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Promoting Sustainability Through Methane Capture Project to Decrease GHG emmission . I. Sustainability. What is sustainability? . Sustainability. Is a capacity to endure, and often defined as the intersection of Environment, Society and Economy. I. Sustainability. Voluntary Standards.
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Promoting Sustainability Through Methane Capture Project to Decrease GHG emmission
I. Sustainability What is sustainability? Sustainability Is a capacity to endure, and often defined as the intersection of Environment, Society and Economy
I. Sustainability Voluntary Standards International Sustainability and Carbon Certification For biofuels and biomass One of several standards that allows access to EU markets 6 oil mills certified in Indonesia as of April 2011 Premium Price for CPO USD 30; PME USD 75 Why? ●Price premiums ●Market access ●Meeting CSR objectives● Productivity • For all palm oil • Certain companies require RSPO (e.g., Unilever, Walmart) • 13 growers certified, covering 24 mills in Indonesia, as of April 2011 • Premium Price USD 1,29 (Green Palm) Roundtable on Sustainable Palm Oil
II. Green House Gas Reduction Indonesia GHG Comitment President Commitment on G-20 Pittsburgh and COP15 To reduce te GHG Emission in 2020 26% (767 million Ton) 41% Own efforts with international support Own efforts By Renewable Energy Utilization Source : ESDM, 2011
II. Green House Gas Reduction • GHG footprint is a must for several sustainability certification scheme on Palm Oil like ISCC and RSB, with requirement of GHG saving from EU RED as follows : • 2009 : 35% GHG saving; • 2016 : 50% GHG Saving; • 2017 : 60% GHG Saving Source : EU Renewable Energy Directive (2009/28/EC)
III. Green House Gas Reduction Potential emission reduction through Methane Capture Case Methane capture for biogas project
III. Green House Gas Reduction Potential emission reduction through Methane Capture Case Potential additional GHG saving through biogas project is 25.3% (69,9% - 44,6%)
III. Green House Gas Reduction Current status of Palm Oil Sector • Total CPO production: ~20.1 mil tons (2011) • Total plantation area : > 8.2 mil ha (2011) • Major CPO producing regions: Sumatera & Kalimantan • Total Palm Oil Mills: ~600 mills • GHG emitted from wastewater (POME) in Indonesia: estimated 16 million tons of CO2 equivalent per year* Photo Sources: Statistik Perkebunan Kelapa Sawit, 2009-2011. Dirjen Perkebunan, Kementrian Pertanian, biotec, aaenvironment.com *Figure from: IEA 2004, cited in ―Low Carbon Development Options for Indonesia,‖ November 2008, supported by the World Bank.
III. Green House Gas Reduction POME to Energy • Biogas emitted from POME is methane rich. Proven technologies can convert this methane gas to energy while reducing GHG emissions at the same time. • In many areas where these POME-to-energy schemes can be implemented, power is expensive and in short supply. • The conversion of POME-to-energy is economically attractive and improves the GHG footprint of the mills. • One of the example of Methane Capture Project that promote Sustainability is CIRCLE (Capacity for Indonesian Reduction of Carbon in Land use and Energy)PROJECT
IV. CIRCLE Project Overview Capacity for Indonesian Reduction of Carbon in Land use and Energy (CIRCLE) Palm oil mill (left) and methane capture at Univanich, mill in Krabi, Thailand (right) • Aim 1: Reduce GHG emissions and create renewable energy from palm oil mill waste • Aim 2: Improve sustainability of the palm oil sector • Runs from November 2011 through to March 2014
IV. CIRCLE Project Overview CIRCLE Objectives: • Reduce more than 59 thousand metric tons of CO2 equivalent greenhouse gas emissions (GHG) in Indonesia • Encourage palm oil sector to advance sustainability • Create renewable energy from Palm Oil Mill Effluent (POME) waste water treatment and methane capture CIRCLE Outcomes: • Demonstrated feasibility of POME-to-energy projects • Improved sector awareness of sustainability benefits • Increased commitment from financial institutions to finance POME-to-energy projects
IV. CIRCLE Project Overview Rationale for Improved Sustainability on Palm Oil Industry:
V. CIRCLE Project Overview CIRCLE will achieve these objectives by working in three activities areas:
Palm Oil Mill and Renewable Energy Potential V. POME to Energy Waste at Palm Oil Mill Mill Fresh Fruit Bunch CPO & PKO
V. POME to Energy Palm Oil Mill
VI. POME to Energy Invesment Investment Calculation for 60 MT/Hr Palm Oil Mill Capital Cost: USD 3.4 millions IRR: 20% ROE: 34.5% Continuous Electricity Generation: 1.24 MWe Note: Using New Feed-in Tariff for Kalimantan: Rp 1,170 (USD 0.13) per kWh
VII. Conclusion • Methane Capture reduces GHG. • Indonesia Palm Oil Industry will be eligible to enter EU and US Market by complying the GHG threshold. • POME is alternative resources for Indonesia’s Renewable Energy.
CIRCLE (Capacity for Indonesian Reduction of Carbon in Land use and Energy) Thank You Martinus Nata Sustainability & Technical Expert Email : martinus@winrock-indo.org STR Building, 2nd Floor Suite 208 Jl. Ampera Raya no. 11 Jakarta 12550 Indonesia Phone : +62-21-780 6884,780 5571