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Reports of New Mechanisms Feasibility Studies: FY2011

Title of Feasibility Study (FS)New Mechanism Feasibility Study for Energy Application of Wastes and Wastewater Originated in Processing of Agricultural Products in Indonesia
FYFY 2011
Main Implementing EntityChugai Technos Corporation
FS Partners【Indonesia】
PTPN-7(State-owned agricultural enterprise),
Indonesian Center for Agricultural Engineering Research and Development(ICAERD)
Sojitsu Research Institute, Ltd., Nord Institute for Society and Environment, Satake Corporation, Biotec International Asia Sdn Bhd,, TIAET Co., Ltd.
Location of Project ActivityIndonesia
Category of Project ActivityWaste Management
Summary of FS ReportPDF (814KB)
Description of Project/ Activity
    - Our feasibility study is producing renewable energy from agricultural wastes and wastewater.
    - Recovered methane gas from agricultural wastewater is used for renewable energy source.
    - Agricultural solid wastes are used for biomass solid fuel product.
    - We estimated the potential reduction of GHG emission from palm oil, rubber and sugar mills operated by PTPN-7, our Indonesian counterpart, and studied the feasibility of the project.
    - We studied mills located in Lampung, Bengkulu and South Sumatera provinces.
    - Because our project involves a number of mills in wide area, we developed a simple and feasible MRV method.
Reference Scenario and Project/ Activity Boundary
    - We determined the reference scenario is equivalent to BAU.
    - The project boundary includes mills, plantations and renewable energy users.
Monitoring Methods and PlanFrom the feasibility study results, we proposed the following two methods:

Method A is based on CDM methodology and uses the equations provided in the methodology, but applies abbreviated and automatic monitoring

Method B is even simpler than Method A. Amounts of recovered methane gas and produced biomass pellets and chips are monitored, and GHG emission reduction is calculated based on the production volumes.
GHG Emissions and ReductionsWe estimated GHG emission reduction for the following three model cases about PTPN-7's mills and for the case where our project is implemented throughout the host country:

<1> Model cases of mills owned by PTPN-7
    Case-1: Each mill makes GHG reduction efforts. In this case wastewater from rubber mills cannot be used for generating electricity because its COD concentration is not enough for methane gas production. Estimated reduction: 127,600tCO2/y
    Case-2: Composite wastewater treatment system is devised to recover methane gas from mixed wastewaters of nearby mills. The wastewater of rubber mills is mixed with neighboring palm oil mills for electricity generation. Thus, wastewater from rubber mills, whose COD concentration is too low, can be used for electricity generation. Estimated reduction: 131,400tCO2/y
    Case- 3: We estimate the potential reduction of GHG emission in the case where EFBs which are now used for land application and fronds which are not collected, are used for energy source.
    Estimated reduction: 167,300tCO2/y

<2> GHG emission reduction potential of whole host country
    Wastewater treatment is conducted at each mill. For solid wastes, the use of only oil palm fronds are considered at mills owned by PTPN, and the use of EFBs are also considered at other mills where EFBs are not considered to be used for soil application.
    Estimated reduction - Use of wastewater: 14,992,000 tCO2/y
                - Use of solid wastes: 4,145,000 tCO2/y
MRV System for GHG Reductions-Indonesia is promoting a spread of Indonesian Sustainable Palm Oil (ISPO) system for a sustainable development of palm oil industry. Beside the enhancement of competitiveness of Indonesian palm oil industry in the international market, the objectives of this system include the promotion of GHG emission reduction.
-If we add the following two items, we can establish a BOCM’s MRV system required for the project:
    <1> Monitoring of COD of inflow to lagoons, which is not legally required but necessary to estimate the methane gas yield. At present COD of outflow from lagoons are monitored, so monitoring of COD of only inflow is needed.
    <2> Compliance with ISO 14064 and 14065 concerning reporting and verification for GHG emission in addition to ISO9001 and ISO14001 which ISPO now complies with.
ISPO certificate is mandatory for all Indonesian palm oil mills. If the above items are included in ISPO, ISPO certified mills will systematically conduct from monitoring and verification. If the trials started at palm oil mills, which is an important industry in Indonesia, are spread to rubber and sugar mills through the state-owned agriculture enterprise, the MRV of our project will be implemented widely.
Analysis of Environmental, Socioeconomic and other Impacts (including Securement of Environmental Integrity)It is expected that bad odor and harmful insects from lagoons will be prevented.
Financial PlanningWe are studying the possibility of investment from the private sector and financing from the Japan Bank for International Cooperation.
Introduction of Japanese Technology<1> Renewable energy generation from wastewater
    Japanese covered lagoon technology is not very competitive. But Japanese technologies for biogas desulfurization, purification, combustion and power generation and water - monitoring equipment are superior.
<2> Renewable energy generation from solid wastes
    Our project plans to supply biomass solid fuels as chips and pellets. So, the same production line should produce products of different qualities to meet the users’ demands or to ensure compatibility with equipment. And it should also produce biomass solid fuels of various specifications (moisture contents, forms, etc.) In this respect, Japanese companies, responsive to user’s demands, will be able to prove its superiority.
(i.e. Improvement of Local Environmental Problems)
It is expected that the bad odor from lagoons will be prevented.
Contribution to Sustainable Development in Host CountryThis project will promote the introduction of renewable energy in Indonesia.
It will secure a stable renewable energy supply.
It will contribute to the sustainable development of palm oil industry.

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