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Reports of CDM/JI Feasibility Studies: FY2009

Title of Feasibility Study (FS)CDM Feasibility Study for Environmentally Friendly Development by Multiple Use of Jatropha curcas in Indonesia
FYFY 2009
Main Implementing EntityMitsubishi UFJ Securities Co., Ltd.
FS Partner(s)Japan Appropriate Technology Institute (JATI); Asian People's Exchange(APEX); and Yayasan Dian Desa(YDD)
Location of Project ActivityIndonesia (Sikka Regency, Nusa Tenggara Timur Province)
Summary of FS ReportPDF (246KB)
Description of Project ActivityThe Project involves multiple uses of Jatropha (Jatropha curcas), whose seeds contain fatty oil that can be collected and cultivated in degraded land, in Sikka Regency, Nusa Tenggara Timur Province, Indonesia. The Project involves the comprehensive reforestation of unused degraded lands, replacement of diesel oil by production and utilization of renewable energy for electricity generation, gasification of the waste generated in the Jatropha oil production process for electricity generation as well as desalination of seawater using waste heat generated by electricity generation.
Targeted GHGCO2
Category of Project ActivityBiomass Utilisation
CDM/JICDM
Duration of Project Activity/ Crediting Period2009-2018/ 2010-2019
Methodology to be appliedRevision of AMS-I.A. (Ver.13) "Renewable energy for the user" is considered.
Baseline ScenarioBased on AMS-I.A, the baseline scenario of the Project is the continuation of electricity generation using diesel oil at project power plants in the absence of the Project. Baseline emissions are emissions emitted from combusting diesel oil that is to be replaced by Jatropha oil in the Project.
Demonstration of AdditionalityThe additionality of the project activity is demonstrated through a barrier analysis.
  • Investment barrier:
      Although the Project will receive grants from the Japanese Ministry of Foreign Affairs as part of the initial investment cost, more financing is still required to operate and continue the Project. Therefore, without income from the sale of CERs, it is not possible to implement and continuously operate the Project.
  • Technological barrier:
      The Project cannot be implemented without continuous technical support, education and training to the local farmers by the project participants, APEX and YDD.
  • Barrier due to prevailing practice:
      The slash-and-burn method is the typical farming method employed in the region as most farmers cannot afford to buy fertilizer to compensate for poor soil and the resulting low yields. Although slash-and-burn is illegal in the project area, the situation is not expected to change. In the absence of the Project, in which APEX and YDD will provide support for the greening of degraded land and the multiple use of Jatropha with the incentives provided by CDM, the local residents would undoubtedly continue the slash-and-burn practice. 
Estimation of GHG Emission Reductions1,008tCO2/year
Monitoring PlanMonitoring items are determined based on AMS-I.A. AMS-III.T. is also referred to for those items regarding the production of bio-fuel.
    Monitoring items
    Parameter
    Unit
    Amount of electricity generated by the Project power plants using Jatropha oil
    -
    kWh/year
    Amount of Jatropha oil consumed at the power plants
    FCk,y
    t/year
    Amount of diesel oil consumed at the power plants
    -
    t/year
    Net calorific value of Jatropha oil
    NCVk
    GJ/t
    Jatropha seeds harvested
    -
    t/year
    Fraction of oil content of Jatropha seeds
    -
    %
    Amount of Jatropha oil produced
    -
    t/year
    Amount of diesel oil consumed at the Jatropha oil production plant
    FCOFP,i,k,y
    t/year
    Area used for Jatropha cultivation
    -
    ha

Although not explicitly mentioned as monitoring items, the Project will also monitor the following as required by the abovementioned methodologies:
  • Ex-ante determination of specific fuel consumptions of diesel and Jatropha oil at the Project power plants.
  • Confirmation that there is no external fertilizer input for Jatropha cultivation.
  • Confirmation that there is no shift of pre-project activities and competing use of biomass
  • An agreement among APEX, YDD and the power plants that states only APEX and YDD hold rights to the CERs.
  • Confirmation that Jatropha oil is not exported.
Environmental Impact AnalysisAccording to Indonesian regulations, the Project, due to its small size, is not subject to the environmental impact assessment system (AMDAL). However, simpler forms of assessment, UKL (Upaya Pengelolaan Lingkungan Hidup: Environmental Management) and UPL (Upaya Pemantauan Lingkungan Hidup: Environmental Monitoring), are required.
Project FeasibilityThe Project has not faced any technical problems. According to the hearing which was conducted by local authorities during this study, there is no serious concern expected regarding Jatropha cultivation, oil extraction, purification, and the utilization of oil. While it is important to set a stable price for the Jatropha oil for the continuous operation of the Project, the project owner will aim to set a price which provides long term benefits for both the seller (the project owner) and consumer (the local power company). Also, the project owner will decide the price of seeds after discussion with local farmers to provide enough incentive to them to supply the Project.
In order to implement this project as a CDM project, a revision of AMS-I.A to be consistent with AMS-III.T in regards to the production of plant oil is necessary.
Pollutants Emissions ReductionN/A
Contribution to Sustainable Development in Host Country1) Reforestation of degraded land will:
    a) Prevent of soil erosion;
    b) Improve watershed protection ability in soil;
    c) Reduce slash-and-burn farming and forest fire incidents; and
    d) Contribute to visual improvement of the regional scenery.
2) Mitigation of water shortage by supplying desalinated water to local residents.
3) Increasing local residents’ income by selling Jatropha seeds cultivated at the Project plantation.

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