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Transition pathways to achieve the bioenergy vision; analysing the value chain

Updated: Nov 25, 2020

Quick summary of 2nd day of International Workshop on Sustainability and Resilience of Bioenergy for Climate Change: Scoping and Envisioning

The value chain of bioenergy needs to be divided into classified feedstocks such as rice straw and husk etc. It can be mapped by stakeholder exercise framework and rapid value chain assessment. Value chain identifies vulnerable processes and significant issues within. It will be related with policy and action.

The processes are;

Select value chain units affected - Think through issues - Rank them (scalling the impact on value chain units) - Choose 3 units

The value chain includes technology availability, economic viability, social acceptance, institutional support and finance. It is about affected issues and production processes. The guideline is arranged, but it is still welcomed to add new issues. This is the table of the value chain assessment;

In term of rice residues to bioethanol, Pertamina is already connected with plantation company, try to start the biogas plant. Technology is already proven, but it doesn’t start yet, it is still on processing. Pertamina has finance problem on running the programmes. There is no subsidy from the govt for this programmes, they let Pertamina to sell product based on market price. Pertamina is planning to make the energy into biofuel, blending bioethanol with petro. Bioethanol needs quick delivery distribution to the fuel station, it is already supported by infrastructure. The top issues in this case are end user consumer and production.

Small scale of biogas business can also work by rice straw and husk. However, rice cant be only feedstocks for the biogas, animal manures are still needed, also because the technology is already available. Landuse change in Bali becomes an issue for the biogas development, farmers tend to sell their land into business development area. It affects also the decrease of farmers number, especially the planter part. There is no big problem on institutional support along the value chain of the biogas. In term of behaviour, the community prefer to work on other sectors outside the agriculture.

Some installed biogas don’t work well, especially on technology maintenance issue. This issue needs to take into account by all stakeholders, not only govt, also the third party. Apart of those issues, there is still also many serius challenges for biogas development in Indonesia, regarding funding, approach and etc. Nevertheless, awareness and behaviour are still important challenges in biogas case.

In large scale business of rice straw and husk to biogas, the economic viability doesn’t give good sign of the large scale of biogas from rice residues, it cause by those feedstocks are still used more for fertilizer. The technology is also not really suitable and difficult to transfer from abroad to Indonesia. It implies the negative social acceptance by the community toward the biogas, also because low incentive of direct benefit to the community. In term of landuse, due to high cost of land in Bali, it makes difficult for large scale business to be developed, it is about the production and economic viability.

In biomass, the main problem is institutional support from local govt to develop biomass programmes. Other problems are technology (drying and storage) and finance support. It applies on farmer scope. Rice can be made into biomass pellet, however all above problems need to be solved beforehand. The community also has to gain the stoves to use the pellet. The pellet factory should be built in the village to smooth the value chain of biomass development in local area.

In economic viability aspect, we often don’t realize the bioenergy market. Since the PLN is power state company, they cover all demands in term of electricity. What then needs to do is overcoming top issues by policy and action on bioenergy development. Here is what we found;

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