**5. Indonesia**

There is a severe reduction in fossil fuel supplies in Indonesia. The current oil and gas re‐ serves are reported to be approximately 747 million cubic meters (94.7 billion barrels) of oil and *2557* million cubic meters (*90,300* billion cubic feet) of natural gas representing a 13% reduction in supplies which is significant because the demand for fossil fuels has already ex‐ ceeded the supply capacity of Indonesian oil industry [23]. Among the several alternative renewable energies available for the country to be harnessed, bioenergy has generated con‐ siderable interests and shows theoretically an adequate potential to overcome the energy shortage and create a balance between the energy demand and supplies for Indonesia. Bio‐ energy is renewable and reduces *CO2* emissions when substituted for fossil fuels [23].

Indonesia is an agrarian country and has approximately 90 million hectares of forest indicat‐ ing that it should concentrate on the development of biomass-based energy programs. At the same time it was ranked among the top ten countries on the globe encountering a net loss of forest area during the era 2000-2005 [23] indicating that bioenergy development development of agro-industrial plantations [20]. The Government of Cambodia has been providing special concession scheme to investors to invest in biodiesel production that is mainly focused on Jatropha as feedstock crops. A number of initiatives are still under either

Bioenergy, energy efficiency, waste management, deforestation and forest degradation are the potential areas for CDM projects in Cambodia. There are four approved project on bio‐ gas, one on waste/heat gas utilisation and one on biomass and completion of these projects

that the country lost 29% of its primary evergreen forests to severe degradation between 2000 and 2005 [21]. A case study is under validation to manage these degraded evergreen primary forests in Cambodia for sustained flow of timber and other ecosystem services that could lead to financial incentives through a carbon payment scheme under global climate change mitigation through reduction emissions from deforestation and forest degradation

The aggregate technical potential for electricity generation from biomass consisting of forest products, agricultural crops and residues, municipal waste and sewerage has been estimat‐ ed using computer simulation techniques at18, 852 *GWh per year*. The findings do not ex‐ plicitly indicate the provision of efficiency in this analysis. Small scale projects based on simplified technologies are most appropriate as CDM projects for Cambodia. However sev‐ eral CDM projects are in implementation or registration/validation phases but low aware‐ ness among policy makers and the private sector, weak institutional capacity, lack of human and technical resources, inappropriate policies and strategies are the major limitations to avail opportunities for carbon trading through CDM [3]. Four out of five active CDM projects on rice husk cogeneration, rubber plantation, improved cookstove and biogas in

There is a severe reduction in fossil fuel supplies in Indonesia. The current oil and gas re‐ serves are reported to be approximately 747 million cubic meters (94.7 billion barrels) of oil and *2557* million cubic meters (*90,300* billion cubic feet) of natural gas representing a 13% reduction in supplies which is significant because the demand for fossil fuels has already ex‐ ceeded the supply capacity of Indonesian oil industry [23]. Among the several alternative renewable energies available for the country to be harnessed, bioenergy has generated con‐ siderable interests and shows theoretically an adequate potential to overcome the energy shortage and create a balance between the energy demand and supplies for Indonesia. Bio‐

energy is renewable and reduces *CO2* emissions when substituted for fossil fuels [23].

Indonesia is an agrarian country and has approximately 90 million hectares of forest indicat‐ ing that it should concentrate on the development of biomass-based energy programs. At the same time it was ranked among the top ten countries on the globe encountering a net loss of forest area during the era 2000-2005 [23] indicating that bioenergy development

Cambodia would reduce emission by *4.2 MT CO2e* over a period on 7-30 years.

[4]. Literature reports

would be able to reduce an annual emission of CO2 of 204, 308 *t year* <sup>−</sup><sup>1</sup>

planning or implementation stages.

24 Sustainable Energy - Recent Studies

(REDD-plus) scheme [22].

**5. Indonesia**

projects should be designed in such a way that do not aggravate the loss of forests for sus‐ tainability and viability for long term applications. There was approximately *13 million Mg* oven-dry-weight of forest biomass in 2005 [24] another study reports that aboveground for‐ est biomass ranged from ∼5000 *to* 11, 000 *million Mg*[25]. It is reported that the quantity of wet biomass that can be harvested from 'production forest' and 'other land with tree cover' could be approximated in three ranges which are: *5083 million Mg* (a lower bound), *5410 mil‐ lion Mg* (a moderate bound) and *10,726 million Mg* (an upper bound). The wet biomass was converted to dry weight equivalent using data from the Global Forest Resources Assessment 2005: Indonesian Country Report [26], State of the World's Forest 2005 [24]; and global For‐ est Resourses Assessment 2005: progress towards Sustainable Forest Management [27]. Sun‐ tana et al. [23] reported that if Indonesia converts forest biomass into bio-methanol for electricity generation and as a gasoline substitute then annually 10,063,731 households could be provided with electricity continuously using a *1kW* fuel cell. The results reported are ob‐ tained using widely accepted calculation methods due to Vogt et al. [23A] which uses the quantity of biomethonal produced from the annually collected forest biomass and the amount of electricity and transportation fuel that could be substituted by the biomethanol produced from the annually forest materials. With the use of only 5% of forest biomass and converting it to bio-methanol as a gasoline substitute would be equivalent to the total quan‐ tity of gasoline consumed in Indonesia during the year 2005. The use of bio-methanol as a substitute for fossil fuel to power vehicles could avoid the emissions of 8.3-34.9% of the total carbon emitted in Indonesia. Timber extraction data from the 1980s reveal that *7.5 million m3 per year* log wastes are generated during harvesting operation that corresponds to about *3.75 million Mg* biomass and is equivalent to collecting biomass materials from 124, 000 *ha year* <sup>−</sup><sup>1</sup> of forest land. 29.5 million litres of bio-methanol can be produce with an efficiency of 25% and could avoid *21.7* Gigagrams *(Gg)* of carbon if it is substitute for natural gas-methanol in fuel cells or *1.97 Gg* of carbon when it is used to supplement gasoline.

Indonesia is the third-largest producer of rice in the world and produced 65,150,764 metric ton in 2010 compared with 64,398,890 metric ton in 2009. Rice bran containing 13.5% oil has a potential for extraction of biodiesel. Gunawan et al. [28] studied rice bran for a potential source of biodiesel production in Indonesia and claimed that 96,000 ton of biodiesel can be obtained from rice bran per year.

Oil palms is another energy crop which were grown on 3.6 Mhectares of land in 2005 and Indonesia is strengthening its production with the increasing worldwide demand for biodie‐ sel derived from oil palms. These trees start bearing fruits approximately 30 months after planting in field and continue to be fertile for a period of 20-30 years ensuring a consistent supply of oil. The estimate for the additional land demands for palm oil plantation in 2020 range from *1 to 28 Mha* in Indonesia that can be met to a large extent by degraded land as well as agricultural management such as implementation of best management practices and earlier replanting with higher yielding plants. Palm oil production has played a major role in land use change in Indonesia [29] and it produces 44% of the world's palm oil as per re‐ cords for the year 2009. It is predicted that palm oil would be the leading internationally traded edible oil by the year 2012 [30] and the palm oil industry in Indonesia looks forward for high pressure modern power plants to cope with future demand. It is estimated that the residue of palm oil consisting of empty fruit bunch, fiber, shell, wet shell, palm kernel, fronds and trunks has a potential for annual power generation of *5000 GWh* [31]. The transi‐ tion of energy scenario from fossil fuels to biomass has been underway using existing tech‐ nologies. In order to make it practically effective requires substantial investments in infrastructure, conversion technologies and in research and development (R&D) for palm oil biomass.

Out of six regional grids in Indonesia where the electricity from the project activities can be grid-connected, primary emission reductions potentials exist in Java, Bali and Southern Su‐

Potential and Use of Bioenergy in The Association of Southeast Asian Nations (ASEAN) Countries – A Review

http://dx.doi.org/10.5772/51917

27

Utilization of palm oil mill effluent (POME) to generate electricity by minimising the emana‐ tion of methane gas could reduce GHG emission of 47, 222 *tCO*2 per year. The feasibility study of this project that was funded by NEDO Japan is completed and is expected to be considered for CDM scheme and be financed by developed countries. The expected finance

A study financed by the World Bank revealed that the country has a potential to mitigate GHG emissions of over 3 billion tons of carbon dioxide equivalent (CO2e). There are large scale possibilities for emission reductions in the energy sectors. Biomass offers a large poten‐

Wood and charcoal were the most dominated traditional energy resources for the period 1996 to 2002 that account for about 75% of the total national energy consumption. Wood is mainly used for cooking and space heating and in rural areas still accounts for up to 90% of the energy consumption. An increase of 4.8% in the total energy use with reference to period 1996-2002 is noted. The Government is keen to develop bioenergy for which more than 2 million hectares of ideal land has been initially identified for biofuels feedstock plantations which is a major step to produce enough biofuels by 2020. Protected area management sys‐ tem is enforced in Lao PDR and a recent study on improvement and implementation of pro‐ tected area management with positive interaction between people and the natural environment was conducted using a simple simulation model, the "Area Production Model" aiming at evaluating different options for land use and primary production. The findings of this research reveal that the integrated land-use planning approach was found to be well adapted to the needs of the protected area management system [38]. The Ministry of Plan‐ ning and Investment signed a Memorandum of Understanding in June 2008 with private companies to construct two biodiesel factories with a production capacity of 50,000 tones each by 2010 [39]. A production of the Biodiesel (B100) was reported on July 7, 2011 at a rate of 40,000 Litres/month (*www.linkedin.com/groups/Green-Energy-in-Cambodia-Lao-3991528)*. A rural Renewable Energy Initiative in the great Mekong Subregion reports that Lao produces 223,300 tones of sugarcane and 55,500 tones of cassava in the year 2007 indicating that Gov‐

ernment policy towards the development of bioenergy is progressing.

,equivalent to 1922 *million l year* <sup>−</sup><sup>1</sup>

A study on "Application of biofuel supply chains for rural development and Lao energy se‐ curity measurements" was conducted in March 2008 which claims that bioethanol could substitute for 20% of gasoline use in 2030 with the production of commercially viable Jatro‐ pha biofuel in four different phases starting from 2008 to 2030 over a total land of 1.1 million hectares [40]. Bush [41] discussed that bioenergy holds enormous potential of

of diesel fuel in Laos, with an abun‐

matera grids [36].

tial for CDM projects [3].

**6. Lao, P. D. R.**

18907 *MWh year* <sup>−</sup><sup>1</sup>

for this project could be from Japan [37].

The other feedstocks for biofuel in addition to palm oil, forest biomass and rice bran are crops waste (rubber truck, coconut, sugarcane), waste of food crop products (cassava, sjatro‐ pha, sorghum,, soybeans, peanuts, maize, paddy) account for 12.77×10<sup>6</sup> tonnes per year and 87.45×10<sup>6</sup> tonnes per year, respectively [32]. The crops waste are residues left in field after grain harvest. The Government of Indonesia is in the process of preparing additional land for growing high-yield feedstocks to meet the country's biofuel production goals of 5.57 mil‐ lion kiloliters of biodiesel and 3.77 million kiloliters of bioethanol [33].

The U.S. Department of commerce claimed that biomass installed capacity for energy source in Indonesia is *445MW* which is only 1% of the total resource potential of 49,810MW. The country has targeted 810MW with a conversion efficiency of about 30% of biomass power by 2025 with an increase of 83% but still it is far less than the potential contribution [33].

Research conducted at BPPT-LSDE in Indonesia reported on a plan to construct 1500 litre per day capacity biodiesel using palm oil waste. The domestic manufacturing capacity of bi‐ omass gasifier is improved and capable of producing 15−100 *kWe*for rice mill and wood mill power supply as well as for rural electrification. The Indonesian Government has been fo‐ cusing its policy on bioenergy diversification and introduced a huge plantation of Jatropha curcas as an additional biodiesel source which is non-edible and has well known potential to be converted into biodiesel [34].

Jupesta [35] studied technological changes in the biofuel production system in Indonesia us‐ ing mathematical modelling consisting of two scenarios: the base scenario and the technolo‐ gy scenario. The base scenario assumes the conditions and data set in the Indonesian Government's Mix Energy policy that relies on an increase in biofuel production by increas‐ ing the land allocation for biofuel while the technology scenario concentrates technical change consisting of growth in yield and a cost reduction in addition to the growth in land allocation. The author reported that the highest contribution is likely to come from palm oil that accounts for 93% and 64% of the technology scenario and the base scenario, respective‐ ly. The excess production for export increases in both scenarios. But the technology scenario gives more competitive results.

The substantial amount of bagasse in sugar mills can provide fuel for electricity-generating projects in Indonesia that will most probably be considered for the Clean Energy Develop‐ ment Mechanism (CDM) scheme. A recent study concluded that this source has a potential of 260, 253 *MWh* that could generate a Greenhouse Gas (GHG) emission reduction of 240, 774(large scale) or 198, 177 *tCO*2(small scale) annually. The present low efficiency co‐ generation for those values lead to the earning of about US\$1.36 or 1.12 million respectively. Out of six regional grids in Indonesia where the electricity from the project activities can be grid-connected, primary emission reductions potentials exist in Java, Bali and Southern Su‐ matera grids [36].

Utilization of palm oil mill effluent (POME) to generate electricity by minimising the emana‐ tion of methane gas could reduce GHG emission of 47, 222 *tCO*2 per year. The feasibility study of this project that was funded by NEDO Japan is completed and is expected to be considered for CDM scheme and be financed by developed countries. The expected finance for this project could be from Japan [37].

A study financed by the World Bank revealed that the country has a potential to mitigate GHG emissions of over 3 billion tons of carbon dioxide equivalent (CO2e). There are large scale possibilities for emission reductions in the energy sectors. Biomass offers a large poten‐ tial for CDM projects [3].
