Topic

Energy: Renewable Energy and Environmental Solutions

Title THE FEASIBILITY STUDY OF PRODUCING BIOETHANOL FROM CASSAVA PLANTED IN POST-MINING LAND USING BENEFIT COST RATIO APPROACH Author and Affiliation
Fikri Irsyad M. Hernawan Febrianto Intan Nur Enima Ragesa Mario Jr Wikaranosa S.S. XII IA 4/08 XII IA 4/10 XII IA 4/11 XII IA 4/18 XII IA 4/24

Mailing Address
Jalan Kusuma Bangsa No 21, Surabaya

Table of contents
Table of contents Abstract i ii 1 3 3 4 6 8 8 8 10 11

....

1. Introduction 2. Theory 2.1. 2.2.

. Cost benefit analysis . Bioethanol production process ..

3. Methodology 4. Result 4.1. 4.2. 4.3. 4.4.

...

. Assumption ..

Estimation of Bioethanol Production Cost from Cassava

Estimation of Bioethanol Production Benefit from Cassava Benefit Cost Ratio ..

5. Discussion

. 12 . 15

6. Future works and conclusions Reference Appendix

.. 16 .. 18

The Feasibility Study of Producing Bioethanol from Cassava Planted in PostMining Land Using Benefit Cost Ratio Approach Abstract Demand for energy will increase along with increasing population, leading to the impact of climate change. One way to adapt to it while preserving environment is by using fuel from biomass, like bioethanol. This paper will discuss about bioethanol that can be made from cassava as renewable energy in Indonesia, and environmental solution through the act of planting the cassava in a post-mining land. Benefit Cost Ratio approach is used to test the feasibility of the act. The project used as a study case belongs to PT Indomining that has been doing the project in Sangasanga district in East Kalimantan. Keywords: bioethanol, cassava, post-mining land, benefit cost ratio, renewable energy

ii

1.

Introduction

As the population in Indonesia is increasing, demand for energy is also increasing. According to the Ministry of Energy and Mineral Resources (EMR), gasoline fuel consumption was 3.9% above the average quota for the year 2011 (66.06 thousand kiloliter per day). While diesel fuel consumption reached 5.3% above quota (37.75 thousand kiloliters per day). Gasoline and diesel are the two refined petroleum products, which are the most widely used in Indonesian society. But as we all know, oil is a fuel that cannot be renewed. Apart from gasoline; there are other available sources of energy such as coal. Petroleum and coal are the energy sources that will release greenhouse gas (CO 2) to the atmosphere. This gas is widely known as the prime cause of the global climate change. Indonesia had declared to reduce its emission up to 26% by 2020 in United Nations Climate Change Conference (COP15) in Copenhagen. The government already issued some regulations to respond to this, such as Presidential Instruction No. 1/2006 and Regulation of the Minister of Energy and Mineral Resources No. 32/2008. One of the ways to adapt to the global climate change is to use fuel from biomass like bioethanol. It is renewable, has sustainability of supply and create cleaner environment. Indonesia has potential ability to develop bioethanol, one of them by using the benefit of planting cassava. Cassava (Manihot esculenta or Manihot glaziovii) is a starchcontaining root crop of worldwide importance as food, feed and non-food products. Even though, cassava is mainly grown by small-scale farmers, it is predicted that the production of cassava will increase over the next few decades due to the demand of cassava as food driven by increasing population and also its increasing use for agroindustrial processing in Asia resulting in cassava is now international priority for crop improvement. Apart from its traditional role as a food crop, cassava is likely to increase its value by becoming an important biofuel crop due to its high yields of starch. Beside the high yields of starch, the total dry matter in spite of drought conditions and poor soil, together with low agro-chemical requirements, cassava is a plant that is suitable for this project since the area used to plant the cassava is the post mining-land. The cassava planting is needed to reclaim the post-mining land. Having these characteristics resulted in an energy input that represents only 56% of the final energy content of the total cassava biomass. This translates to energy profit of 95%, assuming complete utilization of the energy content in the total biomass.

Introduction | The Feasibility Study of Producing Bioethanol from Cassava

The energetic and economic aspects of using cassava as a biofuel crop are well documented. For instance, Table 1.1 shows a direct comparison of bioethanol production from different energy crops which was reviewed by Wang (2002). The conclusion was that cassava compared favorably to other crops such as maize, sugarcane and sweet sorghum. Indeed, the annual yield of bioethanol was found to be higher for cassava than for any other crops, including sugarcane. Hence, the interest in production of cassava starch-derived bioethanol is progressively increasing in Indonesia and the rest of world. In this review, it is mainly addressed on biological issues of cassava as a biomass for biofuel production and some of its economic aspects in Indonesia.
Table 1.1 Comparison of bioethanol production from different energy crops Crops Sugarcane Cassava Sweet sorghum Maize Wheat Rice Yield (ton ha year ) 70 40 35 5 4 5
-1 -1

Conversion rate to bioethanol (L ton ) 70 150 80 410 390 450

-1

Bioethanol yield (L ha-1 year-1) 4900 6000 2800 2050 1560 2250

Mining companies have already planned to produce bioethanol from cassava planted in post-mining land as a form of environmental stewardship and renewable energy development. Toxic cassava (Manihot glaziovii) will be planted to avoid competition between its role as food crop for local communities and as biofuel crop for producing bioethanol. In this paper, Benefit Cost Ratio approach is used to test the feasibility of producing bioethanol from cassava planted in post-mining land. The expected outcome of this paper is that producing bioethanol from cassava planted in post-mining land is feasible and commercially successful, according to the feasibility study. Then, the idea can be proposed as a CSR (Corporate Social Responsibility) project for mining companies in Indonesia. In addition, this project can help reducing emission from green house gas that causes the global climate change because it is cleaner fuel, provides access to energy for remote communities and hopefully can be a solution to the energy scarcity problem in Indonesia. Moreover, there will be an analysis of competitiveness between bioethanol from cassava and gasoline, diesel and kerosene.

The Feasibility Study of Producing Bioethanol from Cassava | References

2.

Theory

2.1 Cost-benefit analysis

Cost-benefit analysis (CBA) is an economic decision-making approach, used particularly in government and business. CBA is used in the assessment of whether a proposed project, programmed or policy is worth doing or to choose between several alternative ones. It involves comparing the total expected costs of each option against the total expected benefits, to see whether the benefits outweigh the costs, and by how much. In CBA, benefits and costs are expressed in money terms, and are adjusted for the time value of money, so that all flows of benefits and flows of project costs over time (which tend to occur at different points in time) are expressed on a common basis in terms of their "present value". CBA usually tries to put all relevant costs and benefits on a common temporal footing using time value of money formulas. This is often done by converting the future expected streams of costs and benefits into a present value amount using a suitable discount rate. Empirical studies suggest that in reality, people do discount the future like this. The practice of costbenefit analysis differs between countries and between sectors (e.g., transport, health) within countries. Some of the main differences include the types of impacts that are included as costs and benefits within appraisals, the extent to which impacts are expressed in monetary terms, and differences in the discount rate between countries. Agencies across the world rely on a basic set of key costbenefit indicators, including the following: NPV (net present value) PVB (present value of benefits) PVC (present value of costs) BCR (benefit cost ratio = PVB / PVC) Net benefit (net benefit = PVB - PVC) The accuracy of the outcome of a costbenefit analysis depends on how accurately costs and benefits have been estimated.

Introduction | The Feasibility Study of Producing Bioethanol from Cassava

2.2 Bioethanol production process

Both sugar-containing substrates such as sugar cane, sugar beet, molasses, and starch-containing substrates such as cassava, and corn can be deployed for bioethanol production. Although the bioethanol production processes from both type of substrates are quite similar, their processing techniques are slightly different in the initial raw materials preparation stage. Sugar-containing substrates, by nature, are fermentation ready without further modification, while the starch-containing ones need an additional step to convert them into fermentable sugar. Subsequent production processes are essentially the same for both types of substrates. Starch is converted into fermentable sugar via hydrolysis. Hydrolysis is a chemical reaction between starch and water which breaks down the long chain of starch polymer into fermentable sugar. There are two techniques for hydrolysis: enzymatic and acid hydrolysis. After fermentable sugar is obtained, bioethanol can be produced directly by microbial conversion through fermentation by the same strain of yeast used with sugarbased substrate. Yeast strain used in the sugar fermentation is usually bakers yeast (Saccharomyces cerevisiae). It is deployed as a seeding for the fermentation. Initially, alcohol derived from yeast fermented sugar has a concentration of only about 515% by weight (Sorapipatana & Yoosin, 2011). Its concentration is then further increased by separating it from water and other non-fermentable materials. The final concentration of alcohol attained is 9596% by weight using a distillation method. The concentration at this level is normally called hydrous alcohol which can fuel only specially designed internal combustion engine vehicles such as flex fuel cars. In order to make sure that commercial gasohol (gasoline bioethanol) is compatible with all types of vehicles, the purity of produced bioethanol must be an anhydrous bioethanol (99.5% alcohol concentration) because bioethanol tends to separate from gasoline in the blended gasohol after a period of time unless its purification is higher than 96% by weight. Consequently, hydrous alcohol is further upgraded by removing the remaining residual water by a dehydration process to produce anhydrous alcohol. It should be remarked here that bioethanol production from starchbased crops generally yields four main by-products: stillage, fusel oil, carbon dioxide, and distillers dried grain (DDG) while bioethanol production from sugar-based crops does not produce DDG. Thus, bioethanol production from starch-based crops yields one additional by-product more than that of the sugar-based crops. Stillage is residual beer remaining in the distillation waste after the alcohol has completely been removed from a distillation column. The Feasibility Study of Producing Bioethanol from Cassava | References 4

Two distillates are obtained during a distillation process: alcohol and fusel oil. CO2 is produced by yeast during an anaerobic fermentation process. The amounts of CO2 produced, by weight, are nearly equal to the amounts of bioethanol obtained in the fermentation process. The bioethanol production processes mentioned above are summarized and illustrated in Figure 2.1.

Figure 2.1 Anhydrous bioethanol production processes from sugar and starch-based feedstock

Introduction | The Feasibility Study of Producing Bioethanol from Cassava

3.

Methodology

In this paper, Benefit Cost Ratio approach is used to test the feasibility of producing bioethanol from cassava planted in post-mining land. The methodology starts from calculating the cost. Then, calculate the benefit. Finally, compare the benefit and the cost. According to Sorapipatana & Yoosin (2010), costs of bioethanol production from cassava in post-mining land can be categorized into four groups which are feedstock costs, capital investment costs, operating and maintenance costs, and gains of byproducts. Since this study discussed about bioethanol production from cassava planted in post-mining land, there is one more cost to be accounted that is post-mining land reclamation cost. 1. Feedstock costs The price of cassava feedstock is varied by location, seasons, local supply-demand conditions, and transportation (Sorapipatana & Yoosin, 2011). The type of cassava can also affect its feedstock price. In Indonesia, the common type of cassava is Manihot esculenta that is edible and Manihot glaziovii that is poisonous. 2. Operating and maintenance costs Costs that are included in the operating and maintenance costs are labor, energy, electricity, ingredients (e.g. enzymes, yeast, etc), machine repair and maintenance costs, taxes, insurances and administrative expenses. (Sorapipatana & Yoosin, 2011) 3. Capital investment costs Sorapipatana & Yoosin (2010) stated that capital costs cover all the initial costs such as machines and equipments procurements and their installations. The capital costs also include land site preparation and building, infrastructure and other facilities of a processing plant. In this study, the land preparation costs are excluded from capital costs since the land preparation costs can be treated as reclamation costs. 4. Reclamation costs Reclamation cost is the cost needed to reclaim the post-mining land so that it can be used to other purposes. In this study, reclaimed post-mining land will be used as cassava field to produce bioethanol.

The Feasibility Study of Producing Bioethanol from Cassava | References

5. Gains of by-products By products from bioethanol production from cassava are carbon dioxide, fusel oil, stillage and DDG (Sorapipatana & Yoosin, 2011). Taken from Sorapipatana & Yoosin (2010), the unit cost of bioethanol production is expressed by the equation: CEt =CF + CO&M + C1 CR CB (3-1) where CEt is the bioethanol production costs (USD/L); CF is cassava feedstock costs (USD/L); CO&M is operating and maintenance costs (USD/L); C I is capital investment costs (USD/L); CR is reclamation costs (USD/L); CB is gains of by-product (USD/L). The benefits that come from bioethanol production in post-mining land are divided into two groups are the unit profit from the bioethanol sales and the economic value of substituting gasoline, diesel and kerosene with bioethanol. 1. The unit profit from the bioethanol sales The unit profit is the profit that the company gets for every liter bioethanol sold after subtracted the unit selling price with total unit cost. In Indonesia, bioethanol is sold for IDR 10,000/L. 2. The economic value of changing gasoline, diesel and kerosene with bioethanol The economic value is estimated by calculating the amount of money the people of East Kalimantan, especially in Sangasanga district, can save if buy bioethanol instead of gasoline, diesel and kerosene.

Introduction | The Feasibility Study of Producing Bioethanol from Cassava

4.

Results

4.1 Assumptions
The plants capacity is 150,000 L/day. Operation days of plant are assumed to be 330 days/year. The project life is assumed to be 20 years. The annual interest rate of the investment is 6%. Prices used in this study are based on prices in 2011. If there are financial values in other years, then it will be converted to its present value using assumed interest rate above. The exchange value of USD to IDR is IDR 9045/USD based on Bank Indonesia rate at 11th of August 2011 (Bank Indonesia, 2011). The yield of bioethanol from cassava and the data of other raw materials needed, such as enzymes, yeasts, water and chemicals, were taken from Sorapipatana & Yoosin (2010) which based on figures obtained from Thailand Institute of Scientific and Technological Research (TISTR)s pilot plant.

4.2 Estimation of Bioethanol Production Cost from Cassava

4.2.1 Feedstock costs In 2011, the price of feedstock is varied between IDR 350 to IDR 690 per kilogram (Jiputro & Sutardi, 2010). The cost of cassava for a liter bioethanol produced can be estimated with the yield of bioethanol from cassava at 160 L/ton (Table 4.1).
Table 4.2 Technical assumption in this study Bioethanol yield (L/ton) Plants capacity (L/day) Annual production (million L/day) Operation days (days) Project life (years) Annual interest rate Year of cost basis Exchange value of USD to IDR 160 150,000 49.5 330 20 6% 2011 IDR 9045/USD

The price of poisonous cassava feedstock based in 2010 and 2011 is ranged between IDR 350,000 to IDR 690,000 per ton (Augusta Resource Corporation, 2007 & Sutardi, 2010). The average price based on prices above is IDR 500,000/ton. With the bioethanol yield from cassava is 160 L/ton, then calculation of cassava feedstock cost per liter bioethanol is IDR 2187.5 to IDR 4,312.5, with average of IDR 3,250 or equivalent to 24.19 cents/L to 47.68 cents/L, with average of 35.93 cents/L (Table 4.2). The Feasibility Study of Producing Bioethanol from Cassava | References 8

Table 4.3 The maximum, minimum, and average feedstock costs of cassava in IDR/ton and IDR/Lbioethanol during 2010 Feedstock Cassava Maximum IDR/ton IDR/Lbioethanol 350,000 2,187.5 Minimum IDR/ton IDR/Lbioethanol 690,000 4,312.5 Average IDR/ton IDR/Lbioethanol 520,000 3,250

4.2.2 Capital investment costs There are two techniques that can be used to estimate the capital investment costs. First, the capital investment costs based on machines and equipments costs from the manufacturers price. Second, the capital investment costs based on historical prices adjusted to the present value in the reference year. In this study, the calculation of Sorapipatana & Yoosin (2011) is adopted to estimate the capital investment costs. The total capital investment costs were found to be 30.2 million USD (values in year 2005) for a project life of 20 years, with bioethanol production capacity of 150,000 L/day. Then this value is adjusted to the present price in 2011 which are about 21.29 million USD. To estimate the capital cost per liter of the bioethanol, Sorapipatana & Yoosin (2011) annualized the capital cost with equation: A = P (i(1+i)n/(1+i)n-1) (4-1) where A is the annual payments (IDR or USD/year); P is the present worth of the first investment cost (IDR or USD); i is the annual interest rate; and n is the project life (years). Then the annualized capital investment cost is divided by annual amounts of bioethanol produced resulted in the capital cost per liter of the bioethanol. After calculation, the capital investment cost per liter of the bioethanol was 0.1 cents/L for the annual interest rate of 6% and the project life of 20 years. 4.2.3 Operating and maintenance costs In Indonesia, there are already several plants that produce bioethanol from cassava. One of the plants is located in East Nusa Tenggara. Then we can estimate the operating cost in this study by adopting the East Nusa Tenggara plants operating cost. The operating cost in East Nusa Tenggaras plant was IDR 750,000/day with production up to 300 L/day in the plant with 3000 ton cassava/day capacity (Nur, 2011). So, the unit operating cost is calculated by dividing operating cost/day with amount of production/day. Thus, the unit operating cost is IDR 2,500/L or 27.63 cents/L.

Introduction | The Feasibility Study of Producing Bioethanol from Cassava

4.2.4 Reclamation costs To estimate reclamation cost, the calculation that had been done by Augusta Resource Corporation (2007) is used. The total reclamation cost is USD 23.8 million to reclaim 3,625 acres in 16-19 years. The detail of reclamation cost done by Augusta Resource Corporation (2007) can be seen in Appendix A1. Then, this number is adjusted to the present value in 2011 which is USD 3,631,592 per 3,625 acres or USD 1,001,818/hectare. To estimate the reclamation cost per liter of the bioethanol, Equation 4-1 is used to annualize the reclamation cost. The annualized reclamation cost is USD 87,343.1/hectare. PT Indomining as the project owner has allocated area of 100 hectares of post-mining land to be used as field to plant cassava for producing bioethanol. Thus, the total annualized reclamation cost is USD 8,734,310. If the annual production of 150,000 L/day and the capacity is 4.95 million L/year, then the unit reclamation cost is 17.64 cents/L. 4.2.5 Gains of by-products According to Sorapipatana & Yoosin (2010), one of the gains of by-products resulted from bioethanol production that is useful is DDG. DDG can be sold as animal feeds. The other is biogas resulted from waste water treatment can be used as fuel for heating. Sorapipatana & Yoosin (2010) estimated the total value of the gains of byproduct from cassava is 0.273 cents/L. 4.2.6 Total unit cost The total unit cost of the bioethanol production from cassava in the post-mining land can be calculated by using Equation 3-1. Then, the total unit cost is 81.04 cents/L or IDR 7,330.35.

4.3 Estimation of Bioethanol Production Benefit from Cassava

4.3.1 Unit profit from the bioethanol sales The range of price of bioethanol used for gasoline replacement in 2011 is about IDR 11,000/L (Sutardi, 2010). With the total bioethanol cost per liter of IDR 7,330.35/L, then the profit derived of the sale of one liter of bioethanol produced from cassava is IDR 3,669.65/L equivalent to 40.57 cents/L.

The Feasibility Study of Producing Bioethanol from Cassava | References

10

4.3.2 Economic value of substituting gasoline, diesel and kerosene In the area like Sangasanga district, East Kalimantan, the availability of fuel, whether gasoline, diesel or kerosene is quite rare. It is proven by the price of these fuel is changing over time according to the scarcity of the product. The price of gasoline reached IDR 15,000 in remote area of Kalimantan in June 2011 (Joewono, 2011) and the price of kerosene reached IDR 12,000 in East Kutai, East Kalimantan in January 2011 (Minyak Tanah di Kutai Timur Rp 12 Ribu per Liter , 2011) while the prices set by government are IDR 4,500/L for gasoline and IDR 2,500/L for kerosene (Gero & Mulyadi, 2011). The economic value is estimated by the amount of money that can be saved by using bioethanol instead of gasoline, diesel or kerosene. The calculation can be seen in Table 4.3.
Tabel 4.4 Estimation of economic value of changing gasoline, diesel and kerosene with bioethanol Price (IDR/L) Bioethanol 11,000 Bioethanol 11,000 Gasoline 15,000 Kerosene* 22,500 11,500 4,000 Difference (IDR/L)

*one liter of bioethanol is equivalent to nine liters of kerosene. (Etanol dari Singkong Karet, 2008) 4.3.3 Total unit benefit The estimation of total benefit is calculated by summing the unit profit from bioethanol sales and the economic value of substituting gasoline and kerosene with bioethanol which is IDR 19,170 equivalent to USD 2.12.

4.4 Benefit Cost Ratio

BCR can be calculated by using equation: BCR = PVB / PVC BCR = IDR 19,169.65 / IDR 7,329.90 (4-2)

11

Introduction | The Feasibility Study of Producing Bioethanol from Cassava

5.

Discussion

The objective of this paper is testing the feasibility of producing bioethanol from cassava planted in post-mining land using Benefit Cost Ratio approach. The methodology starts from calculating the cost; feedstock costs, capital investment costs, operating and maintenance costs, reclamation costs and gains of by-products. Then, calculate the benefit; unit profit from the bioethanol sales and economic value of substituting gasoline, diesel and kerosene. Finally, calculate the ratio between the benefit and the cost. Table 5.1 contains the summary of the computation.
Table 5.1 Benefit cost ratio

Benefit Detail Unit profit from the bioethanol sales Economic value of substituting gasoline, diesel and kerosene IDR/L 3,669.65 Detail Feedstock costs

Costs IDR/L 3,250.00

15,500.00

Capital investment costs Operating and maintenance costs Reclamation costs Gains of by-products

9.05

2,500.00 1,595.54 24.69 7,329.90 2.62

Total unit benefit

19,169.65 Benefit Cost Ratio

Total unit costs

From the calculation, the ratio is 2.62 > 1. Based on Benefit Cost Ratio approach result, producing bioethanol from cassava planted in post-mining land is feasible and commercially successful. But this study hasnt included the intangible benefit of producing bioethanol from cassava planted in post-mining land, such as economic value derived from adding jobs for local community and claimed carbon credit potential for reducing CO2 emission.

The Feasibility Study of Producing Bioethanol from Cassava | References

12

After that, there are few things that will be discussed as the matter of effects of the use of cassava-based bioethanol. The discussion will consist of certain categories based on some aspects, there are: Politic In terms of political, the implementation and utilization of cassava refers to some regulations of the government of Indonesia, and those are Presidential Instruction No. 1/2006 and Regulation of the Minister of Energy and Mineral Resources No. 32/2008. Presidential Instruction No. 1/2006 explains about supplies and the use of bio-fuel as alternate fuel. Thus, it can be concluded that the use of cassava to produce bioethanol is one thing that can be done to meet the Presidential Instruction. Then the minister of energy and mineral resources regulation contains the rules of supplying, utilizing, and bio-fuel trade system as an alternate fuel. In the ministers regulations, there are guidelines in using, distributing, and sale of bio-fuels as a substitute for fuel. Therefore, in order to produce bioethanol it is required to form a business entity that the use of bioethanol can be ordered and distributed and sold to the society. Economy In terms of economical, the utilization of cassava to produce bioethanol has some very good feedbacks. It can provide employment to local inhabitants who live in the post-mining area which will lead to the increasing of economics degrees for the people. Besides, it can give advantages to the company who execute the process of producing bioethanol. In other words, it can be expected to give positive contribution to the countrys economy. Social In terms of social, the utilization cassava as bioethanol can be proved by the increasing of development of small industries as the result of establishment of domestic industries so that it will improve the livelihood for the local people. Then the ex-mining land use can be an object in the CSR project of the mining company, so it can provide benefits in other aspects. Energy scarcity The utilization of cassava as bioethanol can be used as an alternative solution to the energy shortages issue in Indonesia. Thus, this feasibility analysis is meant to find out whether the bioethanol production can be used to substitute the common fuel Indonesian people consume. From analysis that have been done, it can be proved

13

Introduction | The Feasibility Study of Producing Bioethanol from Cassava

that it can be implemented to substitute the common used energy. Besides that, the utilization of bioethanol can also fulfill the energy needs of inhabitants around the production of bioethanol area or other remote areas. Environment In terms of environmental, the process of cultivating cassava in post-mining areas can restore the mineral soil so that the area cant decay. This is because cassava does not require soil with high mineral, so it can be grown in any land. Then, the utilization of bioethanol can lessen greenhouse emissions, for it is more eco-friendly fuel. By reducing greenhouse gas emissions, it can contribute to achieve the proficiency level targets to reduce emissions by 26% in 2020 as the United Nations Climate Change Conference (COP15) stated it in Copenhagen. Obstacles In addition to the positive impacts that can be generated by the use of cassava to produce bioethanol as a fuel substitute, there are several obstacles to be encountered in implementing them. The Cassava-Based Fuel Bioethanol production at industrial level meets challenges of the lagged cassava planting scale and management. As cassava is able to grow in poor soils on marginal lands, expansion of cassava cultivation in the region can make use of the hillside wasteland in Kalimantan, but logistical problems associated with transportation of these feed stocks should be of concern. Another problem is that excessive use of fertilizers, especially inorganic fertilizers that cause more emissions, may be used to achieve high yield of cassava in plain soil.

The Feasibility Study of Producing Bioethanol from Cassava | References

14

6.

Future Work and Conclusions

From this study we can conclude that the bioethanol production from cassava planted in the post-mining land by is feasible according to the result of Cost Benefit Analysis. It is shown in the ratio of cost and benefit estimated from this project. The ratio is 2.62 which is higher than 1. The project itself is highly potential to be applied in Indonesia, from the political view; the government has established several law and legislations to encourage the production of bioethanol, from the economical and social aspect; the project is already proven to be able to give profits to the producer and to encourage the growth of small industries in Indonesia, in the terms of energy; the bioethanol produced from cassava is environmentally friendly and able to produce less carbon emission than the fuel we use now, the last but not least, from the view of environment, the cassava planted in the post-mining area can help enrich the soil in the area. This study acknowledge that this project can reducing emission from green house gas because the bioethanol is cleaner fuel, provide access to energy for remote communities and also generate profit for the producers. However, there are some flaws in this study that is opened for further study in the area of bioethanol production from cassava or even the renewable energy solutions. Due to lack of data, this study cannot calculate all intangible benefit derived from the project, such as economic value derived from adding jobs for local community and claimed carbon credit potential for reducing CO2 emission.

15

Introduction | The Feasibility Study of Producing Bioethanol from Cassava

References
Augusta Resource Corporation. 2007. Reclamation and Closure Plan,[online] Available at:<http://www.rosemontcopper.com/ReclamationPlan/Chapters/Section13.pdf> [Accessed 15 August 2011]. Bank Indonesia. 2011. BI Rate. [online] Available 11 at:<http://www.bi.go.id/web/id/Moneter/BI+Rate/Data+BI+Rate/> August 2011]. Gero, P. P., & Mulyadi, A. 2011. Harga BBM Bersubsidi Tak Berubah. Kompas, [online]12 August. Available at: <http://bisniskeuangan.kompas.com/read/2011/08/12/19115362/Harga.BBM.Bersub sidi.Tak.Berubah> [Accessed 15 August 2011]. Indosiar. 2008. Etanol dari Singkong Karet [online] Available [Accessed at:< 15 http://www.indosiar.com/fokus/74182/etanol-dari-singkong-karet> August 2011]. Jiputro. 2010. Estimasi Evaluasi Proyek Kebun Singkong. Jiputro.net, [blog] 29 December, Available at: <http://jiputro.net/perkebunan/estimasi-evaluasi-proyekkebun-singkong> [Accessed 15 August 2011]. Joewono, B. N. 2011. Premium di Pedalaman Kalteng Rp 15.000. Kompas, [online] 6 June. Available at: <http://regional.kompas.com/read/2011/06/06/16495735/Premium.di.Pedalaman.Kal teng.Rp.15.000> [Accessed 15 August 2011]. Mulyadi, I. 2011. Minyak Tanah di Kutai Timur Rp 12 Ribu per Liter. Media Indonesia, [online] 16 January. Available at: <http://www.mediaindonesia.com/read/2011/01/16/195961/127/101/Minyak-Tanahdi-Kutai-Timur-Rp12-Ribu-per-Liter> [Accessed 15 August 2011]. Nur, M. 2011. Pabrik Bioethanol Pertama di Sumapapua Bahan Baku Singkong di Mamuju Sudah Bisa Beroperasi. Kompasiana.com, [blog] 19 March, Available at: <http://regional.kompasiana.com/2011/03/19/pabrik-bioethanol-pertama-disumapapua-bahan-baku-singkong-di-mamuju-sudah-bisa-beroperasi/> 15 August 2011]. Sorapipatana, C., & Yoosin, S. 2011. Life Cycle Cost of Ethanol Production from Cassava in Thailand. Renewable and Sustainable Energy Reviews 15 , 1343-1349. Sutardi. 2010. Merubah Singkong Jadi Bioetanol Tarikan Mesin Halus, Rezeki Pun Mulus, Swatani, [online] Available at:< http://swatani.co.id/artikel/4/196/Merubah[Accessed [Accessed

The Feasibility Study of Producing Bioethanol from Cassava | References

16

Singkong-Jadi-Bioetanol-Tarikan-Mesin-Halus-Rezeki-Pun-Mulus.html> 15 August 2011].

[Accessed

Wang, W. 2002. Cassava Production for Industrial Utilization in (the) PRC Present and Future Perspective. 7th Regional Cassava Workshop. Bangkok.

17

Introduction | The Feasibility Study of Producing Bioethanol from Cassava

Appendix
Annual Early Closure Costing

Overall Reclamation Costing

The Feasibility Study of Producing Bioethanol from Cassava | Appendix

18

Reclamation Activities Summary (1)

Reclamation Activities Summary (2)

19

Introduction | The Feasibility Study of Producing Bioethanol from Cassava

The Feasibility Study of Producing Bioethanol from Cassava | Appendix

20

Reclamation Activities Summary (3)

Reclamation Activities Summary (4)

21

Introduction | The Feasibility Study of Producing Bioethanol from Cassava

Reclamation and Closure Plan

Augusta Resource Corporation

Reclamation Cost Summary perper Activity Area Table 13-4: Reclamation Cost Summary Activity Area
Task Approx. Reclamation Area2 (acres)
135 402 1,600 3600 540 20 Unknown 120 200 2 0 3,379 25,200 $ 235,200 $ 321,400 150,000 $ 5,372,000 210,000 5,192,300 960,600 75,600 4,100 69,400 $ 8,829,300 129,000 10,800 600 103,100 $ 1,195,400 83,200 99,000 700 714,000 $ 2,455,900 346,800 $ 346,800 6,575,100 185,400 5,400 1,408,500 $ 18,755,900 1,788,200 51,100 1,500 390,600 $ 5,183,600 8,363,300 236,500 6,900 1,799,100 $ 23,939,500 321,400 29,700

Hazardous Materials Cost ($)

Water Quality ($)

Demolition/ Cleanup Cost ($)

Equipment Cost ($)

41,300 1,340,800 4,178,900 948,300 1,148,500 61,800

Labor Cost ($)

5,000 133,200 564,400 85,700 155,300 8,300

Revegetation Cost ($)

24,300 199,000 790,400 178,800 266,700 99,800

Long-term Operation, Maintenance, and Monitoring Cost ($)

Subtotal Direct Cost ($)

70,600 1,673,000 5,533,700 1,212,700 1,570,500 521,000

Indirect Cost ($)

19,600 465,000 1,550,500 336,000 439,600 141,500

Total Cost ($)

90,100 2,138,000 7,084,200 1,548,800 2,010,100 662,500

Rosemont Open Pit Perimeter Berm Waste Rock Storage Tailings Starter Buttress Tailings Process Ponds Roads Plant Site Topsoil Stockpiles Stormwater Basins Miscellaneous Reclamation Costs Total

Acreage variance from Westland Resources Mine Plan of Operations due to rounding. J uly 2007 52

Tetra Tech

The Feasibility Study of Producing Bioethanol from Cassava | Appendix

22