Wood Biomass Power Generation Project Investigation In Central Java Province of Indonesia

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of the researchWood Biomass Power Generation Project Investigation In Central Java Province of Indonesia
FYFY 2006
Main research orgnisationSumitomo Forestry Co., Ltd.
Research partner(s)PT. Rimba Partikel Indonisia, CER Indonesia, Climate Exparts Ltd.,
Location of the projectIndonesia (Central Java)
Summary of the research report (PDF)Summary(PDF 188 KB)
Description of the projectThe project will be conducted by PT. Rimba Partikel Indonesia (hereinafter "PT.RPI") in the Kendal district of Central Java Province in the Republic of Indonesia.
PT.RPI is generating electricity with the diesel generator for its own factory and facilities. However, because earnings of PT.RPI had deteriorated by the sudden rise in the prices of the petroleum products, alternative energy use was considered compulsorily. When the power supply was reconsidered, from a strictly monetary point of view, power-generating coal boilers were advantageous. PT. RPI, however, understood that the introduction of the wood biomass power generator is possible through acquiring credit as CDM activity.
PT.RPI currently operates generators, for an output of about 2.4MW of power. The annual generation of power is about 19GWh. The power generated provides all of the electricity used in the plant and the facilities on the grounds, so there is no connection to the power grid, nor any need to purchase power from outside sources. The project likewise will not be connected to the external power grid nor will power be purchased from outside sources. The equipment introduced under this project will include power (2.4MW) supplied to the currently existing equipment and facilities, plus the power necessary for running the generators themselves (0.7MW).
Sector of the projectBiomass Utilisation
Duration of the project activity/ crediting periodMore than 25 years from March 2007 /
Baseline methodology/additionalityIn calculating the energy baseline, the AMS-1A (version 09) methodology will be applied.
The amount of power generated by the existing diesel-powered generators is set as the energy baseline, and for the formula, which is applied to an extremely limited area, Option 2 will be utilized. /
Because the introduction of wood biomass boiler power generation has an investment barrier, the power plant selected in the absence of this project is for coal boiler power generation. Therefore, there is an addition1ality on this project activity.
Source of electricity used : Barriers on the source of electricity used
- Existing diesel power generation :
Sudden rise in price of petroleum products. National policy.
- Purchase from public electric power :
The price is uptrend though earnings are on the profit side. A fire and a productivity decrease might be caused due to the power failure.
- Natural gas engine power generation :
Infrastructure unfinished
- Coal boiler power generation :
The use of the abundant coals in Indonesia shows the tendency to increase as alternative power sources because of the sudden rise of the price of the petroleum product.
- Wood biomass boiler power generation :
The price of an initial investment rises by 15-25% compared with the coal boiler. But it becomes nearly equal to the coal boiler in terms of the profit because of the credit acquisition by the CDM project activity.
Estimation of GHG emissionsDuring the first credit period (2008-2014), the amount of the emission reduction by the project activity is estimated at 233,156 tCO2e/year (33,308 tCO2e/year).
Monitoring methodologyAfter the CDM project is carried out, the electric power consumed in the project boundary is made with a wood biomass boiler power generating machine newly set up and an existing diesel power generating machine.
Because the amount of power generation can be measured continuously by the wattmeter in each power generation, so methodology (b) “ Metering the electricity generated by all systems of a sample thereof.” in the monitor methodology simplification methodology and category I.A ”Electricity generation by the user ”concerning the small-scale CDM project activity is applied. The fuel for the power generator introduced by this project activity is wood biomass 100%. It differs from co-fired or hybrid system.
PT.RPI has been registered as an ISO 9001-certified plant since December 29, 1999 (Certification No. 191014, Komite Akreditasi Nasional), and plans call for documenting those procedures for monitoring in the ISO manual aiming to monitor the procedures autonomously and maintain continual control, thus achieving accurate measurement.
Environmental impactThe Republic of Indonesia has adopted a system for the Environmental Impact Assessment (EIA; Analisis Mengenai Dampak Lingkungan, AMDAL), requiring each place of business to have a management system in line with the magnitude of impact it has on the environment.
When biomass power generators with a capacity of 10MW or more are introduced, they are subject to EIA, but the capacity of the project is only 4MW, so EIA is not required.
PT.RPI manufactures particle board, so it must submit, once every year, its plans to the government in the form of an Environmental Monitoring Plan (RPL) and an Environmental Management Plan (RKL). PT.RPI must assess water and air quality, noise, and vibrations with regard to its activities and report on them. PT.RPI obeys these environmental standards. PT.RPI obeys these environmental standards.
PT.RPI obtained ISO 14001 certification (Certificate number 05/EM/023) on October 21, 2005.
Issues and tasks for project implementationSchedule of project execution :Until March, 2007 : Specification fixation and order for the main machines
In March, 2007: Start of foundation work
In December, 2007: Start of trial run
In January, 2008: Start of commercial operation
Capital plan: 5 million US$ in 6.4 million US$ for capital investment is a financing from the bank.
Capital collecting plan:The 6.4 million US$ for capital investment is scheduled to be collected by the power generating cost reduction and the CER credit acquisition in about four years or less.