@
Business Proposal
“Developing 72.000 ton/ year Wood Pellet as Biomass Fuel
Production Facility Based on Wood Waste in EastJava”
Sa oo”
Project Developer:
Koperasi Energi Biomiassa Indonesia
(Cecung SancpuraLaniDasar
«J KH Aba Sate No ®Jokara Solan, OKI
“stats‘KoperesiEnerg Biomassalncdonesia KEEN Indonesia Biomass Energy Cooperation was estabished in 202tby the
‘members of Masyarakat Energi Blomassa Indonesia (MEBI)/ Indonesia Biomass Energy Sosely with business actives
related to biomass production, trading, andeaneultancy.Developer:
Koperasi Energ Bemassaindonesia
‘Sector! Subsector:
Renewable Energy) Fuel
‘Sis:
Greenfield
Location:
Lumajang, East Java
Estimated IvestmentCost:
USD 255miion
‘Construction:
2 1Bmonths
“Targeted Financial Close:
ami
March 2021
Structure:
KEBI_ providing O&M and management
expertise and Investor providing
financial or strategic (assets or
technology)
Node of otter:
Enully participation in SPV company
*%ot Ownership:
Minimum S1%n SPV company
Investment Period:
Minimum ‘years
‘Francia! Parameters:
NPV ;USD 52rriion
Equly IRR 2%
Payback period ;35years
Establish 100.000ton/ year wood pellet producton faityn East Java inorder to ful roving demand of
biomas fuel as substitution for coalin Japan / South Kore,<
“This mata zim to providing info for potential investor related b wood pellet industry as
tolow:
+ Operational Aspect of wood pelletmanufactuting process
+ Market Aspectof wood poll commodity forlocal and overseas market
Goals
Financial closing for 6000 ton per menth wood pellet manuiactuing faclty inated by
Indonesia Biomass Energy Cooperation /- Koperasi Energi Biomassa Indonesia (KEB!)
nora,L Product
‘1AWoodPellet
Source of renewable energy made ftom dersiied woody biomass for
_dectrcty generaton or residentalheatng
+ Raw Material
‘Wood Waste -Foresty by-product and woodworking ndustry Energy
‘Wood :Desicated biomass plantation
+ Process:
Denstied wih high temperature and pressure to shapeurifornty
=
nual
“Pelletized biomass have benefits such as increasing calorific vakweand providing
easiness inhanding storage anditanspertaton!
= Batch)13Wood Pellet Usage
Wood Pollet not just usod a5. fuo!
for power generation or heat
Biomasseneray
+ Industiel rade
+ Household arade
But also could beused as: Resilertial Stove
Agricuttre
Pettitte
+ Livostockbeding
+ Plant substrate
Horse Bedding Mushroom Substrate‘14Wood Pellet Specification
(of Coal ara
famum | ss am | sowoust | sawaust | grown | Wooderip
‘ram | nina Meme | “Sewmat | et ro | Lunt | Rena
Pete ue ee ce
® ® aa ere % fe
% oa [a | a |e ||
aps Ey ‘31 —|— 08 |e) —| a —| 2 |
% =x 3a a |_| a
cart % a
en 3 _[ eee | os | ess | or
a Ey fi as | ea | ane nnes | —ear
(Gos carious Rana] 07] 4100 ea [ae fama
‘ena #0} 0 ws |e
sauce PT. Pang ava sa)
‘Biomass contain lower emission (Co2, Sox and Nox)thancoalIL Market Analysis
21Global Wood Pellet Demand
uK
mito ye)
Jopan
(mito year
ro
Tao
Framewor yeement - 196 countries - enforcement
Industri = Heatin
ee 9 in020
i + Aatbiere GHGbainbriniNtheséodhs Hetrertiedentury
fom] ‘Wood pellet as substitution to fossil fuels to lower GHG22Indonesia Potential Export Market
‘A South Korea. Sh works biggestimporter
Koyo:
@ ga Renewabie Portfolio Standard ard Renewable Energy
Oo ee ee ee
$F fe andbiomass powerplant)
ne Production Import
470 Kien = 3.V ben
ost 1g
“South Korea targeting to import 5 million
tons of wood pellet in2020”
~ Tibetan ester Group, 2019
‘Top Exporter
5%
Wl
6
10
%
1
%
Sees
aeB.Japan - 6* world's biggestimporter
Koyetwvers:
Feed in Tait! FIT for biomass power generation (coal coring
‘nd biomass powerpian!)
Production Import
12 Keen 1.08 Vien
wrostarang
“Japan wood pellet demand projectedto reach 15
million tons in 2030”
~Tiisnd estent Gop 2018
0,4
%
75
%
Viana — Mysin
carats == Chine
reneOverview
+ 90 %andanesia wood pellet exported overseas, mainly SouthKorea
+ Nota product goos fo power pent, x agtcuiture mada and enimalbedding
+ Most of wood pelt plants iocaladin Java Island
+ Most of wood pellet producer donothave FSC) PEFC certfcate
+ Most of wood pelt plants are smal scaled (<2000ton ’ month)
oH
os
%
#
sea E un gc
YAP Gace Poseee ten Corea25Local Demand (Existing and Potent)
_Cofting scheme for PLN coal fred power plans (tpl: 54M)
Cofiring rates 1%- 5 9sawidust, wood chip, palm kemel shell, RDF)
+ Smillion tons of biomass needed annually
lean cooking stove project by Minésty of Energy and MineraRResource
+ Reducing cost of LPG subsidy by converting o biomass stove
Targeting sector household and small - medium enterprise
‘Smal, Medium, and Largelndsry
Geramio, exile, cement, livestock, Feed
Hotel, restaurant laundry
FMCG
eto,
“Renewable energy demand expected to increase as an implication of RE00 companies commiment and
\Nll Exenomi Karbon / carbon pricing presidental reguaton that wil affect loca high carbon emiting
Indust in nearfure™‘31Project Location
2872
‘Savers aharanPeom ara Tc)
IL Project Data
East Java Potential,
East Java contibuis to S87% (highest share) to
Icdonesia wood industry and have 986 wood based
‘companies (ISWA, 2019)
‘Wood logs productivity:
+ Procttion Forest 225m
Community Foneet <4360555e?
+ Total 2S20657t0n! year
Donte are
“Wood waste maretestimion |
+ Six Talal production 2m020n
+ Sawdust, wood shavings, chipset
‘Wood pellet feedstock avaiiabity:
+ Annual peed 110000ion/ year
+ KEBI project only need BSanood waste
available n themarketLumajang Largest wood waste source
Probofinggo Factory location and Port for bulk shipment[established SPY No Need partner forinvestment
[Feesioity Study
Earlerprojects Yes [Bone manyinearterprojects
Existing projet No [Couldbe done in two or three months
ees You Male seet nocd wen companies andwood waste
lachinery selection Yes [Europe mixwith China orLooal
PProductbuyer Yes Lol fombashimoto
lPtantlocation ‘Yes [Explored one potential lation nProbalinggo (2.8 ha)Product Buyer
‘We have secured one Lol from PT Hashimoto Indonesia
(Hashimoto Technical Service Co. Lid 192%/ Tokyo Eneray and
‘System inc S2B% Individuals 2%)
In our business, It's not possible to get offake contract before the
‘wood pellet can beproduced,
‘At the moment, global wood pellet demand is increasing_ while the
‘supply remain ‘stable. Therefore, we beleve we can get cftake|
‘contact once our producten sup,
‘We also maintaining good relaonstip wih global wood pelt
‘radorsto got fut oak contrect such as
sumtomo
isu
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