36557 Ino Tacr Appendixiv

APPENDIX IV

CDM PROJECT IDEA NOTES AND EXPRESSIONS OF INTEREST

CDM PROJECT IDEA NOTES

I. Project Idea Note for Clean Development Mechanism

Name of Project

Siak Hulu 5 MW Biomass Power Plant

Date of Submission

Nov 2005

A. Project Description, Type, Location and Schedule

Technical Summary of the Project Objective of the Project The objective of the project is to reduce the growth rate of Green

House Gases (GHG) through utilising palm oil residue as a fuel source for electricity generation and steam generation.

Project description and proposed activities (including a technical description of the project)

The project activity is to install a power generation plant utilising biomass waste for power generation and further export to the electricity grid. Biomass power plant will be designed for 5MWe utilizing Palm Oil Mill residues as a fuel. The electricity generated will be sold to PLN grid. This will reduce the grid system’s dependency on fossil fuel resources and reduce the emission of GHG emission. The location of the power plant is adjacent to the Sinar Siak Dian Permai palm oil mill, which has been identified as provider of potential biomass fuel sources. It is anticipated that the fuel for the biomass power plant will be supplied from a number of mills in the Siak Hulu cluster. Treatment of EFB will be carried out to improve the heat value prior to combustion. Steam is produced by the Biomass Boilers with total capacity 25,000 kg per hour at 68 barg pressure and temperature of 450 0C superheated. First it is expanded in steam turbines, through a series of turbo wheels and then led into the exhaust manifold and into atmospheric condenser. The energy released during the expansion of steam is converted by turbine into mechanical power to drive an alternator. The electricity generated from a renewable resource, biomass waste in this case, exported to the grid will displace conventional electricity generation, mainly by fossil fuel, in the grid. This will result in the reduction of greenhouse gases (GHGs) emission in the grid

Project Developer Name of the project developer PD Sarana Pembangunan Riau JV Organisational category Private company

Address Contact person Telephone / fax E-mail and website address, if any

Project Sponsors (if applicable) (List and provide the following information for all project sponsors) Name of the project sponsor NA Organizational category NA Address (include web address, if any)

NA

Main activities NA

Summary of the financials NA

Cooperation with Annex 1 countries ( CER’s Buyer ) Type of Project Greenhouse gases targeted CO2 Type of activities Abatement Field of activities

a. Energy supply Renewable electricity supply to the grid, 5 Mwe b. Energy demand NA c. Transport NA d. Waste management Utilization of waste

Location of the Project Brief description of the location of the plant

The plant is located at the Research Centre of Riau Commodity surrounded by six palm oil mills in the district of Siak Hulu, Kabupaten Kampar, Riau Province, Indonesia.. Distance from the nearest PLN grid is around 1km.

Expected Schedule Earliest project start date 2008 Estimate of time required before becoming operational after approval of the PIN

Time required for financial commitments: 2 months Time required for legal matters: 4 months Time required for negotiations: 2 months Time required for construction: 15 months

Expected first year of CER delivery

Year 2008 (subject to date of plant commissioning)

Project lifetime 21 years Current status or phase of the project

Pre feasibility study

A1. Project Size Is the project a small-scale project?

Small-scale project (Biomass)

B. National Criteria for CDM Energy Projects 1. Sustainable Development Describe how the project addresses one or more of the following:

i. Ensuring adequacy and security of fuel supply as well as promoting the utilisation of gas and renewable energy

ii. Ensuring adequacy of electricity supply as well as improving productivity and efficiency

iii. Developing the energy-related industries and services as well as increasing local content

iv. Promoting Indonesia as a regional centre for energy-related engineering services

v. Encouraging efficient utilisation of energy, particularly in the industrial and commercial sectors

vi. Giving due importance to environmental considerations

i. The potential of power generation from biomass can be seen as very promising in Indonesia. The palm oil industry generates the largest amount of biomass waste. ii. The biomass power plant carefully designed to ensure its long term effectiveness. The impact of efficient energy conversion and in-house utilization are important design criteria. iii. The project will be a demonstration of a new integrated power plant design, which will support the Indonesian energy-related industries to provide more efficient designs and technologies for cogeneration systems. iv. Indonesia with its hundreds of Palm Oil Mills generate huge amount of biomass waste, a bio energy project expected to be a model for

many mills in Indonesia and improve the business opportunities for local engineering, design and manufacturing of projects and technologies. v. The project aims at using the main waste streams from the palm oil mill, namely solid waste (EFB, shells and fibres). This will lead to an efficient utilisation of the energy resources. vi. The project will reduce the waste from the palm oil mill, produce clean renewable power and steam and utilise efficient, state of the art technology, which will lead to less environmental impact. Furthermore the project will comply with all applicable environmental regulations in the country.

2. Environmental regulations

i. Has the project conformed to the environmental regulations of the country?

ii. List the approvals (or exemptions) obtained

i. Yes, all emission and effluent will comply with Environment Quality Act ii. Approvals from Department of Environment will be sought prior to construction stage.

3. Technology to be employed and source of technology

The main components of the biomass power plant are the biomass fired steam boiler, the turbine and the fuel preparation system. The project will use the Danstoker – Enco Water – Tube Boiler or a boiler of similar standard. This is a proven design based on the Natural Circulation Principle. The boiler is provided with a single overhead boiler drum. The drum is fully welded and provided with a steam separating system, a feed water distributor and a manhole at the end. The boiler is designed for firing with Shredded and Dried Oil Palm Empty Fruit Bunch (EFB) Fibres of 75mm length max., Palm Mesocarp Fibres, and Wood-Chips (25 mm cubes), which are reasonably free of Foreign Materials. All of the above fuels shall have a Moisture Content of between 25% to 40% by weight. Subject to final design consideration, the combustion equipment comprise an Inclined Water-Cooled Membrane Vibrating Grate System, designed to provide effective and environmental-friendly, fuel burn-out at all boiler load conditions. The Furnace is designed to create the best possible conditions for combustion of the fuel. The furnace is provided with the necessary inspection covers and access doors. Fully-Welded Membrane Walls and Grates Increases the Heating Surface of the Boiler, especially its Radiant Heating Surface. It is also maintenance-free, as long as the Boiler Feed Water Quality meets Internationally-Accepted Feed Water Quality Specifications, for the Boiler Operating Pressure.

4. Project Developer

PD Sarana Pembangunan Riau JV

Local incorporated company Paid-up capital Sources of Finance to be Sought or Already Identified Equity NA Debt – Long-term NA Debt - Short term NA Not identified NA CDM contribution sought Total for project lifetime (3 x 7 years)

US$ 3,336,000 1st Crediting Period (2007 – 2012) US$ 800,000

Sources of carbon finance NA C. Expected Environmental and Social Benefits Estimate of Greenhouse Gases abated / CO2 Sequestered (in metric tons of CO2-equivalent)

Biomass (Based on 5MWe export to the grid) Annual : 32,000 tCO2 – equivalent/year Up to and including 2012: 160,000 tCO2-equivalent Up to a period of 10 years: 320,000 tCO2-equivalent Up to a period of 7 years: 224,000 tCO2-equivalent Up to a period of 14 years: 448,000 tCO2-equivalent

Baseline scenario Biomass Biomass fuels are becoming important renewable, environmental friendly and economical source of energy. Biomass has the advantage that it can be stored as a fuel for use on demand and can be converted to heat and electricity. By utilising agro residues consisting of Empty Fruit Bunch (EFB) as the primary fuel, mesocarp fibre and shells shall effectively displace fossil fuel based electricity generation. The total annual CO2 emission reduction is estimated at 32,000 tCO2/year The project activity is to supply electricity from renewable biomass waste to the electricity grid system in Riau. This will equally reduce the amount of power to be generated by the present capacities connected to the grid system.

Socio-economic aspects What social and economic effects can be attributed to the project and which would not have occurred in a comparable situation without that project?

The social benefit derived consists of mitigating environmental impact by orderly disposal residue instead of incineration, open burning or natural decay. The economic impact should create opportunity in the engineering services sector in designing and implementing energy efficient and integrated bio energy plants, which is expected to lead to business in Indonesia and abroad.

What are the possible direct effects (e.g., employment creation, capital required, foreign exchange effects)?

The direct effect includes employment opportunities for the villagers and resident of nearby town. Possibility setting up of workshops, agro based product traders & spare parts dealers servicing the needs of the power plant. The plant will require more staff than the present smaller energy plant at the palm oil mill as the operation hours will be extended and the capacity and complexity is higher.

The project will reduce the use of fossil fuels in the power generation sector that will lead to less import of fossil fuels and/or possible export of fossil fuels, and thus improve the foreign exchange of the country. Furthermore the sale of certified emission reductions will be in hard currency e.g. Euro or US Dollars.

What are the possible other effects? For example: • Training/education

associated with the introduction of new processes, technologies and products and/or

• The effects of a project on

other industries

The setting up the integrated bio-energy power plant is expected to be as a reference and exposure in biomass technology for learning institution since biomass utilization is still in a very early stage in Indonesia. The effect of a project on the other industries includes the possibility of engineering services sector on component and spare parts suppliers, plant maintenance and consultancy.

D. Finance Total Project Cost Estimate Development costs US$ 540,000 Installed costs US$ 5,400,000 Other costs US$ 1,560,000 Total project costs US$ 7,500,000 Indicative CER Price (subject to negotiation and financial due diligence)

Euro 6.00 / tonne CO2e

E. Risks Risks in the Project Please describe the factors that may cause delays in, or prevent implementation of the project

Cost of equipment and project viability without the sales of CERs.

Estimate the Degree of Risk Technical risk

Low Medium High

Timing risk

Low Medium High

Budget risk

Low Medium High

CDM PROJECT IDEA NOTE The objective of the PIN is to determine whether the submitted project proposals contain all the relevant information to screen the project and to assess whether the projects meet the national CDM criteria Description of size and quality expected of a PIN Basically a PIN will consist of approximately 10 pages providing indicative information on: A. Project description, Type, Location and Schedule B. National criteria for small-scale projects C. Expected environmental and social benefits D. Finance E. Risks If possible, full information should be provided on all issues. The information required to consider the project for national approval is highlighted in the template below.

The completed PIN and attachments should be sent to:

Name of Project

Methane Recovery Project in PT. Perkebunan Nusantara V – Sei Pagar Palm Oil Mill in Riau, Indonesia

Date of Submission

January 2006



House Gases (GHG) through utilising palm oil effluent and capturing biogas as a fuel source for boiler in order to it heat up


The project will involve the installation of a closed anaerobic system that will produce and collect consistently high quality methane-rich biogas from palm oil mill effluent (POME) that will be used as a fuel. The biogas will be captured from closed tank anaerobic digesters of POME and is fed to the boiler of PT. Perkebunan Nusantara V – Sei Pagar Palm Oil Mill. . 2 anaerobic digesters anks will be installed having a volume of 3000 m3 and 4000 m3 for each unit of biogas plant. The minimum retention time is designed at 17 days. The location of the anaerobic digesters is adjacent to the Sei Pagar Palm Oil Mill, which has been identified as provider of biogas fuel source.

Project Developer Name of the project developer PT. Perkebunan Nusantara V Organisational category A State Owned Company



NA

Main activities NA Summary of the financials NA

Cooperation with Annex 1 countries EcoSecurities ( CER’s Buyer )

Type of Project Greenhouse gases targeted CO2 / CH4 Type of activities Abatement Field of activities

a. Energy supply Renewable energy supply to boiler b. Energy demand NA c. Transport NA d. Waste management Reduce Methane Emission


The digesters are located in PT. Perkebunan Nusantara V- Sei Pagar Palm Oil Mill, Riau, Indonesia. Distance from boiler to digesters is less than 1km.






Pre Feasibility Study


Small-scale project (Biomass and biogas)








i. The potential usage of biogas can be seen as very promising in Indonesia. The palm oil industry generates the largest amount of biomass waste including palm oil effluent or POME. ii. The biogas capture system and anaerobic digester system are carefully designed to ensure its long term effectiveness. The impact of efficient energy conversion and in-house utilization are important design criteria. iii. The Palm Oil Mill could use biogas which is originally untapped, reduce the use of diesel oil and develop the mill to apply a proven biogas capture technology iv. Indonesia with its hundreds of Palm Oil Mills generate huge amount of biomass waste include POME, a bio energy project expected to be a model for many mills in Indonesia and improve the business opportunities for local engineering, design and manufacturing of projects and technologies.

v. The project aims at using the main waste streams from the palm oil mill, namely palm oil effluent (biogas) in an integrated energy plant. This will lead to an efficient utilisation of the energy resources. vi. The project will utilize palm oil mill effluent to produce biogas as renewable energy source, state of the art technology, which will lead to less environmental impact. Furthermore the project will comply with all applicable environmental regulations in the country.




i. Yes, all emission and effluent will comply with Environment Quality Act. ii. Approvals from Ministry of Environment will be sought prior to construction stage.


The project will involve the installation of a closed anaerobic system that will produce and collect consistently high quality methane-rich biogas from palm oil mill effluent (POME) that will be used as a fuel. The biogas will be used for energy generation in the integrated energy plant. The project will use the anaerobic closed digesting system designed by Novaviro Technology.


PT. Perkebunan Nusantara V

Local incorporated company Paid-up capital Sources of Finance to be Sought or Already Identified Equity Debt – Long-term Debt - Short term Not identified CDM contribution sought Total for project lifetime (3 x 7 years)

1st Crediting Period (2007 – 2012) Sources of carbon finance

C. Expected Environmental and Social Benefits Estimate of Greenhouse Gases abated / CO2 Sequestered (in metric tons of CO2-equivalent)

Biogas (Based on 150,000 tons/year FFB) • Annual: 14,529 tCO2-equivalent/year • Up to and including 2012: 72,645 tCO2-equivalent • Up to a period of 10 years: 145,290 tCO2-equivalent • Up to a period of 7 years: 101,703 tCO2-equivalent • Up to a period of 14 years: 203,406 tCO2-equivalent

Baseline scenario

Biogas The potential reduction of GHG by implementing the POME treatment and biogas recovery technology are: 1. Avoided CH4 emissions from lagoon Emitted methane from the lagoons is captured and thereby GHG emissions are reduced. 2. The biogas is intended to be used in the biomass boiler. Huge amount of methane are released to the atmosphere through the common practice of treating POME open lagoons systems resulting contribution to GHG emission. Methane is 21 times harmful to the environment compared to carbon dioxide. Based on the existing annual 150,000 tons FFB palm oill mill, the total annual CO2 emission reduction is estimated at 14,529 tCO2-equivalent/year.


The replacement of the current wastewater treatment system by a closed anaerobic digester will mitigate large quantities of CH4 , a potent GHG from being emitted into atmosphere. It also reduces the strong odours being emitted into atmosphere. The economic impact should create opportunity in the engineering services sector in designing and implementing energy efficient.


The direct effect includes employment opportunities for the villagers and resident of nearby town. Possibility setting up of workshops, agro based product traders & spare parts dealers servicing the needs of the anaerobic digesters system. The plant will require more staff than the present plant at the palm oil mill as a new digester system is introduced. The project will reduce the use of fossil fuels in the boiler particularly at start up that will lead to less fossil fuels use. Furthermore the sale of certified emission reductions will be in hard currency e.g. Euro or US Dollars.




other industries

The setting up the integrated biogas capture system into Palm Oil Mill is expected to be as a reference and exposure in biomass and biogas technology for learning institution since biomass and biogas utilization is still in a very early stage in Indonesia. The effect of a project on the other industries includes the possibility of engineering services sector on component and spare parts suppliers, plant maintenance and consultancy.

D. Finance Total Project Cost Estimate Biogas Plant Biomass Plant Development costs Installed costs Other costs Total project costs Indicative CER Price (subject to negotiation and financial due diligence)

USD 10.80 / tonne CO2e


Cost of equipment and project viability without the sales of CERs. Availability of Fresh Fruit Bunch.


Low Medium High

Timing risk

Low Medium High

Budget risk

Low Medium High

Golder Associates

The objective of the PIN is to determine whether the submitted project proposals contain all

the relevant information to screen the project and to assess whether the projects meet the

national CDM criteria

Description of size and quality expected of a PIN Basically a PIN will consist of approximately 10 pages providing indicative information on: A. Project description, Type, Location and Schedule B. National criteria for small-scale projects C. Expected environmental and social benefits D. Finance E. Risks If possible, full information should be provided on all issues. The information required to consider the project for national approval is highlighted in the template below.


PROJECT IDEA NOTE (PIN) FOR CDM PROJECTS

Golder Associates

Name of Project

Methane Recovery and Power Generation Project in Riau, Indonesia

Date of Submission

January 2006





The project will involve the installation of a closed anaerobic system that will produce and collect consistently high quality methane-rich biogas from palm oil mill effluent (POME) that will be used as a fuel. The biogas will be captured from closed tank anaerobic digesters of POME and is fed to the boiler of PT.Ramajaya Pramukti - Rama Rama Palm Oil Mill. . 2 anaerobic digester tanks will be installed having a volume of 3000 and 4000 m3 for each unit biogas plant. The minimum retention time is designed at 17 days The location of the anaerobic digesters is adjacent to the Rama Rama Palm Oil Mill, which has been identified as provider of biogas fuel source.

Project Developer Name of the project developer PT. Ramajaya Pramukti Organisational category Private company



NA



Golder Associates




The digesters are located in PT. Ramajaya Pramukti- Rama Rama Palm Oil Mill, Riau, Indonesia. Distance from boiler to digesters is less than 1km.






Ongoing Pre Feasibility Study


Small-scale project (Biogas)









Golder Associates







The project will involve the installation of a closed anaerobic system that will produce and collect consistently high quality methane-rich biogas from palm oil mill effluent (POME) that will be used as a fuel. The biogas will be used for energy generation in the integrated energy plant.


PT. Ramajaya Pramukti



Golder Associates


Biogas (Based on 1200 tons/day FFB) Annual: 47,628 tCO2-equivalent/year Up to and including 2012: 285,768 tCO2-equivalent Up to a period of 10 years: 476,280 tCO2-equivalent Up to a period of 7 years: 333,396 tCO2-equivalent Up to a period of 14 years: 666,792 tCO2-equivalent

Baseline scenario Biogas The potential reduction of GHG by implementing the POME treatment and biogas recovery technology are: 1. Avoided CH4 emissions from lagoon Emitted methane from the lagoons is captured and thereby GHG emissions are reduced. 2. The biogas is intended to be used in the biomass boiler. Huge amount of methane are released to the atmosphere through the common practice of treating POME open lagoons systems resulting contribution to GHG emission. Methane is 21 times harmful to the environment compared to carbon dioxide. Based on the existing 1200 tonne/day palm oil mill, the total annual CO2 emission reduction is estimated at 47,628 tCO2/year.








other industries


Golder Associates


Euro 6 / tonne CO2e




Low Medium High

Timing risk

Low Medium High

Budget risk

Low Medium High

I. Project Idea Note for Clean Development Mechanism

Name of Project

Kota Pinang 5 MW Biomass Power Plant

Date of Submission

Dec 2005



House Gases (GHG) through utilising palm oil residue as a fuel source for electricity generation and steam generation.


The project activity is to install a power generation plant utilising biomass waste for power generation and further export to the electricity grid. Biomass power plant will be designed for 5MWe utilizing Palm Oil Mill residues as a fuel. The electricity generated will be sold to PLN grid. This will reduce the grid system’s dependency on fossil fuel resources and reduce the emission of GHG emission. The location of the power plant is adjacent to the Sinar Siak Dian Permai palm oil mill, which has been identified as provider of potential biomass fuel sources. It is anticipated that the fuel for the biomass power plant will be supplied from a number of mills in the Siak Hulu cluster. Treatment of EFB will be carried out to improve the heat value prior to combustion. Steam is produced by the Biomass Boilers with total capacity 25,000 kg per hour at 68 barg pressure and temperature of 450 0C superheated. First it is expanded in steam turbines, through a series of turbo wheels and then led into the exhaust manifold and into atmospheric condenser. The energy released during the expansion of steam is converted by turbine into mechanical power to drive an alternator. The electricity generated from a renewable resource, biomass waste in this case, exported to the grid will displace conventional electricity generation, mainly by fossil fuel, in the grid. This will result in the reduction of greenhouse gases (GHGs) emission in the grid

Project Developer Name of the project developer To be advised Organisational category Private company



NA


Cooperation with Annex 1 countries ( CER’s Buyer ) Type of Project Greenhouse gases targeted CO2 Type of activities Abatement Field of activities

a. Energy supply Renewable electricity supply to the grid, 5 Mwe b. Energy demand NA c. Transport NA d. Waste management Utilization of waste


The plant is located at Kampung Jawa village, surrounded by six palm oil mills in the district of Kota Pinang, Labuhan Batu regency, North Sumatera Province, Indonesia.. Distance from the nearest PLN grid is around 500 m.






Pre feasibility study


Small-scale project (Biomass)





iv. Promoting Indonesia as a regional centre

for energy-related engineering services v. Encouraging efficient utilisation of energy,

particularly in the industrial and

i. The potential of power generation from biomass can be seen as very promising in Indonesia. The palm oil industry generates the largest amount of biomass waste. ii. The biomass power plant carefully designed to ensure its long term effectiveness. The impact of efficient energy conversion and in-house utilization are important design criteria. iii. The project will be a demonstration of a new integrated power plant design, which will support the Indonesian energy-related industries to provide more efficient designs and technologies for cogeneration systems. iv. Indonesia with its hundreds of Palm Oil Mills

commercial sectors vi. Giving due importance to environmental

considerations

generate huge amount of biomass waste, a bio energy project expected to be a model for many mills in Indonesia and improve the business opportunities for local engineering, design and manufacturing of projects and technologies. v. The project aims at using the main waste streams from the palm oil mill, namely solid waste (EFB, shells and fibres). This will lead to an efficient utilisation of the energy resources. vi. The project will reduce the waste from the palm oil mill, produce clean renewable power and steam and utilise efficient, state of the art technology, which will lead to less environmental impact. Furthermore the project will comply with all applicable environmental regulations in the country.




i. Yes, all emission and effluent will comply with Environment Quality Act ii. Approvals from Department of Environment will be sought prior to construction stage.


The main components of the biomass power plant are the biomass fired steam boiler, the turbine and the fuel preparation system. The project will use the Danstoker – Enco Water – Tube Boiler or a boiler of similar standard. This is a proven design based on the Natural Circulation Principle. The boiler is provided with a single overhead boiler drum. The drum is fully welded and provided with a steam separating system, a feed water distributor and a manhole at the end. The boiler is designed for firing with Shredded and Dried Oil Palm Empty Fruit Bunch (EFB) Fibres of 75mm length max., Palm Mesocarp Fibres, and Wood-Chips (25 mm cubes), which are reasonably free of Foreign Materials. All of the above fuels shall have a Moisture Content of between 25% to 40% by weight. Subject to final design consideration, the combustion equipment comprise an Inclined Water-Cooled Membrane Vibrating Grate System, designed to provide effective and environmental-friendly, fuel burn-out at all boiler load conditions. The Furnace is designed to create the best possible conditions for combustion of the fuel. The furnace is provided with the necessary inspection covers and access doors. Fully-Welded Membrane Walls and Grates Increases the Heating Surface of the Boiler, especially its Radiant Heating Surface. It is also maintenance-free, as long as the Boiler Feed Water Quality meets Internationally-

Accepted Feed Water Quality Specifications, for the Boiler Operating Pressure.


To be advised

Local incorporated company Paid-up capital Sources of Finance to be Sought or Already Identified Equity NA Debt – Long-term NA Debt - Short term NA Not identified NA CDM contribution sought Total for project lifetime (3 x 7 years)

US$ 3,336,000 1st Crediting Period (2007 – 2012) US$ 800,000

Sources of carbon finance NA C. Expected Environmental and Social Benefits Estimate of Greenhouse Gases abated / CO2 Sequestered (in metric tons of CO2-equivalent)

Biomass (Based on 5MWe export to the grid) Annual : 32,000 tCO2 – equivalent/year Up to and including 2012: 160,000 tCO2-equivalent Up to a period of 10 years: 320,000 tCO2-equivalent Up to a period of 7 years: 224,000 tCO2-equivalent Up to a period of 14 years: 448,000 tCO2-equivalent

Baseline scenario Biomass Biomass fuels are becoming important renewable, environmental friendly and economical source of energy. Biomass has the advantage that it can be stored as a fuel for use on demand and can be converted to heat and electricity. By utilising agro residues consisting of Empty Fruit Bunch (EFB) as the primary fuel, mesocarp fibre and shells shall effectively displace fossil fuel based electricity generation. The total annual CO2 emission reduction is estimated at 32,000 tCO2/year The project activity is to supply electricity from renewable biomass waste to the electricity grid system in Riau. This will equally reduce the amount of power to be generated by the present capacities connected to the grid system.


The social benefit derived consists of mitigating environmental impact by orderly disposal residue instead of incineration, open burning or natural decay. The economic impact should create opportunity in the engineering services sector in designing and implementing energy efficient and integrated bio energy plants, which is expected to lead to business in Indonesia and abroad.


The direct effect includes employment opportunities for the villagers and resident of nearby town. Possibility setting up of workshops, agro based product traders & spare parts dealers servicing the needs of the power plant.

The plant will require more staff than the present smaller energy plant at the palm oil mill as the operation hours will be extended and the capacity and complexity is higher. The project will reduce the use of fossil fuels in the power generation sector that will lead to less import of fossil fuels and/or possible export of fossil fuels, and thus improve the foreign exchange of the country. Furthermore the sale of certified emission reductions will be in hard currency e.g. Euro or US Dollars.




other industries

The setting up the integrated bio-energy power plant is expected to be as a reference and exposure in biomass technology for learning institution since biomass utilization is still in a very early stage in Indonesia. The effect of a project on the other industries includes the possibility of engineering services sector on component and spare parts suppliers, plant maintenance and consultancy.

D. Finance Total Project Cost Estimate Development costs US$ 540,000 Installed costs US$ 5,400,000 Other costs US$ 1,560,000 Total project costs US$ 7,500,000 Indicative CER Price (subject to negotiation and financial due diligence)

Euro 6.00 / tonne CO2e


Cost of equipment and project viability without the sales of CERs.


Low Medium High

Timing risk

Low Medium High

Budget risk

Low Medium High


The objective of the PIN is to determine whether the submitted project proposals

contain all the relevant information to screen the project and to assess whether the

projects meet the national CDM criteria



Name of Project

Methane Recovery Project at PT. Inti Indo Sawit Subur Buatan I in Riau, Indonesia

Date of Submission

January 2006





The project will involve the installation of a closed anaerobic system that will produce and collect consistently high quality methane-rich biogas from palm oil mill effluent (POME) that will be used as a fuel. The biogas will be captured from closed tank anaerobic digesters of POME and is fed to the boiler of PT.Inti Indo Sawit Subur Buatan I Palm Oil Mill (PT.IISSB I POM).. 2 anaerobic digesting tanks will be installed having a volume of 3000 and 4000 m3 for each unit of biogas plant. The minimum retention time is designed at 17 days The location of the anaerobic digesters is adjacent to the PT.IISSB I Palm Oil Mill, which has been identified as provider of biogas fuel source.

Project Developer Name of the project developer PT. Inti Indo Sawit Subur Buatan I Organisational category Private company



NA






The digesters are located in PT. Inti Indo Sawit Subur Buatan I Palm Oil Mill, Riau, Indonesia.






Pre Feasibility Study










i. The potential usage of biogas can be seen as very promising in Indonesia. The palm oil industry generates the largest amount of biomass waste including palm oil effluent or POME. ii. The biogas capture system and anaerobic digester system are carefully designed to ensure its long term effectiveness. The impact of efficient energy conversion and in-house utilization are important design criteria. iii. The Palm Oil Mill could use biogas which is originally untapped, reduce the use of diesel oil and develop the mill to apply a proven biogas capture technology iv. Indonesia with its hundreds of Palm Oil Mills generate huge amount of biomass waste include POME, a bio energy project expected to be a model for many mills in Indonesia and improve the business

opportunities for local engineering, design and manufacturing of projects and technologies. v. The project aims at using the main waste streams from the palm oil mill, namely palm oil effluent (biogas) in an integrated energy plant. This will lead to an efficient utilisation of the energy resources. vi. The project will utilize palm oil mill effluent to produce biogas as renewable energy source, state of the art technology, which will lead to less environmental impact. Furthermore the project will comply with all applicable environmental regulations in the country.






The project will involve the installation of a closed anaerobic system that will produce and collect consistently high quality methane-rich biogas from palm oil mill effluent (POME) that will be used as a fuel. The biogas will be used for energy generation in the integrated energy plant. The project will use the anaerobic closed digesting system designed by Novaviro Technology.


PT. Inti Indo Sawit Subur Buatan I




Biogas (Based on 700 tons/day FFB) • Annual: 25,468 tCO2-equivalent/year • Up to and including 2012: 127,339 tCO2-equivalent • Up to a period of 10 years: 254,680 tCO2-equivalent • Up to a period of 7 years: 178,274 tCO2-equivalent • Up to a period of 14 years: 356,549 tCO2-equivalent

Baseline scenario

Biogas The potential reduction of GHG by implementing the POME treatment and biogas recovery technology are: 1. Avoided CH4 emissions from lagoon Emitted methane from the lagoons is captured and thereby GHG emissions are reduced. 2. The biogas is intended to be used in the biomass boiler. Huge amount of methane are released to the atmosphere through the common practice of treating POME open lagoons systems resulting contribution to GHG emission. Methane is 21 times harmful to the environment compared to carbon dioxide.

• Based on the existing 700 tonne/day palm oil mill, the total annual CO2 emission reduction is estimated at : 25,468 tCO2-equivalent/year




The direct effect includes employment opportunities for the villagers and resident of nearby town. Possibility setting up of workshops, agro based product traders & spare parts dealers servicing the needs of the anaerobic digesters system. The plant will require more staff than the present plant at the palm oil mill as a new digester system is introduced. The project will reduce the use of fossil fuels in the boiler particularly at start up that will lead to less fossil fuels usage. Furthermore the sale of certified emission reductions will be in hard currency e.g. Euro or US Dollars.




other industries



USD 7.20 / tonne CO2e




Low Medium High

Timing risk

Low Medium High

Budget risk

Low Medium High

Golder Associates

The objective of the PIN is to determine whether the submitted project proposals contain all

the relevant information to screen the project and to assess whether the projects meet the

national CDM criteria




Golder Associates

Name of Project

Methane Recovery Project at PT. Sinar Siak Dian Permai in Riau, Indonesia

Date of Submission

February 2006





The project will involve the installation of a closed anaerobic system that will produce and collect consistently high quality methane-rich biogas from palm oil mill effluent (POME) that will be used as a fuel. The biogas will be captured from closed tank anaerobic digesters of POME and is fed to the boiler of PT.Ramajaya Pramukti - Rama Rama Palm Oil Mill. . 2 anaerobic digester tanks will be installed having a volume of 3000 and 4000 m3 for each unit biogas plant. The minimum retention time is designed at 17 days The location of the anaerobic digesters is adjacent to the Sinar Siak Dian Permai Palm Oil Mill, which has been identified as provider of biogas fuel source.

Project Developer Name of the project developer PT. Sinar Siak Dian Permai Organisational category Private company



NA



Golder Associates




The digesters are located in PT. Sinar Siak Dian Permai Palm Oil Mill, Riau, Indonesia. Distance from boiler to digesters is less than 1km.






Ongoing Pre Feasibility Study











Golder Associates







The project will involve the installation of a closed anaerobic system that will produce and collect consistently high quality methane-rich biogas from palm oil mill effluent (POME) that will be used as a fuel. The biogas will be used for energy generation in the integrated energy plant.


PT. Sinar Siak Dian Permai


1st Crediting Period (2007 – 2012) Sources of carbon finance C. Expected Environmental and Social Benefits Estimate of Greenhouse Gases abated / CO2 Sequestered (in metric tons of CO2-equivalent)

Annual: 47,628 tCO2-equivalent/year Up to and including 2012: 285,768 tCO2-equivalent Up to a period of 10 years: 476,280 tCO2-equivalent Up to a period of 7 years: 333,396 tCO2-equivalent Up to a period of 14 years: 666,792 tCO2-equivalent

Golder Associates

Baseline scenario Biogas The potential reduction of GHG by implementing the POME treatment and biogas recovery technology are: 1. Avoided CH4 emissions from lagoon Emitted methane from the lagoons is captured and thereby GHG emissions are reduced. 2. The biogas is intended to be used in the biomass boiler. Huge amount of methane are released to the atmosphere through the common practice of treating POME open lagoons systems resulting contribution to GHG emission. Methane is 21 times harmful to the environment compared to carbon dioxide. Based on the existing 1200 tonne/day palm oil mill, the total annual CO2 emission reduction is estimated at 47,628 tCO2/year.








other industries


Golder Associates


Euro 6 / tonne CO2e




Low Medium High

Timing risk

Low Medium High

Budget risk

Low Medium High

EXPRESSION OF INTEREST

February 21, 2006 ATT : Mr. Mohamad Adan Yusof Team Leader Technical Assistance for the gas generation from waste project, ADB TA 4333-INO Ministry of Energy and Mineral Resources, Directorate General of Electricity Energy Resources Asean Centre for Energy Building, 4th floor Jl HR. Rasuna Said Bolk X2, Kav. 07-08 Kuningan-Jakarta 12950 Dear Mr. Adan Yusof, I would like to express DP SOLUSI’s interest in bring in investors for the projects that have been identified in the gas generation from waste project, ADB TA 4333-INO. These investors may be interested in equity participants as well as in the generation of Emission Credits providing that the projects are eligible as CDM projects. Please kindly include our initiatives in the overall CDM strategy implementation in Indonesia in the framework of the ADB TA 4333-INO project. Sincerely yours, DP SOLUSI (PT. DWARAKARSA PRIAMARTA)

Architrandi Priambodo President Director

Jl. Pondok Labu 1B/11A, Jakarta 12450, Indonesia, Tel/Fax: +62-21 7696081/7660789, email: [email protected]

Documents

36557 Ino Tacr Appendixiv