92
8.2.2.2 Bioethanol from Sugarcane and Cassava
Fuel ethanol in Indonesia is produced from sugarcane molasses. Total ethanol production in Indonesia was about 212 million liters in 2008 (OECD-FAO 2008), produced by four fuel ethanol plants operating with a combined capacity of 14 million
liters per year (GSI 2008b). To comply with the initial 10% blending mandate in
2010, the goal was to produce nearly 4 billion liters (APEC 2008). The mandatory
blending ratio was reduced to 3% in 2010.
There may be some scope to increase the efficiency of sugarcane production.
About 2 million hectares of land is used for sugarcane production in Indonesia.
However, 50% of sugarcane producers are small holders, and the average farm size
is barely half a hectare, so there is room to increase the scale of farms. In addition,
there are many small sugar mills which still use outdated technology. The government also considered cassava as alternative ethanol feedstock. In 2006, about
650,000 hectares were planted with cassava. As in the case of sugarcane, producers
are mostly small holders producing cassava chips, while the large processors produce starch. A high-yield variety was initially introduced in Java to improve the
current harvest yield of 15–18 tons/ha. Only 0.5% of cassava is used for bioethanol
as it is mainly used for direct consumption and food processing. In addition, there
are not many fully functional bioethanol plants utilizing cassava yet. The situation
may change, and more cassava could be used for bioethanol production if bioethanol producers would offer a higher price to farmers than the food processing industry. MEDCO inaugurated Indonesia’s first bioethanol plant utilizing cassava as
feedstock in Lampung in late 2009, and it is now operating at full scale. They pay a
premium to ensure availability of cassava to maintain their operations.
Fig. 8.3 Target areas for Jatropha plantation in Indonesia
M. Elder et al.
8.2.2.2 Bioethanol from Sugarcane and Cassava
Fuel ethanol in Indonesia is produced from sugarcane molasses. Total ethanol production in Indonesia was about 212 million liters in 2008 (OECD-FAO 2008), produced by four fuel ethanol plants operating with a combined capacity of 14 million
liters per year (GSI 2008b). To comply with the initial 10% blending mandate in
2010, the goal was to produce nearly 4 billion liters (APEC 2008). The mandatory
blending ratio was reduced to 3% in 2010.
There may be some scope to increase the efficiency of sugarcane production.
About 2 million hectares of land is used for sugarcane production in Indonesia.
However, 50% of sugarcane producers are small holders, and the average farm size
is barely half a hectare, so there is room to increase the scale of farms. In addition,
there are many small sugar mills which still use outdated technology. The government also considered cassava as alternative ethanol feedstock. In 2006, about
650,000 hectares were planted with cassava. As in the case of sugarcane, producers
are mostly small holders producing cassava chips, while the large processors produce starch. A high-yield variety was initially introduced in Java to improve the
current harvest yield of 15–18 tons/ha. Only 0.5% of cassava is used for bioethanol
as it is mainly used for direct consumption and food processing. In addition, there
are not many fully functional bioethanol plants utilizing cassava yet. The situation
may change, and more cassava could be used for bioethanol production if bioethanol producers would offer a higher price to farmers than the food processing industry. MEDCO inaugurated Indonesia’s first bioethanol plant utilizing cassava as
feedstock in Lampung in late 2009, and it is now operating at full scale. They pay a
premium to ensure availability of cassava to maintain their operations.
Fig. 8.3 Target areas for Jatropha plantation in Indonesia
M. Elder et al.