance training for local system operators and will enhance the supply chain for local parts and service
• Development of catchment area protection programs in the local communities
• Community engagement programs focused on improved agricultural practices, sustainable land use, and increased utilization of the generated electricity for economic activities
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Karampuang islandelectrification• Several alternatives were evaluated for the
installation of photovoltaic (PV) energy systems. Communities on the island currently generate electricity using small diesel generators in each village, at a relatively high cost and environmental impact.
• The small generators are enough only to provide some lighting, cell phone charging, food processing, and entertainment for each home. Due to the high cost of fuel, the generators are run only for about 4 hours in the early evening.
• The power output and run-time of the generators are not sufficient to support productive uses. Fuel handling introduces a toxic hazard into each community through spills and used-containers, and the atmospheric emissions from the generators have a local health impact on the villagers (as does generator noise) and include greenhouse gases.
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Green Prosperity:
Power Generation from Palm Oil Mill Effluent (POME)
Opportunities for Palm Oil Mill
Sustainable Production
Palm Oil Mill
Fresh Fruit Bunch
Water
Heat
Palm Kernel Oil
Oil Cake(“Bungkil”)
SALE
Crude Palm Oil Palm Kernel
Plantation
Palm OilMill Effluent
Empty Fruit Bunch
Fiber
Electricity
Shell Sludge Oil
Compost Plant
Palm Kernel
Mill
GREEN PRODUCTS
[MARIS 2012]
POME Characteristics
[Tetratech 2013]
1 kWh = 3.6 MJ
Caloric value biogas:15-35 MJ/m3
Yield biogas:0.30-0.45 m3/kg COD degradable
1 m3 POME produces:24-28 m3 of biogas
450 m3/day:
Electricity :± 3 MWe (eff. >40%)
Potential Electricity Generation
PARAMETER 30 ton/hr 45 ton/hr 60 ton/hr
Design POME flow 15 m3/hr 23 m3/hr 30 m3/hr
COD removal efficiency 90% 90% 90%
Produced biogas 380-450 m3/hr 565-670 m3/hr 755-895 m3/hr
Captured methane 55-65% 55-65% 55-65%
Produced energy7,400-8,750
MJ/hr
11,110-13,130
MJ/hr
14,810-17,510
MJ/hr
Potential capacity ±1.3 MWe
(750 kWe)
± 2.0 MWe
(1 MWe)
± 2.7 MWe
(2 MWe)
Biogas-POME FormationH
OU
RS
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AY
SM
INU
TES
-D
AY
S
MIN
UTE
S -
HO
UR
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SEC
ON
DS
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INU
TES
[KME 2011]
Technology 1: Cover Lagoon System
LINING SYSTEM
COVER SYSTEM
FLARE SYSTEM
SCRUBBING SYSTEM
GAS ENGINE
Disclaimer
All figures, numbers and dates stated in our presentation are tentative, subject to change,
based on our best efforts and subject to the timely action by the pertinent local government.
Any requirement stated in our presentation may change from time to time as determined by MCA-Indonesia
and/or MCC and is subject to the applicable laws and regulations of the Republic of Indonesia.
THANK YOU!