Utilization of DME as Alternative Fuel : Prospect and Challenge in Indonesia

Size: px

Start display at page:

Download "Utilization of DME as Alternative Fuel : Prospect and Challenge in Indonesia"

Spencer Hutchinson
6 years ago
Views:

Information, Energy, and Material The Agency for The Assessment

1 Utilization of DME as Alternative Fuel : Prospect and Challenge in Indonesia Unggul Priyanto Deputy Chairman for Technology of Information, Energy, and Material The Agency for The Assessment and Application of Technology Republic of Indonesia 1 13 November

2 a. Current Status 1. Indonesia has been relying on oil fuels as major energy sources, contributing to about 50% of the total national energy mix. 2. The increase in fuel consumption will most likely be unbalanced by the domestic fuel production. 3. Presidential Decree No. 5/2006 : By the year 2025, the share of at least 17 % of renewable energy is targeted in our national energy mix. 4. Master Plan for Accelerating Indonesian Economic Development (MP3EI) : Indonesia is aiming to become one of the 12 economically strongest countries in the world by 2025 Energy Resources Proven Reserve Coal 21, million tons Oil Natural Gas (as of 2010) 4,230 million barrels Annual Production 353 million tons 330,000 thousands barrel TSCF 3,400,000 MMSCF Ratio Reserve to Production (year) ENERGY SECURITY 2

3 POTENTIAL INDONESIAN RENEWABLE ENERGY RESOURCES NON FOSSIL ENERGY RESOURCES EQUIVALENCE UTILIZATION INSTALLED CAPACITY Hydro Geothermal 845 million BOE 219 mill BOE GW 29 GW 6,851 GWh 2,593.5 GWh 4,200 MW 1000 MW Mini/Micro hydro MW MW 84 MW Biomass GW MW Solar Wind 4.80 kwh/m 2 /day 9.29 GW 8.00 MW 0.50 MW Uranium (Nuclear) 24,112 Ton* 3 GW u/ 11 year ENERGY MIX GAS 21% RE 3% OIL 42% PRESIDENT DECREE 5/2006 BIOENERGY 5% RE 17% OIL 20% COAL 34% GAS 30% COAL 33% 3298 Mill. BOE 3200 Mill.BOE 2419 Mill. BOE 3,1% 34,6% RE 17% RE COAL GAS OIL 1176 Mill. BOE 5,03% 23,91 % 24,29% 46,77% 1649 Mill. BOE 20,6% 41,7% COAL 33% GAS 30% OIL 20% ENERGY DIVERSIFICATION Note: 1 TOE = 7,33 BOE

a. Projection of Energy Consumption by Sectors 13

3 Mill BOE 14.6 % Share 2025 65.4 Mill BOE 19.

4 a. Projection of Energy Consumption by Sectors 13 November 2013 b. Projection of Fuel Consumption Household Sector Commercial Sector LPG in Household Sector Mill BOE 14.6 % Share Mill BOE 19.4 % Share LPG in CommercialSector Mill BOE 3.9 % Share Mill BOE 4.3 % Share 8 4

c. Projection of Fuel Consumption Industrial Sector LPG in Industrial Sector : 2013 0.68 Mill BOE 0.16 % Share 2025 1.32 Mill BOE 0.16 % Share 9 Conventional Fuel a.

5 c. Projection of Fuel Consumption Industrial Sector LPG in Industrial Sector : Mill BOE 0.16 % Share Mill BOE 0.16 % Share 9 Conventional Fuel a. Alternative Fuels Substitute Fuel Application Remark Gasolin Bio-ethanol Transportation Mobile Engine CNG Transportation Mobile Engine Diesel Oil Biodiesel Transportation PPO (Pure Plant Oil) Industry, Power Plant Industry, Power Plant Stationary and Mobile Engines Stationary Engine Stationary Engine LPG DME Household Burning Fuel Industry Burning Fuel Commercial Buildings, etc DME will be the option for substituting LPG in the near future due to some reasons. 5

Million Tons 11/13/2013 10 9 8 7 6 5 4 3 2 1 0 b. Projection of LPG Balance 9.2 5.

5 Million Tons Within the Next 17 Years (2030), a. Consumption Rate : 4 % / year, b. Production Rate : 2.6 % / year Increase in Imported LPG c.

6 Million Tons 11/13/ b. Projection of LPG Balance Export Import Production Consumption Current Total LPG Consumption : 5.5 Million Tons Within the Next 17 Years (2030), a. Consumption Rate : 4 % / year, b. Production Rate : 2.6 % / year Increase in Imported LPG c. Properties of DME in Comparison to C 3 C 4 Fuels Parameter DME Propane n-butane i-butane Chemical formula CH 3 OCH 3 C 3 H 8 n-c 4 H 10 i-c 4 H 10 Net Calorific Value (kcal/kg) Cetane Number Boiling Point ( C) Liquid Density (kg/l, 25 C) 0,67 0,49 0,57 0,5 Viscosity (kg/ms, 25 C) 0,12 0,15 0,2 0,2 0,2 Vapor Pressure (atm, 25 o C) 6,1 9,3 2,4 3 Burning Velocity (cm/s) Ignition Temperature ( C) Flash Point ( C) Specific Gravity 1,59 1, DME, as low carbon fuel, has similar properties to LPG except lower calorific value While suppressing CO 2 emission, DME is expected to have promising prospects which supplies multiple markets, either for clean fuel or as chemical feedstock. Ref: JARI/JICA, Japan, TBC/JR:

7 Feedstock d. DME : from Feedstock to End User Production Process End User Natural Gas Biomass Direct Coal Indirect Indonesia is blessed with abundant and varied feedstock of DME (Natural Gas, Biomass, Coal, etc.), great potential for developing DME Established processing technology (Direct or Indirect) Varied market of DME ( as substitute fuel or chemical feedstock) e. Challenges Global challenges faced in the development of DME are in particular : a. economic competitiveness of DME in fuel markets (LPG) b. strategic partnership among industries and c. establishment of DME standards. Thriving of DME business will promote DME market. Key success factors for developing DME (4 Ps) : 1. Policy 2. Price 3. Product 4. Production Investment Support DME vs LPG DME Standards Security of Supply Options 1. Regulatory : Mandatory & Obligations 2. Price : o Fuel Tax & Subsidies o Taxes 3. DME Standards 4. Investment : Capital Investment Incentives 7

8 Research Development Engineering Operation Properties of DME-LPG Blended Fuel Properties of DME-Diesel Blended Fuel Materials Testing : valve, seal, regulator, hose, etc Product Quality Upgrading Standards of DME Goals : 1. Optimum Blended Fuels 2. Improvement of Performance 3. Industrial/Household Application LPG-DME Fuel Membrane Seal Valve Bearing Engineering Design: Conceptual Basic Design Detailed Design Value Proposition : Enhance the industrial competitiveness Valve Bearing Promotion Socialization Services Other Materials (PTFE, FFKM) 1. Indonesia has a great potential for developing DME as a domestic fuel supply due to its abundant and varied feedstock, and the need of LPG substitution in the near future 2. To commercialize the R&D outcomes, further collaboration between Indonesian - International institutions or companies is greatly appreciated in achieving more mutual benefits for the Asian countries. 3. Standardization of DME fuel in any application is our current concern to be established soon. 8

9 9

Potency of Palm and Jatropha for Biofuel in Indonesia

Potency of Palm and Jatropha for Biofuel in Indonesia Andi Novianto presented at: International Conference on the Commercialization of Bio-fuels Seoul, September 17, 2007 Energy Policy 2 Current Energy