Prepared by : Bob Soelaiman Effendi

Oktober 2013

Production of Biodiesel still 50%
There’s still 1,5 Million Kiloliter biodiesel needed

• With Nasional consumtion of 3,3

Million Kiloliter Biodiesel per year for for 10% blending for Subsidize Biosolar. • Current Biodiesel Production can supply only 50% - Demand is still high – see diagram (right above) • Pertamina is buying Biodiesel around Rp 8400/liter. See diagram (right below) • Current Price for Industrial Diesel is Rp 10.650/liter

Bob Soelaiman Effendi – okt’2013

Why CPO Feedstock is not economical
• Most Biodiesel production is

using CPO, with current CPO price around Rp 7500/kg making production cost quite high, close to Rp 8000/liter – So margin is very small • Feedstock component of CPO based of biodiesel is very high 80%, so making production cost is very susceptible to any fluction of the price of CPO. Which in past years always above crude price.



Analisa Cost Production Biofuel dari berbagai sumber Feedstock Sumber : APEC 2010 Energy Working Group Report on Biofuel – hal 7.

CPO Price Trend is going up With demand still high

With small margin, if CPO prices increases just slightly, then it become a loss.

Biomass as source of Fuel & Electricity

With total National Production of CPO around 24 Million ton/ year – it means potentially there’s around 40 Million ton/ year biomass.

If we use only empty fruit bunch (EFB) or called TANKOS, its around 20 Million ton per year.
Converting those to diesel through CCC technology we got (35% conversion) = 7 Million Kilo Liter Biodiesel, way above national Biodiesel PSO consumtion of 3,3 Million KL. Equivalent to 120,000 bbl oil perday = 10% daily Indonesian Fuel Consumption

1 ton biomass = 300 liter Diesel

Indonesia Import 5 Mil KL diesel. Saving is more than USD 1,5 Billion per year.
If we use the EXCESS HEAT from the production of Biodiesel through a ORC turbine to generate electricity then would get around 1000 Mwe. That’s 50% of the total PLN power requirement for 2021 from only BIOMASS.

Indonesia total biomass = 147 Million/year, translate = 44 Million KL Diesel. Domestic diesel consumption = 33 Million KL

So Biomass potential for producing FUEL & ELECTRICITY IS HUGE and is not yet explore !!
empty fruit bunch (tankos)

Bob Soelaiman Effendi – okt’2013

Biomass as Biodiesel feedstock
• Quantytatively there’s more biomass than oil (90/10) • Biomass : Palm Kernel Shell (PKS), Empty Fruit Bunch (EFB) and Mesocarp Fibre (MF) all can be used ad feedstock (40%) • MF is burned for BOILER for electricity and heat. • PKS is sold around USD 15 – 20/ton which way cheap compared to CPO priced at USD 610/ton. • So quantatively biomass is abundance and its practically no value

EFB (22%) currently has no economic value, they are just GOT BURN as WASTE or sometimes use as COMPOST.
Bob Soelaiman Effendi – okt’2013

empty fruit bunch (tankos)


Consumption Increase 12% per year Import = opportunity

Cold Catalytic Conversion ( CCC) Technology

Cold Catalytic Conversion Technology is based on the Fischer-Tropsch process which was a proven technology develop in Germany in 1930’s. Then in the 80’s process was refined further using low temparture and catalyst by Prof Dr Ernst Bayer of Tubigen Univeristy and was called Low Temprature Conversion (LTC). It was then pick up by Siemens in the 90’s then discontined and the reasearch was later continue independently with Siemens retired scientist and engineer. Two different group successfully developed it into commercial and industrial plant in the past 8 years. CCC Technology convert any celulosic material into diesel through a process of hydrogenation. Feedstock is mixed with a special patended catalyst then put into a patended friction turbine which heated (not burn) at 250 – 300 deg C. - Within less than 10 minutes out comes diesel. The Quality of Diesel produced is even better than regular Diesel (from Crude Oil) or even from CPO, with high 65 Cetane index and low sulfur and CO2. The Quality of tht Diesel is up to any European and American Standard. The process doesn’t produced any emission or waste. Currently there are several CCC plant around the world : • Boston, USA : CCC 500; City Waste feedstock, producing 500 liter/hour Biodiesel • Tarragona, Spain : CCC 2000 ; City Waste, 2000 liter/ hour Biodiesel
• • • • • •

• •

Surrey, Canada : CCC 1000 ; electronic waste, 500 liter/hour Monterrey, Mexico : Waste Oil , 2000 liter/Hour Oppendorf, Germany : CCC 150 demo plant. Fuerth, Germany : CCC 2000, City Waste, 2000 liter/hour Bad Zurzach, Swiss : CCC 500, Farm waste, 500 liter/ hour Lesmierz, Poland : CCC 1000, City Waste, 1000 liter/hour

Eventhough CCC a new technology but it is a proven technology, some of the plant has been operating 5 years without any problem .

Bob Soelaiman Effendi – okt’2013

PROJECT SUMMARY CCC 1000 : 8 Million Liter/year
Financial Highlight operation hour/day Feedstock (ton/year) Gross Production per Hour Gross Production per Year Turnkey CCC plant Production Cost/liter Selling Price/liter Operating Cost/year Profit/year Payback Period IRR (US$) (US$) (US$) (US$) (US$) : CCC 1000 : 20 hour/day : 22.500 ton/year : 1.000 liter/ hour : 8.000.000 liter / year (excluding permits, : 10.800.000 building, infrastructure) : 0.32 : 0.80 (pertamina buying price) : 854.000 : 3.084.000 : 4.3 year : 22.04 %

Bob Soelaiman Effendi – okt’2013

Bankable !

Double your revenue from your mill
• Market

price of CPO and Biodiesel is almost the same for past 15 year and will continue.
and so is volume of Empty Fruit Bunch (tankos) is around 22 – 25%, so Volume between CPO and Tankos from 1 ton of FFB is close.

• Volume of CPO produce is approx 18 – 20% of the Fresh Fruit Bunch

• But Cost production to produce Biodiesel is lower than to produce

CPO.. So the Mill gets double the revenue but HIGHER PROFIT since production cost is lower.

This is Money Going to waste
Now is still a waste

Phase 1
Potential Revenue : USD 3,3 Million/year Pertamina buying Price : Rp 8400/liter

Phase 2
Feed-in-tariff 1,450 – 1,798/kwh Potential Revenue : USD 2,2 Million/year

2 Stream Revenue From the Feedstock its generating 2 higlhly demanded product : FUEL & ELECTRICITY

Bob Soelaiman Effendi – okt’2013

Bob Soelaiman Effendi – okt’2013

LARGE SCALE: CCC 15000 (125,000 KiloLiter Diesel /year + 25 MWe)

CPO Plant
200,000 ton

CCC 15000

CCC Technology is more efficient than F-T technologies
Comparison w/ F-T process Input : 146,000 ton biomass Output : 87.000 ton/yr Diesel Capital Cost : $100 MM CCC 15000 Plant (incl. Power generation) Feedstock : 200,000 ton/ yr Diesel : 125,000 ton/ yr Electricity : 25 MW Capital Cost : $143 MM

DIESEL : 125,000 ton/year Cost : USD 0.27/liter

Bob Soelaiman Effendi – okt’2013

• There’s a high demand for Biodiesel.
• Biodiesel production from Biomass has a higher margin than from CPO.

• Biomass has no economic value and only used as compost
• Phase I : a small pilot with 1000 liter per hour (8 mill/ year) with around

USD 10.3++ Million turnkey then Phase II start with 2,5 MW electric generation from CCC excess heat.
• Even if 25,000 ton biomass waste is sell as Biomass/Compost at USD

15/ton Revenue only USD 375,000/year or making USD3.3 MILLION/year making BIODIESEL – I guess the the answer is obvious. – This is NOT including the sell of electricy
• Don’t wait. Act now.

Bob Soelaiman Effendi – okt’2013


Palm Kernel Shell (PKS) Fiber

Current practice


Electr icity


Palm Oil Mill WASTE


Empty Fruit Bunch (EFB)

CCC Plant


ORC Turbin e


Plasma Arc

Synga s

Electr icity

NO Liquid Waste

Proposed Plant
Bob Soelaiman Effendi – okt’2013

Second Generation Biodiesel
• Fuel product from CCC is technically is called Synthetic Fuel not

Biodiesel eventhough its feedstock is biological (organic); its more to diffrentiate from Biodiesel FAME (Fatty Acid Metyl Ester), or First Generation Biodiesel whereas Synfuel is Second Generation Biodiesel.
Synthetic fuel or synfuel is a liquid fuel obtained from coal, natural gas, oil shale, or biomass. It may also refer to fuels derived from other solids such as plastics or rubber waste. It may also (less often) refer to gaseous fuels produced in a similar way. Common use of the term "synthetic fuel" is to describe fuels manufactured via Fischer Tropsch conversion, methanol to gasoline conversion, or direct coal liquefaction. -- Wikipedia : Synthetic Fuel

Quality of Synthetic Diesel
Diesel product from CCC process technically is called Synthetic Diesel, not Biodiesel, eventhough its made from organic feedstock material also

Synthetic Diesel is superior in every aspect to petrol and aven biodiesel. Its has passed every US & Euro standard.


4 airlines company started using synthetic jet fuel from biomass to reduce cost and reduce carbon emission

Note on CCC & FTP Technology

CCC was developed The well known Fischer-Tropsch Process (FTP), infact during World War II, Germany was using FTP to convert Coal to Diesel. So to understand CCC technology you need only to google “Fischer-Tropsch Process”, here is from Wikipedia : The Fischer–Tropsch process is a collection of chemical reactions that converts a mixture of carbon monoxide and hydrogen into liquid hydrocarbons. It was first developed by Franz Fischer and Hans Tropsch at the "Kaiser-Wilhelm-Institut für Kohlenforschung" in Mülheim an der Ruhr, Germany in 1925. The process, a key component of gas to liquids technology, produces a synthetic lubrication oil and synthetic fuel, typically from coal, natural gas, or biomass.[1] The Fischer–Tropsch process has received intermittent attention as a source of low-sulfur diesel fuel and to address the supply or cost of petroleum-derived hydrocarbons. ( ) CCC is the 3rd generation of Fischer-Tropsch Process, it differ in 2 major difference : 1. Where FTP uses pressurized vessel for the reaction to take place, whereas CCC reaction takes in unpressureized vessel, thus making CCC the equipment much cheaper than FTP. 2. FTP need very high temparture around 500 – 1000 deg C, whereas CCC operating temprature is under 300 deg C. So there is no buildup of resin and residue in the vessel making in close to zero waste. 3. Thus in conclusion CCC operates more efficiently than FTP making in lower production cost.

• •

Bob Soelaiman Effendi Oil& Gas/Renewable Energy Consultant

M : +62 811 939 013 • E :


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