Techno-Economic Analysis of Cellulosic Ethanol in Indonesia Using Palm Residues

Cellulosic ethanol is a biofuel derived from waste cellulosic biomass. The palm industry in Indonesia produces vast quantities of palm biomass residues, which are left unused. This is a rich resource that the cellulosic ethanol industry could use, given Indonesia’s ambitious goals for replacing petroleum with biofuels. The authors believe that theirs is the first study to assess the costs and potential growth of production of cellulosic ethanol in Indonesia. The study estimates the production cost of cellulosic ethanol using a discounted cash flow model for the costs of building and operating cellulosic ethanol production plants. It also explores how a cellulosic ethanol industry could be developed over the next twenty years. The results show that an annual government subsidy of IDR 4.7–6 trillion (US$335-430 million) would be needed to support the growth of a first wave of ten facilities, each with a production capacity of 70 million liters. The authors also show that if Indonesia builds thirty commercial facilities over the next decade, 2 billion liters of cellulosic ethanol could be produced annually. The development of a cellulosic ethanol industry in Indonesia would bring many benefits, including reduced imports of petroleum, new employment, new income for palm industry smallholders, and increased greenhouse gas savings.

Language

  • English

Media Info

  • Media Type: Digital/other
  • Edition: White Paper
  • Features: Appendices; Figures; References; Tables;
  • Pagination: 26p

Subject/Index Terms

Filing Info

  • Accession Number: 01767274
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 22 2021 10:34AM