Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Exploring synergies between the palm oil industry and bioenergy production in Indonesia
KTH, School of Industrial Engineering and Management (ITM), Energy Technology. (Energy Systems)ORCID iD: 0000-0002-2916-4004
2020 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Climate change along with increasing demand for food and fuel call for sustainable use of natural resources. One way to address these concerns is through efficient use of resources, which is also vital for the achievement of the Sustainable Development Goals and the Paris Agreement. In this context, the sustainable and efficient use of resources in the palm oil industry is an interesting case to scrutinise. This is particularly important for Indonesia, the leading palm oil producer in the world. Large quantities of oils and biomass are generated from oil palm plantations and processing, presenting the potential for the development of bio-based production systems. However, at present, sustainability is a matter of great concern in this industry, including land use issues and the fact that large portions of the residues generated are untreated, releasing greenhouse gas emissions, and imposing environmental threats.

This doctoral thesis aims at exploring how resource efficiency can be enhanced in the palm oil industry. Three research questions are posed to address the objective. The first question examines the sectoral policy goals of biofuel, agriculture, climate, and forestry and their requirements for land. The second question is focused on new industrial configurations for efficient use of palm oil biomass for bioenergy production. The final question summarises the role of enhancing resource efficiency in the palm oil industry with regards to meeting the national bioenergy targets, which include 5.5 GWe installed capacity and biofuel blending with fossil fuels (30% biodiesel blending with diesel and 20% ethanol blending with gasoline) in the transport, industry, and power sectors. The research questions are explored using three main methods: policy coherence analysis, techno-economic analysis, and a spatio-temporal optimisation model (BeWhere Indonesia).

The thesis identifies areas in which policy formulation, in terms of sectoral land allocation, can be improved. Adjustments and improvements in policy formulation and implementation are crucial for land allocation. The inconsistencies in the use of recognised land classifications in the policy documents, the unclear definition of specific land categories, and the multiple allocation of areas, should be addressed immediately to ensure coherent sectoral policies on land allocation. This can lead to more effective policy implementation, reduce pressure on land, enhance synergies, and resolve conflicts between policy goals.

The transition towards a more sustainable palm oil industry requires a shift from current traditional practices. Such transition involves efficient use of palm oil biomass resources through improved biomass conversion technologies and integration of palm oil mills with energy production in biorefinery systems. The upgrading of the conventional production systems can serve multiple purposes including clean energy access and production of clean fuels for the transport, industry, and power sectors, ultimately helping the country meet its renewable energy and sustainable development targets, along with reduced emissions. More specifically, the efficient use of biomass and co-production of bioenergy carriers in biorefineries can enable Indonesia to reach its targets for bioenergy installed capacity and bio-based blending.

At present, many government policies in Indonesia are working in the right direction. Nevertheless, various barriers still need to be overcome so that resource efficiency can be improved. This includes harnessing the full potential of bioenergy in the palm oil industry. There is room for enhancing the sustainability of the palm oil industry in Indonesia with adjustments to existing policies and practices, as shown in this thesis. First, guidance across sectoral policies can help to coordinate the use of basic resources. Second, the shift from traditional practices requires a strategy that includes improvement in agricultural practices (i.e., higher yields), infrastructure for biomass conversion technologies together with improved grid connectivity, and adoption of a biorefinery system. Strengthening policy support is needed to promote such a comprehensive shift. Third, various programmes can forge partnerships between oil palm plantations, the palm oil mills, and energy producers to ensure the development of sustainable industrial practices. A sustainable palm oil industry will improve resource and cost efficiency, and help open international markets for Indonesian products. This could pave the way for an enhanced role for the Indonesian palm oil industry in global sustainability efforts.

Abstract [sv]

De pågående och väntade klimatförändringarna tillsammans med ökad befolkning och därmed efterfrågan på mat kräver en långsiktigt hållbar användning av naturresurserna. Ett sätt att adressera dessa frågeställningar är genom en effektiv resursanvändning, vilket också är grundläggande för att uppnå de globala målen (Agenda 2030) och Paris-avtalet. I detta sammanhang innebär hållbart och effektivt användande av palmoljebranchens resurser ett särskilt intressant fall att studera. Det är av stor betydelse för Indonesien, i kraft av att vara den ledande palmoljeproducenten i världen. Stora mängder olja och biomassa genereras från oljepalmsplantager och -förädling, vilket innebär stor potential för utvecklandet av biobaserade produktionssystem. Dock är för närvarande den långsiktiga hållbarheten i produktionen ifrågasatt, vilket inkluderar markanvändning och det faktum att en stor del av biprodukterna från produktionen är obehandlade och därigenom avger växthusgaser och medför andra miljöproblem.

Denna avhandling siktar på att utforska hur resurseffektivitet kan stärkas inom palmoljesektorn. Tre forskningsfrågor ställs för att adressera denna grundfråga. Den första frågan undersöker policymålen för sektorn - biodrivmedel, jordbruk, klimat och skogsbruk - samt deras behov av mark. Den andra frågan fokuserar på hur en ny industriell konfigurering kan utformas, med hänsyn taget till att möta de nationella målen för biobränsle inom transport-, industri- och elsektorn. Den sista frågan sammanfattar betydelsen av ökad resurseffektivitet inom oljepalmsbranchen, med hänsyn till de nationella målen för bioenergiproduktion. Dessa mål inkluderar 5,5 GWe installerad kapacitet och låginblandning av biodrivmedel (30% biodiesel för diesel, 20% etanol för bensin) såväl inom transportsektorn som energisektorn. Forskningsfrågorna utforskas genom tre huvudsakliga metoder: policy coherence analysis, techo-economic analysis samt en spatio-temporal optimisation model (BeWhere Indonesia).

Avhandlingen identifierar områden inom vilka policyutformning, i termer av sektoriell markallokering, kan förbättras. Justeringar och förbättringar inom policyutformning och implementering är grundläggande för landallokering. Bristen på sammanhängande landklassificering i policydokumenten, den oklara definitionen av specifika landkategorier samt den multipla allokeringen av områden bör omedelbart adresseras för att nå en sammanhängande sektorspolicy för landallokering. Detta kan leda till mer effektiv policyutformning, dämpad efterfrågan på mark, ökade synergier och att lösa målkonflikter kring policy.

Övergången till en mer hållbar palmoljebransch kräver ett skifte från den nuvarande praktiken. Ett sådant skifte innebär effektivt användande av palmoljebiomassa genom förbättrad  teknik för biomassekonvertering samt integrering av palmoljekvarnar med energiproduktion inom bioraffinaderisystemen. Uppgraderingen av konventionell produktion kan tjäna flera syften, inklusive tillgång till ren el och produktionen av rena bränslen för transporter och industri, vilket i slutändan kan hjälpa landet att nå målen för förnyelsebar energi och hållbarhet, tillsammans med minskade utsläpp. Mer specifikt gäller det effektiv samproduktion vid bioraffinaderierna som kan göra  att Indonesien  når sina mål för bioenergi och biobaserad inblandning.

För närvarande innebär flera regelverk i Indonesien att arbetet går i rätt riktning. Fortfarande finns det dock ett flertal hinder som måste övervinnas för att resurseffektiviteten ska kunna ökas. Detta omfattar också att ta om hand den fulla potentialen för bioenergi inom palmoljebranschen. Det finns utrymme för att förbättra hållbarheten inom branschen i Indonesien genom justeringar i befintlig policy och i tillämpningen av denna, vilket visas i denna avhandling. Först och främst måste vägledning genom sektorspolicy stödja samordningen av hur råvaror används. Därefter måste skiftet från den traditionella produktionen stödjas av en strategi som inkluderar förbättringen i jordbruket, till exempel för att nå ökad avkastning, infrastruktur för att konvertera biomassa samt ökad sammankoppling av elnäten samt att bioraffinaderier introduceras. Stärkt policystöd behövs för att stärka ett så genomgripande skifte. Slutligen måste olika partnerskap slutas mellan palmoljeodlingar, palmoljekvarnar och energiproducenterna för att nå utvecklingen av långsiktigt hållbar industriproduktion. En långsiktigt hållbar palmoljesektor kan öka resurs- och kostnadseffektiviteten samt öppna internationella marknader för indonesiska produkter. Detta kan bana väg för en stärkt roll för Indonesiens palmoljesektor inom de globala klimatansträngningarna.

 

Nyckelord: palmoljesektor; bioenergi; resurseffektivitet; sustainability; markallokering; palmoljebiomassa; bioraffinaderier; policy coherence analysis; techno-economic analysis; spatio-temporal optimisation model; BeWhere Indonesia

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2020. , p. 88
Series
TRITA-ITM-AVL ; 2020:11
Keywords [en]
palm oil industry; bioenergy; resource efficiency; sustainability; land allocation; palm oil biomass; biorefinery; policy coherence analysis; techno-economic analysis; spatio-temporal optimisation model; BeWhere Indonesia
National Category
Energy Systems
Research subject
Energy Technology
Identifiers
URN: urn:nbn:se:kth:diva-271117ISBN: 978-91-7873-472-6 (print)OAI: oai:DiVA.org:kth-271117DiVA, id: diva2:1415692
Public defence
2020-04-24, 10:00 (English)
Opponent
Supervisors
Projects
STEM BIOENERGI INDONESIEN
Funder
Swedish Energy Agency, T6473Available from: 2020-03-20 Created: 2020-03-19 Last updated: 2020-03-20Bibliographically approved
List of papers
1. Land allocation to meet sectoral goals in Indonesia – An analysis of policy coherence
Open this publication in new window or tab >>Land allocation to meet sectoral goals in Indonesia – An analysis of policy coherence
2017 (English)In: Land use policy, ISSN 0264-8377, E-ISSN 1873-5754, Vol. 61, p. 451-465Article in journal (Refereed) Published
Abstract [en]

Land is a scarce resource affecting the implementation of many sectoral policies. In Indonesia, the expansion of palm oil plantations has led to non-sustainable land use practices in past years, particularly deforestation. More recently, the government has set ambitious targets for the adoption of biodiesel which will require expansion of oil palm plantations, thus putting further pressure on land. Meanwhile, the need to guarantee food supply, forest conservation and climate change mitigation also imply challenges when it comes to land allocation and use. This paper examines the role that land plays in the implementation of sectoral policies in Indonesia, exploring the availability of land to satisfy the multiple goals defined in national policies. We explore land competition resulting from allocations made in official policy documents starting with biofuel policy. The analysis of policy goals and coherence when it comes to land allocation is made in relation to agriculture, climate and forestry policies. We conclude that adjustments need to be made in the policies to avoid overlappings and misinterpretations when it comes to land allocation. The area made available for meeting each sectoral policy goal when taking into account cross sectoral interactions is: 14.2 Mha for agriculture, 43 Mha for climate mitigation measures, 9.2 Mha for forestry, and 20.9 Mha for biofuels. A more uniform land classification and development of a common reference database will increase transparency on land allocation and use, and help to monitor land use change, ultimately supporting the achievement of multiple national goals.

Place, publisher, year, edition, pages
Elsevier, 2017
Keywords
Policy coherence, Land allocation, Biodiesel, Indonesia, Agriculture, Forestry, Climate
National Category
Energy Systems
Identifiers
urn:nbn:se:kth:diva-199595 (URN)10.1016/j.landusepol.2016.11.033 (DOI)000392766800038 ()2-s2.0-85004093202 (Scopus ID)
Projects
INSISTS Sustainable Bioenergy Development in Indonesia
Funder
Swedish Energy Agency, TG473
Note

QC 20170119

Available from: 2017-01-10 Created: 2017-01-10 Last updated: 2020-03-19Bibliographically approved
2. Opportunities to Optimize the Palm Oil Supply Chain in Sumatra, Indonesia
Open this publication in new window or tab >>Opportunities to Optimize the Palm Oil Supply Chain in Sumatra, Indonesia
Show others...
2019 (English)In: Energies, ISSN 1996-1073, E-ISSN 1996-1073, Vol. 12, no 3, article id 420Article in journal (Refereed) Published
Abstract [en]

Significant amounts of biomass residues were generated in Indonesia. While untreated, residues emit greenhouse gases during the decomposition process. On the other hand, if efficiently utilized, these residues could be used to produce value-added products. This study investigates opportunities for harnessing the full potential of palm oil residues (i.e., empty fruit bunches, kernel shells, fiber, and mill effluent). As far as we are aware, the study is the first attempt to model the palm oil supply chain in a geographically explicit way while considering regional infrastructures in Sumatra Island, Indonesia. The BeWhere model, a mixed integer linear programming model for energy system optimization, was used to assess the costs and benefits of optimizing the regional palm oil supply chain. Different scenarios were investigated, considering current policies and new practices leading to improved yields in small-scale plantations and power grid connectivity. The study shows that a more efficient palm oil supply chain can pave the way for the country to meet up to 50% of its national bioenergy targets by 2025, and emission reductions of up to 40 MtCO2eq/year. As much as 50% of the electricity demand in Sumatra could be met if residues are efficiently used and grid connections are available. We recommend that system improvements be done in stages. In the short to medium term, improving the smallholder plantation yield is the most optimal way to maximize regional economic gains from the palm oil industry. In the medium to long term, improving electricity grid connection to palm oil mills could bring higher economic value as excess electricity is commercialized.

National Category
Energy Systems
Research subject
Energy Technology
Identifiers
urn:nbn:se:kth:diva-242226 (URN)10.3390/en12030420 (DOI)000460666200088 ()2-s2.0-85060947078 (Scopus ID)
Funder
Swedish Energy Agency, T6473
Note

QC 20190130

Available from: 2019-01-29 Created: 2019-01-29 Last updated: 2020-03-19Bibliographically approved
3. Cost competitiveness of palm oil biodiesel production in Indonesia
Open this publication in new window or tab >>Cost competitiveness of palm oil biodiesel production in Indonesia
2019 (English)In: Energy Journal, ISSN 0195-6574, E-ISSN 1944-9089, Vol. 170, p. 62-72Article in journal (Refereed) Published
Abstract [en]

This study investigates opportunities to improve the cost competitiveness of the palm oil biodiesel industry in Indonesia. It compares costs and revenues of standalone conventional palm oil and biodiesel production with an integrated system that includes utilisation of biomass residues. Economic metrics, viz. net income, NPV, IRR, payback period and biodiesel breakeven price are evaluated. Sensitivity analyses are carried out to verify how parameter changes affect net income. The results show that the integrated concept with upgraded CPO and biodiesel processing plant (Biorefinery), which simultaneously produces biodiesel, electricity, heat and biofertiliser, can obtain an additional income of 14 USD/t-FFB compared to the Conventional System. The biorefinery system helps to reduce dependency on government subsidy for biodiesel production, and lowers the industry vulnerability to fluctuation of fossil diesel prices. The shift to modern facilities with value chain integration provides a pathway to enhance the share of renewable energy in Indonesia through increased biodiesel production and electricity generation from palm biomass residues. It may also promote resource efficiency and climate change mitigation through reduced emissions from untreated residues and fossil energy carriers. The analysis enhances understanding about potential gains and consequences of more stringent policy implementation in the country.

Place, publisher, year, edition, pages
Elsevier, 2019
Keywords
biomass residues; palm oil; biodiesel; economic indicators; conventional system; biorefinery
National Category
Energy Systems
Research subject
Energy Technology
Identifiers
urn:nbn:se:kth:diva-222616 (URN)10.1016/j.energy.2018.12.115 (DOI)000460845700007 ()2-s2.0-85059607811 (Scopus ID)
Projects
Indonesian-Swedish Initiative for Sustainable Energy Solutions
Funder
Swedish Energy Agency, T6473
Note

QC 20181008

Available from: 2018-02-12 Created: 2018-02-12 Last updated: 2020-03-19Bibliographically approved
4. Optimal production of electricity, biodiesel, and ethanol in palm oil-based biorefineries in Indonesia
Open this publication in new window or tab >>Optimal production of electricity, biodiesel, and ethanol in palm oil-based biorefineries in Indonesia
Show others...
(English)Manuscript (preprint) (Other academic)
Keywords
palm oil; supply chain; spatio-temporal optimization; bioenergy; Indonesia
National Category
Energy Systems
Research subject
Energy Technology
Identifiers
urn:nbn:se:kth:diva-271116 (URN)
Projects
STEM BIOENERGI INDONESIEN
Funder
Swedish Energy Agency, T6473
Available from: 2020-03-18 Created: 2020-03-18 Last updated: 2020-03-19

Open Access in DiVA

Doctoral thesis_Fumi Harahap(2755 kB)13 downloads
File information
File name FULLTEXT01.pdfFile size 2755 kBChecksum SHA-512
9f950774e0c36ae893d0db8012757f2bb160135c2b045003f2d61bb9c1e4c9ea017b96d129bb28475fea94546836d3fe515be84d01d555026545739c49f170e9
Type fulltextMimetype application/pdf

Search in DiVA

By author/editor
Harahap, Fumi
By organisation
Energy Technology
Energy Systems

Search outside of DiVA

GoogleGoogle Scholar
Total: 13 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

isbn
urn-nbn

Altmetric score

isbn
urn-nbn
Total: 40 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf