NAMA Proposal and MRV Method

Utilization of Used-Cooking-Oil Biodiesel in Commercial Building in Bogor

City (Biodiesel NAMA)

Low Emission Capacity Building (LECB) Indonesia

2014
  
 
Contact:  
 
 
Verania Andria  
Programme Manager
Environment Unit
United Nations Development Programme - Indonesia
Menara Thamrin Building, 9th Floor
Kav 3 Jl. M.H. Thamrin, Jakarta 10250, Indonesia
verania.andria@undp.org

Tel: +62 (0)21 29802300 ext 806

Fax: +62 (0)21 315 0382
 
www.id.undp.org

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 Summary

Utilization of Used-Cooking-Oil Biodiesel in Commercial Building in Bogor

City
(Biodiesel NAMA)

This NAMAs project that is owned by the Government of Bogor City proposes utilization of
used-cooking-oil from food sector to be converted to biodiesel and being used in Bogor
City’s commercial buildings for heating fuel. This unilaterally funded 5-year long project
(2015 – 2020) will incur an estimate Rp. 1.4 billion to fund the construction and 3 month
long operation of a new biodiesel plant. The project will lead to a cumulative potential
greenhouse gas (GHG) emission reduction of 278 ton CO2/year or cumulatively 1,529 ton
CO2 in five years.

Used cooking oil is currently re-used in the food sector and is considered hazardous waste,
meaning that the Government should regulate its disposal. The utilization of used cooking oil
can bring health benefits to the city of Bogor from the removal of used cooking oil from the
food industry. As a climate change mitigation action, this project will help promote
government policy that develops renewable energy, which will reduce the country’s
dependence on partly imported fossil diesel oil. The used cooking oil to biodiesel conversion
program in Bogor city was originally meant to supply biodiesel for use in Pakuan public
buses owned by Bogor BUMD (Local State Enterprise). Because the quality of the used-
cooking-oil biodiesel did not satisfy the fuel specification of Pakuan buses the fuel
substitution program was ended. Thus, utilization of biodiesel for heating fuel in commercial
building, as proposed in this project, is an alternation option.

This NAMA project will consist of construction of the biodiesel production facility,
collection of used cooking oil from building sector (hospitals, hotels, malls, restaurants, etc.),
conversion of used cooking oil into biodiesel, delivery of the biodiesel to buildings, and
utilization of the biodiesel as heating fuel (boilers) in the building sector. The GHG reduction
potential was calculated against baseline condition of having buildings use the conventional
diesel oil as heating fuel. This NAMAs project is designed to utilized used cooking oil of
500 liter/day. With an assumption 300 working days per year and 70 % conversion yield, the
NAMAs project will produce 105 KLiter biodiesel per year. This project will also include the
establishment and operation of the MRV system to monitor the progress of this NAMAs
project.

The Government of Bogor should develop regulation that prohibits the delivery of used
cooking oil to the re-use market (small restaurant and street food vendors), regulate the
maximum number for repeated use of cooking oil (so that the used cooking oil is suitable for
use as biodiesel feedstock), and create a scheme that will incentivize building sectors to
achieve Green Building acknowledgment through utilization of biodiesel to be used as a
criteria in achieving Green Building status. These policies will help enable the collection of
cooking oil from the building sector and allow for the success of this project.

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 Contents
A. GENERAL DATA OF NAMAs ................................................................................. 6
1. Project Name ............................................................................................................. 6
2. Coordinating Agency ................................................................................................. 6
3. Estimated Investment and Project Cost ..................................................................... 6
4. Project Duration ......................................................................................................... 6
5. Contact Person/Department ....................................................................................... 6
6. Implementing Partners ............................................................................................... 7
7. Project registered at UNFCCC NAMA registry? ..................................................... 7
B. PROJECT DESCRIPTION ........................................................................................ 7
1. Project abstract ........................................................................................................... 7
2. Project objectives ....................................................................................................... 8
3. Scope of the project ................................................................................................... 8
4. Integration into relevant national policies.................................................................. 8
5. Project outputs and outcomes .................................................................................... 9
6. Project implementation strategy ................................................................................ 9
7. Planned activities ..................................................................................................... 10
C. PROJECT TARGET (AMBITION) ........................................................................ 11
1. GHG mitigation potential ........................................................................................ 11
2. Development benefits .............................................................................................. 11
3. Financing mechanism .............................................................................................. 11
4. Stakeholder involvement ......................................................................................... 12
D. PROJECT FEASIBILITY ........................................................................................ 12
1. Project structure ....................................................................................................... 12
2. Financial feasibility.................................................................................................. 12
3. Technological feasibility .......................................................................................... 13
4. Risk assessment ....................................................................................................... 13
5. Time frame of project implementation .................................................................... 13  
 

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A. GENERAL DATA OF NAMAs
1. Project Name : Utilization of Used-Cooking-Oil Biodiesel in Commercial Building in
Bogor City
2. Coordinating Agency
a. Coordination of Activity
- Government of Bogor City/Bappeda (Regional Development Planning Board)
- BLHD (Regional Environmental Office) of Bogor City

b. National Coordination of Activity

1. Name of agency : Ministry of Energy and Mineral Resources/Directorate General of
New and Renewable Energy and Energy Conservation
Contribution : Coordination of RE Mandatory Activities
2. Name of agency : Ministry of Finance
Contribution : Coordinator for the provisions of the necessary funding
3. Estimated GHG Emission Reduction
The expected GHG emission reduction is around 278 kTon CO2/year. This NAMA project is
one time investment involving one installation and production capacity of the biodiesel is
constant, then the project GHG emission reduction until the end of the project life (5
years) remain constant (278 ton CO2/year). Cumulatively the potential GHG emission
reduction of the NAMA project from 2015 to 2020 is 1529 ton CO2 (in 2015 the
production is 50% of yearly production).
4. Estimated Investment and Project Cost
The estimated costs required for the utilization of biodiesel made of used cooking oil for
oil fuel diesel generator in building sector are breakdown as follows.
a. Installed Capacity
- Used cooking oil input : 500 liter/day
- Biodiesel production : 105 kilo liter/year
b. Biodiesel Production Facilities
- Investment of Biodiesel Processing Plant : Rp. 1,154,000,000,-
- Fix cost : Rp. 756,450,000,-
- Operational cost for the first 3 months* : Rp. 189,112,500,-
- Total : Rp. 1,395,987,500,- (± Rp 1.4 billion)
* Assumes Price of used cooking oil Rp. 3000,-/liter and biodiesel Rp. 11600,- /liter
5. Project Duration
a. Project implementation: 5 years (mid 2015 to mid 2020)
b. Construction of biodiesel production: 6 months (manufacturing, construction, sitting
and commissioning)
6. Contact Person/Department
a. Name of Agency : Bappeda (Regional Development Planning Board) of Bogor City
Contact Person : Hari Sutjahjo / Head of Bappeda of Bogor City
Postal Address : Jl. Kapten Muslihat No.21 Bogor 16121
Telephone/Fax : 0251-8338052 / 0251-8338052
Email Address : bappeda@kotabogor.go.id
b. Name of agency : Local Government of Bogor City/BLHD of Bogor City
Contact Person : Setiawati
Postal Address : Jl. Senam No 1 Kota Bogor
Telephone/Fax : 0251-8340057 / 0251-8340057
Email Address : bplh@kotabogor.go.id

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5. Implementing Partners
a. Name of agency : BUMD (Local Government Enterprise)
Contribution : Operates Biodiesel project (production of biodiesel, collecting used
cooking oil, and distribution of biodiesel product to building sector)
Postal Address : Local Government of Bogor City/BLHD of Bogor City
Jl. Senam No 1, Kota Bogor;
Tel/Fax/Email : 0251-8340057 / bplh@kotabogor.go.id
b. Name of agency : Hotel Santika Bogor
Contribution : Function as supplier of used cooking oil and consumer of biodiesel
Postal Address : Botani Square, Jalan Raya Padjajaran Bogor 16127
Tel/Fax/Email : (0251)8400707 / (0251)8400706 / bogor@santika.com
c. Name of agency : Restoran Hanamasa
Contribution : Function as supplier of used cooking oil and consumer of biodiesel
Postal Address : Jalan Pajajaran No 25 Kel Babakan Kecamatan Bogor Tengah
Tel/Fax/Email : 0251 8324323
d. Name of agency : Pusat Perbelanjaan Giant Yasmin
Contribution : Function as supplier of used cooking oil and consumer of biodiesel
Postal Address : Jalan K.H. Abdullah Bin Nuh Bogor
Tel/Fax/Email : 0251 754044
e. Name of agency : Rumah Sakit Salak
Contribution : Function as supplier of used cooking oil and consumer of biodiesel
Postal Address : Jalan Jenderal Sudirman No 8 Sempur Bogor Utara 16154
Tel/Fax/Email : 0251 8344627
6. Project registered at UNFCCC NAMA registry? NO

B. PROJECT DESCRIPTION
1. Project abstract
Currently, used cooking oil is consumed as unhealthy cooking oil by some street food
vendors/restaurants. The Ministry of Environment classifies used cooking oil as hazardous
waste and it is the responsibility of the government to regulate it. The Government of
Bogor will regulate to redirect the fate of used cooking oil from re-use in food sector to
conversion into biodiesel production suitable for use as heating fuel in building sector.
Another regulation is needed for encourage the building sector to use used cooking oil-
biodiesel. It can be in the form of incentives within the framework of Green Building.
This activity is unilateral small-scale (pilot) project NAMAs in energy sector (commercial
building sub-sector). The project is within the context of Regional Mitigation Action Plan
of West Java Province, which promotes the use of biodiesel in place of petroleum based
diesel oil. The used cooking oil to biodiesel conversion program was originally meant to
supply biodiesel for use in Pakuan public buses owned by Bogor BUMD (Local State
Enterprise). Because the quality of the used-cooking-oil biodiesel did not satisfy the fuel
specification of Pakuan buses the fuel substitution program was terminated. The used
cooking oil conversion program is to be continued by improving the quality of biodiesel
and diverting the target market from Pakuan buses to stationary diesel engines in
commercial building sector.
Data of potential size of used cooking oil released by building sector in Bogor City is 200
KLiter per year or 669 liter/day. This NAMAs project is designed to utilized used cooking
oil 500 liter/day. With an assumption 300 working days per year and 70 % conversion
yield, the NAMAs project will produce 105 KLiter biodiesel per year. The total
investment needed for the construction and the first 3 months operation of the biodiesel

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 plant is Rp. 1.4 billion. The investment will be acquired through this proposed NAMAs
project while the subsequent operation and business of biodiesel is to be carried out by
private sector assigned by the Bogor government.
GHG reduction will result from the use of carbon-neutral biodiesel to replace fossil-based
oil fuels that are used in building sector. As the use of renewable is one of the elements of
Green Building criteria, the proposed NAMA project is supporting building sectors to
achieve Green Building category. GHG emission reduction that will result from this
NAMA project is 278 ton CO2/year. Other immediate co-benefit of the NAMA project is
improved public health resulted from the prevention of the re-use of unhealthy used
cooking oil in restaurant and street food vendors. It should be noted that currently, large
cooking oil is consumed as unhealthy cooking oil by some unscrupulous street food
vendors or restaurants. Used cooking oil is considered hazardous waste and it is the
responsibility of the government to regulate it. The Government of Bogor will regulate to
redirect the fate of used cooking oil from re-use in food sector to conversion into biodiesel
production suitable for use as heating fuel in building sector.
This NAMAs project is to be proposed as unilateral NAMAs. Therefore, all activities
under this NAMAs proposal are expected to be funded using domestic budget, i.e.
APBN/APBD (central/local government), private, and other sources (PIP, ICCTF, etc.).
Therefore, the MRV of activities under this proposed NAMAs project are to be carried out
domestically using international guidelines. All activities under this proposed NAMAs
have been assessed for compliances of sustainable development objectives. In addition,
this proposed NAMAs is to be reported in BUR (Biennial Update Report) and National
Communication that will be submitted to UNFCCC.
2. Project objectives
To promote the substitution of petroleum-based diesel by carbon-neutral biodiesel made
from used cooking oil in commercial building sector in Bogor city. The used cooking oil
is to be collected from building sector such as hotels, malls, restaurants, and hospitals in
Bogor City. According to recent survey the volume of used cooking oil that is released by
building sector in Bogor is around 200 kL/year (689 liter/day) with the following
breakdown: hotels and motels is 98 kilo kL/year, restaurants and cafe is 23 kL/year and
malls and hospitals is 79 kL/year. This NAMAs project is designed to process used
cooking oil 500 liter per day. Assuming 300 working days per year and 70 % conversion
yield, this NAMAs project will produce 105 kL/year of biodiesel.
3. Scope of the project
Project activities under the proposed NAMAs include construction of biodiesel production
facility, collection of used cooking oil from building sector (hospitals, hotels, malls,
restaurants, etc.), conversion of used cooking oil into biodiesel, delivery of the biodiesel to
building sector, and utilization of the biodiesel as heating fuel (boilers) in the building
sector. The target sector of proposed NAMA project is commercial building sector. The
project will substitute fossil diesel oil currently used in building and therefore the type of
GHG emissions considered in the project corresponds to emissions associated with the
combustion of fossil fuels: CO2, CH4 and N2O.
4. Integration into relevant national policies
The proposed NAMA project utilization of used cooking oil-Biodiesel as renewable
energy is in line with RPJMD (Regional Midterm Development Plan) and RAD (Regional
Mitigation Plan) of west Java. The utilization of used cooking biodiesel in transportation
has been started from 2007, funded using APBD (regional government budget). Local
government regulation (Perda) No 5/2007 concerning mandatory for BUMD (Local State

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 Enterprise) of transportation services to utilize used cooking oil biodiesel. However, the
program was not successful and has been terminated due to the quality of biodiesel
produced from supplier company did not comply with the requirement of biodiesel quality
for use in buses. Therefore, the proposed NAMAs project also includes construction of
new biodiesel plat so that the quality of biodiesel product can meet the requirement of fuel
quality for building sector in Bogor.
Used cooking oil is considered as hazardous waste and therefore it is the duty and
responsibility of the government to regulate the management of this waste. The Bogor
Government is to regulate the fate of used cooking oil from building sector so that the oil
is not re-used in food sector. Therefore, the NAMA project is a GHG mitigation activity,
which in the same time will also prevent the consumption of unhealthy food. As the use of
renewable is one of the elements of Green Building criteria, the proposed NAMA project
is supporting building sectors to achieve Green Building category.
The government regulation that can be referred to for this proposed NAMA project is DKI
Jakarta Governor Regulation No. 38/2012 concerning Green Building. This regulation sets
out the requirement for Green Buildings and intends to promote conservation and efficient
use of resources, including energy and water resources. The government also needs to
regulate the maximum repeat use (recycle) of the cooking oil. Such regulation not only is
good for biodiesel plant but also good for public health reason because repeated use of
cooking oil will produce unhealthy food. Other regulation needs to regulate collection of
used cooking oil and utilization of biodiesel by the target-building sector.
5. Project outputs and outcomes
The outcome of the proposed NAMA project is GHG emission reduction and the
prevention of unhealthy re-use of used cooking oil in street food vendors. The baseline
activity of the proposed NAMA project is consumption of diesel oil in building sectors.
The baseline emission is estimated based on the amount of diesel consumption and
emission factor of diesel oil. The diesel consumption is estimated from the production
capacity of the biodiesel plant i.e. 105 kilo liter year. With diesel oil emission factor of
2.65 ton CO2/m3, the baseline emission of the NAMA project is 278 ton CO2/year. As this
NAMA project is one time investment involving one installation and the production
capacity of the biodiesel is constant, then the project emission under BAU scenario remain
constant.
6. Project implementation strategy
The implementation of this proposed NAMAs project needs preparatory activities,
construction of biodiesel production facility, collection of used cooking oil from building
sector (hospitals, hotels, malls, restaurants, etc.), conversion of used cooking oil into
biodiesel, delivery of the biodiesel to building sector, and utilization of the biodiesel as
heating fuel (boilers) in the building sector. Within the context of preparatory activities,
the project proponent should first establish project organization for construction,
procurement, and operation (delivery and monitoring) of biodiesel. Second, the project
team should conduct stakeholder consultation at regional as well as central government
and public socialization of biodiesel development and utilization plan. As the biodiesel
project implementation in Bogor city will utilize used cooking oil, the availability of used
cooking oil has to be secured during stakeholder consultation.

In addition to the preparatory activities that are commonly practiced for infrastructure
development project, the project proponent should prepare organization as well resources

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 for managing NAMAs and MRV processes. It should be noted that the MRV process will
require data and information that will support measurement, monitoring, reporting and
verification of NAMAs implementation and its impact. Since this NAMAs project is
related to RAN/RAD, intensive communication between NAMAs project team with
RAN/RAD Secretariat (Bappenas), steering committee of climate change national
coordination team (SC-CCNCT), and the corresponding National MRV commission.
During the implementation of the Biodiesel project, the NAMAs project team should
continue to prepare all the data and information needed for MRV process.
The indicator to be used to measure the emission reduction is the amount of biodiesel
consumption in the building sector. It is assumed that before using biodiesel, the building
sector use the same amount of diesel oil. The methodology to determine the consumption
is recording of biodiesel sales to the building sector. Annual reporting of biodiesel sales
and the corresponding GHG emission reduction of the NAMA project is to be done by the
project proponent (Government of Bogor City). The annual reporting is to be submitted to
Bappenas as the coordinating body for Indonesian mitigation actions (RAN and RAD).
The MRV of the NAMA is to be aligned with PEP (monitoring, evaluation and reporting),
guidelines developed by Bappenas. The proposed NAMA project is domestic/unilateral
NAMAs. The verification of the achievement of the mitigation actions is to be carried out
by domestic institutions.
All activities under this proposed NAMAs have been assessed for compliances of
sustainable development objectives. In addition, this proposed NAMAs is to be reported in
BUR (Biennial Update Report) and National Communication that will be submitted to
UNFCCC.

7. Planned activities
The planned activity of the NAMA project includes:
• Establishment of policy and programs that enable the collection of used cooking oil
from building sector (residential and commercial sub-sectors)
• Construction of new biodiesel plant
• Marketing/distribution of used-cooking-oil biodiesel to substitute petroleum-based
diesel used in commercial buildings
• Establishment and operation of the MRV system for the biodiesel NAMAs project.
Construction of the facility and the associated activities such as establishment of used
cooking oil collection programs and establishment of MRV system will be completed in
mid-2015. The plant will begin operating in 2015 with plant life-time of 5 years. The
assumption of the proposed NAMA project is as follows:
Parameter Value
Used cooking oil potential 200 kilo liter per year
Biodiesel plant capacity 500 liter per day
Operating days 300 days per year
Used oil input to biodiesel plant 150 kilo liter per year
Conversion yield 70%
Biodiesel production 105 kilo liter per year
In support of this used cooking oil for biodiesel production scheme, the Government of
Bogor will develop regulation that prohibits the delivery of used cooking oil to re-use
market (small restaurant and street food vendors), regulation concerning maximum repeat
use of cooking oil (so that the used cooking oil is suitable for use as biodiesel feedstock),

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 and incentive scheme that will direct building sector to achieve Green Building status and
utilization of biodiesel is used as a criteria in achieving Green Building status.
MRV process of the project include activity data collection and recording/archiving for
estimating GHG emission, reporting of the mitigation actions and results of the mitigation
actions, and verification and registry of the mitigation results. The MRV plan includes:
• Development of management team and system specifically dedicated to MRV
implementation
• Hands-on training for MRV team concerning data collection (biodiesel production,
sales etc.) archiving system and GHG emission reduction estimation methodology
• Periodic survey to check actual use of biodiesel (every six months)
• Calculation of GHG emission reduction (baseline emission and post mitigation
emission), every 6 months for the first year (need to practice and for MRV refinement)
and every end-of-year afterwards
• Report writing and verification/registry of the NAMAs impact (GHG emission
reduction)

C. PROJECT TARGET (AMBITION)

1. GHG mitigation potential
Currently the fuel used for providing heat (boilers) in building sector is diesel oil.
Assuming that the biodiesel produced by the biodiesel plant is absorbed and utilized to
substitute petroleum-based diesel used in commercial buildings, the potential of GHG
emission reduction of the NAMA project is 278 ton CO2/year. As this NAMA project is
one time investment involving one installation and the production capacity of the biodiesel
is constant, then the project GHG emission reduction until the end of the project life (5
years) remain constant (278 ton CO2/year). Cumulatively the potential GHG emission
reduction of the NAMA project from 2015 to 2020 is 1529 ton CO2 (in 2015 the
production is 50% of yearly production).

2. Development benefits
In addition to GHG reduction, the NAMA project would have the following co benefits:
• Improved public health from the prevention of consumption of foods that are cooked
using unhealthy used cooking oil
• Improved air quality at the buildings, which use biodiesel instead of diesel oil because
biodiesel burning has less pollutant compared to fossil diesel oil.
• Help promoting the government policy to develop renewable energy to reduce the
country’s dependence on the partly imported fossil diesel oil.
The used cooking oil problems and potential exist in practically all cities in Indonesia.
Therefore the mitigation activities proposed in this NAMA project can be replicated in
other cities. This NAMA project converts environmental and public health problems
become economic opportunity and at the same time promote the use renewable energy to
reduce GHG emissions. Therefore the proposed NAMA project fulfils the requirement of
sustainable development criteria.
3. Financing mechanism
The proposed NAMAs is categorized as unilateral NAMAs, which project funding is
obtained from domestic sources. The Biodiesel development is a government project
where the investment is provided by both central government and regional government.
Additional costs related to the submission of the Biodiesel development project into

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 NAMAs project are also to be funded from domestic sources, i.e. APBN/APBD, ICCTF
(Indonesian Climate Change Trust Fund), etc.
4. Stakeholder involvement
The project proponent of this proposed NAMAs project is Government of Bogor City,
which will be represented by Governor of West Java. Bappeda (Regional Development
Planning Board) Bogor city function as coordinator during the development process of this
NAMAs and BLHD Bogor city function as stakeholder who operate the plant. BLHD
collect used cooking oil from vendors, hotel, and hospital etc. then process it to be
biodiesel.
During the implementation of this NAMAs project, national party will be involved
including Bappenas, Ministry of Energy and Mineral Resources/Directorat General of
New and Renewable Energy and Ministry of Finance. Another stakeholder that will be
involved specially in the process of NAMAs development, registry, and MRV are
secretariat of RAN/RAD, National MRV commission, steering committee of climate
Change National Coordination Team (SCCCNT), Indonesian Climate Change Trust Fund
(ICCTF), etc.

D. PROJECT FEASIBILITY
1. Project structure
The project proponent of the NAMA project is the Mayor of Bogor City with institutional
arrangement shown in Figure 1.

MRV RAN/RAD National  Coordination

APBN/APBD
 Coordinator GRK EBTKE

Registry   Governor  
MRV  Committee
Number West  Java

Bogor  City  Mayor

Bappeda   BLHD  Bogor  

Bogor  City City

Bappenas   Unilateral  
PEP Implementation
Guideline NAMA

Figure 1 : Biodiesel NAMAs Project Institutional Arrangement

2. Financial feasibility
The investment needed for biodiesel plant construction and 3-month working capital is Rp
1.4 billion. This is to be acquired by Government of Bogor City through NAMAs project
while the subsequent business of biodiesel production/distribution system is to be done by
private sector assigned by Bogor City Government. The Building sector is assumed to be
willing to use biodiesel instead of fossil diesel oil if the price of the biodiesel does not
exceed the price of fossil diesel oil. The private sector is expected to be willing to run the
business that has the following cash flow.

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 Parameter Year 1 Year 2 Year 3 Year 4 Year 5
Revenue,
1,218,000,000 1,218,000,000 1,218,000,000 1,218,000,000 1,218,000,000
Rp/year
Fixed cost,
211,500,000 211,500,000 211,500,000 211,500,000 211,500,000
Rp/year
Variable cost,
567,337,500 756,450,000 756,450,000 756,450,000 756,450,000
Rp/year
Profit/Rp
439,162,500 250,050,000 250,050,000 250,050,000 250,050,000
year

The cash flow is estimated using several assumptions, namely:

Used cooking oil price, Rp/liter 3,000
Biodiesel price, Rp/liter 11,600 (same as industrial diesel oil price)
Used cooking oil input, liter/day 500
Biodiesel production, liter /year 105,000
This NAMAs project is to be proposed as unilateral NAMAs and expected to be funded using
domestic budget, i.e. APBN/APBD (central/ local government), private, and other sources
(PIP, ICCTF, etc.).
3. Technological feasibility
The technology to be used in the NAMA project is a well-established technology, easy to
operate and is available in the country.
4. Risk assessment
Biodiesel is not new for most Indonesian energy-conscious as results of Government
promotion and media coverage in the past decade. Raw materials for biodiesel production in
most development scheme are fresh oil such as palm oil or Jathropha curcas. The use of used
cooking oil for biodiesel production is still relatively new and considered as still in its
experimental stage. Further development of biodiesel from used cooking oil faces several
barriers such as technology development barrier (lack of capacity to develop a scheme that
enable the utilization of used cooking oil for biodiesel production), economic barriers (low
conversion yield of biodiesel production from used cooking oil makes the biodiesel
production economically unattractive) and information barrier (unaware about the
performance of technology). This NAMA project is a pilot scale of biodiesel use that seeks to
address technology development barrier and economic barrier by showing that with proper
development scheme biodiesel production from used cooking oil could work well,
economically attractive and become one of the methods to reduce GHG.

5. Time frame of project implementation

Mid Mid
Project 2016 2017 2018 2019
2015 2020
Construction of Biodiesel production facility
Collecting of used cooking oil into Biodiesel
Delivery of the biodiesel to building sector
Utilization of the biodiesel as heating fuel in
the building sector

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