APPENDIX IV

CDM PROJECT IDEA NOTES AND EXPRESSIONS OF INTEREST

CDM PROJECT IDEA NOTES

I. Project Idea Note for Clean Development Mechanism

A.

Name of Project

Siak Hulu 5 MW Biomass Power Plant

Date of Submission

Nov 2005

Project Description, Type, Location and Schedule

Technical Summary of the Project
Objective of the Project
The objective of the project is to reduce the growth rate of Green
House Gases (GHG) through utilising palm oil residue as a fuel
source for electricity generation and steam generation.
Project description and
The project activity is to install a power generation plant utilising
proposed activities (including biomass waste for power generation and further export to the
a technical description of the
electricity grid. Biomass power plant will be designed for 5MWe
project)
utilizing Palm Oil Mill residues as a fuel. The electricity generated
will be sold to PLN grid. This will reduce the grid systems
dependency on fossil fuel resources and reduce the emission of
GHG emission.
The location of the power plant is adjacent to the Sinar Siak Dian
Permai palm oil mill, which has been identified as provider of
potential biomass fuel sources. It is anticipated that the fuel for the
biomass power plant will be supplied from a number of mills in the
Siak Hulu cluster.
Treatment of EFB will be carried out to improve the heat value
prior to combustion. Steam is produced by the Biomass Boilers
with total capacity 25,000 kg per hour at 68 barg pressure and
temperature of 450 0C superheated. First it is expanded in steam
turbines, through a series of turbo wheels and then led into the
exhaust manifold and into atmospheric condenser. The energy
released during the expansion of steam is converted by turbine
into mechanical power to drive an alternator.
The electricity generated from a renewable resource, biomass
waste in this case, exported to the grid will displace conventional
electricity generation, mainly by fossil fuel, in the grid. This will
result in the reduction of greenhouse gases (GHGs) emission in
the grid
Project Developer
Name of the project developer
Organisational category

PD Sarana Pembangunan Riau JV

Private company

Address
Contact person
Telephone / fax
E-mail and website address, if
any
Project Sponsors (if applicable)
(List and provide the following information for all project sponsors)
Name of the project sponsor
NA
Organizational category
NA
Address (include web address, if NA
any)
Main activities
NA

Summary of the financials

NA

Cooperation with Annex 1 countries

( CERs Buyer )

Type of Project
Greenhouse gases targeted
Type of activities
Field of activities
a. Energy supply
b. Energy demand
c. Transport
d. Waste management

CO2
Abatement
Renewable electricity supply to the grid, 5 Mwe
NA
NA
Utilization of waste

Location of the Project

Brief description of the location of The plant is located at the Research Centre of Riau Commodity
the plant
surrounded by six palm oil mills in the district of Siak Hulu,
Kabupaten Kampar, Riau Province, Indonesia.. Distance from the
nearest PLN grid is around 1km.
Expected Schedule
Earliest project start date
2008
Estimate of time required before Time required for financial commitments: 2 months
becoming operational after
Time required for legal matters: 4 months
approval of the PIN
Time required for negotiations: 2 months
Time required for construction: 15 months
Expected first year of CER
delivery
Year 2008 (subject to date of plant commissioning)
Project lifetime
21 years
Current status or phase of the
Pre feasibility study
project

A1. Project Size

Is the project a small-scale project?

Small-scale project (Biomass)

B. National Criteria for CDM Energy Projects

1. Sustainable Development
Describe how the project addresses one or
more of the following:
i. Ensuring adequacy and security of fuel
supply as well as promoting the utilisation
of gas and renewable energy
ii. Ensuring adequacy of electricity supply as
well as improving productivity and
efficiency
iii. Developing the energy-related industries
and services as well as increasing local
content
iv. Promoting Indonesia as a regional centre
for energy-related engineering services
v. Encouraging efficient utilisation of energy,
particularly in the industrial and
commercial sectors
vi. Giving due importance to environmental
considerations

i. The potential of power generation from

biomass can be seen as very promising in
Indonesia. The palm oil industry generates the
largest amount of biomass waste.
ii. The biomass power plant carefully designed
to ensure its long term effectiveness. The
impact of efficient energy conversion and inhouse utilization are important design criteria.
iii. The project will be a demonstration of a new
integrated power plant design, which will
support
the
Indonesian
energy-related
industries to provide more efficient designs
and technologies for cogeneration systems.
iv. Indonesia with its hundreds of Palm Oil Mills
generate huge amount of biomass waste, a bio
energy project expected to be a model for

many mills in Indonesia and improve the

business opportunities for local engineering,
design and manufacturing of projects and
technologies.
v. The project aims at using the main waste
streams from the palm oil mill, namely solid
waste (EFB, shells and fibres). This will lead to
an efficient utilisation of the energy resources.
vi. The project will reduce the waste from the
palm oil mill, produce clean renewable power
and steam and utilise efficient, state of the art
technology, which will lead to less
environmental impact. Furthermore the project
will comply with all applicable environmental
regulations in the country.
2. Environmental regulations
i.
ii.

Has the project conformed to the

environmental regulations of the country?
List the approvals (or exemptions)
obtained

3. Technology to be employed and source of

technology

i. Yes, all emission and effluent will comply

with Environment Quality Act
ii. Approvals from Department of Environment
will be sought prior to construction stage.
The main components of the biomass power
plant are the biomass fired steam boiler, the
turbine and the fuel preparation system.
The project will use the Danstoker Enco
Water Tube Boiler or a boiler of similar
standard. This is a proven design based on the
Natural Circulation Principle. The boiler is
provided with a single overhead boiler drum.
The drum is fully welded and provided with a
steam separating system, a feed water
distributor and a manhole at the end.
The boiler is designed for firing with Shredded
and Dried Oil Palm Empty Fruit Bunch (EFB)
Fibres of 75mm length max., Palm Mesocarp
Fibres, and Wood-Chips (25 mm cubes), which
are reasonably free of Foreign Materials. All of
the above fuels shall have a Moisture Content
of between 25% to 40% by weight.
Subject to final design consideration, the
combustion equipment comprise an Inclined
Water-Cooled Membrane Vibrating Grate
System, designed to provide effective and
environmental-friendly, fuel burn-out at all
boiler load conditions.
The Furnace is designed to create the best
possible conditions for combustion of the fuel.
The furnace is provided with the necessary
inspection covers and access doors.
Fully-Welded Membrane Walls and Grates
Increases the Heating Surface of the Boiler,
especially its Radiant Heating Surface. It is
also maintenance-free, as long as the Boiler
Feed Water Quality meets InternationallyAccepted Feed Water Quality Specifications,
for the Boiler Operating Pressure.

4. Project Developer

PD Sarana Pembangunan Riau JV

Local incorporated company

Paid-up capital
Sources of Finance to be Sought or Already Identified
NA
Equity
NA
Debt Long-term
Debt - Short term
NA
Not identified
NA
CDM contribution sought
Total for project lifetime (3 x 7 years)
US$ 3,336,000
1st Crediting Period (2007 2012)
US$ 800,000
Sources of carbon finance
NA

C. Expected Environmental and Social Benefits

Estimate of Greenhouse Gases Biomass (Based on 5MWe export to the grid)
abated / CO2 Sequestered (in
Annual : 32,000 tCO2 equivalent/year
metric tons of CO2-equivalent) Up to and including 2012: 160,000 tCO2-equivalent
Up to a period of 10 years: 320,000 tCO2-equivalent
Up to a period of 7 years: 224,000 tCO2-equivalent
Up to a period of 14 years: 448,000 tCO2-equivalent
Baseline scenario
Biomass
Biomass fuels are becoming important renewable, environmental
friendly and economical source of energy. Biomass has the
advantage that it can be stored as a fuel for use on demand and
can be converted to heat and electricity. By utilising agro residues
consisting of Empty Fruit Bunch (EFB) as the primary fuel,
mesocarp fibre and shells shall effectively displace fossil fuel
based electricity generation.
The total annual CO2 emission reduction is estimated at 32,000
tCO2/year
The project activity is to supply electricity from renewable biomass
waste to the electricity grid system in Riau. This will equally reduce
the amount of power to be generated by the present capacities
connected to the grid system.

Socio-economic aspects
What social and economic effects
can be attributed to the project
and which would not have
occurred in a comparable
situation without that project?

What are the possible direct

effects (e.g., employment
creation, capital required, foreign
exchange effects)?

The social benefit derived consists of mitigating environmental

impact by orderly disposal residue instead of incineration, open
burning or natural decay.
The economic impact should create opportunity in the engineering
services sector in designing and implementing energy efficient and
integrated bio energy plants, which is expected to lead to business
in Indonesia and abroad.
The direct effect includes employment opportunities for the
villagers and resident of nearby town. Possibility setting up of
workshops, agro based product traders & spare parts dealers
servicing the needs of the power plant.
The plant will require more staff than the present smaller energy
plant at the palm oil mill as the operation hours will be extended
and the capacity and complexity is higher.

The project will reduce the use of fossil fuels in the power
generation sector that will lead to less import of fossil fuels and/or
possible export of fossil fuels, and thus improve the foreign
exchange of the country.
Furthermore the sale of certified emission reductions will be in hard
currency e.g. Euro or US Dollars.
What are the possible other
effects? For example:
Training/education
associated with the
introduction of new
processes, technologies and
products and/or

The effects of a project on

other industries

The setting up the integrated bio-energy power plant is expected to

be as a reference and exposure in biomass technology for learning
institution since biomass utilization is still in a very early stage in
Indonesia.
The effect of a project on the other industries includes the
possibility of engineering services sector on component and spare
parts suppliers, plant maintenance and consultancy.

D. Finance
Total Project Cost Estimate
Development costs
Installed costs
Other costs
Total project costs
Indicative CER Price (subject
to negotiation and financial
due diligence)

US$ 540,000
US$ 5,400,000
US$ 1,560,000
US$ 7,500,000
Euro 6.00 / tonne CO2e

E. Risks
Risks in the Project
Please describe the factors that Cost of equipment and project viability without the sales of CERs.
may cause delays in, or prevent
implementation of the project

Estimate the Degree of Risk

Technical risk

Low

Medium

High

Timing risk

Low

Medium

High

Budget risk

Low

Medium

High

CDM PROJECT IDEA NOTE

The objective of the PIN is to determine whether the submitted project proposals contain
all the relevant information to screen the project and to assess whether the projects meet
the national CDM criteria
Description of size and quality expected of a PIN
Basically a PIN will consist of approximately 10 pages providing indicative information
on:
A.
B.
C.
D.
E.

Project description, Type, Location and Schedule

National criteria for small-scale projects
Expected environmental and social benefits
Finance
Risks

If possible, full information should be provided on all issues. The information required to
consider the project for national approval is highlighted in the template below.
The completed PIN and attachments should be sent to:

Name of Project
Date of Submission

A.

Methane Recovery Project in PT. Perkebunan Nusantara V

Sei Pagar Palm Oil Mill in Riau, Indonesia
January 2006

Project Description, Type, Location and Schedule

Technical Summary of the Project
Objective of the Project
The objective of the project is to reduce the growth rate of Green
House Gases (GHG) through utilising palm oil effluent and
capturing biogas as a fuel source for boiler in order to it heat up
Project description and
The project will involve the installation of a closed anaerobic
proposed activities (including system that will produce and collect consistently high quality
a technical description of the
methane-rich biogas from palm oil mill effluent (POME) that will be
project)
used as a fuel.
The biogas will be captured from closed tank anaerobic digesters
of POME and is fed to the boiler of PT. Perkebunan Nusantara V
Sei Pagar Palm Oil Mill. .
2 anaerobic digesters anks will be installed having a volume of
3000 m3 and 4000 m3 for each unit of biogas plant. The minimum
retention time is designed at 17 days.
The location of the anaerobic digesters is adjacent to the Sei
Pagar Palm Oil Mill, which has been identified as provider of
biogas fuel source.

Project Developer
Name of the project developer
Organisational category

PT. Perkebunan Nusantara V

A State Owned Company

Address
Contact person
Telephone / fax
E-mail and website address, if
any
Project Sponsors (if applicable)
(List and provide the following information for all project sponsors)
Name of the project sponsor
NA
Organizational category
NA
Address (include web address, if NA
any)
Main activities
NA
Summary of the financials
NA
Cooperation with Annex 1 countries
EcoSecurities ( CERs Buyer )

Type of Project
Greenhouse gases targeted
Type of activities
Field of activities
a. Energy supply
b. Energy demand
c. Transport
d. Waste management
Location of the Project
Brief description of the location of
the plant
Expected Schedule
Earliest project start date
Estimate of time required before
becoming operational after
approval of the PIN
Expected first year of CER
delivery
Project lifetime
Current status or phase of the
project

CO2 / CH4
Abatement
Renewable energy supply to boiler
NA
NA
Reduce Methane Emission
The digesters are located in PT. Perkebunan Nusantara V- Sei
Pagar Palm Oil Mill, Riau, Indonesia. Distance from boiler to
digesters is less than 1km.
2007
Time required for financial commitments: 12 months
Time required for legal matters: 2 months
Time required for negotiations: 2 months
Time required for construction: 10 months
Year 2008 (subject to date of plant commissioning)
21 years
Pre Feasibility Study

A1. Project Size

Is the project a small-scale project?

Small-scale project (Biomass and biogas)

B. National Criteria for CDM Energy Projects

1. Sustainable Development
Describe how the project addresses one or
more of the following:
i. Ensuring adequacy and security of fuel
supply as well as promoting the utilisation
of gas and renewable energy
ii. Ensuring adequacy of electricity supply as
well as improving productivity and
efficiency
iii. Developing the energy-related industries
and services as well as increasing local
content
iv. Promoting Indonesia as a regional centre
for energy-related engineering services
v. Encouraging efficient utilisation of energy,
particularly in the industrial and
commercial sectors
vi. Giving due importance to environmental
considerations

i. The potential usage of biogas can be seen

as very promising in Indonesia. The palm oil
industry generates the largest amount of
biomass waste including palm oil effluent or
POME.
ii. The biogas capture system and anaerobic
digester system are carefully designed to
ensure its long term effectiveness. The impact
of efficient energy conversion and in-house
utilization are important design criteria.
iii. The Palm Oil Mill could use biogas which is
originally untapped, reduce the use of diesel oil
and develop the mill to apply a proven biogas
capture technology
iv. Indonesia with its hundreds of Palm Oil Mills
generate huge amount of biomass waste
include POME, a bio energy project expected
to be a model for many mills in Indonesia and
improve the business opportunities for local
engineering, design and manufacturing of
projects and technologies.

v. The project aims at using the main waste

streams from the palm oil mill, namely palm oil
effluent (biogas) in an integrated energy plant.
This will lead to an efficient utilisation of the
energy resources.
vi. The project will utilize palm oil mill effluent
to produce biogas as renewable energy
source, state of the art technology, which will
lead
to
less
environmental
impact.
Furthermore the project will comply with all
applicable environmental regulations in the
country.
2. Environmental regulations
i.
ii.

Has the project conformed to the

environmental regulations of the country?
List the approvals (or exemptions)
obtained

i. Yes, all emission and effluent will comply

with Environment Quality Act.
ii. Approvals from Ministry of Environment will
be sought prior to construction stage.

3. Technology to be employed and source of

technology

The project will involve the installation of a

closed anaerobic system that will produce and
collect consistently high quality methane-rich
biogas from palm oil mill effluent (POME) that
will be used as a fuel. The biogas will be used
for energy generation in the integrated energy
plant. The project will use the anaerobic closed
digesting system designed by Novaviro
Technology.

4. Project Developer

PT. Perkebunan Nusantara V

Local incorporated company

Paid-up capital
Sources of Finance to be Sought or Already Identified
Equity
Debt Long-term
Debt - Short term
Not identified
CDM contribution sought
Total for project lifetime (3 x 7 years)
1st Crediting Period (2007 2012)
Sources of carbon finance

C. Expected Environmental and Social Benefits

Estimate of Greenhouse Gases Biogas (Based on 150,000 tons/year FFB)
abated / CO2 Sequestered (in
Annual: 14,529 tCO2-equivalent/year
metric tons of CO2-equivalent)
Up to and including 2012: 72,645 tCO2-equivalent

Up to a period of 10 years: 145,290 tCO2-equivalent

Up to a period of 7 years: 101,703 tCO2-equivalent
Up to a period of 14 years: 203,406 tCO2-equivalent

Baseline scenario
Biogas
The potential reduction of GHG by implementing the POME
treatment and biogas recovery technology are:
1. Avoided CH4 emissions from lagoon
Emitted methane from the lagoons is captured and thereby GHG
emissions are reduced.
2. The biogas is intended to be used in the biomass boiler.
Huge amount of methane are released to the atmosphere through
the common practice of treating POME open lagoons systems
resulting contribution to GHG emission.
Methane is 21 times harmful to the environment compared to
carbon dioxide.
Based on the existing annual 150,000 tons FFB palm oill mill, the
total annual CO2 emission reduction is estimated at 14,529 tCO2equivalent/year.
Socio-economic aspects

The replacement of the current wastewater treatment system by a

closed anaerobic digester will mitigate large quantities of CH4 , a
What social and economic effects potent GHG from being emitted into atmosphere. It also reduces
can be attributed to the project
the strong odours being emitted into atmosphere.
and which would not have
occurred in a comparable
The economic impact should create opportunity in the engineering
situation without that project?
services sector in designing and implementing energy efficient.
What are the possible direct
The direct effect includes employment opportunities for the
effects (e.g., employment
villagers and resident of nearby town. Possibility setting up of
creation, capital required, foreign workshops, agro based product traders & spare parts dealers
exchange effects)?
servicing the needs of the anaerobic digesters system.
The plant will require more staff than the present plant at the palm
oil mill as a new digester system is introduced.
The project will reduce the use of fossil fuels in the boiler
particularly at start up that will lead to less fossil fuels use.
Furthermore the sale of certified emission reductions will be in hard
currency e.g. Euro or US Dollars.
What are the possible other
effects? For example:
Training/education
associated with the
introduction of new
processes, technologies and
products and/or

The effects of a project on

other industries

The setting up the integrated biogas capture system into Palm Oil
Mill is expected to be as a reference and exposure in biomass and
biogas technology for learning institution since biomass and biogas
utilization is still in a very early stage in Indonesia.
The effect of a project on the other industries includes the
possibility of engineering services sector on component and spare
parts suppliers, plant maintenance and consultancy.

D. Finance
Total Project Cost Estimate
Development costs
Installed costs
Other costs
Total project costs
Indicative CER Price (subject
to negotiation and financial
due diligence)

Biogas Plant

Biomass Plant

USD 10.80 / tonne CO2e

E. Risks
Risks in the Project
Please describe the factors that Cost of equipment and project viability without the sales of CERs.
may cause delays in, or prevent Availability of Fresh Fruit Bunch.
implementation of the project
Estimate the Degree of Risk
Technical risk

Low

Medium

High

Timing risk

Low

Medium

High

Budget risk

Low

Medium

High

PROJECT IDEA NOTE (PIN) FOR CDM PROJECTS

The objective of the PIN is to determine whether the submitted project proposals contain all
the relevant information to screen the project and to assess whether the projects meet the
national CDM criteria
Description of size and quality expected of a PIN
Basically a PIN will consist of approximately 10 pages providing indicative information
on:
A.
B.
C.
D.
E.

Project description, Type, Location and Schedule

National criteria for small-scale projects
Expected environmental and social benefits
Finance
Risks

If possible, full information should be provided on all issues. The information required to
consider the project for national approval is highlighted in the template below.
The completed PIN and attachments should be sent to:

Golder Associates

Name of Project
Date of Submission

A.

Methane Recovery and Power Generation Project in Riau,

Indonesia
January 2006

Project Description, Type, Location and Schedule

Technical Summary of the Project
Objective of the Project
The objective of the project is to reduce the growth rate of Green
House Gases (GHG) through utilising palm oil effluent and
capturing biogas as a fuel source for boiler in order to it heat up
Project description and
The project will involve the installation of a closed anaerobic
proposed activities (including system that will produce and collect consistently high quality
a technical description of the
methane-rich biogas from palm oil mill effluent (POME) that will be
project)
used as a fuel.
The biogas will be captured from closed tank anaerobic digesters
of POME and is fed to the boiler of PT.Ramajaya Pramukti - Rama
Rama Palm Oil Mill. .
2 anaerobic digester tanks will be installed having a volume of
3000 and 4000 m3 for each unit biogas plant. The minimum
retention time is designed at 17 days
The location of the anaerobic digesters is adjacent to the Rama
Rama Palm Oil Mill, which has been identified as provider of
biogas fuel source.

Project Developer
Name of the project developer
Organisational category

PT. Ramajaya Pramukti

Private company

Address
Contact person
Telephone / fax
E-mail and website address, if
any
Project Sponsors (if applicable)
(List and provide the following information for all project sponsors)
Name of the project sponsor
NA
Organizational category
NA
Address (include web address, if NA
any)
Main activities
NA
Summary of the financials
NA
Cooperation with Annex 1 countries
EcoSecurities ( CERs Buyer )

Golder Associates

Type of Project
Greenhouse gases targeted
Type of activities
Field of activities
a. Energy supply
b. Energy demand
c. Transport
d. Waste management
Location of the Project
Brief description of the location of
the plant
Expected Schedule
Earliest project start date
Estimate of time required before
becoming operational after
approval of the PIN
Expected first year of CER
delivery
Project lifetime
Current status or phase of the
project

CO2 / CH4
Abatement
Renewable energy supply to boiler
NA
NA
Reduce Methane Emission
The digesters are located in PT. Ramajaya Pramukti- Rama Rama
Palm Oil Mill, Riau, Indonesia. Distance from boiler to digesters is
less than 1km.
2007
Time required for financial commitments: 12 months
Time required for legal matters: 2 months
Time required for negotiations: 2 months
Time required for construction: 10 months
Year 2008 (subject to date of plant commissioning)
21 years
Ongoing Pre Feasibility Study

A1. Project Size

Is the project a small-scale project?

Small-scale project (Biogas)

B. National Criteria for CDM Energy Projects

1. Sustainable Development
Describe how the project addresses one or
more of the following:
i. Ensuring adequacy and security of fuel
supply as well as promoting the utilisation
of gas and renewable energy
ii. Ensuring adequacy of electricity supply as
well as improving productivity and
efficiency
iii. Developing the energy-related industries
and services as well as increasing local
content
iv. Promoting Indonesia as a regional centre
for energy-related engineering services
v. Encouraging efficient utilisation of energy,
particularly in the industrial and
commercial sectors
vi. Giving due importance to environmental
considerations

i. The potential usage of biogas can be seen

as very promising in Indonesia. The palm oil
industry generates the largest amount of
biomass waste including palm oil effluent or
POME.
ii. The biogas capture system and anaerobic
digester system are carefully designed to
ensure its long term effectiveness. The impact
of efficient energy conversion and in-house
utilization are important design criteria.
iii. The Palm Oil Mill could use biogas which is
originally untapped, reduce the use of diesel oil
and develop the mill to apply a proven biogas
capture technology
iv. Indonesia with its hundreds of Palm Oil Mills
generate huge amount of biomass waste
include POME, a bio energy project expected
to be a model for many mills in Indonesia and
improve the business opportunities for local
engineering, design and manufacturing of
projects and technologies.

Golder Associates

v. The project aims at using the main waste

streams from the palm oil mill, namely palm oil
effluent (biogas) in an integrated energy plant.
This will lead to an efficient utilisation of the
energy resources.
vi. The project will utilize palm oil mill effluent
to produce biogas as renewable energy
source, state of the art technology, which will
lead
to
less
environmental
impact.
Furthermore the project will comply with all
applicable environmental regulations in the
country.
2. Environmental regulations
i.
ii.

Has the project conformed to the

environmental regulations of the country?
List the approvals (or exemptions)
obtained

i. Yes, all emission and effluent will comply

with Environment Quality Act.
ii. Approvals from Ministry of Environment will
be sought prior to construction stage.

3. Technology to be employed and source of

technology

The project will involve the installation of a

closed anaerobic system that will produce and
collect consistently high quality methane-rich
biogas from palm oil mill effluent (POME) that
will be used as a fuel. The biogas will be used
for energy generation in the integrated energy
plant.

4. Project Developer

PT. Ramajaya Pramukti

Local incorporated company

Paid-up capital
Sources of Finance to be Sought or Already Identified
Equity
Debt Long-term
Debt - Short term
Not identified
CDM contribution sought
Total for project lifetime (3 x 7 years)
1st Crediting Period (2007 2012)
Sources of carbon finance

Golder Associates

C. Expected Environmental and Social Benefits

Estimate of Greenhouse Gases Biogas (Based on 1200 tons/day FFB)
abated / CO2 Sequestered (in
Annual: 47,628 tCO2-equivalent/year
metric tons of CO2-equivalent) Up to and including 2012: 285,768 tCO2-equivalent
Up to a period of 10 years: 476,280 tCO2-equivalent
Up to a period of 7 years: 333,396 tCO2-equivalent
Up to a period of 14 years: 666,792 tCO2-equivalent
Baseline scenario
Biogas
The potential reduction of GHG by implementing the POME
treatment and biogas recovery technology are:
1. Avoided CH4 emissions from lagoon
Emitted methane from the lagoons is captured and thereby GHG
emissions are reduced.
2. The biogas is intended to be used in the biomass boiler.
Huge amount of methane are released to the atmosphere through
the common practice of treating POME open lagoons systems
resulting contribution to GHG emission.
Methane is 21 times harmful to the environment compared to
carbon dioxide.
Based on the existing 1200 tonne/day palm oil mill, the total annual
CO2 emission reduction is estimated at 47,628 tCO2/year.
Socio-economic aspects

The replacement of the current wastewater treatment system by a

closed anaerobic digester will mitigate large quantities of CH4 , a
What social and economic effects potent GHG from being emitted into atmosphere. It also reduces
can be attributed to the project
the strong odours being emitted into atmosphere.
and which would not have
occurred in a comparable
The economic impact should create opportunity in the engineering
situation without that project?
services sector in designing and implementing energy efficient.
What are the possible direct
The direct effect includes employment opportunities for the
effects (e.g., employment
villagers and resident of nearby town. Possibility setting up of
creation, capital required, foreign workshops, agro based product traders & spare parts dealers
exchange effects)?
servicing the needs of the anaerobic digesters system.
The plant will require more staff than the present plant at the palm
oil mill as a new digester system is introduced.
The project will reduce the use of fossil fuels in the boiler
particularly at start up that will lead to less fossil fuels use.
Furthermore the sale of certified emission reductions will be in hard
currency e.g. Euro or US Dollars.
What are the possible other
effects? For example:
Training/education
associated with the
introduction of new
processes, technologies and
products and/or

The effects of a project on

other industries

The setting up the integrated biogas capture system into Palm Oil
Mill is expected to be as a reference and exposure in biomass and
biogas technology for learning institution since biomass and biogas
utilization is still in a very early stage in Indonesia.
The effect of a project on the other industries includes the
possibility of engineering services sector on component and spare
parts suppliers, plant maintenance and consultancy.

Golder Associates

D. Finance
Total Project Cost Estimate
Development costs
Installed costs
Other costs
Total project costs
Indicative CER Price (subject
to negotiation and financial
due diligence)

Biogas Plant

Biomass Plant

Euro 6 / tonne CO2e

E. Risks
Risks in the Project
Please describe the factors that Cost of equipment and project viability without the sales of CERs.
may cause delays in, or prevent Availability of Fresh Fruit Bunch.
implementation of the project
Estimate the Degree of Risk
Technical risk

Low

Medium

High

Timing risk

Low

Medium

High

Budget risk

Low

Medium

High

Golder Associates

I. Project Idea Note for Clean Development Mechanism

A.

Name of Project

Kota Pinang 5 MW Biomass Power Plant

Date of Submission

Dec 2005

Project Description, Type, Location and Schedule

Technical Summary of the Project
Objective of the Project
The objective of the project is to reduce the growth rate of Green
House Gases (GHG) through utilising palm oil residue as a fuel
source for electricity generation and steam generation.
Project description and
The project activity is to install a power generation plant utilising
proposed activities (including biomass waste for power generation and further export to the
a technical description of the
electricity grid. Biomass power plant will be designed for 5MWe
project)
utilizing Palm Oil Mill residues as a fuel. The electricity generated
will be sold to PLN grid. This will reduce the grid systems
dependency on fossil fuel resources and reduce the emission of
GHG emission.
The location of the power plant is adjacent to the Sinar Siak Dian
Permai palm oil mill, which has been identified as provider of
potential biomass fuel sources. It is anticipated that the fuel for the
biomass power plant will be supplied from a number of mills in the
Siak Hulu cluster.
Treatment of EFB will be carried out to improve the heat value
prior to combustion. Steam is produced by the Biomass Boilers
with total capacity 25,000 kg per hour at 68 barg pressure and
temperature of 450 0C superheated. First it is expanded in steam
turbines, through a series of turbo wheels and then led into the
exhaust manifold and into atmospheric condenser. The energy
released during the expansion of steam is converted by turbine
into mechanical power to drive an alternator.
The electricity generated from a renewable resource, biomass
waste in this case, exported to the grid will displace conventional
electricity generation, mainly by fossil fuel, in the grid. This will
result in the reduction of greenhouse gases (GHGs) emission in
the grid
Project Developer
Name of the project developer
Organisational category

To be advised
Private company

Address
Contact person
Telephone / fax
E-mail and website address, if
any
Project Sponsors (if applicable)
(List and provide the following information for all project sponsors)
Name of the project sponsor
NA
Organizational category
NA
Address (include web address, if NA
any)
Main activities
NA
Summary of the financials
NA

Cooperation with Annex 1 countries

( CERs Buyer )

Type of Project
Greenhouse gases targeted
Type of activities
Field of activities
a. Energy supply
b. Energy demand
c. Transport
d. Waste management

CO2
Abatement
Renewable electricity supply to the grid, 5 Mwe
NA
NA
Utilization of waste

Location of the Project

Brief description of the location of The plant is located at Kampung Jawa village, surrounded by six
the plant
palm oil mills in the district of Kota Pinang, Labuhan Batu regency,
North Sumatera Province, Indonesia.. Distance from the nearest
PLN grid is around 500 m.
Expected Schedule
Earliest project start date
2008
Estimate of time required before Time required for financial commitments: 2 months
becoming operational after
Time required for legal matters: 4 months
approval of the PIN
Time required for negotiations: 2 months
Time required for construction: 15 months
Expected first year of CER
delivery
Year 2008 (subject to date of plant commissioning)
Project lifetime
21 years
Current status or phase of the
Pre feasibility study
project

A1. Project Size

Is the project a small-scale project?

Small-scale project (Biomass)

B. National Criteria for CDM Energy Projects

1. Sustainable Development
Describe how the project addresses one or
more of the following:
i. Ensuring adequacy and security of fuel
supply as well as promoting the utilisation
of gas and renewable energy
ii. Ensuring adequacy of electricity supply as
well as improving productivity and
efficiency
iii. Developing the energy-related industries
and services as well as increasing local
content
iv. Promoting Indonesia as a regional centre
for energy-related engineering services
v. Encouraging efficient utilisation of energy,
particularly in the industrial and

i. The potential of power generation from

biomass can be seen as very promising in
Indonesia. The palm oil industry generates the
largest amount of biomass waste.
ii. The biomass power plant carefully designed
to ensure its long term effectiveness. The
impact of efficient energy conversion and inhouse utilization are important design criteria.
iii. The project will be a demonstration of a new
integrated power plant design, which will
support
the
Indonesian
energy-related
industries to provide more efficient designs
and technologies for cogeneration systems.
iv. Indonesia with its hundreds of Palm Oil Mills

commercial sectors
vi. Giving due importance to environmental
considerations

generate huge amount of biomass waste, a bio

energy project expected to be a model for
many mills in Indonesia and improve the
business opportunities for local engineering,
design and manufacturing of projects and
technologies.
v. The project aims at using the main waste
streams from the palm oil mill, namely solid
waste (EFB, shells and fibres). This will lead to
an efficient utilisation of the energy resources.
vi. The project will reduce the waste from the
palm oil mill, produce clean renewable power
and steam and utilise efficient, state of the art
technology, which will lead to less
environmental impact. Furthermore the project
will comply with all applicable environmental
regulations in the country.

2. Environmental regulations
i.
ii.

Has the project conformed to the

environmental regulations of the country?
List the approvals (or exemptions)
obtained

3. Technology to be employed and source of

technology

i. Yes, all emission and effluent will comply

with Environment Quality Act
ii. Approvals from Department of Environment
will be sought prior to construction stage.
The main components of the biomass power
plant are the biomass fired steam boiler, the
turbine and the fuel preparation system.
The project will use the Danstoker Enco
Water Tube Boiler or a boiler of similar
standard. This is a proven design based on the
Natural Circulation Principle. The boiler is
provided with a single overhead boiler drum.
The drum is fully welded and provided with a
steam separating system, a feed water
distributor and a manhole at the end.
The boiler is designed for firing with Shredded
and Dried Oil Palm Empty Fruit Bunch (EFB)
Fibres of 75mm length max., Palm Mesocarp
Fibres, and Wood-Chips (25 mm cubes), which
are reasonably free of Foreign Materials. All of
the above fuels shall have a Moisture Content
of between 25% to 40% by weight.
Subject to final design consideration, the
combustion equipment comprise an Inclined
Water-Cooled Membrane Vibrating Grate
System, designed to provide effective and
environmental-friendly, fuel burn-out at all
boiler load conditions.
The Furnace is designed to create the best
possible conditions for combustion of the fuel.
The furnace is provided with the necessary
inspection covers and access doors.
Fully-Welded Membrane Walls and Grates
Increases the Heating Surface of the Boiler,
especially its Radiant Heating Surface. It is
also maintenance-free, as long as the Boiler
Feed Water Quality meets Internationally-

Accepted Feed Water Quality Specifications,

for the Boiler Operating Pressure.
4. Project Developer

To be advised

Local incorporated company

Paid-up capital
Sources of Finance to be Sought or Already Identified
NA
Equity
NA
Debt Long-term
Debt - Short term
NA
Not identified
NA
CDM contribution sought
Total for project lifetime (3 x 7 years)
US$ 3,336,000
1st Crediting Period (2007 2012)
US$ 800,000
Sources of carbon finance
NA

C. Expected Environmental and Social Benefits

Estimate of Greenhouse Gases Biomass (Based on 5MWe export to the grid)
abated / CO2 Sequestered (in
Annual : 32,000 tCO2 equivalent/year
metric tons of CO2-equivalent) Up to and including 2012: 160,000 tCO2-equivalent
Up to a period of 10 years: 320,000 tCO2-equivalent
Up to a period of 7 years: 224,000 tCO2-equivalent
Up to a period of 14 years: 448,000 tCO2-equivalent
Baseline scenario
Biomass
Biomass fuels are becoming important renewable, environmental
friendly and economical source of energy. Biomass has the
advantage that it can be stored as a fuel for use on demand and
can be converted to heat and electricity. By utilising agro residues
consisting of Empty Fruit Bunch (EFB) as the primary fuel,
mesocarp fibre and shells shall effectively displace fossil fuel
based electricity generation.
The total annual CO2 emission reduction is estimated at 32,000
tCO2/year
The project activity is to supply electricity from renewable biomass
waste to the electricity grid system in Riau. This will equally reduce
the amount of power to be generated by the present capacities
connected to the grid system.
Socio-economic aspects
What social and economic effects
can be attributed to the project
and which would not have
occurred in a comparable
situation without that project?

What are the possible direct

effects (e.g., employment
creation, capital required, foreign
exchange effects)?

The social benefit derived consists of mitigating environmental

impact by orderly disposal residue instead of incineration, open
burning or natural decay.
The economic impact should create opportunity in the engineering
services sector in designing and implementing energy efficient and
integrated bio energy plants, which is expected to lead to business
in Indonesia and abroad.
The direct effect includes employment opportunities for the
villagers and resident of nearby town. Possibility setting up of
workshops, agro based product traders & spare parts dealers
servicing the needs of the power plant.

The plant will require more staff than the present smaller energy
plant at the palm oil mill as the operation hours will be extended
and the capacity and complexity is higher.
The project will reduce the use of fossil fuels in the power
generation sector that will lead to less import of fossil fuels and/or
possible export of fossil fuels, and thus improve the foreign
exchange of the country.
Furthermore the sale of certified emission reductions will be in hard
currency e.g. Euro or US Dollars.
What are the possible other
effects? For example:
Training/education
associated with the
introduction of new
processes, technologies and
products and/or

The effects of a project on

other industries

The setting up the integrated bio-energy power plant is expected to

be as a reference and exposure in biomass technology for learning
institution since biomass utilization is still in a very early stage in
Indonesia.
The effect of a project on the other industries includes the
possibility of engineering services sector on component and spare
parts suppliers, plant maintenance and consultancy.

D. Finance
Total Project Cost Estimate
Development costs
Installed costs
Other costs
Total project costs
Indicative CER Price (subject
to negotiation and financial
due diligence)

US$ 540,000
US$ 5,400,000
US$ 1,560,000
US$ 7,500,000
Euro 6.00 / tonne CO2e

E. Risks
Risks in the Project
Please describe the factors that Cost of equipment and project viability without the sales of CERs.
may cause delays in, or prevent
implementation of the project
Estimate the Degree of Risk
Technical risk

Low

Medium

High

Timing risk

Low

Medium

High

Budget risk

Low

Medium

High

PROJECT IDEA NOTE (PIN) FOR CDM PROJECTS

The objective of the PIN is to determine whether the submitted project proposals
contain all the relevant information to screen the project and to assess whether the
projects meet the national CDM criteria

Description of size and quality expected of a PIN

Basically a PIN will consist of approximately 10 pages providing indicative
information on:
A.
B.
C.
D.
E.

Project description, Type, Location and Schedule

National criteria for small-scale projects
Expected environmental and social benefits
Finance
Risks

If possible, full information should be provided on all issues. The information required
to consider the project for national approval is highlighted in the template below.
The completed PIN and attachments should be sent to:

Name of Project
Date of Submission

A.

Methane Recovery Project at PT. Inti Indo Sawit Subur

Buatan I in Riau, Indonesia
January 2006

Project Description, Type, Location and Schedule

Technical Summary of the Project
Objective of the Project
The objective of the project is to reduce the growth rate of Green
House Gases (GHG) through utilising palm oil effluent and
capturing biogas as a fuel source for boiler in order to it heat up
Project description and
The project will involve the installation of a closed anaerobic
proposed activities (including system that will produce and collect consistently high quality
a technical description of the
methane-rich biogas from palm oil mill effluent (POME) that will be
project)
used as a fuel.
The biogas will be captured from closed tank anaerobic digesters
of POME and is fed to the boiler of PT.Inti Indo Sawit Subur
Buatan I Palm Oil Mill (PT.IISSB I POM)..
2 anaerobic digesting tanks will be installed having a volume of
3000 and 4000 m3 for each unit of biogas plant. The minimum
retention time is designed at 17 days
The location of the anaerobic digesters is adjacent to the PT.IISSB
I Palm Oil Mill, which has been identified as provider of biogas fuel
source.

Project Developer
Name of the project developer
Organisational category

PT. Inti Indo Sawit Subur Buatan I

Private company

Address
Contact person
Telephone / fax
E-mail and website address, if
any
Project Sponsors (if applicable)
(List and provide the following information for all project sponsors)
Name of the project sponsor
NA
Organizational category
NA
Address (include web address, if NA
any)
Main activities
NA
Summary of the financials
NA
Cooperation with Annex 1 countries
EcoSecurities ( CERs Buyer )

Type of Project
Greenhouse gases targeted
Type of activities
Field of activities
a. Energy supply
b. Energy demand
c. Transport
d. Waste management
Location of the Project
Brief description of the location of
the plant
Expected Schedule
Earliest project start date
Estimate of time required before
becoming operational after
approval of the PIN
Expected first year of CER
delivery
Project lifetime
Current status or phase of the
project

CO2 / CH4
Abatement
Renewable energy supply to boiler
NA
NA
Reduce Methane Emission
The digesters are located in PT. Inti Indo Sawit Subur Buatan I
Palm Oil Mill, Riau, Indonesia.
2007
Time required for financial commitments: 12 months
Time required for legal matters: 2 months
Time required for negotiations: 2 months
Time required for construction: 10 months
Year 2008 (subject to date of plant commissioning)
21 years
Pre Feasibility Study

A1. Project Size

Is the project a small-scale project?

Small-scale project (Biogas)

B. National Criteria for CDM Energy Projects

1. Sustainable Development
Describe how the project addresses one or
more of the following:
i. Ensuring adequacy and security of fuel
supply as well as promoting the
utilisation of gas and renewable energy
ii. Ensuring adequacy of electricity supply
as well as improving productivity and
efficiency
iii. Developing the energy-related industries
and services as well as increasing local
content
iv. Promoting Indonesia as a regional
centre for energy-related engineering
services
v. Encouraging efficient utilisation of
energy, particularly in the industrial and
commercial sectors
vi. Giving due importance to environmental
considerations

i. The potential usage of biogas can be seen

as very promising in Indonesia. The palm oil
industry generates the largest amount of
biomass waste including palm oil effluent or
POME.
ii. The biogas capture system and anaerobic
digester system are carefully designed to
ensure its long term effectiveness. The
impact of efficient energy conversion and inhouse utilization are important design
criteria.
iii. The Palm Oil Mill could use biogas which
is originally untapped, reduce the use of
diesel oil and develop the mill to apply a
proven biogas capture technology
iv. Indonesia with its hundreds of Palm Oil
Mills generate huge amount of biomass
waste include POME, a bio energy project
expected to be a model for many mills in
Indonesia and improve the business

opportunities for local engineering, design

and manufacturing of
projects and
technologies.
v. The project aims at using the main waste
streams from the palm oil mill, namely palm
oil effluent (biogas) in an integrated energy
plant. This will lead to an efficient utilisation
of the energy resources.
vi. The project will utilize palm oil mill effluent
to produce biogas as renewable energy
source, state of the art technology, which will
lead to less environmental
impact.
Furthermore the project will comply with all
applicable environmental regulations in the
country.
2. Environmental regulations
i.

ii.

Has the project conformed to the

environmental regulations of the
country?
List the approvals (or exemptions)
obtained

i. Yes, all emission and effluent will comply

with Environment Quality Act.
ii. Approvals from Ministry of Environment
will be sought prior to construction stage.

3. Technology to be employed and source

of technology

The project will involve the installation of a

closed anaerobic system that will produce
and collect consistently high quality
methane-rich biogas from palm oil mill
effluent (POME) that will be used as a fuel.
The biogas will be used for energy
generation in the integrated energy plant.
The project will use the anaerobic closed
digesting system designed by Novaviro
Technology.

4. Project Developer

PT. Inti Indo Sawit Subur Buatan I

Local incorporated company

Paid-up capital
Sources of Finance to be Sought or Already Identified
Equity
Debt Long-term
Debt - Short term
Not identified
CDM contribution sought
Total for project lifetime (3 x 7 years)
1st Crediting Period (2007 2012)
Sources of carbon finance

C. Expected Environmental and Social Benefits

Estimate of Greenhouse Gases Biogas (Based on 700 tons/day FFB)
abated / CO2 Sequestered (in
Annual: 25,468 tCO2-equivalent/year
metric tons of CO2-equivalent)
Up to and including 2012: 127,339 tCO2-equivalent

Up to a period of 10 years: 254,680 tCO2-equivalent

Up to a period of 7 years: 178,274 tCO2-equivalent
Up to a period of 14 years: 356,549 tCO2-equivalent

Baseline scenario
Biogas
The potential reduction of GHG by implementing the POME
treatment and biogas recovery technology are:
1. Avoided CH4 emissions from lagoon
Emitted methane from the lagoons is captured and thereby GHG
emissions are reduced.
2. The biogas is intended to be used in the biomass boiler.
Huge amount of methane are released to the atmosphere through
the common practice of treating POME open lagoons systems
resulting contribution to GHG emission.
Methane is 21 times harmful to the environment compared to
carbon dioxide.

Based on the existing 700 tonne/day palm oil mill, the total
annual CO2 emission reduction is estimated at : 25,468

tCO2-equivalent/year

Socio-economic aspects
What social and economic effects
can be attributed to the project
and which would not have
occurred in a comparable
situation without that project?

What are the possible direct

effects (e.g., employment
creation, capital required, foreign
exchange effects)?

The replacement of the current wastewater treatment system by a

closed anaerobic digester will mitigate large quantities of CH4 , a
potent GHG from being emitted into atmosphere. It also reduces
the strong odours being emitted into atmosphere.
The economic impact should create opportunity in the engineering
services sector in designing and implementing energy efficient.
The direct effect includes employment opportunities for the
villagers and resident of nearby town. Possibility setting up of
workshops, agro based product traders & spare parts dealers
servicing the needs of the anaerobic digesters system.
The plant will require more staff than the present plant at the palm
oil mill as a new digester system is introduced.
The project will reduce the use of fossil fuels in the boiler
particularly at start up that will lead to less fossil fuels usage.
Furthermore the sale of certified emission reductions will be in hard
currency e.g. Euro or US Dollars.

What are the possible other

effects? For example:
Training/education
associated with the
introduction of new
processes, technologies and
products and/or

The effects of a project on

other industries

The setting up the integrated biogas capture system into Palm Oil
Mill is expected to be as a reference and exposure in biomass and
biogas technology for learning institution since biomass and biogas
utilization is still in a very early stage in Indonesia.
The effect of a project on the other industries includes the
possibility of engineering services sector on component and spare
parts suppliers, plant maintenance and consultancy.

D. Finance
Total Project Cost Estimate
Development costs
Installed costs
Other costs
Total project costs
Indicative CER Price (subject
to negotiation and financial
due diligence)

Biogas Plant

Biomass Plant

USD 7.20 / tonne CO2e

E. Risks
Risks in the Project
Please describe the factors that Cost of equipment and project viability without the sales of CERs.
may cause delays in, or prevent Availability of Fresh Fruit Bunch.
implementation of the project
Estimate the Degree of Risk
Technical risk

Low

Medium

High

Timing risk

Low

Medium

High

Budget risk

Low

Medium

High

PROJECT IDEA NOTE (PIN) FOR CDM PROJECTS

The objective of the PIN is to determine whether the submitted project proposals contain all
the relevant information to screen the project and to assess whether the projects meet the
national CDM criteria
Description of size and quality expected of a PIN
Basically a PIN will consist of approximately 10 pages providing indicative information
on:
A.
B.
C.
D.
E.

Project description, Type, Location and Schedule

National criteria for small-scale projects
Expected environmental and social benefits
Finance
Risks

If possible, full information should be provided on all issues. The information required to
consider the project for national approval is highlighted in the template below.
The completed PIN and attachments should be sent to:

Golder Associates

Name of Project
Date of Submission

A.

Methane Recovery Project at PT. Sinar Siak Dian Permai in

Riau, Indonesia
February 2006

Project Description, Type, Location and Schedule

Technical Summary of the Project
Objective of the Project
The objective of the project is to reduce the growth rate of Green
House Gases (GHG) through utilising palm oil effluent and
capturing biogas as a fuel source for boiler in order to it heat up
Project description and
The project will involve the installation of a closed anaerobic
proposed activities (including system that will produce and collect consistently high quality
a technical description of the
methane-rich biogas from palm oil mill effluent (POME) that will be
project)
used as a fuel.
The biogas will be captured from closed tank anaerobic digesters
of POME and is fed to the boiler of PT.Ramajaya Pramukti - Rama
Rama Palm Oil Mill. .
2 anaerobic digester tanks will be installed having a volume of
3000 and 4000 m3 for each unit biogas plant. The minimum
retention time is designed at 17 days
The location of the anaerobic digesters is adjacent to the Sinar
Siak Dian Permai Palm Oil Mill, which has been identified as
provider of biogas fuel source.

Project Developer
Name of the project developer
Organisational category

PT. Sinar Siak Dian Permai

Private company

Address
Contact person
Telephone / fax
E-mail and website address, if
any
Project Sponsors (if applicable)
(List and provide the following information for all project sponsors)
Name of the project sponsor
NA
Organizational category
NA
Address (include web address, if NA
any)
Main activities
NA
Summary of the financials
NA
Cooperation with Annex 1 countries
EcoSecurities ( CERs Buyer )

Golder Associates

Type of Project
Greenhouse gases targeted
Type of activities
Field of activities
a. Energy supply
b. Energy demand
c. Transport
d. Waste management
Location of the Project
Brief description of the location of
the plant
Expected Schedule
Earliest project start date
Estimate of time required before
becoming operational after
approval of the PIN
Expected first year of CER
delivery
Project lifetime
Current status or phase of the
project

CO2 / CH4
Abatement
Renewable energy supply to boiler
NA
NA
Reduce Methane Emission
The digesters are located in PT. Sinar Siak Dian Permai Palm Oil
Mill, Riau, Indonesia. Distance from boiler to digesters is less than
1km.
2007
Time required for financial commitments: 12 months
Time required for legal matters: 2 months
Time required for negotiations: 2 months
Time required for construction: 10 months
Year 2008 (subject to date of plant commissioning)
21 years
Ongoing Pre Feasibility Study

A1. Project Size

Is the project a small-scale project?

Small-scale project (Biogas)

B. National Criteria for CDM Energy Projects

1. Sustainable Development
Describe how the project addresses one or
more of the following:
i. Ensuring adequacy and security of fuel
supply as well as promoting the utilisation
of gas and renewable energy
ii. Ensuring adequacy of electricity supply as
well as improving productivity and
efficiency
iii. Developing the energy-related industries
and services as well as increasing local
content
iv. Promoting Indonesia as a regional centre
for energy-related engineering services
v. Encouraging efficient utilisation of energy,
particularly in the industrial and
commercial sectors
vi. Giving due importance to environmental
considerations

i. The potential usage of biogas can be seen

as very promising in Indonesia. The palm oil
industry generates the largest amount of
biomass waste including palm oil effluent or
POME.
ii. The biogas capture system and anaerobic
digester system are carefully designed to
ensure its long term effectiveness. The impact
of efficient energy conversion and in-house
utilization are important design criteria.
iii. The Palm Oil Mill could use biogas which is
originally untapped, reduce the use of diesel oil
and develop the mill to apply a proven biogas
capture technology
iv. Indonesia with its hundreds of Palm Oil Mills
generate huge amount of biomass waste
include POME, a bio energy project expected
to be a model for many mills in Indonesia and
improve the business opportunities for local
engineering, design and manufacturing of
projects and technologies.

Golder Associates

v. The project aims at using the main waste

streams from the palm oil mill, namely palm oil
effluent (biogas) in an integrated energy plant.
This will lead to an efficient utilisation of the
energy resources.
vi. The project will utilize palm oil mill effluent
to produce biogas as renewable energy
source, state of the art technology, which will
lead
to
less
environmental
impact.
Furthermore the project will comply with all
applicable environmental regulations in the
country.
2. Environmental regulations
i.
ii.

Has the project conformed to the

environmental regulations of the country?
List the approvals (or exemptions)
obtained

i. Yes, all emission and effluent will comply

with Environment Quality Act.
ii. Approvals from Ministry of Environment will
be sought prior to construction stage.

3. Technology to be employed and source of

technology

The project will involve the installation of a

closed anaerobic system that will produce and
collect consistently high quality methane-rich
biogas from palm oil mill effluent (POME) that
will be used as a fuel. The biogas will be used
for energy generation in the integrated energy
plant.

4. Project Developer

PT. Sinar Siak Dian Permai

Local incorporated company

Paid-up capital
Sources of Finance to be Sought or Already Identified
Equity
Debt Long-term
Debt - Short term
Not identified
CDM contribution sought
Total for project lifetime (3 x 7 years)
1st Crediting Period (2007 2012)
Sources of carbon finance

C. Expected Environmental and Social Benefits

Estimate of Greenhouse Gases
abated / CO2 Sequestered (in
Annual: 47,628 tCO2-equivalent/year
metric tons of CO2-equivalent) Up to and including 2012: 285,768 tCO2-equivalent
Up to a period of 10 years: 476,280 tCO2-equivalent
Up to a period of 7 years: 333,396 tCO2-equivalent
Up to a period of 14 years: 666,792 tCO2-equivalent

Golder Associates

Baseline scenario
Biogas
The potential reduction of GHG by implementing the POME
treatment and biogas recovery technology are:
1. Avoided CH4 emissions from lagoon
Emitted methane from the lagoons is captured and thereby GHG
emissions are reduced.
2. The biogas is intended to be used in the biomass boiler.
Huge amount of methane are released to the atmosphere through
the common practice of treating POME open lagoons systems
resulting contribution to GHG emission.
Methane is 21 times harmful to the environment compared to
carbon dioxide.
Based on the existing 1200 tonne/day palm oil mill, the total annual
CO2 emission reduction is estimated at 47,628 tCO2/year.

Socio-economic aspects
What social and economic effects
can be attributed to the project
and which would not have
occurred in a comparable
situation without that project?

What are the possible direct

effects (e.g., employment
creation, capital required, foreign
exchange effects)?

What are the possible other

effects? For example:
Training/education
associated with the
introduction of new
processes, technologies and
products and/or

The effects of a project on

other industries

The replacement of the current wastewater treatment system by a

closed anaerobic digester will mitigate large quantities of CH4 , a
potent GHG from being emitted into atmosphere. It also reduces
the strong odours being emitted into atmosphere.
The economic impact should create opportunity in the engineering
services sector in designing and implementing energy efficient.
The direct effect includes employment opportunities for the
villagers and resident of nearby town. Possibility setting up of
workshops, agro based product traders & spare parts dealers
servicing the needs of the anaerobic digesters system.
The plant will require more staff than the present plant at the palm
oil mill as a new digester system is introduced.
The project will reduce the use of fossil fuels in the boiler
particularly at start up that will lead to less fossil fuels use.
Furthermore the sale of certified emission reductions will be in hard
currency e.g. Euro or US Dollars.

The setting up the integrated biogas capture system into Palm Oil
Mill is expected to be as a reference and exposure in biomass and
biogas technology for learning institution since biomass and biogas
utilization is still in a very early stage in Indonesia.
The effect of a project on the other industries includes the
possibility of engineering services sector on component and spare
parts suppliers, plant maintenance and consultancy.

Golder Associates

D. Finance
Total Project Cost Estimate
Development costs
Installed costs
Other costs
Total project costs
Indicative CER Price (subject
to negotiation and financial
due diligence)

Biogas Plant

Biomass Plant

Euro 6 / tonne CO2e

E. Risks
Risks in the Project
Please describe the factors that Cost of equipment and project viability without the sales of CERs.
may cause delays in, or prevent Availability of Fresh Fruit Bunch.
implementation of the project
Estimate the Degree of Risk
Technical risk

Low

Medium

High

Timing risk

Low

Medium

High

Budget risk

Low

Medium

High

Golder Associates

EXPRESSION OF INTEREST

February 21, 2006

ATT

: Mr. Mohamad Adan Yusof

Team Leader
Technical Assistance for the gas generation from waste project, ADB TA 4333-INO
Ministry of Energy and Mineral Resources, Directorate General of Electricity Energy Resources
Asean Centre for Energy Building, 4th floor
Jl HR. Rasuna Said Bolk X2, Kav. 07-08
Kuningan-Jakarta 12950

Dear Mr. Adan Yusof,

I would like to express DP SOLUSIs interest in bring in investors for the projects that have been identified in
the gas generation from waste project, ADB TA 4333-INO. These investors may be interested in equity
participants as well as in the generation of Emission Credits providing that the projects are eligible as CDM
projects. Please kindly include our initiatives in the overall CDM strategy implementation in Indonesia in the
framework of the ADB TA 4333-INO project.

Sincerely yours,

DP SOLUSI (PT. DWARAKARSA PRIAMARTA)

Architrandi Priambodo
President Director

Jl. Pondok Labu 1B/11A, Jakarta 12450, Indonesia, Tel/Fax: +62-21 7696081/7660789, email: chitra_dpsolusi@cbn.net.id