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The role of oil palm biomass to meet liquid biofuels target in Indonesia
KTH, School of Industrial Engineering and Management (ITM), Energy Technology, Energy and Climate Studies, ECS.ORCID iD: 0000-0002-2916-4004
International Institute for Applied Systems Analysis (IIASA).
RISE Research Institutes of Sweden.
International Institute for Applied Systems Analysis (IIASA).
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2019 (English)In: Proceedings of the 32nd International Conference on Efficiency, Cost, Optimization, Simulation and Environmental Impact of Energy Systems / [ed] Wojciech Stanek, Paweł Gładysz, Sebastian Werle, Wojciech Adamczyk, Poland, 2019Conference paper, Published paper (Refereed)
Abstract [en]

Indonesia aims at reducing the dependence on oil import by liquid biofuels consumption (i.e., biodiesel and bio-ethanol) in industry, transport and power sectors. The palm oil industry has played significant role in the development of biodiesel in the country producing crude palm oil (CPO) and palm fatty acid distillate (PFAD) based biodiesel. Opportunity exists for the industry to contribute to the development of bio-ethanol program by utilising the lignocellulosic biomass such as the empty fruit bunches (EFB). This study evaluates the potential of liquid biofuels production from oil palm biomass and the domestic demand for biofuels as per biofuel blending target set by the Indonesian government. The existing infrastructures as well as the investment opportunity of each type of biofuel are analyzed. While technology for biodiesel production is proven at large scale, the bio-ethanol production from EFB is not commercialized yet. The study shows that meeting the biodiesel blending target is at risk if Indonesia continues to solely reliance on the production of CPO and PFAD based biodiesel. Palm oil industry can produce nearly 7 billion litres biodiesel from CPO and PFAD in 2025 but the biodiesel domestic demand is 30% higher. The bio-ethanol program faces higher risk. EFB based ethanol through gasification and synthesis of alcohol can contribute to around 13% of the target in 2025, however the infrastructure is not ready yet. Feedstock diversification to produce liquid biofuels should be prioritized. We recommend a review of the current plan to a more achievable targets or prolong the timeline in order to secure domestic biofuels demand while continuing export. The study provides database for future modelling exercise on multi-period optimization study of palm biofuels supply chain in Indonesia in a geographically explicit way.

Place, publisher, year, edition, pages
Poland, 2019.
Keywords [en]
Oil palm biomass; liquid biofuels; biofuel blending target; palm oil supply chain, Indonesia
National Category
Energy Systems
Research subject
Energy Technology
Identifiers
URN: urn:nbn:se:kth:diva-256541ISBN: 978-83-61506-51-5 (electronic)OAI: oai:DiVA.org:kth-256541DiVA, id: diva2:1346465
Conference
32nd International Conference on Efficiency, Cost, Optimization, Simulation and Environmental Impact of Energy Systems, June 23-28, 2019, Wroclaw, Poland
Note

QC 20190903

Available from: 2019-08-28 Created: 2019-08-28 Last updated: 2019-09-03Bibliographically approved

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CiteExportLink to record
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