Displacement of Fossil Fuel for Di l t f F il F l f Power Generation Power Generation A Step Toward Development of Standardized Baselines for Palm Oil Mills in Indonesia Baselines for Palm Oil Mills in Indonesia Syahrina D. Anggraini Background Information • • More than 80% of palm oil plantation and mills is located in Sumatra island In 2006, there were 477 palm oil mills across Indonesia with average processing capacity of 43.3 FFB t/h. Latest statistics from the Center of Palm processing capacity of 43.3 FFB t/h. Latest statistics from the Center of Palm Oil Plantation Research for period of 2009‐2011 mentioned that there are 608 mills with average processing capacity of 56.4 FFB t/h Location Oil Palm Area (ha) Mills (unit) Intake capacity (FFB t/h) CPO Output Capacity (t/y) % Sumatra 4,203,196 402 17,233 83.42 16,285,165 Kalimantan 1,485,141 57 2,770 13.41 2,617,650 21,184 , 6 215 1.04 203,175 , Sulawesi 239,814 8 270 1.31 255,150 Papua & W. Irian 125,591 4 170 0.82 160,650 6,074,926 477 20,658 100 19,521,810 Java Total Source: World Bank, May 2010. Indonesia Oil‐Palm Synthesis‐Discussion Paper 3 Background Information • Palm oil mills processing capacity in Indonesia ranges between 5 Palm oil mills processing capacity in Indonesia ranges between 5 – 120 t 120 t FFB/h Scale Processing capacity (FFB t/h) % (est. per total number of mills) Small <= 30 50 Medium 40‐60 40 60 40 Large > 60 10 • Currently Currently there are five registered Indonesian CDM projects utilizing there are five registered Indonesian CDM projects utilizing biomass waste from palm oil mills for power generation. Most of them use diesel fuel as baseline. Others are coal and grid electricity. • Of the five projects, three of it are implemented in mills with capacity of 45 Of the five projects three of it are implemented in mills with capacity of 45 ton FFB/hour, one with capacity of 50 ton FFB/hour, and one is unknown (no information described in the PDD). • Common technology used for power generation is combustion h l df b engine and d generator 4 Ideas Criteria for Positive List: • Fuel and technology to be applied must be applicable to mills with processing capacity of less than 60 ton FFB/hour processing capacity of less than 60 ton FFB/hour • Current power generation used for operating the mills is diesel p j y pp y based project activity apply lower carbon intensive fuel and technology • In case of mix fuel between diesel and biomass in the project activity, portion of fossil fuel used may be taken into account ff lf l d b k • Project activity applies one of the following: ‐ modification/retrofitting of the current facility (e.g. boiler, etc) difi ti / t fitti f th t f ilit ( b il t ) ‐ Installation of new power generation facility 5 Ideas Baseline Scenario: Since mills in Indonesia are mostly powered by power Since mills in Indonesia are mostly powered by power generation with coal, diesel fuel, or mix coal‐biomass; by g pp ( ) taking into account conservativeness approach and (current) lack of data on proportion of fuel mix, currently proposed baseline is : fuel : diesel technology : diesel combustion engine and generator 6 Challenges: Lack of available data on fuel used in palm oil mills Lack of data in mill’s capacity distribution No sampling guidance currently available l d l l bl it’s hard to obtain data ’ h d b d from all (600+) palm oil mills Next Steps: Collection of data on type of fuel used and mills capacity Collection of data on type of fuel used and mills capacity Identification of possible technologies p j y Determination of project boundary Determination of level of aggregation Consultation meeting with relevant stakeholders (palm oil association, Ministry of Industry, Ministry of Agriculture, etc) 7 Carbon and Environmental Research (CER) Indonesia Jl. Aryawidura 8 no. 2, Perum. Aryawidura. Bogor West Java – Indonesia 16152 +62 251 8394486 www.cerindonesia.org 8
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