Assessment of Indonesia’s Future Renewable Energy Plan: A Meta-Analysis of Biofuel Energy Return on Investment (EROI)

Abstract

In early 2020, Indonesia implemented the biodiesel 30 (B30) program as an initiative to reduce Indonesia’s dependency on fossil fuels and to protect Indonesia’s palm oil market. However, palm oil has received international criticism due to its association with harmful environmental externalities. This paper analysed whether an investment in palm oil-based biofuel (POBB) provides Indonesia with the ability to achieve its environmental and financial goals. In this research, we performed a meta-analysis on biofuel energy return on investment (EROI) by examining 44 biofuel projects using ten types of biofuel feedstocks from 13 countries between 1995 and 2016. Results showed an average EROI of 3.92 and 3.22 for POBB and other biomass-based biofuels (OBBB), respectively. This shows that if only energy inputs and outputs are considered, biofuels provide a positive energy return. However, biofuels, including those from palm oil, produce externalities especially during land preparation and land restoration. We also compared these EROI biofuel results with other renewable energy sources and further analysed the implications for renewable energies to meet society’s energy demands in the future. Results showed that biofuel gives the lowest EROI compared to other renewable energy sources. Its EROI of 3.92, while positive, has been categorised as “not feasible for development”. If Indonesia plans to continue with its biofuel program, some major improvements will be necessary.

The Impact of Biofuel Intensification on Integrated Climate-Land-Energy-Water System

“…If solved, it can be a stepping stone towards the fulfillment of national energy policy targets by maximizing the use of EBT in accordance with the potential natural resources, economic values and social impacts for local and national communities. The implementation of the development and use of biodiesel using a mixture of palm oil is one of the main policies of the Indonesian government today (Prananta & Kubiszewski, 2021) in addition to finding sustainable energy as well as encouraging the national economy. Although there are negative impacts of developing biofuel production on food security, land use change, and CO2 emissions (Acheampong et al, 2019), there are also some positive impacts on the social, economic and environmental aspects.…”

“…A mandatory blending of biodiesel has been carried out in several countries. For example, Indonesia requires a mixture of diesel and diesel fuel with a composition of 30% diesel and the rest being diesel fuel called B30, 40% of diesel and the rest being diesel fuel called B40, and so on (Prananta & Kubiszewski, 2021). The Malaysian government has successfully involved all key components of local stakeholders as well as one of the backbones of the national economy (Zulqarnain et al, 2020).…”

“…Exemption toward biofuel investment has been reported (Prananta & Kubiszewski, 2021), but it provides an opportunity to continue investing with certain limitations to palm oil intensification and its relationship to climate change (Aviso et al, 2015) as well as various comprehensive assessments on the optimization of the bioenergy technology used (Song et al, 2015). The Australian government has made a great deal of effort through a comparative environmental performance of biodiesel produced by Moringa Oleifera oilseeds which can significantly reduce the impacts of global warming on the environment (Biswas, 2008).…”

Understanding the Surface Characteristics of Biochar and Its Catalytic Activity for the Hydrodeoxygenation of Guaiacol

“…The world has gradually shifted to renewable energy sources in an effort to reduce dependency on fossil fuels, as well as to address climate change and the global warming caused by excessive greenhouse gas emissions [1]. Indonesia, for example, has rolled out B30, a fuel blend of 30% biofuel from fatty acid methyl esters (FAMEs) and 70% conventional diesel, for nationwide commercial transportation in order to meet these targets by 2030 [2]. However, FAMEs are categorized as first-generation biofuels which rely heavily on food commodities and are, therefore, considered to be unsustainable, prompting massive deforestation as a result of industrial plantation expansion [3,4].…”

Supply Chain Management for Bioenergy and Bioresources: Bridging the Gap between Theory and Practice

“…There are numerous issues that need to be investigated. Biomass harvesting time [13], biomass moisture and loss of dry material [14], seasonality, dependance on weather/microclimatic conditions as well as the impact on these conditions [15], distance from bioresources' source to energy recovery facilities [16], cultivation energy requirements [17], operational practices and machinery performance [18,19], and market maturity [20] are only a few examples of unpredictable parameters in the case of bioresources that transform the relatively easy-to-handle task of supply chain management into a difficult problem.…”