indonesia aviation biofuels and renewable energy task force
TRANSCRIPT
The Indonesia Initiatives on Reducing Emissions of GHG State Action Plan in The Air Transport Sector and Aviation
Biofuels Policy and Progress
Presented by :
Yusfandri Gona Head of Airport Authority Region IV Bali
Chairman Indonesia Aviation Biofuels and Renewable Energy Task Force DGCA Indonesia - ICAO CAEP Representative
CONTENT
Indonesia State Action Plan in The Air Transport Sector
Indonesia Aviation Biofuels and Renewable Energy Task Force
Global Policy and Strategy Initiative Driven
Energy Policy, Target and Implementation on Aviation Biofuels
National Potential Resources Driven
Industry Readiness on Implementation of Aviation Biofuels
Renewable Energy for Airport Operation Programme
Future Programme
Resume
INDONESIA COMMITMENT ON GHG MITIGATION
Sources : Maryam Ayumi & Hardiv 2012
0,008
(Giga ton) CO2e
0,011
(Giga ton) CO2e
0,038
(Giga ton) CO2e
0,056
(Giga ton) CO2e
0,001
(Giga ton) CO2e
0,015 (Giga ton) CO2e
0,048
(Giga ton) CO2e
0,078
(Giga ton) CO2e
0,672
(Giga ton) CO2e
1.079
(Giga ton) CO2e
Sources : ICCTF, 2014
THE INDONESIA CLIMATE CHANGE TRUST FUND
4TH Pillars + Global Scenario 2011-2030
Market based Measures
Indonesia Action Plan & Implementation Measures
Technology Initiatives
Operational Efficiency Initiatives
Infrastructure Efficiency Initiatives
Alternatives Fuels & Additional Technology Initiatives. Estimated Cover 40%-50% carbon mitigation depend
on production and blending capacity
INTERNATIONAL POLICY BACKGROUND Contribution to the ICAO Global Programs
The Indonesia State Action Plan to Reduce Emissions in The Aviation Sector
ICAO ASSEMBLY RESOLUTION A38-18: Consolidated statement of continuing ICAO policies and practices related to environmental protection CLIMATE CHANGE
11. Submit their voluntary ACTION PLANS on international aviation CO2 EMISSIONS to ICAO;
32. h) Develop policy actions to accelerate the appropriate development, deployment and use of sustainable ALTERNATIVE FUELS FOR AVIATION
Indonesia Focus
Main Program of National Action Plan
Aircraft fleets increased of 10% - 15% each year from 2012 up to 2018 for domestic fleet and 5% each year start from 2014 up to 2017 for international fleet, being all of them new technology aircraft.
Aircraft operational efficiency and maintenance improvement starting 2013.
Alternative fuel (bio-fuel) for aircraft (2% blend by 2018 & 3% at 2020) and GSE (15 % start 2015)
Renewable energy (solar-cell, wind-hybrid, water-based) for air port facilities ( 7.5 MW by 2015-2020 )
Improve the air space system management through PBN (Star-SID,RNP-10, RNP-5, R-Nav-App).
Eco-airport continuous implementation (LED, Green Building, New Tech )
The Indonesia State Action Plan to Reduce Emissions in The Aviation Sector
Sources : The State Action Plan , an update Juni 2015, DGCA Indonesia
The State Action Plan and Carbon Reduction Emissions on Air Transportation Sector by 2020
National Regulatory Background Minister Energy & Mineral Resources Decree No 25/1013 2% MANDATE OF BIOFUELS USE BY 2018
STEERING COMMITTEECHAIRMAN/CO-CHAIRMAN
Secretary Directorate General of Civil AviationDirector of Bioenergy
INDONESIA AVIATION BIOFUEL AND RENEWABLE ENERGY TASK FORCE (INDONESIA ABRETF)DG DECREE NO.: 517 K/73/DJE/2014 & KP. 429 YEAR 2014
EXECUTIVE ADVISORY BOARDDIRECTOR GENERAL OF CIVIL AVIATION
DIRECTOR GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION
TASK FORCECHAIRMAN/VICE CHAIRMAN
YUSFANDRI GONA (DGCA)/ EDY WIBOWO (EBTKE)
Sub Task Force
Policy, Regulation and Capacity Building
Dothor Panjaitan (EBTKE)/ Sayuta Senobua (DGCA)
Sub Task Force
Commercial and Risk Assessment Sustainability
Eldi Hendry (Pertamina)/ Indra Pramono (Garuda)
Sub Task Force
Testing and Certification
I Nyoman Oka (DGCA)/ David Wibisono (Garuda)
Sub Task Force
Research and Development
Verina Wargadalam (ESDM)/ Tatang Hernas (IKABI/ITB)
Stakeholders : regulator, operators, manufacturer, MROs, associations, research center, university and academia
The Indonesia State Action Plan to Reduce Emissions in The Aviation Sector
COLLABORATION OF NATIONAL & INTERNATIONAL STAKEHOLDERS IN ABRETF
10/14/2015 10
1.ICAO Global initiatives was adopted alternative fuels formally at Assembly 37, 2010 by ICAO Resolution 37A-19 and response measures by State member policy such as:
2.Fuel market demand increasing while open sky policy in place by 2015 on Asean region
Global Policy and Strategy Initiatives Driven
Country Year Total Target
European Union 2020 application drop-in biofuel 4% , 2 MTon/year
United State of America 2018 application drop-in biofuel 1.000 MGallon /year
China 2020 application drop-in biofuel 3% , 4.2 MTon/year
Indonesia Initiatives 2016 -2020 2025
Application drop-in up to 3% , Totally 1, 76 Mkl 5% mixed target
Etc.
10/14/2015 11
Figure 3 : Indicative biofuels production costs and spot oil prices
Oil product spot prices (2009-2011):
Range Average
Biofuels costs: 2011
Price overlap 2011-2035
2035 NPS
Further cost reduction in 450 Scenario
Gasoline Ethanol Diesel Biodiesel
Conv Advanced Conv Advanced 0.
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
Notes: NPS = New Policies Scenario; Conv. = Conventional
Biofuels costs are not adjusted for subsidies; cost variations can be even larger than depicted here, depending on feedstock and region.
Biofuels costs are not adjusted for subsidies; cost variations can be even larger than depicted here, depending on feedstock and region.
Source: WEO Renewable Energy Outlook 2012
Economic Feasibility : Alternative Fuels Prices Global Scenario
Global Policy and Strategy Initiatives Driven
Source: Ministry Energy and Mineral Resources of ROI 12
Energy Diversification : Biofuels Bioenergy mix 9.7% by 2025 Instructions related to the Minister, Governor and Mayor to take action in order to accelerate the provision and utilization of biofuels; 1.Priority of biofuel utilization, 2.Mandatory of biofuel Implementation Biodiesel for Land Transportation/Ground Services 15% by Q2/2015; 20% by 2016 and 30% by 2020
Biojet Fuels for Aviation 2% by 2018 , 3% by 2020 and 5% by 2025 Renewable Energy for Airport Operational 7.5 MW up to 2020 Implementation of energy conservation in the airport
3. Standard and quality of biofuel, 4. Pricing policy, 5. Commercial activities of biofuel,
LAW NO. 30 YEAR 2007 concerning on Energy
National Energy Policy Government Regulation No. 79/ 2014: PRESIDENTIAL INSTRUCTION NO. 1 YEAR 2006 concerning on Provision and Utilization of Biofuel as Other Fuel Ministry of Transportation Decree No. KP 201/2013; Ministry of Energy & Mineral Resources Decree No. PM 32/2008 revised to No. PM 12/2015 Concerning on Provision, Utilization, and Procedures of Commerce of Biofuels as Other Fuel
Energy Policy - Target and Implementation on Aviation Biofuel and Renewable Energy
BIODIESEL and BIOAVTUR
• There are huge potential resources of energy plantation and feedstock for biodiesel from Palm Oil (annually production of CPO is around 30 Million Tons), Jatropha Curcas, and Candlenut (Kemiri Sunan), Nyamplung and Algae.
BIOETHANOL
• The potential of bioethanol from Molasses 1.5 MT(Sugar Cane), Cassava 14 MT, and Sorghum is more than 3 Million kL.
BIOOIL
• Vegetable oil (straight vegetable oil biomass through the process pirolisa and PPO (Pure Plant Oil).
National Potential Resources Driven Aviation Biofuels and Renewable Energy Initiatives 1. Natural Resources : Land and Feedstock
Refinery Capacity Of Bio Diesel : 6.2 M Klt/Year
Producer Business Licence : 25 Biodiesel And 8 Bioethanol
Technology And Know-how : Bio Diesel FAME 1st G And Develop To 1.5 G & 2g
Green Diesel Technology, Wind & Solar Exposure Database
2. Technology and Production Capacity
3. Sustainability Framework Indonesia Sustainability Palm Oil (ISPO) Standard and Certification System
14
National Potential Resources Driven Alternative Fuels and Renewable Energy Initiatives
Fiscal Instrument Policy Ministry of Finance Decree 21/PMK.011/2010 & 131/PMK.011/2011 Regulation of tax and customs facility for renewable energy resources
and utilization activities
Income Tax
Reduced net income for
30% of total investment
Accelerated depreciation
Imposition of Income Tax
on dividend paid to
Foreign Taxable at 10%
Compensation for losses
in certain circumstances
Energy
Tax Borne by Government
Value Added Tax
Import Duty
Exemptions of VAT for
Taxable Goods, machinery
and equipment for RE
utilization (not included
spare parts)
Exemptions for Import Duty
of Goods and Machinery
for development & Capital
Investment
Capital Goods Imports for
Construction and
Development of Electricity
Industry
Regulated in State
Annual Budget Law and
its implementing
regulations
Industry Readiness on Implementation the Aviation Biofuel
Feedstock Output Process
Feedstock input Hydro De-oxygenation
Hydro-isomerization
Technology Partnership UOP, Neste Oil
Biojet
Green Diesel Sources: Pertamina 2nd IGAC 2015
The Implementation of Renewable Energy for Airport Operation by Using Solar Photovoltaics (PV) System:
A. On going pilot project (2015), bidding on each installation 400 kw solar PV system in :
1. Kalimarau Airport (Berau, East Kalimantan)
2. Muhammad Salahuddin Airport (Bima-Sumbawa Island, West Nusa Tenggara)
3. Umbu Mehang Kunda Airport ( Waingapu-East Sumba, East Nusa Tenggara)
4. Tambolaka Airport (Waikabubak, East Nusa Tenggara)
B. Feasibility study on solar PV system implementation (2015) in :
1. Sultan Hasanuddin International Airport (Makassar, South Sulawesi)
2. Juanda International Airport (Surabaya, East Java)
3. Kualanamu International Airport (Medan, West Sumatera)
4. Ngurah Rai International Airport (Bali).
Renewable Energy for Airport Operation Programme
400Kw 400Kw
400Kw
400Kw
1Mw
1Mw
1Mw
1Mw
Future Programme : Indonesia Policy and Strategy Framework
AVIATION BIOFUELS POLICIES ARE PART OF AN ICAO GLOBAL STRATEGY
GLOBAL DEVELOPMENT OF COORDINATED AND HARMONIZED FRAMEWORKS ARE NEEDED
INTERNATIONAL COOPERATION IS ESSENTIAL
SIMILAR REGIONAL APPROACHES GENERATES SYNERGIES
Indonesia has invited ICAO
Committee on Aviation and
Environmental Protection (CAEP)
to develop future work on aviation
alternative fuels policies
harmonization
Promote Harmonization of Aviation Biofuels Policies
REGIONAL COOPERATION
Harmonized Regulations and
Sustainability Criteria
No Competitive Distorsion and Market Prices
Harmonized Requirements for
Operators
Industrial and Technology Synergies
Supply Chain and Feedstock Optimization
Future Programme : Indonesia Policy and Strategy Framework
Promote Harmonization of Aviation Biofuels Policies
1. The Indonesia policy and regulations initiatives on the aviation biofuels and renewable energy is considered in line with ICAO global and international policy and strategy, and it will continuously to develop in order to accelerate utilization national potential resources, investment and implementation.
2. Strong leadership of the Indonesia government is required as an importance innovation on development biofuels and renewable energy on the aviation sector, and the government should initiate to develop collaborations in the national and international community to cater issues on technology and sustainability, and also for fostering the future program.
3. Indonesia had experiences on biofuel development in particular for biodiesel for land transportation, it’s lesson learn would be very important in developing of aviation biofuels as drop-in fuels mandatory blend up to 3% by 2020 and 5% by 2025 which is comply to ASTM 7566 and 1655 and Indonesia National Standard.
RESUME