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Biodiesel Fuel (BDF) Project in Indonesia

[Project Participants] Adaro Energy tbk. United Tractors tbk. Komatsu Ltd. [Consultation and Presentation]
22 February 2013

1. Project j Outline 2. MRV Methodology a. e a eligibility g b ty requirements equ e e ts b. reference scenario c. emission sources to be considered d. monitoring parameters and default values e calculating emission reductions e. f. validation and verification 3 Environmental Integrity 3. 4. Future Plan and Challenges

1 Project Outline 1.

project site

Berau Mine KPC Mine Kideco Mine

Adaro Mine

Jakarta
PT Komatsu Indonesia PT Komatsu Marketing and Support Indonesia PT Astra International Tbk PT United Tractors Tbk

PT Adaro Energy (Adaro) 100% C Contracting PT Sapta Indra Sejati (SIS) PT Pamapersada Nusantara (PAMA) PT Bukit Makmur (BUMA) Selling mining machines 100 %

PT United Tractors (UT)

Selling mining machines

project progress
2010 - 2012 : pilot phase
1 C 1. Construct t t pilot il t plant l t (1 ton/day) t /d ) and d lab at Adaro mine to produce European standard BDF from Jatropha 2. Operate 2 units of Komatsu dump trucks with B20 (Jatropha & Palm BDF) 3. Plant Jatropha at mine area & its surrounding area

2013 - : mass production phase

1. Construct large scale BDF plant at Adaro mine to operate 100 units of HD785 with B20 2. Produce Jatropha crude oil for BDF production locally

Prepare data for Mass Production Project

1. Evaluate Jatropha & Palm BDF cost 2. Evaluate effects of BDF on engine / operation 3. Evaluate CO2 emission reduction

Achieve a sustainable BDF supply chain with local production & local consumption at mine site Reduce CO2 emission

project cycle

1. Stripping overburden operation

2. Disposing overburden

4. Produce BDF

3. Reclamation by BDF feed stock -Jatropha , Pomgamia etc. -Native tree species

role of project participants

Plantation
Planting Maintenance Harvesting

BDF production
BDF plant design Construction Operate the plant

BDF Quality control

Laboratory preparation Operate the Lab Monitor BDF quality

Product support
Monitoring units Spare parts Maintenance

(Adaro/Komatsu)

(Adaro/Komatsu)

(Komatsu)

(UT)

nursery for production seedlings

harvesting and oil extraction

1. Harvested Jatropha seeds from project plantation

2. Expeller p to squeeze q oil from the seeds (100kg seeds per hour) (app. 25kg Oil per hour) 3 Filter press to 3. produce material oil

biodiesel production

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biodiesel production

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Methanol storage

BDF storage

Waste water storage

Generator

laboratory
Quality Control A. Oil Pre-Treatment Section

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laboratory
Quality Control B. Reaction and Purification Section

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test
1. Engine bench test
BDF
Jatropha BDF & Palm BDF *Calorie of 100% BDF is app.15% lower than Diesel fuel

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Rated output decline

100% 98% 96% 94% 92% 90% 88% 86% 0% 20% 40% 60% 80% 100% y = -0.1226x + 1.0062 2 R = 0.9851

Various level of BDF test

0%, 5%, 10%, 20%, 50%, 100% 3 replication of each level

Data
Rated Output, Engine Torque Curve

Jatropha BDF conc.

2. Dump trucks test run

Palm BDF20 test reached 6,000 hours on Dec. 2011. Jatropha BDF test reached 6 6,000 000 hours on September 2012 No remarkable problem for fuel line Fuel pump, pump common rail rail, injector & hose No remarkable affect on productivity of mine operation

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2 MRV Methodology 2.

eligibility requirements
eligibility li ibilit Fossil fuel use is replaced by biodiesel. Proof that plants, vegetable oil and waste food oil that will become feedstock for biodiesel have not been utilized for other energy use in Indonesia without the project is provided. The biodiesel consumption is measurable measurable. Laws and regulations of biodiesel usage in Indonesia are met met.

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Criteria 1 Criteria 2

Criteria 3 Criteria 4

reference scenario
The Indonesian government has set a mandatory bi di biodiesel l utilization tili ti l level lf for th the I Industry d t and dC Commercial i l sector as follows decided in the Ministerial Decree No 32 2008 No.32, 2008. However, such regulation is not currently met especially in the Industry and Commercial sector because of some difficulties. Therefore, , the reference scenario is that biodiesel will be utilized to meet the mandatory level during the project period of JCM.
January 2010 5% January 2015 10% January 2020 15% January 2025 20%

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emission sources to be considered

processes Feedstock cultivation process emission sources Emissions from the cultivation of biomass feedstock (e.g. consumption of fossil fuels by farm equipment, q p , release of N2O into the atmosphere from cultivation, transport and application of fertilizer) Emissions from the transport of biomass to be used in biodiesel feedstock Emissions from the p production of biodiesel Emissions from the transport of biodiesel

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Feedstock transport process production Biodiesel p process Biodiesel transport process

monitoring parameters and default values

parameters to be monitored 1 2 3 4 5 6 7 8 9 Project consumption of biodiesel Weight of plant feedstock input into biodiesel production Number of transport of plant feedstock to the biodiesel production facility from its cultivation land Average g distance per transport of plant feedstock Project electricity consumption from production of biodiesel Project consumption of fossil fuel (e.g. petrodiesel) from production of biodiesel Quantity of methanol consumed from producing biodiesel p of biodiesel to supply pp y areas from the p production Number of transport facility(ies) Average distance per transport of biodiesel

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monitoring parameters and default values

default values 1 2 3 4 5 6 Net calorific value of biodiesel produced CO2 emissions factor of petrodiesel Carbon dioxide emissions factor from cultivation of plant feedstock Average yield of feedstock Average distance per transport of plant feedstock CO2 emission factor per transport distance

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calculating emission reductions

11,224 tCO2/y for 2014 9 829 tCO2/y 9,829 tCO2/ f for 2015-2020 2015 2020

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calculating emission reductions

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validation and verification

Preparation of Project Design Document (PDD) and Monitoring Plan
PDD Monitoring Plan

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validation and verification

Validated by the third party entity Ai Aims of f validation lid ti
Improvement of monitoring accuracy in line with the international standard (i.e. ISO14064) Maintaining environmental integrity Comments on validation process

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Validation report

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3 Environmental Integrity 3.

a sustainable BDF supply chain

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Establishment of a sustainable BDF supply chain with local production for p using g reclamation area and degraded g land local consumption

1. Stripping overburden operation

2. Disposing overburden

4 Produce BDF 4.

3 Reclamation by BDF feed stock 3. -Jatropha , Pomgamia etc. -Native tree species

native species
Mine area
1 Reclamation area 1.
Native tree spices (Meranti) Reforestation to the tropical forest BDF Feed stock (Jatropha, Pomgamia) Oil production

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2. Unused area
BDF feed stock (Jatropha) Oil production

Surrounding area
1. Local community land
Contribute local community economy by promoting BDF feed stock plantation

Native tree plantation trial

BDF feed stock plantation trial (Jatropha)

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4 Future Plan and Challenges 4.

plan for the future

2013 - : mass production phase 1.Construct large scale BDF plant (app. ( pp 30 ton/day) y) at Adaro mine to operate 100 units of HD785 with B20 2 Produce Jatropha crude oil for BDF 2.Produce production locally Achieve a sustainable BDF supply chain with local production & local consumption at mine site Reduce CO2 emission

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challenges (1)
Cultivation area and yield of jatropha oil

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HD785 x 1Unit Consumption : 432tons per year (80Liter/H, 20H/day, 300 operating days/year)

Necessary BDF 86.4 tons (20% BDF) App. 200 ton CERs

Necessary Crude Oil 91 tons (Refining loss is 5%)

Jatropha

Palm

674m
Palm: 4 tons/ha

477m 216m

Jatropha: 2 tons/ha

Necessary plantation Area Jatropha: 45.5 ha (2 ton/ha) Palm: 22.8 ha (4 ton/ha)

challenges (2)
Quality assurance of biodiesel thorough supply chain

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Producer

Blender

Distributor

User

Total T t l quality lit assurance i is essential ti l for users of BDF with a sense of safety, which hi h will ill l lead dt to an expansion i of f BDF consumption in Indonesia

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Th k you Thank