Strengthening Indonesia's Energy Infrastructure through

1. Strengthening Indonesia's Energy Infrastructure through Renewable, Clean, Affordable and Sustainable Solutions

2. Waste to Energy Breakthrough in Waste to Fuel Solution Empowering Future Generations: Processing Waste into Fossil Fuel Replacement

3. Who is ST-Energi? Part 1: The Company and The Team

4. Our Vision and Mission PT Standar Total Energi (ST-Energi) aims to empower future generation and strengthening Indonesia's energy infrastructure through renewable, clean, affordable and sustainable solutions . . . Total Energy Infrastructure Solutions . . . by means of practical, faster to implement and cost-efficient innovative and proven energy solutions in an environmentally and socially responsible manner with a long-term view on projects.

5. ST-EnergiTeam • Diverse experience and expertise in both government & private sectors • Entrepreneurial approach into new technology adaptation • Effective and proven project delivery system • Cost efficiency tailored to renewable green energies • Member of Indonesia Solid Waste Association (InSWA) Ananda M. Latip President Director Businessman and entrepreneur with a diverse portfolio of businesses over the last 25 years Indria Djamil Business Development Director 24 years of global experiences as project manager and technology consultant toimplement new technologies in power and chemical industries DellyPoernomo Marketing Director more than 20 years experience in media relations, public affairs, business management, marketing, direct sales, trading and entrepreneurship. SugiantoTandio President Commissioner Well respected business leader , 2013 Social Entrepreneur by World Economic Forum-Schwab Foundation, 2013 E&Y Innovation Entrepreneur

6. What is Waste to Energy? Part 2: Quick Introduction

7. WastetoEnergy definition and meaning WtE is a waste disposal technologies, part of waste management system that dispose Municipal Solid Waste (MSW) while recover energy from it, in the form of heat and electricity or in a form of alternative fuels source Heat production of waste material using direct thermal combustion, the production of cooking gas from landfills using bio-chemical process or via thermo-chemical gasification, hydro-thermal liquefaction and energy conversion such as torrefaction and pyrolysis, to convert biomass, food waste and plastics into different forms of fuel products that may replace fossil fuels.

8. Waste to Energy part of Waste Management System Waste Management System

9. Waste to Energyinteresting factsto be considered • WtE is only a small part of a larger waste management system: WtE is simply just a waste disposal systems that releases heat to generate electricity or gasses and other by-product with combustible properties as potential burning fuel. • WtE solutions is very localised:The applicability of WtE will mostly depend on local social economic and environmental constraints, especially in their habits of disposing their waste. Old habits that already rooted deeply in the behavioral and traditional values within their cultures. • WtE is actually a “cleaning service” system: The main goal of waste management is to create a cleaner city. Electricity or other potential fuel creation is simply a by-product. The city (polluter by principle) therefore must secure the finance (tipping fees) for operation and maintenance. WtE is a cost center, not a profit center. • WtE is a part of a larger functioning waste disposal management system: WtE solution are never an isolated technical elements and will not solve waste disposal problems by itself. • WtE builds on the existing waste management system: Only municipalities which are able to run an efficient waste collection and transport system with secure location for final waste disposal facilities will have the capability to manage and sustain WtE systems successfully. • Legal security for WtE investors must be ensured: The private sector plays a vital role in the construction and operation of WtE facility. However, private investors will only invest if they are confident of profiting from the service they offer. In many countries the private sector is still reluctant to invest due to the associated financial risks.

10. Waste to Energytechnologies and processoutput MSW Sorting and Storage Waste Disposal Methodologies Mass Burn (Incineration)

11. WastetoEnergyUnreliable Conversion Technology Just recently uncovered that the technology for cleaning of contaminants and impurities from Syngas produced via conversion technologies is often cost-prohibitive and contra-productive. Most two-stage conversion plants ended up burn their Syngas in the boiler and then scrub the emissions. In fact, gasification and related conversion technologies only negligibly cleaner and sometimes even less efficient than the modern design mass-burn incineration power plants. (Nate Seltenrich, 2016) Anne Germain director of waste and recycling technology for National Waste & Recycling Association explain while many waste-to-energy technologies in and of themselves are successful—whether plastics to fuel or other—some of them had to shut down a few years after launching because theycould not produce enough revenue to sustain continuous operations.(Arlene Karidis 2017) “If your main interest is to produce electric energy, so far the combustion-based systems are clearly better” (Umberto Arena, 2016)

12. Waste DisposalManagement Part 3: Problem and Background

13. Indonesia:Energy Poverty and Waste Abundance • Energy Poverty: 41 million people lack access to adequate, affordable and safe energy services (World Energy Outlook, 2016). “Many underprivileged Indonesians are still using firewood and kerosene for their daily activities”(Wishanti, 2015); • Waste Production: Waste production has grown to 150,000 tons a day whilst landfill sites such as the Cipeucangwest Java province have closed, resulting in a growing waste problem in Indonesia’s major cities that will reach critical state within just a few years; • Technologies Assimilation: As a developing country, Indonesia is way behind on waste disposaltechnologies. For large cities with critical waste disposal problems, an incinerator plant is the best way to dispose most of MSW and at the same time produce electricity for the city itself.

14. Large Cities MSW volume, composition and characteristics Profile of Household MSW : 7,000mt/d 950mt/d 1,630mt/d 550mt/d 1,000mt/d 1,700mt/d 1,200mt/d

15. Waste to Energy Part 4: Waste Disposal Solution With Bonuses!

16. Why WtE? tosave the environment and produce electricity Waste problem is an environmental issue because it produces methane gas (CH4) and carbon dioxide (CO2) Commitment to reduce emission to 29% under BAU by 2030 Growing population generate more waste Can be build around the country to provide electricity Why build Waste Incineration Power Plant? Biomass waste contain potential energy that could be converted into heat/ fuel generating electricity Help capital cities to be cleaner and healthier Reduce fossil fuel (coal) usage in power plant while providing more electricity for the national electric grid Some landfill in large cities has almost reach its capacity limit

17. Waste to Energyproven technologies to produce electricity Organic Waste Sorting and Storage Waste Disposal Technologies On Farm Solutions Thermal Energy

18. Waste to Energyproven technology to produce electricity MSW Sorting and Storage Waste Disposal Technologies Mass Burn (Incineration)

19. Business Model selling electricity to pay for plant o/m cost Electricity selling price in Jakarta, Banten, West Java, Middle Java, East Java, and Bali are less than 7 Cent USD/kWh.

20. Waste Disposal Solution Operating vs. Investment Investment Cost per tonne $/tonne capacity/day The technology with the least operating cost and investment cost difference 10K – 40K 20K – 30K 10K – 50K 50K – 200K 50K – 200K 80K – 120K Mass Burn Incineration 50K – 130K $55 – $65 40K – 400K Plasma Arc 12K - 100K (Waste Management Master Plan DKI Jakarta 2017, PERMEN PU No.3/PRT/M/2013)

21. Waste DisposalSolution Part 5: Think outside the box!

22. Technical Challenge identify the main problem • The main challenge is to find a waste disposal solution that address waste to energy requirements but with less cost of building, operating and maintaining it. • The cost of building a waste incinerator power plant that produce electricity is twice more expensive in building and operating maintenance than a standard fossil fuel powered electric generator or steam power plant running on coal. • Since most MSW produced in Indonesia is unsorted, another high cost process is sorting the waste. A manual sorting by workers may be the cheapest but has limited output capacity. An automated sorting system is a lot faster but very expensive to build and operate and maintenance. • The final hurdle is the low quality. Waste into resource by producing RDF is low cost but the calorific value of biomass RDF is low, so RDF cannot be use independently as an effective burning fuel. Usually a typical power plant, will use 10-20% RDF mix with coal. • RDF power plant work with a typical RDF that consist of wood chips and plastics, however most MSW in Indonesia mainly consist of food waste (up to 60%). Therefore the solution requires a new RDF-based technology that capable to process food waste into a high quality solid fuel.

23. Technical Challenge identify the technology solutions • A “solid fuel fermentation” technology currently being developed locally in Indonesia. Using biochemical process, the sorted MSW is fermented into RDF pellets with increased calorific values than the original material. This new technology currently is still in research study and at a small scale only. • Another technology called torrefaction capable to produce high-grade solid biofuels from various streams of woody biomass or agro residues and foodwaste such as within a typical MSW. The end product is a stable, homogeneous, high quality solid biofuel with far greater energy density and calorific value than the original biomass material. • Prior to torrefaction, the MSW must be completely free of metals and glass. Therefore the MSW must be pre-sorted and treated to ensure the quality of torrefied biomass. • Although manual sorting would be most preferable since it would be much cheaper to operate, there is a newly developed MSW pre-treatment process that will help the manual sorting by hands safer and faster. The process is called “autoclaving”.

24. Autoclavingas a process prior to MSW sorting Autoclaving has been used for over 200 years and is currently used in processes ranging from high-performance engineering and aircraft parts manufacture to hospital sterilisation, and more recently in waste to resource processing. Advantages of autoclaving MSW are: • the autoclaving process cleans and sterilises all the waste prior to manual separation, meaning no potentially hazardous handling of waste during the sorting process by hands; • Metals and glass are stripped of any labelling and plastics can be more easily sorted into their respective types for recycling (or for plastics, reprocessing as liquid fuel); • No waste needs to be separated before it is delivered to the autoclave, potentially saving considerable collection costs and reducing the attached carbon footprint; • The process will produces a homogenous fibre that is easily separated manually and more efficient feedstock material through torrefaction to become greencoal.

25. Autoclavingas a process prior to MSW sorting Unsorted waste before and after autoclaving Click to PLAY (Video presentation and photos courtesy of : Wilson Biochem Limited and JM Energy Solutions Limited )

26. Autoclavingwaste is sterilised prior to sorting process Sell to recycling Co Glass & Metals Plastic Sales shredding 96% of Plastic export Autoclave Off-site Pyrolysis Boiler –steam Steam Turbine Biomass & 4% Plastic Renewable Elec. Landfill Misc. Non Combustibles Heat WTE Plant Site Boundary

27. TorrefactionProcess Description • Torrefaction involves heating the waste to temperatures between 250 and 300 degrees Celsius in a low-oxygen atmosphere. At such temperatures, the moisture evaporates and various low-calorific components contained in the biomass are driven out and the hemi-cellulose decomposes, which transforms the waste into a product with excellent fuel characteristics.

28. New Approach WtR solution for waste management MSW Waste Disposal Methodologies Coal Torrefaction Using autoclave to create high quality homogeneous biomass (RDF) and then transform the biomass into a high quality solid fuel using torrefaction. The torrefied biomass will posses characteristics similar to coal for use in power plants and industries.

29. New Approach torrefied biomass as coal replacement

30. WtR advantages compares with typical WtE solution • Torrefied biomass (RDF) will behave just like coal, but with much lower carbon emission (virtually no Dioxin and NOX) when burned; • No need to build WtE power plant (very expensive to build, operate and maintain) instead the city can build standard coal intake power plant; • Torrefied waste is compatible 100% with existing coal-based power plant with calorific values of 4500-4800 Kcal, or even higher - Greencoal; • Lower cost building, operating and maintenance than a typical mass burn incineration power plant with the same electrical output; • Lower operating cost meaning lower tipping fees burden for the local government; • Plastics to fuel plant can be build later or separately to reduce initial investment cost and operation (selling diesel fuel); • 95% of biomass waste will be converted into heat energy, the remaining 5% in a form of biochar could be use as fertilizer or straight into landfill.

31. The Conclusion Part 6: New Approach to WtE Solutions

32. WtE New Approach Waste = Resource = Energy GreenCoal Plant Waste to Resource Recycle metal and glass BioChar A MSW (unsorted) Landfill Green Coal Clean Plastics Pyrolysis Plant Plastics to Fuel Electricity B Char C Power Plant Using GreenCoal Diesel Fuel

33. Conclusion challenges remain: • Waste management should always be about providing facilities and services to to keep the city clean and pollution free. That is why the city and its residence as the principal polluter, have the responsibility to invest on a effective and reliable waste disposal systems. • Regulation and laws need to be established to ensure the protection of private sector WtE players and investors providing the service and running waste management facilities. • Tipping fees needs to cover the operation cost of waste disposal services provider, since private sectors and investor will not be interested if the business model is not economically viable to make a sizeable profits in the long run. • As land become increasingly expensive to obtain in a capital cities, waste incineration as the best waste disposal system seems to be the most viable option, however with new technology advancement in waste disposal, there is already an options to reduce cost of investment and cost of operation and maintenance.

34. WtR&Eintegrated torrefaction with plastic to fuel and power plant Metal Glass (for recycle) Electricity Green-coal Diesel fuel (output) (Torrefaction)

35. Thank You! REFERENCES “PanduanPengelolaanSampah” Indonesia Solid Waste Association (InSWA “Waste Management Master Plan” Municipal City of Jakarta (2017) “The role of waste-to-energy in the circular economy” European Commission (2017) “Steam Autoclave Facility - Conceptual Overview” Wilson BiochemLilited and JM Energy Solutions Limited “KebijakanPengembanganSampahMenjadiEnergidi Indonesia” Bio Energy Directorate, Ministry of Energy and Mineral Resources (2017) “Waste-to-Energy Options in Municipal Solid Waste Management - A Guide for Decision Makers in Developing and Emerging Countries” Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (2017) “Acceleration on The Development of Waste to Energy in 8 Cities” Coordinating Ministry of Maritime Affairs, Deputy Minister for Infrastructure, Director for Mining and Energy Infrastructure (2017)