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DEVELOPMENT OF BIOFUEL INDUSTRY

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Project Name : Development of Biofuel Industry
Sector : Industry/ Agroindustry
Location : Makariki, Central Mollucas Regency

Rationale :
The decreasing of oil productions and world price of oil become more and more expensive, make people become more aware to looking for the new alternatif resources for energy. The use of biofuel as the future alternative energy become more popular nowdays.It because they’re enviromental friendly. Biofuel produce lower emission gas, and it made from the various kaind of plant.

The development of biofuel industry in Seram IEDZ supported with the large potency of the raw material for instance coconut, sagoo, cassava, sweet potatoes, sugar palm, castor oil plant, etc. Beside that there are still a large area that could be used to the further development of the raw material plantation. The development of the biofuel industry has become an alternative choice to fulfill the increasing demand of fuel consumption. Giving a positive impact to environment especially in the effort to reduce glass house effect that cause global warming.

Project Objective :
To use natural resources of the area.
To develop industrial sector espesially biofuel industry as a friendly use energy.
To Create job opportunity

Project Scope :
The project consist of the preparation phase includes administrative and institution arrangement, the construction of biofuel plant, production and distributions.

Expected Impact/ benefit :
- Improvement of the people income and welfare
- Security of suplay of the biofuel
- The fuel consumptions will be reduced.

Esimated Project Cost :
Biodiesel (from coconut) with the capacity production of 3 ton/day : Rp. 3 Billion
Bioetanol (sugar palm) with the capacity production of 7500 l/ day : Rp. 3 Billion

Financial Arrangement                       : Privat Sectors

Investment Scheme                           : BO – Built Operate

Critical Success factors                      :  Security supply of raw material

Counterpart                                        :
Local  Government, Management Board of Seram IEDZ  dan Local Society

Status proyek                                      : Open

Pre Feasibility                                     : Available

Project Commitment                          :

Complementary Investment               :

Expected Government Support         : The regulation and incentives

Additional Remarks                            :

Biodisel made from coconut :
IRR : 20 %
NPV : 217.383.908
Net B/C ratio : 1.08
Pb. Period : 51 month
Price without subtitution : Rp.7500/liter

Bietanol made from sugar palm
IRR : 17 %
NPV : 378.675.156
Net B/C ratio : 1.35
Pb. Period : 38 months
Price without subtitution : Rp.9750/liter




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