Displacement of Fossil Fuel for Power Generation

A Step Toward Development of Standardized Baselines for Palm Oil Mills in Indonesia

Syahrina D. Anggraini

Background Information
More than 80% of palm oil plantation and mills is located in Sumatra island In 2006, there were 477 palm oil mills across Indonesia with average processing capacity of 43.3 FFB t/h. Latest statistics from the Center of Palm Oil Plantation Research for period of 2009-2011 mentioned that there are 608 mills with average processing capacity of 56.4 FFB t/h
Location Oil Palm Area (ha) Mills (unit) Intake capacity (FFB t/h) % CPO Output Capacity (t/y)

Sumatra
Kalimantan Java Sulawesi Papua & W. Irian Total

4,203,196
1,485,141 21,184 239,814 125,591 6,074,926

402
57 6 8 4 477

17,233
2,770 215 270 170 20,658

83.42
13.41 1.04 1.31 0.82 100

16,285,165
2,617,650 203,175 255,150 160,650 19,521,810

Source: World Bank, May 2010. Indonesia Oil-Palm Synthesis-Discussion Paper

3

Background Information
Palm oil mills processing capacity in Indonesia ranges between 5 120 t FFB/h
Scale Small Medium Large Processing capacity (FFB t/h) <= 30 40-60 > 60 % (est. per total number of mills) 50 40 10

Currently there are five registered Indonesian CDM projects utilizing biomass waste from palm oil mills for power generation. Most of them use diesel fuel as baseline. Others are coal and grid electricity. Of the five projects, three of it are implemented in mills with capacity of 45 ton FFB/hour, one with capacity of 50 ton FFB/hour, and one is unknown (no information described in the PDD). Common technology used for power generation is combustion engine and generator
4

Ideas
Criteria for Positive List: Fuel and technology to be applied must be applicable to mills with processing capacity of less than 60 ton FFB/hour Current power generation used for operating the mills is diesel based project activity apply lower carbon intensive fuel and technology In case of mix fuel between diesel and biomass in the project activity, portion of fossil fuel used may be taken into account Project activity applies one of the following: - modification/retrofitting of the current facility (e.g. boiler, etc) - Installation of new power generation facility

Ideas
Baseline Scenario: Since mills in Indonesia are mostly powered by power generation with coal, diesel fuel, or mix coal-biomass; by taking into account conservativeness approach and (current) lack of data on proportion of fuel mix, currently proposed baseline is : fuel : diesel technology : diesel combustion engine and generator

Challenges: Lack of available data on fuel used in palm oil mills Lack of data in mills capacity distribution No sampling guidance currently available its hard to obtain data from all (600+) palm oil mills
Next Steps: Collection of data on type of fuel used and mills capacity Identification of possible technologies Determination of project boundary Determination of level of aggregation Consultation meeting with relevant stakeholders (palm oil association, Ministry of Industry, Ministry of Agriculture, etc)
7

Carbon and Environmental Research (CER) Indonesia Jl. Aryawidura 8 no. 2, Perum. Aryawidura. Bogor West Java Indonesia 16152 +62 251 8394486 www.cerindonesia.org