New Development of Ethanol Industry in Indonesia

Petrus Panaka
PT Gikoko Kogyo Indonesia
panaka@indo.net.id &

M. Arif Yudiarto
yudiarto59@yahoo.com

Starch Technology Center (B2TP) Agency for the Assessment and Application of Technology (BPPT) Asian Science & Technology Seminar Jakarta. March 7. 2007

Outline of Presentation
1. Indonesia biomass potential for Biofuel 2. Road Map of Bioethanol & Industry Plant in Indonesia 3. Ethanol Production and Export in Indonesia 4. Strategy to solve oil price problem : - Increase renewable fuel (biofuel) utilization - Increase value added for energy resources 5. R &D of Gasohol. 6. Conclusions

Potential Biomass Resources in Indonesia

Plant Cassava Sweet potato Sugar Cane Corn Sorghum Sweet sorghum Sago Aren Nipah (Mangrove) Lontar Coconut Paddy Forest plants Part of Plant Root Root Stalk Molasses Grain Grain Stalk Stalk Sap Sap Sap Sap Stalk Wood waste Ethanol Productivity(L/ha/yr) 4,500 7,800 5,000 6,000 40 5,000 -6,000 3,000 -4,000 5,500 6,000 4,000 5,000 40,000*) 5,000 -15,000 8,000 10,000 8,000 10,000 1,000 2,000 -

Cassava Plantation in Indonesia

Province North Sumatera Lampung West Java CenterJava Jogyakarta East Java Banten South Sulawasi NTB NTT Papua Others Indonesia
Source : BPS. 2004

Area (mil. ha) 27.6 298.48 114.69 215.52 47.48 241.20 10.75 41.88 8.28 75.51 3.83 114.44 1,239.86

Productivity (ton/yr) 411.94 4,984.62 1,651.48 3,469.80 764.41 3,786.88 154.82 607.29 88.57 808.00 40.93 1,705.23 18,473.96

Avr production (t/ha) 14.90 16.70 14.40 16.10 16.10 15.70 14.40 14.50 10.70 10.70 10.69 14.90 14.90

Incentives for Biofuel Investment

1. Domestic market obligation for feedstock and product of biofuel 2. Pricing policy based on production cost 3. Incentives on value added for both feedstock and product of biofuel 4. In short term. biofuel is categorized as public service obligation product 5. Appointment to PERTAMINA and PLN as standby buyer biofuel 6. Simple procedure for biofuel investment 7. Bank of Indonesia to lower Asset by Risk (ATMR) for biofuel credit 8. Establishment of Green Energy Fund for Biofuel
Source : DJLPE. 2007

Biofuel Specification Policy

Fuel specifications were revised on 17th March 2006 for both gasoline and diesel; Biodiesel and bioethanol are allowed to be blended with diesel and gasoline at maximum 10% v/v. respectively; Technical specifications for biodiesel and bioethanol follow the government standards.
Source : DJLPE. 2007

ROAD MAP OF BIOETANOL

Year 2006 2010
Bioetanol supply 1.48 mil kl (10% of total gasoline consumption)

2011-2015

2016-2025
Bioetanol supply 6.28 mil kl ( minimal 20 % of total gasoline consumption)

Market

Bioetanol supply 2.78 mil kl ( 15% of total gasoline consumption)

Product

Gasohol E-10 (Bioetanol from cassava & molasses)

Gasohol/ FGE (Bioetanol from cassava. starch & molasses)

Gasohol/ FGE (Bioetanol from lignocellulose.starch and cassave )

Technology Technology Status

NATIONAL STANDARAD OF FUELGRADE FOR GASOHOL & ETHANOL (FGE)

Bioetanol production 99.5% (FGE) from lignocelulose fibre (agriculture/forest waste).starch and cassava (incl. algae) at commercial scale

Bioetanol production 99.5% (FGE) by chemical dehydration technique and molecular sieving of molasses feedstock based and commercial scale

Bioetanol production 99.5% (FGE) with production rate and high energy ratio based on cassava and starch feedstock for commercial scale

R&D R&D

Bioethanol Dehydration with adsorben

Membrane technology for dehydration Fermentationpr ocess technology

Lignocellulose as bioethanol feedstock and fuel

Carbohydrate resources for bioethanol feedstock Strain yeast improvement

Source : DJLPE. 2007

Road map for Bioethanol Industry Plant Construction

Demo plant BPPT 8 8KL/day kL/hari

Pembangunan The construction of 104 plant plants @60 KL/day 104 @ 60kL/hari

The construction of Pembangunan 62 @60 KL/day 62 plants plant @ 60kL/hari

The construction of 114plant plants @60 KL/day Pembangunan 114 @ 60kL/hari

2005

2007

2009

2010

2013

2015

2018

2020

2023

202 5

Note : 1). 60 kL/day capacity is the lowest capacity of commercial ethanol plant based on starch feedstock. It needs about Rp 150 billion per-plant investment. 2). For efficiency reasons. investors should be encouraged to construct 2-3 times of those capacity. 3). The development of commercial plant under 60 kL/day is possible with local avaiable feedstock (especially starch. sap. lontar. nipah. sugarcane and sweet sorgum) for rural areas where price of fuel oil is high.

Source : DJLPE. 2007

ETHANOL PRODUCTION IN INDONESIA (2005)

Name of Company PT Aneka Kimia Nusantara PT Basis Indah PT Bukitmanikam Subur Persada PT Indo Acidama Chemical PT Madu Baru PT Molindo Raya Industrial PT Perkebunan Nusantara XI PT Rhodia Manyar B2TP, BPPT Location Mojokerto Sulawesi Lampung Surakarta Yogyakarta Malang Bondowoso Gresik Lampung Production Capacity (Kiloliter/y) 5.000 1.600 51.282 42.000 6.720 10.000 6.000 11.000 ~ 30 Feedstock Molasses Molasses Molasses Molasses Molasses Molasses Molasses Molasses Cassava

Source : Kompas. April 19. 2006.

Product : technical grade ethanol and raw spirit (ethanol: 95-97 % v/v)

Indonesia Ethanol Export Country Destination (2004)

Destination Japan China Singapore Philippines Malaysia Taiwan Thailand Others Total Capacity (ton) 9,459.5 12.8 255.50 7,374.405 12.8 4,982.963 12.8 87.662 22,198.43 Value (US$) 3,337,018 8,800 145,726 2,609,972 7,672 2,948,038 7,890 115,382 9,180,498

Source : Kompas. April 19. 2006

Indonesia Ethanol Export (2000 2004)

Year 2000 2001 2002 2003 2004 Total Capacity (ton) 30,197 18,291 27,518 26,536 22,198 124,740 In US$ (x 1000) 9,857 7,257 10,757 10,585 9,180 476.36

Source : Kompas. April 19. 2006

FUTURE ETHANOL PLANTS IN INDONESIA

Name of Company Location Production Capacity (Kiloliter/y) Feedstock

PT Indo Lampung Distillery PT Sampurna PT RNI & Choi Biofuel Co. Kanematsu Corporation CNOOC & PT Smart & Hongkong Energy PT Medco Energi Internasional Tbk PTPN X & PT Molindo Raya Industri

Lampung Ponorogo Pasuruan ? ? Kotabumi Kediri

60,000 16,800 11,200 30,000 ? ? 120

Molasses Cassava Molasses Cassava Cassava & Molasses Cassava Molasses

Source : From Kompas & Sinar Harapan. July 2006 March 2007.

Example of Countries with Bioethanol Application

Country Brazil USA China Germany Austria Sweden Ghana

Description
The largest producer of ethanol from sugar cane in the world with annual production of 18 billion liter from 320 ethanol plants. Currently, from all types of fuel sold at the market, 22 26% is ethanol. Production cost is US 14 16 per liter. The second largest producer after Brazil. The annual production is more than 10 billion liter, however, this is only 2% of the total usage of fuel. The new legislation will increase the use of bioethanol. Third biggest producer. The processing method came from Brazil and now is constructing new ethanol plants to increase their production. To increase the use of biofuel, the government has issued tax exemption policy. To treat used cooking oil collected from McDonalds to drive public buses at Graz. . The test on ethanol mixed with petrol in public buses at Stockholm showed that big vehicles which have high fuel consumption can also use with the lower cost fuel such as bioethanol. They have biodiesel plants from various grains which can be harvested in short time. From this they can saved imported fuel up to 240 million US$.

Source : Kompas, August 18, 2005 and March 16, 2006

Continue
Country Thailand Indonesia Japan Description
E10, Gasohol. Target from December 2005, increased filling station from 829 to 4,000 stations. 6 ethanol plants (2006) with production of 1,090 kL/day. Another 17 plants permitted with total capacity of 300,000 kL/day. Biopremium (E5, 5% ethanol & 95% petrol) and biopertamax (E5, 5% ethanol & 95% pertamax) products from PT Molindo Raya and Pertamina. As for Aug 2006, only 2 bioethanol filling stations have been operating at Malang and Semarang. E3. Ethanol Import from Brazil.

Source : Kompas, August 18, 2005 and March 16, 2006

Fuel Grade Ethanol (FGE) Production Flow Diagram Based on Cassava

Molasses Yeast Amylases

Cassava

Pretreatment

Cooking and Saccharification

Fermentation

Distillation
Source : B2TP-BPPT

Dehydration

FGE (Ethanol 99.5%)

1. Cassava from plantation

2. Crusher

3. Cooking tank

Ethanol
95% v/v

6. Distillation column

5. Fermentor

4. Saccharifying tank

Cassava Ethanol Production Flow Diagram

Source : B2TP-BPPT

R&D of Bioethanol from Cassava

Cassava Fermentation Using Pilot Plant of 8 KL/Day
Broth volume (liter) Total Sugar Start Finish Ethanol (%) Ferm.Ratio (%) Ratio of Cassava/ Ethanol

102.367

14.39

1.81

9.0

97.12

5.27

101.990

14.82

0.40

9.4

98.50

5.20

100.196 BPPTs 8 kL/day Ethanol Pilot Plant at Lampung, Established in 1983

14.91

1.80

9.2

92.80

5.34

106.181

15.84

0.50

8.9

87.25

5.87

99.930

13.87

0.30

7.7

86.00

5.42

99.462

11.80

1.40

7.1

93.00

5.26

98.311

13.75

0.40

8.6

97.00

5.27

98.169

14.46

1.20

9.2

98.79 Average

5.19 5.35

Source : B2TP-BPPT

Engine Performance & Emission Testing using Chassis Dynamometer

Light Duty Gasoline Short Modal Typical System Schematic
Driver Aid Fan
Ambient Air Filters

Ambient & Sample Gas Collection Bags CVS Sampler CVS Control Unit

Dyno Control

Dilute Sample

Turbine Exhauster Unit

Tailpipe Sample Autotest Environmental & Auxiliary Input

Raw Bench

Engine standard test : 80/1269 EEC Emission standard test : UN-ECE 83-04

Source : B2TP-BPPT

Automotive Engine Performance and Emission testing by a Chassis Dynamometer at BTMP-BPPT.

Source : B2TP-BPPT

Laboratory Emission Test (no load)

Rotation Rpm CO (%) CO2 (%) HC (ppm) O2 (%) LAMDA Tengine (oC) Tamb (oC) Premium 2500 3.66 12.60 372 0.59 0.91 88 30 Pertamax 2500 2.85 13.00 351 0.45 0.93 87 32 E3 2500 2.44 13.20 390 0.60 0.94 88 33 E10 2500 1.04 14.00 514 0.76 0.98 87 31.8 E20 2500 0.76 13.70 673 1.23 1.01 87 32.3

On Road Acceleration & Emission Tests

No 1. 2. Acceleration (km/hr) 0 -100 40 - 80 Premium (second) 19.01 8.08 Gasohol E10 (second) 17.16 7.46

No 1. 2. 3. 4. 5.

Emission CO CO2 HC O2 Lamda

Premium 6.97% 10.1% 394 ppm 0.74% 0.827

Gasohol E10 5.61% 10.9% 335 ppm 0.69% 0.862

Source : Otomotif 18th Ed., Sept 5, 2005

Toyota Kijang Car Performance Test Using Gasohol

Fuel Power (kW) Force (N) Fuel Consumption (L/jam)

Gasohol E-10 41.23 1856.1 30.39

Gasohol E-20 42.52 1913.3 31.24

Premium 30.97 1393.8 31.03

Pertamax 40.09 1804 27.38

Source : BTMP-BPPT. 2004

R&D Results
The ratio of cassava to ethanol is average of 5.35 From the test results bioethanol mixed with gasoline (premium) : - The adding of bioethanol (typically 10%) in gasoline (premium) can improve combustion efficiency in car engine since ethanol can improve octane number. Bioethanol can reduce CO emission both in idle and cycle (load) conditions. E10 gives the highest performance (power and traction) nearly similar with Pertamax even CO emission is lower.

Conclusions
Indonesia has a big potential in utilizing biomass as biofuel feedstock to produce bioethanol, such as sugarcane (molasses), cassava, sweet potato, corn, etc. At current status, the annual total production of bioethanol is about 200,000 kL from more than 10 major companies whereas the demand is 1.7 million kL per year. With the current price of bioethanol of Rp. 5,300 (US$ 0.58) per liter, the mass utilization of these feedstock to produce bioethanol is anticipated in the near future. The government plans to produce enough biofuel by 2010 to replace 10% of the countrys total oil-based fuel consumption which reached 70 million kiloliter last year. Regarding to this, Government has issued policies & regulations on the supply & utilization of biofuel as alternative fuel and providing incentive and tariff. Government has to establish a commercialization scheme for bioethanol utilization in order to integrate with an existing fossil fuel commercialization and also creating a simple testing system and standard procedure for bioethanol. Starch Technology Center (B2TP), BPPT has initiated R&D of 8 kL per day ethanol pilot plant using cassave in Lampung since 1983. It is expected more private & government owned companies can utilize BPPTs experiences to develop their commercial plants in Indonesia in the near future.

For more information

PT GIKOKO KOGYO INDONESIA

Pulo Gadung Industrial Estate Jl. Pulo Kambing Kav II I/9 Jakarta 13930 Tel: 62 460 9380 Fax: 62 21 21 460 1970 web site: www.gikoko.co.id

STARCH TECHNOLOGY CENTER (B2TP)- BPPT

BPPT Building II, 16th fl. Jl. M.H. Thamrin 8, Jakarta Tel. 021 3169598