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Biodiesel Fuel (BDF) ProjectBiodiesel Fuel (BDF) Projectin Indonesia

[Project Participants]Adaro Energy tbk.

United Tractors tbk.Komatsu Ltd.

[Consultation and Presentation]

22 February 2013

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1. Project Outlinej2. MRV Methodology

a. eligibility requirementsa e g b ty equ e e tsb. reference scenarioc. emission sources to be consideredc. emission sources to be consideredd. monitoring parameters and default valuese calculating emission reductionse. calculating emission reductionsf. validation and verification

3 Environmental Integrity3. Environmental Integrity4. Future Plan and Challenges

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1 Project Outline1. Project Outline

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project site

Kideco Mine

Berau Mine

KPC Mine

Jakarta

Adaro Mine

Kideco Mine

PT Komatsu IndonesiaPT Komatsu Marketing and Support IndonesiaPT Astra International TbkPT United Tractors Tbk

Jakarta

PT Adaro Energy (Adaro)

100%

PT Sapta Indra Sejati (SIS)

PT Pamapersada Nusantara (PAMA)100% PT United Tractors (UT)

Selling mining machines

Con

tract

ing

PT Bukit Makmur (BUMA)Selling mining machines

C

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project progress

1 C t t il t l t (1 t /d ) d2010 - 2012 : pilot phase 2013 - : mass production phase

1. Construct pilot plant (1 ton/day) and lab at Adaro mine to produce European standard BDF from Jatropha

1. Construct large scale BDF plant at Adaro mine to operate 100 units of HD785 with B20Jatropha

2. Operate 2 units of Komatsu dump trucks with B20(Jatropha & Palm BDF)

HD785 with B202. Produce Jatropha crude oil for BDF

production locally(Jatropha & Palm BDF)

3. Plant Jatropha at mine area & its surrounding area

• Achieve a sustainable BDF supply

Prepare data for Mass Production Project

• Achieve a sustainable BDF supply chain with local production & local consumption at mine site

• Reduce CO2 emissionProject1. Evaluate Jatropha & Palm BDF cost2. Evaluate effects of BDF on engine /

operation

Reduce CO2 emission

operation3. Evaluate CO2 emission reduction

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project cycle

1. Stripping overburden operation 2. Disposing overburden

3. Reclamation by BDF feed stock-Jatropha , Pomgamia etc.

4. Produce BDF

-Native tree species

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role of project participants

•Plantation– Planting

•BDF production– BDF plant design

•BDF Quality control– Laboratory preparation

•Product support – Monitoring units

– Maintenance– Harvesting

(Adaro/Komatsu)

– Construction– Operate the plant

(Adaro/Komatsu)

– Operate the Lab– Monitor BDF quality

(Komatsu)

– Spare parts– Maintenance

(UT)

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nursery for production seedlings

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harvesting and oil extraction

1. Harvested Jatropha seeds from projectseeds from project plantation

2. Expeller to squeeze p qoil from the seeds (100kg seeds per hour)(app. 25kg Oil per hour)

3 Filter press to3. Filter press to produce material oil

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biodiesel production

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biodiesel production

Methanol storage BDF storage

GeneratorWaste water storage

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laboratoryQuality Control

A. Oil Pre-Treatment Section

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laboratoryQuality Control

B. Reaction and Purification Section

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test

1. Engine bench test– BDF– BDF

• Jatropha BDF & Palm BDF *Calorie of 100% BDF is app.15% lower than Diesel fuel

Various level of BDF test

Rated output decliney = -0.1226x + 1.006298%

100%

– Various level of BDF test• 0%, 5%, 10%, 20%, 50%, 100%• 3 replication of each level

R2 = 0.9851

88%90%92%94%96%98%

– Data• Rated Output, Engine Torque Curve

86%0% 20% 40% 60% 80% 100%

Jatropha BDF conc.

2. Dump trucks test run– Palm BDF20 test reached 6,000 hours on Dec. 2011.– Jatropha BDF test reached 6 000 hours on September 2012– Jatropha BDF test reached 6,000 hours on September 2012

• No remarkable problem for fuel lineFuel pump common rail injector & hoseFuel pump, common rail, injector & hose

• No remarkable affect on productivity of mine operation

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2 MRV Methodology2. MRV Methodology

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eligibility requirements

li ibiliteligibilityCriteria 1 Fossil fuel use is replaced by biodiesel.Criteria 2 Proof that plants, vegetable oil and waste food

oil that will become feedstock for biodiesel have not been utilized for other energy use innot been utilized for other energy use in Indonesia without the project is provided.

Criteria 3 The biodiesel consumption is measurableCriteria 3 The biodiesel consumption is measurable.Criteria 4 Laws and regulations of biodiesel usage in

Indonesia are metIndonesia are met.

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reference scenario

• The Indonesian government has set a mandatory bi di l tili ti l l f th I d t d C i lbiodiesel utilization level for the Industry and Commercial sector as follows decided in the Ministerial Decree No 32 2008No.32, 2008.

• However, such regulation is not currently met especially in the Industry and Commercial sector because of somein the Industry and Commercial sector because of some difficulties.

• Therefore, the reference scenario is that biodiesel will be ,utilized to meet the mandatory level during the project period of JCM.

January 2010

January 2015

January 2020

January 2025

5% 10% 15% 20%

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emission sources to be considered

processes emission sourcesFeedstock cultivation process

Emissions from the cultivation of biomass feedstock (e.g. consumption of fossil fuels by farm equipment, release of N2O into the q p ,atmosphere from cultivation, transport and application of fertilizer)

Feedstock transport Emissions from the transport of biomass to beFeedstock transport process

Emissions from the transport of biomass to be used in biodiesel feedstock

Biodiesel production Emissions from the production of biodieselpprocess

p

Biodiesel transport process

Emissions from the transport of biodieselprocess

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monitoring parameters and default values

parameters to be monitored1 Project consumption of biodiesel2 Weight of plant feedstock input into biodiesel production3 Number of transport of plant feedstock to the biodiesel production facility

from its cultivation land4 Average distance per transport of plant feedstockg5 Project electricity consumption from production of biodiesel6 Project consumption of fossil fuel (e.g. petrodiesel) from production of

biodieselbiodiesel7 Quantity of methanol consumed from producing biodiesel8 Number of transport of biodiesel to supply areas from the production p pp y p

facility(ies)9 Average distance per transport of biodiesel

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monitoring parameters and default values

default values1 Net calorific value of biodiesel produced2 CO2 emissions factor of petrodiesel3 Carbon dioxide emissions factor from cultivation of plant feedstock4 Average yield of feedstock5 Average distance per transport of plant feedstock5 Average distance per transport of plant feedstock6 CO2 emission factor per transport distance

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calculating emission reductions

11,224 tCO2/y for 20149 829 tCO2/ f 2015 20209,829 tCO2/y for 2015-2020

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calculating emission reductions

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validation and verification

• Preparation of Project Design Document (PDD) and Monitoring Plan

PDD Monitoring Plan

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validation and verification

• Validated by the third party entityAi f lid ti• Aims of validation– Improvement of monitoring accuracy in line with the international

standard (i.e. ISO14064)– Maintaining environmental integrity– Comments on validation process

Validation report

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3 Environmental Integrity3. Environmental Integrity

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a sustainable BDF supply chain• Establishment of a sustainable BDF supply chain with local production for

local consumption using reclamation area and degraded landp g g

1. Stripping overburden operation 2. Disposing overburden

3 Reclamation by BDF feed stock4 Produce BDF 3. Reclamation by BDF feed stock-Jatropha , Pomgamia etc.-Native tree species

4. Produce BDF

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native species

• Mine area1 Reclamation area1. Reclamation area

• Native tree spices (Meranti) → Reforestation to the tropical forest• BDF Feed stock (Jatropha, Pomgamia) → Oil production

2. Unused area• BDF feed stock (Jatropha) → Oil production

• Surrounding area 1. Local community land

Contribute local community economy by promoting BDF feed stock• Contribute local community economy by promoting BDF feed stock plantation

BDF feed stock

plantation trial

Native treeplantation trial

(Jatropha)

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4 Future Plan and Challenges4. Future Plan and Challenges

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plan for the future

2013 - : mass production phase

1.Construct large scale BDF plant (app. 30 ton/day) at Adaro mine to ( pp y)operate 100 units of HD785 with B20

2 Produce Jatropha crude oil for BDF2.Produce Jatropha crude oil for BDF production locally

• Achieve a sustainable BDF supply chain with local production & local consumption at mine site

• Reduce CO2 emission• Reduce CO2 emission

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challenges (1)

• Cultivation area and yield of jatropha oil

HD785 x 1UnitConsumption : 432tons per year(80Liter/H, 20H/day, 300 operating

Necessary BDF 86.4 tons(20% BDF)

Necessary Crude Oil 91 tons(Refining loss is 5%)

days/year) App. 200 ton CERsJatropha

674m

Palm

477m

216m

Palm: 4 tons/ha

Necessary plantation AreaJatropha: 45.5 ha (2 ton/ha)Palm: 22.8 ha (4 ton/ha)Jatropha: 2 tons/ha

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challenges (2)

• Quality assurance of biodiesel thorough supply chain

Producer Blender Distributor User

T t l lit i ti lTotal quality assurance is essentialfor users of BDF with a sense of safety,

hi h ill l d t i fwhich will lead to an expansion ofBDF consumption in Indonesia

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Th kThank you