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Poverty Alleviation through Green Energy Solutions

Over 300 MW of projects. Indonesia Focus. Diversified Proven Team of professionals. Local and Central Government support at the highest levels. • On track to become Indonesia’s largest and most successful renewable energy group. • 8 companies and subsidiaries. • • • •

Combined Group

WE SEED THE MARKET
“To provide farmers in developing countries with sustainable income through production of green, renewable biofuel from agricultural byproducts.”

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Population Commitment
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Over 15% (= 39.33 million) of Indonesia’s 259 million people are farmers Most of Indonesia’s farmers grow rice

The income of average Indonesian farmers is less than $3/day; while 48% of them live in poverty on less than $1.25/day

Farmer’s Income

Source: BPS Indonesia (2012)

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The Base of the Pyramid

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Rice Production

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There is a Dark Side to the Charm

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Production

Indonesia produced approximately 65.39 million tons of rice in 2011

Current Disposal

Following bi-annual harvest, the husk and stalk remain; Indonesian rice cultivation produces over 100m tons of this byproduct

Though in some areas, some stalk is fed to animals, the majority of stalk is burned
Farmers burn rice stalk to clear paddy; this represents a health hazard to individuals in the area and a waste of potential energy

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 

The Bibit press enables point-of-harvest processing of rice byproduct into highdensity pellets that enable efficient, low-cost transportation to the digester site The Bibit press was designed with the following objectives:
1. Simplicity: easy to use by anyone in the family with minimal training, does not require fuel or electricity

2. Durability: long-lasting, can be left outdoors without issue
3. Affordability: existing units built for less than $50. Can be manufactured in China for ~$25

12 | Bibit Foundation | Initial Presentation | April 2012

Consistent supply of rice biofuel is essential for successful power generation; there are two challenges to successfully building this supply chain
Transportation Farmer Participation in Supply Chain

Fermentation and energy production may occur some distance from rice farming Transporting unprocessed rice stalk is logistically unfeasible because of volume

As rice production in Indonesia is done by small-holders, thousands of family farmers will be integral members of the supply chain

Bibit Foundation has found solutions to both of these issues

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RICE STRAW

BIBIT BIO-PELLETS
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Density: 70kg/m3loose,100kg/m3bailed Energy Density: 1.4GJ/m3 1 hour operation of 1MW engine:

Density: >500kg/m3 Energy Density: 7.7GJ/m3 1 hour operation of 1MW engine:

 

26 m3

5 m3

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Profit from sale of fuel pellets made with the Bibit Foundation press can increase family income by 36% increase in household income for many farmers

Bibit Foundation Impact on Farmer Income
6.000

5.000

The average farmer with .4ha paddy can produce 2.8 tonnes stalk from each harvest

Annual Income (IDR 1,000)

4.000

3.000

This stalk can be processed into 5 cubic meters of biopellets for each harvest, or 13 cubic meters yearly
If Bibit Foundation purchases biopellets from farmers at 200,000 IDR/t, the average farmer can yield an additional 1.4M IDR per year

2.000

1.000

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Avg Farmer
Pellet Income

Farmer with SAWA
Farming Income

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Farmer Farmer Farmer

Association/ Cooperative

Rice Mill / Rice Processing Complex

200 – 300 farmers
Farmer Farmer Farmer

Association/ Cooperative

200 – 300 farmers

Option 2: Engage Rice Mills or RPC Contract Rice Mill or RPC to collect pellets + Use previously established supply chain - Will still need Association or Cooperative to ensure pellet production and help with training

Option 1: Engage Association or Cooperative Work with Association or Cooperative leadership to implement pelletization program – training, encourage processing, and aggregate pellets + Training + Potential for many families to share a press

Bibit Foundation is currently building relationships with both of these points in the supply chain

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Microfinance Organization e.g. Koperasi Mitra Usaha Kecil

Association/Cooperative
Kelompok Petani (30 farmers)

• MUK collects 20-30 farmers and get together into a KelompokPetani • Provides loan (e.g. 2 jt) to each member of the group at the beginning of the planting season • Farmer uses loan to rent paddy, buy fertilizer, etc • MUK provides 3-4 trainings to each group at the beginning of the planting season • MUK’s mission is to help increase farmer livelihoods through extension of microloans and other nonfinancial programming

Kelompok Petani (30 farmers)

BIBIT FOUNDATION

• Bibit Foundation could partner with MUK to distribute presses to each of the groups (could be shared by a few families) • MUK would then include training on how to process pellets in already scheduled group training • MUK has ongoing relationships with these farmers and could be a good resource to gain acceptance of the program by farmers

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 Meet Pak Ngatijan (50), an

Indonesian farmer

 Currently supports his family on

less than US $100 per month

 Has created and sold his first

2m3 of Bibit bio-pellets

 Sale of Bibit bio-pellets

enabled him to double his family’s income for August 2012

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Health: burning rice stalk produces large amounts of smoke, that can be harmful to the respiratory health of farmers and their families

By providing farmers with a profitable alternative to burning rice byproduct, famers and their families can reduce risk of respiratory ailments

Ecology: farmers’ local environments benefit from recycling rather than burning rice byproduct

The Bibit press has been field tested by several farmers in Indonesia

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Potential Sales Outlets Biomass Power Producers Eco-friendly Pulp Mills Horticultural-based company (soil aeration) Healthy animal bedding manufacturers

Panel Board Manufactureres
Composites industry (WPC decking, materials and furniture)
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Harvest

Rice

Market

Seeds

$

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Harvest

Stalk

Rice

Market

Burn

Seeds

$

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Changing a 3,000 year old supply chain

Harvest

Stalk Rice Pellets

Rice

Market

Seeds

$

Seeds

$

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Bibit Foundation will help farmers with the fertilizer issue
One of the reasons why the farmers burn the rice husks and stalks is because they believe that this will fertilize the land
STEP 1: Make the farmers understand that, scientifically, partial or incomplete burning of the rice husk will cause air pollution (smoggy air)

HOW TO DEAL WITH THIS?

STEP 2: Educate the farmers on how rice husk is not as effective as manure when it comes to fertilizing the soil STEP 3: Give the farmers some choices and offer to provide the necessary and supplementary fertilizer

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