Biomass Business Prospect
(Woodchips)
03 November 2022
Background
Interest to transition to renewable energy has entered a new phase, climate change impacts and global economic fluctuation forces
countries to push availability of clean and renewable energy. Therefore, Indonesia is moving fast to do the same.
Nationally Determined Contribution (NDC) Indonesia Energy Mix Target
Currently, the primary energy is Up to 2022, clean and
dominated by coal, accounting for renewable energy
29% (voluntarily) portion takes up to
60,5%
12,3%. The energy mix
41% (with international support) target of clean and
renewable energy is 25%
Indonesia aims to reduce greenhouse gases (GHG) emissions on 2025, and 31% on
compared to the business-as-usual scenario by 2030. 2030.
Until last year (2021), the In the last five years, renewables add PLTU Nagan Raya
renewable share is only
The power plant targets to be able to use alternative fuels up to
11.2% 400 Megawatt
Annually
23% in 2025
Fall short than the 23% Only 1/5 of the capacity that has to be by sustainably implementing co-firing coal and biomass strategy
target on 2025 added annually to reach the previous step by step, starting from 1%, 3%, 5%, 10% and gradually growing
23% target by 2025 up to 23%.
Business Scheme
PLTU
Woodchips supply partnership
Nagan Raya
Biomass Plantation Woodchips Production Standardize Woodchips Transport and Power Plant
42,000 Ha Avg : 1.17 M per year QC based on SNI Shipping
• Production Cost Reduction
Aceh Besar, Pidie, • Sustainable targets
and Aceh Jaya achieve
Plasma Plantation Planting & Cutting Labour Force Logistic Business
(Community
Based) Relevant CSR Program that
People contribution in supply or production chain contribute to the production
process
Plantation
22.000 ha
Aceh Besar/Pidie
Plantation Phase 1
5.500 ha Aceh Jaya
(total Potential land 20.000 ha)
Map of “Production Forest” managed by CDE
Sumber Gambar: Peta Arahan Pemanfaatan Hutan Produksi untuk Usaha Pemanfaatan Hutan, KLHK, Indonesia.
Potential Land in Aceh Besar (Aceh Nusa)
Potential Land in Aceh Jaya Detail 1
Detail 2 Detail 3
Detail 4 Detail 5
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The Minimum Biomass Production (Aceh Besar – Pidie - Aceh Jaya)
Minimum Biomass Production Ton
2.100.000 2.100.000 2.100.000 2.100.000 2.100.000 2.100.000 2.100.000 2.100.000 2.100.000 1.600.000
2.100.000
1.380.000
1.400.000
Average biomass
production up to
1.200.000 2.1 million ton
1.070.000 per year.
1.000.000
The average
800.000 production of
690.000 biomass able to
cover the whole
600.000
PT. SI Biomass
Demand until
310.000
400.000 2030.
145.000 200.000
70.000
-
Dec-23 Dec-24 Dec-25 Dec-26 Dec-27 Dec-28 Dec-29 Dec-30 Dec-31 Dec-32 Dec-33 Dec-34 Dec-35 Dec-36 Dec-37 Dec-38
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Potential Coal Power Plants that Will Use Biomassa in Aceh Province based on Location
Calliandra market potential in Aceh is supplying biomass for co-firing coal power plants as below:
Note:
Plantation Location – 1. The map shows that the main potential consumer of
22.000 hectares calliandra biomass is PLTU Meulabouh (Nagan Raya #1,2)
and PLTU MT Meulabouh (Nagan Raya #3,4)
U
2. However, we also notify two other coal power plants,
PLTU Plantation Location – that are PLTU Semen Andalas in Lhoknga and PLTU
Semen 5.500 hectares
Andalas Media Group in Meulaboh. That being said, the total
capacity of all power plants are:
No PLTU Name Capacity
1 PLTU Nagan Raya Unit 1 and 2 220 MW
2 PLTU Nagan Raya Unit 3 and 4 400 MW
PLTU Semen Andalas in
3 32 MW
Lhoknga
PLTU Media Group in
4 10 MW
Meulaboh
PLTU Nagan Raya 1-4 Total 662 MW
PLTU Media Group
Melabouh
3. From distance perspective, plantation location and
production is around 50-60 KM from PLTU Semen
Note: andalas and 250-300 KM from PLTU in Nagan Raya and
Meulabouh. However, the existing infrastructure is
Biomass Production Location considered feasible to support operational activities in
Offtaker Location
the future.
Sumber Gambar: Peta sistem Tenaga Listrik Di Aceh, ESDM, Indonesia.
Sustainability Framework
Receiving Woodchips
PLTU Nagan Raya or other benefits from local
activities that fit with the PLTU
CSR Program Nagan Production Chain
Standardize woodchips QC by CDE CSR Partnership Program
Biomass Supply
Other Potential CDE produce biomass from owned Biomass
• Selection and Management
Partner to Scale-up the plantation or receive from other • Monitoring and Evaluation Program
Program partnership
• Capacity Building/de-risking
Program Planning and Implementation
Government Grant Facility
Grant, Incentive, Connecting to SMEs Capacity building
Micro Finance CDE connecting potential Quality Control Assurance focus on Biomass
partners with SMEs under program or other
Private Partner Biomass Program Standardize Woodchips or other relevant activities
Grant and PPP with industries
relevant product production chain
NGO “Lift up” the beneficiaries
Grant, Capacity (sustainable development) by
Building, Enabling providing capital fund, capacity SME Finance
the Environment building, expertise to improve Plasma Plantation (SME) Facility
the product or other relevant Financial and Capital
Domestic Capital knowledge needed by the SMEs Producing Woodchips Business Development support to Local
Provider Support/Improvement Producing woodchips that Conducting Businesses approved Economic Institution,
Private Investment,
fit with industries by CDE that align with the Koperasi, or other
Scale-up Program
standards (Check by CDE) industries production chain relevant institution
Align with SDG Targets
CSR funds allocated to society should be given in the form of activities that is in align with company’s production chain. Therefore, the surrounding
society is one of the most important components that play important role for company production. The reciprocal relationship will support SDGs
achievement that is also responsibility of the company.
8 from 17 SDG can be
achieved if the CSR
program is directed to
biomass-related
business
The achievement of
SDGs target will
enhance overall
company’s branding.
Forest Management Bioenergy and Clean Green and Clean
and Engineering Energy Provision Technology Development
Energy Transformation Last Mile Energy Clean Energy-Sensitive
and Transition Distribution Community Empowerment
Muamar Vebry Sarwono Kusumaatmadja Denika Blacklock
President Commissioner Commissioner Commissioner
Muamar Vebry is the CEO of PT. Royal Garuda Meta Semesta From 1971 to 1988, he served as a member Denika is a development and public policy
(RGMS), a company which main goal is to use blockchain technology of the DPR-RI and Secretary General of the analyst with 20 years of experience working
in Indonesia's e-Sport gaming industry. RGMS collaborates with top Golkar Central Executive Board (1983-1988). in Europe, Asia and the Pacific. Her
universities, sports groups, Decentralized Finance Entities (DeFi), and In addition to serving as State Minister for the specialization is public policy systems and
multiple metaverse platforms, to leverage blockchain to transform Environment in Development Cabinet VI development effectiveness, and she has
the industry. He is also the Chief Operating Officer (COO) of PT. Aset (1993-1998), he also served as State Minister worked across several sectors, including
Kripto Internasional (AKSI), a new platform for exchanging crypto for Administrative Reform in Development governance, conflict management, climate
currencies that focuses on crypto derivatives beyond traditional Cabinet V (1988-1993). From 1999 to 2001, change and community resilience. Before
exchange platform. Vebry is also the founder of PT. Terralogi Mitra he served as Minister of Marine Exploration in moving to the private sector, Denika
Global (TMG), a Web3 consulting company that focuses on the National Unity Cabinet and was elected in worked extensively for the United Nations
developing projects in the Metaverse. Vebry also started PT. the 2004 legislative elections as a member of Development Programme, International
Komunikasi Kreatif Global (KREATOLOGI), a digital communication the DPD-RI from DKI Jakarta in 2004. Now he Labour Organization, World Food
firm that works with International Organizations like the United is a member of the Board of Commissioners Programme, Commonwealth Forum and
Nations (UN) and various International NGOs. He is on the Board of of PT. Energy Management Indonesia American Bar Association. She has authored
Director, Board of Trustee, and Board of Advisor for several climate- (Persero) EMI, as President Commissioner. several books, editorials and journal
focused and humanitarian NGOs in Indonesia such as Leuser Currently he is an adviser to the Minister (Siti articles. She holds an MA International
International Foundation (BoD), Nusa Gastronomi Foundation (BoC), Nurbaya) at the Ministry of Forestry and Conflict Analysis from the University of Kent
and Geutanyoe Foundation Malaysia (BoC) (BoT). Environment. (UK)
CDE Asia Pasifik is architecting a new era of climate and community facilitating the co-firing of energy supply through utilization of
resiliency through decarbonization of energy provision. stranded assets (i.e. abundance post-mining land) to provide biomass
sources. CDE’ services in this context include initial assessment of
CDE is an empowerment-oriented green technology company that
biomass potentials, legal assessment, land suitability survey, overall
promotes renewable energy adoption through integrated technology
operations management of biomass production (i.e. calliandra
and community empowerment solutions. CDE’s services span across
plantation), and community development within supply chain of
consulting, project development, technology provision, and
biomass.
community management. CDE works with private sector, government,
and community to facilitate seamless and uninterrupted energy CDE seeks to be a leader on clean energy transition that promotes a
transition that is fair for every party. business model that caters to private sector, environment, and
community challenges. CDE envisions a broader adoption of its
CDE’s just energy transition is built on three core principles;
business model that catalyzes net zero emission through
Environmental rehabilitation, De-risking instruments for private sector,
decarbonization of energy supply that benefits environment,
and local economic empowerment within the whole supply chain
community, and business.
network of energy economy. One of CDE’s flagship services is
Fakri Karim Rizqan Fadhilah Teuku Faisal Surya Alfath
Chief Executive Chief Operational Chief Technical Chief Financial
Officer Officer Officer Officer
Over the past 25 years, he has implemented programmes for UNDP, Rizqan has a degree in Faisal has solid experience in Alfath is a financial and
UNHCR, UNCDF and HDC, including in fragile contexts. His expertise management. His professional sustainable development accounting expert that
lies in partnership building, programme management and resource experience has focused on approaches; in-depth knowledge has robust experience
mobilization, working closely with bilateral and multilateral donors to programme and project of energy and engineering related to audit and
leverage seed funding into large-scale programmes. His thematic management in the private systems. He has worked in the banking for agroforestry
areas of specialization are local governance and local economic sector and non-government renewable energy sector for more and mining companies.
development, conservation and climate change adaptation, and organizations (NGO). He has than 15 years. His ideas and His financial modelling
post-crisis recovery. Currently, Fakri is Director for Partnership implemented several projects approaches related to sustainable has supported those
Development at Janine Grant PTE.LTD, a management consulting in urban and rural areas in energy and green infrastructure companies to survive
company based in Singapore, at the same time serve as an Advisory Indonesia, and specializes in has implemented across during the up and down
Board Member for several sustainable development programmes project coordination, Indonesia. Currently, he is a of the commodity market
including the Governance of Inclusive Green Growth in Cities monitoring and reporting director for PT. Metaphora in Indonesia due to the
Programme (DEALS) and ASEAN Green Smart Cities in Asia and using the results-based Andalan Utama that developing pandemic or other major
Africa. In 2022, He also become the ambassador of DigiCorpLabs, a management (RBM) approach. 6.3 MW Mini Hydro Power Plant in economic crashes.
blockchain company based in the Netherlands. Kertamukti, Sukabumi, West Java.
Company Profile
www.cde.co.id
Cohive 101. L. 8 Unit CCW08-08. Jl. DR. Ide Anak Agung Gde Agung
No.1, Kota Jakarta Selatan, DKI Jakarta 12950
