SNV Indonesia : RFP Feasibility Study of Biomass and Emission Reduction in Indonesia

Terms of Reference

Feasibility Study of Biomass Waste-to-Energy and Emission Reduction in Indonesia

 

About SNV

SNV is a not-for-profit international development organization. Founded in the Netherlands nearly 50 years ago, we have built a long-term, local presence in 38 of the poorest countries in Asia, Africa and Latin America. Our global team of local and international advisors work with local partners to equip communities, businesses and organizations with the tools, knowledge and connections they need to increase their incomes and gain access to basic services – empowering them to break the cycle of poverty and guide their own development.

SNV works in partnership with Government and industry across three main sectors in Indonesia, water and sanitation, renewable energy and agriculture as well as the cross-cutting issue of climate change. This position will be part of our Commodities and Climate Change team.

Background

Bioenergy already makes an important contribution to meeting global energy demand and its role in the modern energy supply mix is likely to expand significantly in the future. Bioenergy can play a role in addressing energy access challenges; provide opportunities for social and economic development in agricultural communities; contribute to local energy security; improve the management of resources and wastes; and provide greenhouse gas (GHG) savings and other environmental benefits.

Agro-forestry waste or residue is the common biomass waste in the world. This may include waste from agriculture, forestry and related industries, as well as fisheries/aquaculture. In Indonesia, one biggest biomass potential is coming from sawdust from sawmill operation. The use of this type of biomass is not developed properly, for example wood pellet. On the other hand, the potential of wood waste (sawdust) for wood pellet from the harvesting and processing timber to downstream industries are still abundance.

Wood pellets are a low carbon, highly combustible wood fuel, which provides heating and hot water for domestic, commercial and industrial users especially in case of using wet raw materials special attention must be put on the energy supply (heat supply, respectively), as raw material drying is one of the main cost factors (beside the raw material) in pellet production which in Indonesia, as a tropical country, it is suitable for using Solar Water Heater system. Manufactured by compressing sawn dust, wood pellets offer a clean, easy to use and an environmentally friendlier alternative to fossil fuels such as gas and oil. The wood pellet is a renewable energy option that transforms waste materials into valuable substitute fuel. The calorie of wood pellets was in range of 4000-4800 kcal per kg - depend on its raw material, and has potential for coal substitute (calorie of 3500-7000 kcal per kg).

The world’s wood pellets production in 2010 reached 14 million tons, while its consumption tend increased. For example in the EU, in 2005, consumption of wood pellets reached 3.8 million tons and becoming 9.8 million tons in 2010. This is off course in line with the increasing awareness of the use of environmental friendly fuels resources.

Wood pellets are prospective to develop for commercial up to industrial scale. However, biomass use must be assessed carefully to ensure its sustainability. Overuse of biomass resources that are not renewed (i.e. regrown) can threaten forests and conservation areas and decrease food security; sacrifice natural areas to managed monocultures; accelerate destruction of forest for feedstock; and increase emissions of carbon to the atmosphere.

Therefore, it is not enough to only rely on waste wood sawdust to provide raw material for the production of wood pellets - but had to plant energy wood with fast growing, local adaptable tree species, and relatively easy to maintain for smallholder farmers.

Wood pellet also can be an alternative fuel for household, industrial, or agricultural use. To this extent, wood pellets classified as carbon neutral because the carbon dioxide (CO₂) recorded low. With the assumption that in each potential location for wood pellets mill could use 500 tons monthly of wood waste from surrounding sawmill as their raw material, the smallholder wood pellet mills development program can likely reducing CO₂ emission up to 8 - 10 times lower than that emissions from natural gas, coal, and fossil fuel. While this climate mitigation impact is less than other forestry climate mitigation such as avoided deforestation or restoration of degraded land, the proposed concept will generate non-carbon credit income to smallholder farmers.

SNV aims to promote sustainable management of wood waste through development of smallholder wood pellets mill to support climate change mitigation. The project will support community to improve their economic income, to develop market links, as well as to decrease number of degraded land through smallholder energy plantation scheme.

In order to develop a project, a feasibility study in the target area is a necessity. SNV is currently looking for consultants/firm to conduct this feasibility study. The consultants/firm will work with the Team Leader Commodities and Climate Change to perform a short site assessment survey in Bogor, West Java; Wonosobo, Central Java; and Sijunjung, West Sumatra.

Objective

The objective of the feasibility study is to identify the target areas for project and to recommend interventions that could enhance the sustainable wood waste production as biomass energy at the smallholder level to support climate change mitigation. To that regard, the feasibility study should also be able to calculate the potential amount of carbon dioxide (CO₂) emissions reduction from these activities.

Scope of Work

Based on the aforementioned objective, the scope of work covers three main activities as follows:

A.    Sawmill Capabilities

Identify suitable sites for intervention on sustainable wood waste production as biomass energy at the smallholder level. For each the selected sites assess:

·         Identify size of facility

·         Inventory amount of facility

·         Identify productivity and sustainability of smallholder and large scale sawmills

·         Identify feed stock source (Local logging; sawmill residue)

·         Identify market demand

·         Determine environmental condition and impacts

·         Identify major challenges faced by the business in these areas

·         Relevant spatial data (on degraded land, forest area, housing, catchment area, and related information)

·         Special considerations (transportation, access, zoning, power, ordinances, etc.)

·         Collect data demographic information (number of farmers, household information, livelihood, and related information)

 

B.    Wood Pellet Mill Establishment

Determine acceptable sites for mill establishment at the smallholder level. Involved factors are assessed:

·         Develop a business model for smallholder based wood pellet mill

·         Economic value of smallholder based wood pellet mill, including: annual target output

·         Operational Cost Assessment

·         Equipment Analysis, including Life Cycle Cost Estimate

·         Characterization of products and species

·         Barriers to market growth (transportation, affordability, quality assurance)

·         Pellet mill financial analysis (operational cost, direct cost, other cost, financing, capital requirements, profits and loss projections) especially conducting Cost Benefit Analysis (CBA)

·         Risk assessment. Identifying potential risk, consequence and mitigation factors.

 

C.    Forest Plantation

In every potential location of mill, assessed:

·         Degraded land in the surrounding areas, including land capabilities (hectares, accessibility)

·         Identify physical conditions (soil, rainfall rate, fast growing species suitability) using secondary data

·         Identify potential farmer group and land tenure to establish the plantation

·         Financial and economic feasibility of the plantation

 

D.   Calculation of Potential Carbon Emission

Calculation potential amount of carbon dioxide (CO₂) emissions reduction from the activities for climate change mitigation.

 

The main outcome of the activity will produce a final report with recommendations of best sites and best strategies for project implementation.

 

Required Skills

General requirements:

1.    University degree with relevant background in forestry and agriculture, social, economy, or development study.

2.  Good communication and relationship with local communities, local and national governments, private sectors, as well as association/NGOs in the relevant sectors. 

3.    Experienced in conducting research in Indonesia.

4.    Excellent communication and writing skills.

5.    Fluent English and Indonesian.

Special requirements:

1.    Have sufficient knowledge on forest industries especially downstream industries and industrial establishment related to the industries.

2.    Experience in conducting research study using social-economic tools.

3.    Familiar with carbon accounting in forestry industry.

 

How to apply?

Please send your proposal describing how you/your firm meet the requirement and offering letter, with “Proposal for Feasibility Study of Biomass & Emission Reduction” in the title to nekaputrie@snvworld.org by 05 December 2014.

For more information on SNV please refer to our website: www.snvworld.org