INDONESIAN CASSAVA-BASED ETHANOL UTILIZATION

IN LIFE CYCLE ASSESSMENT AND LIFE CYCLE COST PERSPECTIVE

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Obstacles of biofuel in Indonesia

Oil subsidy

High investment cost

Lack of financial institution interested in biofuel development

Lack of strong and clear action from related institutions (policy, finance, and technology)

Conflict between bioenergy development and food security

Non-monetary characters causes biofuel not to be preceived as useful returns of investment

Economic Issues Environment Issues

Impacts on air, land, water, and biodiversity

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Holistic approach

To address these issues, in this study, environmental performance is assessed by Life Cycle Assessment (LCA) and Cost performance is Life Cycle Cost (LCC)

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No Journal Title LCA LCC

1 Life cycle inventory and energy analysis of cassava-based fuel ethanol in China

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2 Ethanol use in US gasoline should be banned, not expanded √

3 Life cycle assessment of bio-ethanol as an alternative transportation fuel in Thailand in Joint Graduate School of Energy and Environment

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4 Life cycle environmental and economic impact of using Switchgrass-derived bioethanol as transport fuel

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5 Life cycle cost analysis of fuel ethanol produced from cassava in Thailand √

6 Life cycle assessment and life cycle costing of bioethanol from sugarcane in Brazil

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7 Life cycle economic analysis of fuel ethanol derived from cassava in southwest China

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8 Fuel ethanol from cane molasses in Thailand: Environmental and cost performance.

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9 Life cycle assessment of fuel ethanol from cane molasses in Thailand. √

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Ethanol condition in IndonesiaPolicies to support biofuel:

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Potential biomass resources in Indonesia

Source: B2PT-BPPT 7

• There are about 1,204,933 hectares cassava agricultural in Indonesia, which is the biggest amount of them is located in Lampung (318,969 ha).

• Cassava is grown for its enlarged starch-filled roots, which contain nearly the maximum theoretical concentration of starch on a dry weight basis among food crops

• Cassava has the best land availability and land use efficiency

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Source: BPS Statistic Indonesia, 2009 9

The purposes of this study are as follows:• To evaluate whether cassava-based ethanol (E10) is more

environmentally friendly in term of global warming, eutrophication, acidification and abiotic resource depletion compared with conventional gasoline by using Life Cycle Assessment (LCA) methodology.

• To investigate cassava-based ethanol (E10) production and utilization costs by using Life Cycle Cost (LCC) methodology including the external cost compared with conventional gasoline.

• To find which process of cassava ethanol will contribute the most to the environment and cost and are there possible options to improve them.

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Biofuel consider green :1. Biofuel from biomass is largely carbon

neutral

2. Bioconversion processes in general do not produce hazardous compounds

3. Biomass production and microbial conversion can be developed and used in a more distributed manner avoiding the need for transport of fuels via cargo ships or pipelines for long distances.

Biomass Fuel

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Cassava EthanolEthanol conversion

process

Source : BPPT

Amylase Enzyme

Ethanol conversion process

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Life Cycle Assessment :An environmental assessment tool for evaluation of impacts that a product

(or service) has on the environment over the entire period of its life – from the extraction of the raw materials from which it is made, through the manufacturing, packaging and marketing process, and the use, re-use and maintenance of the product, and on to its eventual recycling or disposal as waste at the end of its useful life (UNEP, 1999)

Stages of an LCA based on ISO 2006a

LCA

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Selection of impact

categories1

Characterisation3

Classification2

Normalisation 4

Grouping 5

Weighting 6

SO2

NOxHClu.a

NOxNH3

Petc

CO2

CH4

N2OCFCetc

Mandatory Optional

Acidification

Eutrophication

Global Warming

INDEX

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• Life cycle costing is a methodology directed at the evaluation of all costs associated with an activity or a product over its entire life cycle, thus assuming the dual role of a Life Cycle Assessment in economic terms

• The advantage of an LCC analysis is to provide a whole cost structure of the ethanol life cycle

• Economic input factors:Major : Capital cost, feed stock, energy, labor Minor : Enzymes, fresh water, waste effluent and denaturant

LCC

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External Cost

Externality, arises when the social or economic activities of one group of persons have an impact on another group and when that impact is not fully accounted, or compensated for, by the first group (Europian Commission Community Research, 2003)

External cost pathway based on ExternE18

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E missionEnergy

Cassava cultivation

Feedstock processing

Cassava crushing

Fermentation Bio ethanol Blending

Gasoline production

Gasoline Car driving

Car driving

T

T

T

T = Transportation

System boundary of cassava-based E10

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Land Preparation

Planting

Farming

Cassava cultivation

Ethanol Conversion

Crushing

Hydrolisis

Fermentation

Distillation

Second Distillation

Blending

Gasoline

Gasohol E10 Car Driving

Land hiring

Labor

Seed

Labor

Harvesting

Labor

Fertilizer

ChemicalsLabor

Pesticides

Tools

Machines & fuel

Seed transportation Fiscal

Charges

Repair and Maintanance

Capital Investment

Chemicals

Raw Material

Chemicals

Enzyme

Energy

Insurance

Selling Expenses

Worker Salary

Profit Margin

Ethanol

Flow chart of cassava ethanol (E-10) cost 21

Sweden

IndonesiaSwedenIndonesia PPPPercapGDP

PPPPercapGDPWTPWTP

)(

)(

Where:WTPIndonesia = Willingness To Pay in Indonesia

WTPSweden = Willingness To Pay in Sweden (basic method)

PercapGDP (PPP)Indonesia = GDP percapita of Indonesia in term of PPP

PercapGDP (PPP)Sweden = GDP percapita of Sweden in term of PPP

External Cost

The method is taken from ExternE, developed in Sweden. Adopted for Indonesia:

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The LCI procedure for cassava ethanol production cycle and gasohol use phase

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The LCC procedure for cassava ethanol production cycle and gasohol use phase

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•Evaluating environmental performance in terms of global

warming, eutrophication, acidification potential and economic performance of cassava-based E10.

•Suggestion about technologies to improve environmental and cost performance of cassava-based E10

•Recommendation of tax and subsidies for decision maker can be predicted

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