Project Proposal on

Development of Agricultural Waste as a sustainable production platform for Biochemical

1. Research Target
The agricultural sector is of key importance to Southeast Asia, as its relative contribution to economies in the sub region (in terms of Gross Domestic Product) is much higher than in the rest of the world. Southeast Asia, with its abundant biomass resources, holds a strategic position in the global biomass atlas. There is immense potential of producing power, fuel, food and material in Southeast Asian countries due to plentiful supply of agricultural products, agricultural residues, woody biomass, animal wastes, municipal solid waste, etc. The rapid economic growth and industrialization in the region need an acceleration to implement the latest biomass-to-products technologies in order to tap the unharnessed potential of biomass resources. The palm oil is important industry of the region. Indonesia and Malaysia are the biggest producers of crude palm oil (CPO) in the world. In a typical palm oil mill, almost 70% of the fresh fruit bunches (FFBs) are turned into wastes in the form of empty fruit bunches (EFBs), fibers and shells, as well as biogas-rich liquid effluent. The detailed information about biomass residues from SEA will be shown in the following figure.

Table 1.2: Major Biomass Residues Potential from South East Asia Therefore, the major objective of this joint project application is to use modern biotechnologies to develop Arenga pinnata (sugar palm) as an agronomical and sustainable source for an improved production of bioethanol. This includes: BIODIVERSITY STUDIES Since most of the Arenga pinnata trees grows wild in Indonesia this work package intends to identify and analyse different wild accessions for their productivity (e.g. sap/tree; sugar content/litre sap). AGRONOMICS This work package intends to analyse the optimal agronomical parameters (e.g. soil quality, water, nutrients) needed for an efficient production of sap and subsequently sugars. In addition and if applicable, emerging pathogens associated with a

continued monoculturing of Arenga pinnata will be monitored and potential protocols for pest management developed. MOLECULAR BREEDING Breeding of palm trees in general is a cost and time consuming process since phenotypical analysis are first doable several years after the initial cross. However, a major perquisite for a long-term propagation of Arenga pinnata as a crop plant in Indonesia is the development of a marker-assisted breeding programme allowing to identify quality traits such as high sugar content already at the seedling state. In this work package we aim to develop first markers associated with different quality traits (e.g. sugar content, sap production) based on a comparable analysis of the sap transcriptome of the wild accessions. FERMENTATION PROCESS The major aim of this work package is to develop a cost efficient fermentation process for the conversion of palm sap to bio ethanol. PRODUCT ANALYSIS/APPLICATIONS Work package we could possibly subsume the following activities: a. Quality of bio ethanol b. Up scaling. May be fist theoretically due to the fact that during the time frame we may not get access to high amounts of plant sap c. Prototype fuel. Always nice to have a demonstrator may be an engine running with bio ethanol from the sugar palm.

2. Market Potential

Global Market. The usage of renewable resources for replacing fossil based fuel and chemical is pushed by Global Warming issue and high crude oil price. Some countries had ratified Kyoto Protocol Agreement.

European market, The European Union consumed 1.65 million m3 of ethanol in 2006. The market is expected to grow substantially over the forecast period as new plants come on line and oil companies are forced to blend ethanol in order to meet their energy obligations. By 2013 the market is forecast to be 8.81 million m3 of ethanol.

South East Asia / Indonesia Market. In Indonesia, one of the main regulatory drivers set a target of biofuels having a 1.3 percent share of energy consumption to be achieved in 2010, and 5.0 percent in 2025 or replacing 15% percent Gasoline Consumption with bioethanol in 2025. This is equivalent to 6.28 million kL.

3. Economic, Science and Social Benefit for European / Germany Economic. Activities within the present project will strengthen the position of the Fraunhofer institutes and industrial partners within the field of biodiesel production and plant biotechnology, it easier to setup new collaborations and to maintain or even create new jobs. The project also supports German Government to find alternative feedstock for bioethanol in order to reach EU target for fossil fuel replacement. Scientific. The current project will establish new procedures for the improvement of Arenga Plants and making this renewable resource more competitive and sustainable. Ethanol is an expected new novel renewable feedstock; gaining knowledge with this material enables the development of novel processing technologies and the access to new markets in Asia including Indonesia, Malaysia, India and China, which are potential new partners in the described technologies. Social. Close collaboration between German and Indonesian academic and industrial partners will foster the relationship between both countries, especially in the field of plant biotechnology, and lead to a better understanding of the technological and sociopolitical

challenges. Ultimately, this will facilitate the entry into the Indonesian market and the establishment of new collaborations.

4. Economic, Science and Social Benefit for Indonesia - Economic. The collaboration with the German partners will enable the integration of new
technologies for improving Arenga Plants in Indonesia. Moreover, project results will identify help government for implement biofuel usage for repalcing fossil fuel and also could help farmer and low income people to get higher benefit from their agricultural product.

Scientific. The Indonesian partners will have access to novel technologies and allow establishing plant biotechnology activities in Indonesia. Social. Similar to the benefits described for Germany close collaboration between German and Indonesian academic and industrial partners will foster the relationship between both countries.

5. Partnership
A. Indonesia 1. Balai Penelitian Kelapa 2. PT Medco 3. BPPT Lampung B. Germany 1. Fraunhofer IME, Munster 2. Fraunhofer IBP, Stuttgart 3. Fraunhofer ICT, Pfinztal 4. Sdzucker AG, Abengoa