Resource Assessment for Livestock and Agro‐Industrial Wastes— Indonesia Prepared for: Global Methane Initiative Prepared by: Eastern Research Group, Inc. and Winrock International 31 August 2015 Resource Assessment For Livestock And Agro‐Industrial Wastes – Indonesia TABLE OF CONTENTS 1.0 INTRODUCTION .................................................................................................................... 1‐1 1.1 GLOBAL METHANE EMISSIONS FROM MANURE AND AGRO‐INDUSTRIAL WASTES ....................... 1‐2 1.2 METHANE EMISSIONS IN INDONESIA ................................................................................. 1‐3 1.3 RESOURCE ASSESSMENT METHODOLOGY ........................................................................... 1‐4 2.0 SECTOR CHARACTERIZATION ................................................................................................ 2‐1 2.1 PALM OIL PROCESSING PLANTS ....................................................................................... 2‐1 2.1.1 Description of Size, Scale of Operations, and Geographic Location ..................... 2‐1 2.1.2 Description of Waste Characteristics, Handling, and Management ..................... 2‐3 2.1.3 Description of Common Waste Treatment Technologies ..................................... 2‐4 2.1.4 Current Status of Anaerobic Digestion .................................................................. 2‐7 2.2 CASSAVA PROCESSING ................................................................................................... 2‐9 2.2.1 Description of Size, Scale of Operations, and Geographic Location ..................... 2‐9 2.2.2 Description of Waste Characteristics, Handling, and Management ................... 2‐10 2.2.3 Description of Common Waste Treatment Technologies ................................... 2‐10 2.2.4 Current Status of Anaerobic Digestion ................................................................ 2‐11 2.3 SWINE FARMING INDUSTRY .......................................................................................... 2‐13 2.3.1 Description of Size, Scale of Operations, and Geographic Location ................... 2‐13 2.3.2 Description of Waste Characteristics, Handling, and Management ................... 2‐15 2.3.3 Description of Common Wastewater Treatment Technologies .......................... 2‐15 2.3.4 Current Status of Anaerobic Digestion ................................................................ 2‐17 3.0 SECTOR METHANE EMISSIONS AND METHANE REDUCTION POTENTIAL................................ 3‐1 3.1 BASELINE METHANE EMISSIONS ...................................................................................... 3‐1 3.2 GREENHOUSE GAS EMISSION REDUCTIONS ......................................................................... 3‐2 3.2.1 Direct Emission Reductions in Palm Oil and Cassava Processing Sectors ............. 3‐3 3.2.2 Direct Emission Reductions in the Swine Sector ................................................... 3‐3 3.2.3 Indirect GHG Emission Reductions ........................................................................ 3‐4 3.3 SUMMARY .................................................................................................................. 3‐5 4.0 TECHNOLOGY POTENTIAL AND BARRIER ASSESSMENT ......................................................... 4‐1 4.1 TECHNOLOGY POTENTIAL ............................................................................................... 4‐1 4.1.1 Potential Power Generation and Current Energy Usage ....................................... 4‐1 4.1.2 Experience with Anaerobic Digestion.................................................................... 4‐2 4.1.3 Ownership Structures ............................................................................................ 4‐3 4.1.4 Policy and Regulatory Framework ......................................................................... 4‐4 4.2 ASSESSMENT OF BARRIERS .............................................................................................. 4‐6 4.2.1 Human Resources .................................................................................................. 4‐6 4.2.2 Technical Resources .............................................................................................. 4‐6 4.2.3 Access to Technology ............................................................................................ 4‐7 4.2.4 Economic ............................................................................................................... 4‐7 ii Resource Assessment For Livestock And Agro‐Industrial Wastes – Indonesia TABLE OF CONTENTS (Continued) 5.0 ANAEROBIC DIGESTION TECHNOLOGY OPTIONS AND FINANCIAL PERFORMANCE ................ 5‐1 5.1 TECHNOLOGY OPTIONS .................................................................................................. 5‐1 5.2 ANAEROBIC DIGESTION SYSTEM CONFIGURATIONS .............................................................. 5‐1 5.2.1 General AD Systems .............................................................................................. 5‐1 5.3 ANAEROBIC DIGESTION IN INDONESIA ............................................................................... 5‐4 5.3.1 Biogas Uses ............................................................................................................ 5‐5 5.3.2 Financial and Operational Performance ................................................................ 5‐6 5.3.3 Industry‐Specific Cost Estimates ........................................................................... 5‐8 5.4 SUMMARY .................................................................................................................. 5‐8 6.0 ASSESSMENT OF SUPPLY AND SERVICE MARKETS ................................................................. 6‐1 7.0 SUMMARY ............................................................................................................................ 7‐1 APPENDIX A. METHANE CALCULATIONS APPENDIX B. TECHNOLOGY SUPPLIERS IN INDONESIA iii Resource Assessment For Livestock And Agro‐Industrial Wastes – Indonesia LIST OF TABLES Table E‐1. Sector Production Distribution by Size of Operation ................................................................. vii Table E‐2. Baseline Methane Emissions and Potential GHG Emission Reductions ..................................... vii Table 1‐1. Disposal Practices for Livestock and Agro‐Industry Wastewater ............................................. 1‐2 Table 2‐1. Palm Oil Mills and Production Capacities per Province ............................................................ 2‐3 Table 2‐2. POME Parameters and Discharge Standard .............................................................................. 2‐6 Table 2‐3. Facilities with Methane Capture Registered as CDM Projects .................................................. 2‐7 Table 2‐4. Key Tapioca Starch Processing and Wastewater Characteristics ............................................ 2‐11 Table 2‐5. Tapioca Starch CDM Projects in Indonesia ............................................................................. 2‐12 Table 2‐6. Livestock Population at Swine Farms in Solo .......................................................................... 2‐17 Table 2‐7. Key Swine Waste Statistics ...................................................................................................... 2‐17 Table 3‐1. Baseline Distribution of Waste Management Treatment Technologies ................................... 3‐1 Table 3‐2. Summary of Parameters Used to Calculate Emissions for the Palm Oil Sector........................ 3‐2 Table 3‐3. Summary of Parameters Used to Calculate Emissions for the Cassava Sector......................... 3‐2 Table 3‐4. Summary of Parameters Used to Calculate Emissions for the Swine Sector............................ 3‐2 Table 3‐5. Baseline Methane Emissions ..................................................................................................... 3‐2 Table 3‐6. Methane Emission Reductions from Agro‐Industrial Waste, Palm Oil and Cassava Sectors ... 3‐3 Table 3‐7. Methane Emission Reduction Potential, Swine Farming .......................................................... 3‐3 Table 3‐8. Indirect GHG Emission Reduction Potential.............................................................................. 3‐4 Table 3‐9. Potential GHG Emission Reductions for Indonesia ................................................................... 3‐5 Table 4‐1. Power Generation Potential and Energy Usage Information ................................................... 4‐2 Table 4‐2. Policies and Regulations Related to the Renewable Energy Market........................................ 4‐4 Table 5‐1. Anaerobic Digestion Technology Options ................................................................................. 5‐1 Table 5‐2. General AD System Components and Their Functions ............................................................. 5‐2 Table 5‐3. Anaerobic Digestion Technology Selection Based on Best Practices ........................................ 5‐4 Table 5‐4. AD System Costs ........................................................................................................................ 5‐6 Table 5‐5. Cassava Facility AD System ....................................................................................................... 5‐8 Table 5‐6. Components and Cost of a Large Swine Farm Methane Capture System ...............................