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 2013 1
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 21,131.84 million tons Oil Natural Gas (as of 2010) 4,230 million barrels Annual Production 353 million tons 330,000 thousands barrel 104.71 TSCF 3,400,000 MMSCF Ratio Reserve to Production (year) 59.8 12.8 30.8 ENERGY SECURITY 2
POTENTIAL INDONESIAN RENEWABLE ENERGY RESOURCES NON FOSSIL ENERGY RESOURCES EQUIVALENCE UTILIZATION INSTALLED CAPACITY Hydro Geothermal 845 million BOE 219 mill BOE 75.67 GW 29 GW 6,851 GWh 2,593.5 GWh 4,200 MW 1000 MW Mini/Micro hydro 458.75 MW 458.75 MW 84 MW Biomass 49.81 GW 302.4 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 2011 2015 2020 Note: 1 TOE = 7,33 BOE 2025 3
a. Projection of Energy Consumption by Sectors 13 November 2013 b. Projection of Fuel Consumption Household Sector Commercial Sector LPG in Household Sector 2013 45.3 Mill BOE 14.6 % Share 2025 65.4 Mill BOE 19.4 % Share LPG in CommercialSector 2013 1.3 Mill BOE 3.9 % Share 2025 3.8 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. 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 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 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) 6.900 11.100 10.930 10.930 Cetane Number 55-60 5 10 10 Boiling Point ( C) -25-42 - 0.5-11.7 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) 50 43 41 41 Ignition Temperature ( C) 350 504 430 460 Flash Point ( C) -41-104 -60-60 Specific Gravity 1,59 1,52 2 2 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: 02-104 6
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
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