EEP Indonesia

Energy and Environment Partnership with Indonesia

Bulletin

DEVELOPING THE USE OF BIOENERGY

Indonesia is one of the biggest greenhouse gas (GHG) emitters in the world. 95 % of the energy used in the country derives from fossil fuels and the total energy consumption is growing more that 6 % per year. Additionally a large proportion of fossil fuels are imported to Indonesia and this weakens the economic development of our country. However, Indonesia has a huge potential of renewable energy sources, such as biomass (biofuels), hydro, wind, solar and geothermal. This potential, which to a very large extent has not been utilized yet, could be used to replace fossils and thus contribute both to the economic development of our country and reduction of GHG emissions. The Government of Indonesia has paid attention to this. Presidential Regulation 5/2006 sets out a target share of 17 % of the total energy consumption for new and renewable energy to be reached by the year 2025. We have been very pleased to see that the international society is willing to support us to respond to this challenge. The Government of Finland has financed an important programme called Energy and Environment Partnership with Indonesia (EEP Indonesia). This programme contributes to renewable energy, especially bioenergy, related capacity building and policy development at central level in our country and in the provinces of Riau and Central Kalimantan and it provides funding for bioenergy projects. Currently twenty (20) projects are ongoing in the target provinces under the EEP finance. Moreover EEP Indonesia facilitates development of Integrated Regional Energy Master Plans (RUED) both in Riau and Central Kalimantan. We consider these efforts by the EEP Indonesia programme very useful in helping us to reach our targets. Finally, we would like to take this opportunity to thank the Government of Finland for the support and we hope we can continue this very important renewable energy sector co-operation in the future. Rida Mulyana Director General of New, Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources, Republic of Indonesia

EEP Indonesia is a joint collaboration between the Government of Indonesia and the Government of Finland to promote renewable energy, energy efficiency and investment in clean energy technology in Indonesia. The programme commenced in April 2011 and it is works at central level in Jakarta and in two defined target provinces, namely Central Kalimantan and Riau. EEP Indonesia aims at supporting wider provision and use of renewable energy, with a focus on bioenergy, and combating climate change.

EEP nance
The total budget for the EEP Indonesia programme until 2014 is EUR 4 million. Joint initiatives, for instance public-private partnerships and projects implemented in cooperation with local communities and, to enhance technology transfer, collaboration with Finnish organizations are encouraged. Both Indonesian and international NGOs, companies, public and private initiatives, research institutes and consulting companies have been eligible to apply for EEP project financing. The financed initiatives cover following types of activities: Pilot and demonstration projects on bioenergy, also including waste-to-energy applications Pre-feasibility and feasibility studies, CDM preparation, environmental impact assessments (EIA) Strategic studies for renewable energy development Capacity building/training programs Some of the supported projects aim at commercial/ industrial bioenergy solutions whereas some others are more community based and implemented at village level in the target provinces. The EEP finance is used to cover following types of expenses: Technical services and consultancies Equipment and materials for the project Project promotion and dissemination Meetings and seminars/workshops Training Travel expenses So far the maximum EEP finance for a project has been EUR 200,000.

The Ministry for Foreign Affairs of Finland is implementing five Energy and Environment Partnership (EEP) programs worldwide. The EEP programs, operational in Central America, the Andean region, Southern and Eastern Africa, the Mekong region countries and Indonesia, support wider access to modern energy services and promote renewable energy and energy efficiency in the selected target countries. The joint declaration on climate change was signed between the Government of Finland and the Government of Indonesia in Jakarta on 18 February 2008. The Energy and Environment Partnership with Indonesia (EEP Indonesia) programme, implemented in close cooperation with the Directorate General of New, Renewable Energy and Energy Conservation of the Ministry of Energy and Mineral Resources of Indonesia, is based on this declaration aiming at development of the use of renewable energy and combating climate change in Indonesia in general and in the two programme target provinces, Central Kalimantan and Riau, in particular. Since 2011 EEP Indonesia has organized two calls for proposals and the EEP finance has been distributed to twenty (20) bioenergy related projects implemented in the target provinces. In addition a set of strategic studies, stakeholder seminars, investor forums, study tours and other actions for necessary capacity building have been conducted. Recently the Government of Indonesia has set ambitious targets to increase the use of renewable energy and in parallel with it reduce GHG emissions. On behalf of the Government of Finland we wish great success for Indonesia in its important efforts to develop the use of renewable energy and combating climate change. Kai Sauer Ambassador of Finland Jakarta, Indonesia

Objectives of EEP Indonesia

Energy and Environment Partnership with Indonesia (EEP Indonesia) programme, financed by the Ministry for Foreign Affairs of Finland (MFA) and implemented in cooperation with the Directorate General of New, Renewable Energy and Energy Conservation of the Ministry of Energy and Mineral Resources of Indonesia (Directorate of Bioenergy), provides funding for renewable energy, especially bioenergy related projects, studies, capacity development and information sharing in the provinces of Central Kalimantan and Riau. In addition EEP Indonesia contributes to the development of renewable energy friendly policies both in the programme target provinces and at the central level in Indonesia. EEP Indonesia collaborates with other renewable energy related programs operational in the country and elsewhere in Southeast Asia, especially with the Energy and Environment Partnership with the Mekong Region Countries. This programme, called as EEP Mekong, is also funded by the Ministry for Foreign Affairs of Finland.

Implemented projects
Since 2011 EEP Indonesia has facilitated two calls for proposals and the EEP finance has been distributed to the following twenty (20) projects implemented in the target provinces:

10. Dual Chamber Gasifier for Gas Fuel Production from Biomass. Lead Partner: PT Dyna Energy. 11. Sanitary Landfill Gas for Riau Rural Electricity. Lead Partner: Universitas Indonesia. 12. Biomass Stoves for the Indigenous Community of Indragiri Hilir. Lead Partner: Mangrove Indragiri.

Capacity building and strategic studies

In addition to the finance for renewable energy projects EEP Indonesia organizes related capacity building and strategic studies and contributes to the development of renewable energy friendly policies in the programme target provinces and at the central level in Indonesia. Among other things training on formulation of proposals for renewable energy projects, mainstreaming gender energy issues and RE business forums have been facilitated. To promote information sharing and transfer of know-how and technologies Indonesian delegations, consisting of representatives from the key stakeholder institutes of the programme, have participated in renewable energy conferences in country and in SE Asia and the donor country in Finland. The following studies have been conducted by 2013: Review of legislative, regulatory, institutional and financial barriers to renewable energy, training needs assessment (2011 2012) Assessment of opportunities/potential for renewable energy production and utilization in the provinces of Central Kalimantan and Riau (2011 2012) Integration of carbon market benefits with RE projects and definition of a methodology to assess the baseline and impact of the EEP financed projects on the carbon balance (2012) Reports of these studies are available on the EEP Indonesia website (www.eepindonesia.org). Moreover, in 2013 EEP Indonesia supports development of Integrated Regional Energy Master Plans in the both programme target provinces, Central Kalimantan and Riau. Samples of the projects implemented under the EEP Indonesia finance are given in the following pages.

Riau Province
1. Feasibility Study: Creating Biogas from Sago Starch Industrys Waste Water and Biomass. Lead Partner: Sararasa Biomass Pte. Ltd. 2. Comprehensive Commercial Bioenergy Solutions from Palm Oil Waste Streams at Small and Large-Scale Processing Facilities in Riau Province, Indonesia. Lead Partner: PT STC Indonesia. 3. Cow Manure: Sustainable and Green Energy Development to Support Economy and Community Welfare in Suka Maju Womens Group in Teluk Meranti, Riau. Lead Partner: Institute Social and Economic Change (ISEC). 4. Cow Manure Conversion into Biogas for Energy in Riau. Lead Partner: Yayasan Bina Usaha Lingkungan (YBUL). 5. Swastisiddhi Amagra POME to the Electricity Project CDM preparation. Lead Partner: South Pole Carbon Asset Management Ltd. 6. Setting up a Renewable Energy Clearing House in Riau Province. Lead Partner: Energy Research Center (EnReach). 7. Support for the Integrated Regional Energy Planning Process of Riau Province. Lead Partner: Yayasan Spektrum Pelangi Indonesia. 8. Strategic Study - Redeemable biomass electricity credits (RBEC). Lead Partner: Sinclair Knight Merz Ltd (SKM). 9. Integrated Biogas Production from Human Manure and Domestic Waste in Dar El Hikmah Boarding School Pekanbaru, Riau. Lead Partner: LKM Harapan Madani.

Central Kalimantan Province

13. Reducing Deforestation and GHG Emission with Biomass Stove and Fuel as Alternative Energy for a Community. Lead Partner: Yayasan Inovasi Teknologi Indonesia (INOTEK). 14. Market Introduction of Medium Scale Biogas Digester. Lead Partner: SNV Netherlands Development Organisation. 15. Integrated Commercial Biomass Energy and Electrical Power Production from Coconut, Wood Processing and Palm Oil Biomass Waste Streams in Central Kalimantan, Indonesia. Lead Partner: PT STC Indonesia. 16. Developing and Piloting a Platform and Database for the Biomass and Bioenergy Resource Assessment. Lead Partner: Wiltrain Consulting Oy. 17. Development of an Integrated Biogas Energy Demonstration in Pangkalan Bun, Central Kalimantan. Lead Partner: YAPEKA. 18. Production of Biogas from Farming Wastes. Lead Partner: Yayasan Eka Mandiri.

Operational in the both provinces, Riau and Central Kalimantan

19. Teaching Biomass Technologies at Technical Schools. Lead Partner: ETC Foundation. 20. Capacity Building and Investment Facilitation for Renewable Energy Project Developers, Palm Oil Plantations and Financiers. Lead Partner: Apex Consulting Group New Ventures Indonesia.

EEP Indonesia

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Support for the Regional Energy Planning Process in Riau Province

Objectives
The objectives of the project Support for the Regional Energy Planning Process in Riau Province are to enhance capacities of provincial and district (kabupaten) level policy makers and government institutions of integrated energy planning and to increase stakeholder awareness of potential for renewable energy production in general, and in relation to bioenergy in particular, in the Province of Riau. The project develops a proposal for the Integrated Energy Master Plan for each district of Riau and based on these district plans a proposal for the Energy Master Plan for the entire Province of Riau. Eventually these plans are to be nalized and legalized by local authorities in 2014.

Relevance to Indonesian Energy and Environment Policy

> Beneciaries
Regional Development Planning Agencies and Ofces of Mines and Energy both at provincial and district levels constitute the major target institutions of the project. Cooperation with local universities also plays an important role within the implementation of the project. The Provincial Energy Master Plan is developed for Riau and specic kabupaten (district) level master plans for twelve (12) districts of the province. Seventy-two (72) energy planning experts, covering these districts and the provincial government, are trained in connection with the project.

RUED meeting with district authorities. (Source: Pelangi)

Presentation of the energy database collected for the LEAP at the regional energy planning workshop in Dumai, Riau. (Source: EEP Indonesia)

Description
Spektrum Pelangi Indonesia Foundation, in partnership with the Faculty of Science and Technology of the State Islamic University Sultan Syarif Kasim Riau, has initiated the Regional Energy Master Plan process in Riau process. Through the project supported by the Energy and Environment Partnership with Indonesia (EEP Indonesia) programme local (provincial and district level) governments capacities for development of favorable policies and practices and supportive services for integrated energy planning are assessed and further improved through training on Long Range Energy Alternatives Planning System (LEAP program). Eventually Integrated Energy Master Plans are produced both for the districts and the entire Province of Riau. Special attention is paid to the inclusion of renewable energy, especially bioenergy, in the provincial energy mix in connection with the planning process.

Project Prole
Project title: Location: Lead Partner: Partners: Total budget: Technical focus: Implementation period: Website: Email: Support for the Regional Energy Planning Process of Riau Province Riau Yayasan Spektrum Pelangi Indonesia Faculty of Science and Technology of the State Islamic University Sultan Syarif Kasim, Riau 212,010 Regional Energy Planning February, 2013 - January, 2014 www.pelangi.or.id pelangi@pelangi.or.id

> Contribution to the energy and environment policies of the Province of Riau and Indonesia
A process to develop the National Energy Master Plan is currently ongoing based on the Law of the Republic of Indonesia Number 30/2007 (http://prokum.esdm.go.id/uu/2007/uu-30-2007-en.pdf, http://prokum.esdm.go.id/uu/2007/uu-30-2007.pdf). This law also mandates local governments to formulate Master Plans on Regional Energy (MPRE), often referred to as the Regional Energy Master Plan (RUED, Rencana Umun Energi Daerah), to guide the development of a sustainable, affordable and reliable supply of energy in the regions. The project implemented by the Spektrum Pelangi Indonesia Foundation assists the Province of Riau to achieve this target. The Energy Master Plan process in Riau also facilitates interaction between the national and regional energy planning. Moreover, the process facilitated in Riau can be used as a model for other provinces and districts for developing required Energy Master Plans (a largely similar planning process is already ongoing in the Province of Central Kalimantan).

Innovation and Knowledge Transfer

The Riau Energy Master Plan process is conducted in close cooperation with relevant government institutions, Spektrum Pelangi Indonesia Foundation with its partner mostly working in the roles of a facilitator and a trainer. This guarantees the local ownership of the process and its results. Knowhow of the planning process is transferred through a comprehensive training program and learning by doing, also covering the planning software (LEAP). Finally proposals for the district and provincial level Energy Master Plans are presented in the workshops, published and distributed to key stakeholders at district, provincial and national levels.

EEP Indonesia

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Setting Up a Renewable Energy Clearing House in Riau Province

Objectives
The overall objective of the project is an increased portion of bioenergy within the future energy supply and reduction of greenhouse gas emissions in Riau Province. The project establishes a Bioenergy Clearing House that will operate as a one-stop-shop providing easy-to-use information, advice and guidance on renewable energies, especially biomass based energy sources, conversion technologies and bioenergy project implementation for individuals, local authorities, universities, research institutions, companies and other interested organizations.

Launching the Renewable Energy Clearing House and establishment of the Riau Renewable Energy Center. (Source: EnReach)

Relevance to Indonesian Energy and Environment Policy

> Beneciaries
The clearinghouse is an important source of biomass and bioenergy related information for policy developers, researchers and companies, and a learning laboratory for school and university students. It also works as a forum for the private sector to commercialize energy studies into economically viable businesses.

Innovation and Knowledge Transfer

A close partnership between relevant government agencies, local universities and NGOs is developed to establish the RiREC and the Clearing House and to manage its operation. Moreover, renewable energy related information is stored and presented in the Clearing House applying modern information technologies to facilitate an easy access to the information. The contents are complemented through a traditional library.

Description
The province of Riau is recognized to have a large potential for bioenergy. However, accurate, up-todate and easily accessible information is needed for developing utilization of these energy sources. Through the project a Renewable Energy Clearing House is set-up to provide this information and necessary advice and consultancy services for project and policy developers. The project is led by the Energy Research Centre (EnReach) of the Faculty of Science and Technology of UIN Suska Riau University, and implemented in collaboration with the Plantation Ofce (Dinas Perkebunan) of Riau province and VTT Technical Research Centre of Finland, a globally networked multitechnological research organization. Its major outputs are as follows: Establishment of the Riau Renewable Energy Centre (RiREC) and the Bioenergy Clearing House, also including the physical set-up of the RiREC and Clearing House building, the library and the IT system, Standard Operating Procedure (SOP) for the Renewable Energy Center and the Clearing House, Capacity building for the RiREC and local government staff, and Collection of the renewable energy, especially bioenergy related data and dissemination of this information.

Coconut shells available for feedstock for rural electricity generation in Riau. (Source: EEP Indonesia)

Project Prole
Project title: Location: Lead Partner: Setting Up A Renewable Energy Clearing House In Riau Province Riau The Energy Research Centre (EnReach) of the Faculty of Science and Technology, UIN Suska Riau University 1. Riau Plantation Office (Dinas Perkebunan Provinsi Riau), 2. VTT Technical Research Centre of Finland. 131,125.42 Renewable energy February, 2013 - January, 2014 www.enreach.or.id info@enreach.or.id

> Contribution to the energy and environment policies of the Province of Riau and Indonesia
The establishment of the Renewable Energy Centre and the Bioenergy Clearing House supports policy makers in Riau province, also at district level, in formulating future energy policies in which bioenergy sector will be given a signicant role. In the long term a successful implementation of the project will contribute to an increased electrication rate in Riau Province with a cleaner energy production, and assist Indonesian Government to meet its GHG emission reduction targets.

Partners:

Preparatory workshop for the Renewable Energy Clearing House. (Source: EnReach)

Total budget: Technical focus: Implementation period: Website: Email:

EEP Indonesia

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Feasibility Study: Creating Biogas from Sago Starch Industrys Waste Water and Biomass
Socialization of biogas production from liquid waste of sago starch factory in the district of Meranti Islands. (Source: SaraRasa)

Objectives
The overall objective of this project is the reduction of green house gas emissions and environmental burden derived from sago starch processing in Selat Panjang community in the District (Kabupaten) of Kepulauan Meranti in Riau province. The project purpose is the replacement of electricity generated from diesel oil with electricity generated through biogas in an industrial process. This will be achieved by utilizing wastewater and biomass from sago starch factories for biogas production.

Relevance to Indonesian Energy and Environment Policy

> Beneciaries
The participating sago starch mill, the local community and the sago starch industry in Riau province are the major beneciaries of SaraRasas project.

Innovation and Knowledge Transfer

Through SaraRasas project, biogas production from wastewater and biomass residues of a starch mill is first time applied as an energy source to the sago industry in the Province of Riau. Practical experience in installation of a biogas reactor will also be beneficial to other biomass utilizing sectors of industry in rural areas of Riau and elsewhere in Indonesia. By involving the local government and university, the environmental thinking and sustainability values are transferred to the partners. In addition, results of this feasibility study and pilot is presented to the local sago community, local authorities and Riau Sago Starch Association. As a conclusion, a workshop, targeted at representatives of the kabupaten (district), the private sector and other stakeholders, will be organized.

> Contribution to the energy and environment policies of the Province of Riau and Indonesia
The Government of Indonesia has set out a target to produce 25 % of the energy mix from renewable sources by the year 2025. SaraRasas project responds to this target by contributing to the replacement of fossil fuels with bioenergy, thus also reducing green house gas emissions. Moreover, biogas production from sago starch mills wastewater contributes to the economic viability of the starch industry in Riau province and reduces environmental burden caused by untreated wastewaters of the sago starch factories.
Sago stems as raw material for sago starch industry in the district of Meranti in Riau. (Source: EEP Indonesia)

Description
Indonesia remains one of the worlds biggest greenhouse gas (GHG) emitters with pollution mainly coming from deforestation, land degradation and utilization of fossil fuels. Poor infrastructure and lack of transmission lines often does not enable easy and affordable access to the energy source, especially in the remote areas like the project site Selat Panjang. Nevertheless, Indonesian environmental diversity offers extensive possibilities for utilization of bioenergy, especially biogas for energy production. Biogas production has a great advantage: energy can be produced virtually anywhere (locally) due to a very simple, inexpensive process, which uses natural waste as the primary source for energy generation. Sago starch processing is a widely spread and very traditional branch of industry in Riau region. SaraRasas project looks into feasibility of replacing the electricity source at the sago starch mill site with biogas. The electricity is produced utilizing wastewater and biomass from the starch factory. If seen feasible, numerous sago starch mills can apply the same process replacing utilization of fossil fuels with renewable energy and at the same time reducing environmental burden caused by untreated wastewaters of the sago starch factories.

Project Prole
Project title: Location: Lead Partner: Partners: Total budget: Technical focus: Implementation period: Website: Email: Feasibility Study: Creating Biogas from Sago Starch Industrys Waste Water and Biomass Riau SaraRasa Biomass Pte. Ltd. Local starch mill, Kilang Sagu Maju Jaya Hery 131,909 Small-scale biogas production (waste to energy) May, 2012 - September, 2013 www.sararasa.com info@sararasa.com

Pilot biogas reactor at SaraRasas project site. (Left). Light generated through a biogas reactor. (Source: SaraRasa)

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Dual Chamber Gasier for Gas Fuel Production from Biomass

Objectives
To implement a dual chamber biomass gasication system in the Village of Kampung Dalam in Siak District in Riau to generate cleaner gas fuel that can be used in diesel generator as substitute for fossil fuel.

Relevance to Indonesian Energy and Environment Policy

> Beneciaries
Electricity provider
Fuel gas burning to check for gas quality. (Source: PT Dyna Energy)

Description
Biomass is the main important fuel source after fossil fuel, it is available in plentiful and can be generated. There are many types of biomass fuel such as wood fuel, palm oil waste, rice husks, coconut wastes, or grass. Biomass can be converted via complete combustion to generate heat or partial combustion to generate gas fuel or the so called gasication. Biomass power generation system is quite common and can be found all over the world. The conventional combustion system usually used wood as fuel. For biomass residu, such as empty fruit bunch found in agricultural industry, direct combustion is difcult to carry out due to its high alkali content which can create ash agglomeration during combustion process. The best way to benet from the lignocellulosic material is by using gasication process to decompose the biomass rst and then generate synthesis gas (or also called syngas for short) which can be used as gaseous fuel.

The disadvantage of gasication process is the formation of tar as side product, although tar can be eliminated by complete burning. A circulating uidized system with two separate chambers can be used for this purpose. In this project, a so-called dual chamber gasication process is used which enables the burning of tar within the process cycle. The synthetic gas is then cooled and cleaned so that the gas efuent should comply to the safe operations of diesel engines, that is tar content below 100 mg/ m3, maximum ash 50 mg/m3, neness of dust is less that 10 m and gas temperature is below 40 oC. The syngas can be used in diesel engines to replace up to 70 % of diesel fuel and the savings can be used to return the investment cost. The equipment can be easily constructed and maintained, in 100 1000 kW modules. So it can be easily replicated according to the demand.

The beneciaries of this project are diesel genset operators who provide electricity to village people to reduce about 50% of its cost, that is from Rp 2,800 - 3,000/kWh down to just Rp 1,500/kWh.

> Contribution to the energy and environment policies of the Province of Riau and Indonesia
This project will be using biomass waste or organic waste from the agricultural industries and plantations found in Siak region in Riau Province. The project will also help introduce technology advancement in energy sector by increasing the role of biomass as renewable energy sources. This is also in line with the governments goal to reduce carbon emission by 2020 and help reduce government subsidy on fossil fuel.
Dual chamber gasication test plant. (Source: PT Dyna Energy)

Project Prole
Project title: Location: Lead Partner: Partners: Total budget: Technical focus: Implementation period: Website: Email: Dual Chamber Gasifier for Gas Fuel Production from Biomass Riau PT Dyna Energy Badan Permusyawaratan Desa Kampung Lubuk Dalam Siak District, Riau Province 288,518 Biomass waste gasification February, 2013 - February, 2014

Innovation and Knowledge Transfer

The innovative part of the technology is the preparation of tar free gas fuel from biomass gasication process. By exposing this technology to the people, it is expected that people will have more understanding in new ideas or innovations. Since local people get involved during the initial planning and design stage, it is expected that these people will form a partnership and are capable to duplicate and disseminate the technology.

Fuel gas analysis (Source: PT Dyna Energy)

haifa.wahyu@gmail.com

Fuel gas burning of gasication. (Source: PT Dyna Energy)

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Business Development for Integrated Biomass Power Production in Central Kalimantan

Biocharcoal produced from coconut shells. (Source: Yayasan Dian Tama)

Objectives
The overall objective of the project is to meet regional energy needs and to support rural livelihoods. The consortium, led by PT. STC Indonesia, will develop a Low Emissions Development Strategy (LEDS) based on the utilization of agricultural waste for energy production from the oil palm and coconut sectors. Biomass that is sourced locally and sustainably reduces dependence on fossils fuels while also adding value to waste products. These benets provide additional income generating opportunities for rural communities without increased environmental impact.

Relevance to Indonesian Energy and Environment Policy

> Beneciaries
Based on the implementation strategy, there are two groups of direct beneciaries within the project cycle. Firstly, two local eld staff and one eld coordinator will receive training on GIS data collection, transmission, and analysis. Secondly, during the eld surveys, coconut farmers and local entrepreneurs interested in learning how to produce biocharcoal from coconut shells will be identied. They will then receive training through a series of workshops within the region; the target is to access thirty participants. By the end of the project cycle, the goal is to operationalize the supply chains for the POKS and the coconut biocharcoal, which will lead to new employment opportunities and income generation. Once the facility is fully operational, which will require an estimated 50,000 tonnes of biomass, the target is to create at least 100 new rural employment opportunities.

Innovation and Knowledge Transfer

This project makes creative use of available waste feedstocks so the nal output is devised from the ground up. The use of GIS technology to develop an operational area and feedstock management system, which is communicated through Google Earth, makes for an interactive system that can be shared with local users and governments. Local communities become the feedstock suppliers and the direct beneciaries through direct knowledge transfer on how to produce biocharcoal from coconut shells. A small but important paradigm shift is essential as producers cease to view waste as a cost, but value it as a source of income. Finally, as the goal of the project is to create a model that is replicable, scalable, and fundable by commercial investors, the nancial plans will become benchmarks for the incipient industry in the region.

Description
By using technologies proven in other Southeast Asian countries, the project seeks to create breakthrough business solutions in the eld of agricultural wasteto-energy conversion. The project is located in Kotawaringan Timur, which is one of the largest coconut and oil palm producing regions in Central Kalimantan. The project will establish an integrated approach to use oil palm (e.g., Palm Oil Kernel Shells - POKS) and coconut (e.g., husks, shells) residual biomass for energy production. The STC Consortium maintains a commercial approach towards reducing greenhouse gas emissions; the project seeks to create a widely replicable and scalable model. The project will commence with a ground survey of smallholder producers to establish the base level of waste biomass in the region and to gather relevant GIS information. Based on supply chain analysis of the biomass ows, the project will then devise an appropriate engineering design and nancial model for the facility. Ultimately, the goal is to secure the necessary nancial and legal support for a facility that produces 5MW of renewable energy offsetting 25,000 tonnes of CO2.
Bioenergy source from palm trees replanting. (Source: STC)

Project Prole
Project title: Location: Lead Partner: Partners: Business Development for Integrated Biomass Power Production in Central Kalimantan Central Kalimantan PT. STC Indonesia 1. PT. Forest Carbon 2. Maris Projects, BV 3. PT. Dian Niaga Jakarta 4. Yayasan Dian Tama 135,622.29 Bioenergy from Coconut/ Oil Palm Waste Streams December, 2012 - January, 2014 www.sustainabletrade andconsulting.com thomas.fricke@stcresources.com

> Contribution to the energy and environment policies of the Province of Central Kalimantan and Indonesia
The opportunity for energy production within Indonesia from biomass is extensive, yet the industry lacks a critical mass of proven models. This project will support investment opportunities by not only establishing the nancial viability of the energy facility, but also to work directly with local governments. Strong local partnerships will support government agencies in increasing their capacity regarding the renewable energy sector. In terms of policy, an important aspect for biomass is the stability of feedstock supply, so strong policy enforcement at the local level is critical for devising replicable win-win solutions.

Total budget: Technical focus: Implementation period: Website: Email:

Palm oil waste for energy. (Source: STC)

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Reducing Deforestation and GHG Emission with Biomass Stove and Fuel as Alternative Energy for a Community
Training on biomass stove production (left), Community agreement socialization and declaration (center & right). (Source: INOTEK)

Objectives
The overall objective of the project Reducing Deforestation and GHG Emission with Biomass Stove and Fuel as Alternative Energy for a Community is to reduce deforestation and greenhouse gas emission and provide an alternative sustainable energy solution for the communities in Central Kalimantan. The Project Purpose is the promotion and introduction of energyefcient cook stoves and technology-based entrepreneurship in the Villages of Habaring Hurung and Petuk Bukit in the District of Palangkaraya in Central Kalimantan.

Innovation and Knowledge Transfer

Biomass Stove UB03 applies innovative preheating, gasication, counter ow and turbulence mechanism to the combustion process. It can save up to 60% of biomass fuel and improve burning efciency with 42%. Since it produces much less smoke than traditional stoves, the air circulation in the kitchens utilizing this type of stove becomes cleaner and healthier. Knowledge transfer of the project of Yayasan INOTEK will be achieved through training, dissemination of the project results through media and promotion. Moreover, the involvement of local people constitutes as important part of the project implementation. At the end of the project community agreement on supporting forest conservation and clean energy is declared and signed by community representatives of Petuk Bukit and Habaring Hurung.

Description
Instead of kerosene and gas which often poorly available, families in the project site and other rural areas of Central Kalimantan commonly use firewood for cooking and harvest it from forests surrounding their villages. The project of Yayasan INOTEK aims to provide an alternative energy and environmental solution for the target villages in the form of biomass stove UB 03 and promote utilization of this type of improved energy efcient cook stove also in the surrounding communities. This innovative stove can save up to 80% of biomass fuel compared to the conventional three-stone re or the clay stove contributing to forest protection around the villages. With relatively high efciency, Biomass Stove UB03 also reduces the amount of smoke from the combustion process, thus making the air in the kitchen cleaner and healthier. Through the project, 100 energy efcient stoves are taken into use in the Villages of Habaring Hurung and Petuk Bukit. To support the sustainability of the project, training on biomass stove production as well as entrepreneurship is provided.
Training on additional income generation. (Source: INOTEK)

Inefcient traditional wood stove in Habaring Hurung. (Source: INOTEK)

Relevance to Indonesian Energy and Environment Policy

> Beneciaries
Direct beneciaries of the project are the 100 households of the village of Habaring Hurung in the Sub-District of Bukit Batu and Village of Petuk Bukit in the Sub District of Rakumpit of the District of Palangkaraya in the Province of Central Kalimantan.

Project Prole
Project title: Reducing Deforestation and GHG Emission with Biomass Stoves and Fuel as Alternative Energy for a Community Central Kalimantan Yayasan Inovasi Teknologi Indonesia (INOTEK) Indonesia Technology Innovation Foundation Yayasan Mitra Insani (YMI) 128,608 Energy efficiency/ energy conservation (demonstration) May, 2012 - July, 2013 www.inotek.org info@inotek.org

Location: Lead Partner: Partners: Total budget: Technical focus: Implementation period: Website Email

> Contribution to the energy and environment policies of the Province of Central Kalimantan and Indonesia
The successful implementation of the project of Yayasan INOTEK will contribute to the achievement of Government Decree No. 5/2006, targeting at clear increase of energy production from renewable sources. The project is also aligned with the Governments target to reduce 26% of GHG emission in Indonesia by the year 2020. The project also contributes to the reduction of deforestation in the Province of Central Kalimantan and improves living conditions of rural people there.

Socialization of UB-03 Biomass Stove and test res. (Source: EEP Indonesia)

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Production of Biogas from Farming Wastes

Objectives
Massive peat burning during the dry season in a well-known former Proyek Lahan Gambut Sejuta Hektar, ex-Mega Rice (One Million Hectares Rice Cultivation Project) area in Central Kalimantan contributes signicantly to the green house gases emissions of Indonesia. To overcome the problem, Yayasan Eka Mandiri proposes combination of technical and socio-economical approaches on biogas production from farming wastes and utilizing the produced biogas by households for cooking as well as electricity for generating farmers incomes through small scale enterprises. Application of alley cropping to various farming activities between tree rows supported by production and utilization of biogas will protect the area from uncontrolled burning and illegal peat exploitation.

Biogas reactor using waste from community-based bioethanol plant in Pulang Pisau. (Source: Yayasan Eka Mandiri)

Scheme of revitalization and locally burning mitigation of degraded peatland by biogas. (Source: Yayasan Eka Mandiri)

Cooking activity fueled by biogas cow manure. (Source: Yayasan Eka Mandiri)

Innovation and Knowledge Transfer

Development and provision of an economically feasible low investment model, utilizing simple technology, is a key for the success of the project. The main actors are the farmers in Central Kalimantan and their wisdom and experience in local conditions is taken into account in the model.

Description
Farmers in the sub-district of Maliku in Pulang Pisau district practice a cheap but risky slash and burn agriculture. Farmers typically own 2 - 4 hectares of land for plantation and 3 - 5 cows in average. They are aware of the emission of green house gases but are lacking know-how of investments in sustainable agriculture and nance for buying fertilizers. Unused land area often burns during the dry season. In these conditions promotion of development of cattle farming as well as valuable crops and shery is of extreme importance. An integrated system, involving 10 farmer households, is demonstrated in the district of Maliku in Central Kalimantan. An area of 18 hectare is dedicated for the demonstration of alley cropping system. Alleys are used for different crops and cattle farming and the biogas production from agricultural wastes is utilized as an energy source for household activities and small scale enterprises.

Project Prole
Project title: Location: Lead Partner: Partners: Production of Biogas from Farming Wastes Central Kalimantan Yayasan Eka Mandiri 1. Center for Energy Resources Technology Development PTPSE-BPPT. Puspiptek Serpong, Tangerang Selatan Banten 2. Gapoktan Sumber Rejeki Kec. Maliku Kab. Pulangpisau Central Kalimantan 93,913 Biogas production for householders and micro-small scale enterprises February, 2013 - March, 2014
On the job training of biogas constraction for local masons in Pulang Pisau. (Source: Yayasan Eka Mandiri)

Relevance to Indonesian Energy and Environment Policy

> Beneciaries
Direct beneciaries of the project are the 10 farmer families of Gandang Barat village in the district of Pulang Pisau in Central Kalimantan province and a farmers group organization registered as Gapoktan Sumber Rejeki in the sub-district of Maliku.

Total budget: Technical focus: Implementation period: Website: Email:

> Contribution to the energy and environment policies of the Province of Central Kalimantan and Indonesia
The proposed model will provide a solution for exploited peat land areas to minimize uncontrolled burning and produce renewable energy from farming wastes. An improved access to energy, biogas and electricity, will improve living conditions of local communities and facilitate small-scale businesses and other production activities.

Community meeting to disseminate biogas from farming waste. (Source: Yayasan Eka Mandiri)

arifyudiarto@yahoo.com

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Capacity Building and Investment Facilitation for Renewable Energy Project Developers, Palm Oil Plantations and Financiers
Relevance to Indonesian Energy and Environment Policy
> Beneciaries
The direct beneciaries of the project are Renewable Energy Project Developers, Palm Oil Plantations and Financiers operating in Riau and Central Kalimantan working in the bioenergy, biogas, biomass and waste-to-energy sectors through the provision of targeted and customised capacity building/training and investment facilitation support. By working with these direct beneciaries the project will have a signicant positive impact on local communities surrounding project developer installations; increasing rural electrication in both Riau and Central Kalimantan. The mentoring effort will be focused on the content of the training workshops combined with the individual needs of each Project Developer. An important anticipated impact of the project is its support of sustainable Renewable Energy projects in rural communities through the expansion and development of their projects and services; creating a signicant positive effect on the rural poor, ethnic minorities and women by providing electricity to these groups that enable them to further engage in productive economic activity.

Objectives
The Objectives of the project are to improve the ability of renewable energy project developers and sustainable palm oil plantations to access finance to develop RE projects, thereby increasing electrification for off grid communities in Riau and Central Kalimantan.
Biogas from palm oil mills efuent (POME) in PTPN V, Riau. (Source: EEP Indonesia)

Renewable energy workshop for project developers. (Source: The Apex Consulting Group)

Description
Developing businesses
The Capacity Building and Investment Facilitation for Renewable Energy Project Developers, Palm Oil Plantations and Financiers Project will provide business development services - including training, mentoring, consulting and investment facilitation support - to RE enterprises with high growth potential from the biomass, biogas, bioenergy and waste-to-energy sectors. The project will help improve an enterprises ability to manage growth, attract investment capital, and capitalise on market opportunities in the Palm Oil Sector. The project will work to encourage systemic change in the investment community in order to increase investments in RE enterprises in both Riau and Central Kalimantan. The project will also provide due diligence support to impact investors and nanciers.

Promoting Global Connections

In addition to the national support in Indonesia, the project will leverage a wide global network. Apex New Ventures global network is building bridges across emerging markets for learning and collaboration internationally across the region and beyond. The RE enterprises are prepared to manage growth, attract investment capital and improve their nancial, environmental, and social performance.

Innovation and Knowledge Transfer

The lead applicant and project partners place a high priority on business innovation and learning and passing these lessons on to stakeholders and participants wherever possible. The project approach is centred on training and mentoring by seasoned individuals in Indonesia. At the end of the project participants will have been exposed to and connect with local and global potential business partners and investors. These connections will drive innovation, collaboration and inspiration well beyond the duration of the project. Apex-NVI has in-depth knowledge of the renewable energy sector in Indonesia, the regulatory framework, and the various relevant government agencies and ministries. This knowledge allows for unique sector-specific insights, guidance as well as targeted development for Project Developers.

Project Prole
Project title: Capacity Building and Investment Facilitation for Renewable Energy Project Developers, Palm Oil Plantations and Financiers Riau and Central Kalimantan The Apex Consulting Group New Ventures Indonesia 1. EnReach 2. Yayasan Timbuhak Sinta 270,344 Investment Facilitation for Renewable Energy Projects December, 2012 - December, 2013 1. www.new-ventures.co.id 2. www.apex-cg.com enquiries@apex-cg.com

Location: Lead Partner: Partners: Total budget: Technical focus: Implementation period: Website: Email:

> Contribution to the energy and environment policies of the Provinces of Riau and Central Kalimantan and Indonesia
The project builds on a proven approach that proposes empowering local businesses as a clear path to poverty alleviation, sustainable development, and a shift from reliance on fossil fuels to renewable energy sources. Access to renewable energy can be limited in rural areas and remote locations such as Riau and Central Kalimantan. Business support, training, mentoring and networking can enable existing project developers in the renewable energy sector to connect with sustainable palm oil producers, potential investors and other business partnerships that can accelerate growth.

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BIOENERGY IN INDONESIA IN BRIEF

Indonesia - geography, demographics and energy consumption
A vast equatorial archipelago of around 17,000 islands extending 5,150 kilometers east to west Population: 240 million Land area: 2 million km2

Greenhouse gas (GHG) emissions of Indonesia

3,014 metric tons of CO2 in total, one of the largest greenhouse gas (GHG) emitters of the world (PEACE: Indonesia and Climate Change: Current Status and Policies, World Bank 2007) Presidential Regulation for a National Action Plan for Reducing of Greenhouse Gas Emissions (2011): Greenhouse gas emissions to be reduced (compared to the Business-as-Usual level) by the year 2020 - 26 % through domestic efforts - 41 % if adequate international support were made available

Future development, policy direction

Presidential Decree No.5/2006 on National Energy Policy sets a target share of 17 % of the total energy consumption for renewable energy to be reached by the year 2025

BOE
3000 2500 2000 1500 6% 2% 5% 5%

2% 5%

2685

Energy sector current status

Total energy consumption: 1,176 million BOE (2011) High dependence on fossil energy, proportion of non-fossils only around 5 % Net importer of oil (since 2003) Electrification ratio: 73% (2013) The increase in energy demand is not matched by an adequate supply, both in terms of quantity and equitable distribution, inadequate energy infrastructure in rural/remote areas and outer islands

33% 23% 22% 47%

1000 500 0

666 50 1970 188 1980 328

837

30% 20%

1990

2000

2006
LEGENDA
Crude oil Natural gas Coal Hydro Geothermal Biofuel

2025

National energy mix 1970 - 2025

Actual consumption by energy source

Potential of bioenergy
Liquid biofuels
Huge potential, for instance from palm oil (annual production of CPO 23 million tons), Jatropha Curcas, Nyamplung, Molasses (Sugar Cane), Cassava, Sorghum and Algae

Bio briquettes, biochar

Source: Center for Data and Information, Ministry of Energy and Mineral Resources

other New and Renewable (RNE) Coal liquefaction

Agriculture and forest wastes/ residues

Bio-electricity

Biogas

Raw material for biogas mainly derived from cow manure, industrial wastes and municipal solid waste Livestock, 3 million dairy cows and beef cattle and over 15 million goats, giving a potential for around one million units of biogas digesters (household level)

Total potential capacity around 50,000 MW High potential of biomass from agricultural waste and municipal solid waste for biomass based power generation

EEP Indonesia Developing the use of BIOenergy

November 2013 Produced by: EEP Indonesia National Coordination Unit

Editor-in-Chief: Editors:

Juhani Hrknen, CTA Nasrullah Salim, NC Ivi Anggraeni Mohammad Amin

Secretariat: Nuraina Adetya Rahmi Nunie Dwi Arimbi Design: Arief Darmawan

Published by Energy and Environment Partnership with Indonesia, a programme nanced by the Ministry for Foreign Affairs of Finland and implemented in cooperation with the Ministry of Energy and Mineral Resources of Indonesia

www.eepindonesia.org

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Energy and Environment Partnership with Indonesia

Gedung Direktorat Jenderal Energi Baru, Terbarukan, dan Konservasi Energi, Lantai 5 Jl. Pegangsaan Timur No. 1A, Menteng, Jakarta 10320 Email: admin@eepindonesia.org Web: www.eepindonesia.org