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Unggul Priyanto Deputy Chairman for Technology of Information, Energy, and Material

The Agency for The Assessment and Application of Technology Republic of Indonesia

Utilization of DME as Alternative Fuel :

Prospect and Challenge in Indonesia

13 November 2013

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1. Indonesia has been relying on oil fuels as major energy

sources, contributing to about 50% of the total national energy

mix.

2. The increase in fuel consumption will most likely be unbalanced

by the domestic fuel production.

3. Presidential Decree No. 5/2006 :

By the year 2025, the share of at least 17 % of renewable

energy is targeted in our national energy mix.

4. Master Plan for Accelerating Indonesian Economic

Development (MP3EI) :

Indonesia is aiming to become one of the 12 economically

strongest countries in the world by 2025

a. Current Status

Energy Resources

Proven Reserve

Annual Production

Ratio Reserve to Production

(year)

Coal 21,131.84 million tons

353 million tons

59.8

Oil 4,230 million barrels

330,000 thousands barrel

12.8

Natural Gas (as of 2010)

104.71 TSCF 3,400,000 MMSCF

30.8

ENERGY SECURITY

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POTENTIAL INDONESIAN RENEWABLE ENERGY RESOURCES

3 GW u/ 11 year 24,112 Ton* Uranium (Nuclear)

8.00 MW 4.80 kWh/m2/day

Solar

302.4 MW 49.81 GW Biomass

4,200 MW 6,851 GWh 75.67 GW 845 million BOE

Hydro

1000 MW 2,593.5 GWh 29 GW 219 mill BOE Geothermal

84 MW 458.75 MW 458.75 MW Mini/Micro hydro

INSTALLED CAPACITY

UTILIZATION EQUIVALENCE RESOURCES NON FOSSIL

ENERGY

0.50 MW 9.29 GW Wind

OIL 42%

COAL 34%

GAS 21%

RE 3%

OIL 20%

COAL 33%

GAS 30%

RE 17%

RE

COAL

24,29%

23,91 %

46,77%

5,03%

RE

GAS

COAL

OIL

2011 2015 2020 2025

EN

ER

GY

DIV

ER

SIF

ICA

TIO

N

ENERGY MIX

Note: 1 TOE = 7,33 BOE

PRESIDENT DECREE 5/2006

1176 Mill. BOE

3200 Mill.BOE

20%

30%

33%

17%

2419 Mill. BOE

1649 Mill. BOE

20,6%

34,6%

41,7%

3,1%

3298 Mill. BOE

BIOENERGY 5%

GAS

OIL

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13 November 2013

a. Projection of Energy Consumption by Sectors

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b. Projection of Fuel Consumption

Household Sector Commercial Sector

2013 45.3 Mill BOE 14.6 % Share

2025 65.4 Mill BOE 19.4 % Share

2013 1.3 Mill BOE 3.9 % Share

2025 3.8 Mill BOE 4.3 % Share

LPG in Household Sector LPG in CommercialSector

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Industrial Sector

c. Projection of Fuel Consumption

2013 0.68 Mill BOE 0.16 % Share

2025 1.32 Mill BOE 0.16 % Share LPG in Industrial Sector

:

a. Alternative Fuels

Conventional

Fuel

Substitute

Fuel Application Remark

Gasolin Bio-ethanol Transportation Mobile Engine

CNG Transportation Mobile Engine

Diesel Oil Biodiesel Transportation Stationary and

Mobile Engines

Industry, Power Plant Stationary

Engine

PPO (Pure Plant

Oil) Industry, Power Plant

Stationary

Engine

LPG DME Household Burning Fuel

Industry Burning Fuel

Commercial Buildings, etc

DME will be the option for substituting LPG in the near future due to some

reasons.

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2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Mill

ion

To

ns

Export Import Production Consumption

Current Total LPG Consumption : 5.5 Million

Tons

Within the Next 17 Years (2030),

a. Consumption Rate : 4 % / year,

b. Production Rate : 2.6 % / year

b. Projection of LPG Balance

Increase in Imported LPG

5.5

9.2

Ref: JARI/JICA, Japan, TBC/JR: 02-104

c. Properties of DME in Comparison to C3 – C4 Fuels

Parameter DME Propane n-Butane i-Butane

Chemical formula CH3OCH3 C3H8 n-C4H10 i-C4H10

Net Calorific Value (kcal/kg)

6.900 11.100 10.930 10.930

Cetane Number 55 - 60 5 10 10

Boiling Point (°C) -25 -42 - 0.5 - 11.7

Liquid Density (kg/l, 25 °C)

0,67 0,49 0,57 0,5

Viscosity (kg/ms, 25 °C) 0,12 – 0,15 0,2 0,2 0,2

Vapor Pressure (atm, 25 oC)

6,1 9,3 2,4 3

Burning Velocity (cm/s) 50 43 41 41

Ignition Temperature (°C) 350 504 430 460

Flash Point (°C) -41 -104 -60 -60

Specific Gravity 1,59 1,52 2 2

DME, as low carbon fuel, has similar properties to LPG except lower calorific value

While suppressing CO2 emission, DME is expected to have promising prospects

which supplies multiple markets, either for clean fuel or as chemical feedstock.

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Feedstock Production

Process End User

Natural Gas

Biomass

Coal

Direct

Indirect

Indonesia is blessed with abundant and varied feedstock of DME

(Natural Gas, Biomass, Coal, etc.), great potential for developing

DME

Established processing technology (Direct or Indirect)

Varied market of DME ( as substitute fuel or chemical feedstock)

d. DME : from Feedstock to End User

Global challenges faced in the development of DME are in

particular :

a. economic competitiveness of DME in fuel markets (LPG)

b. strategic partnership among industries and

c. establishment of DME standards.

e. Challenges

Thriving of DME business will promote DME market.

Options

2. Price

1. Policy

3. Product

4. Production

Investment Support

DME Standards

Security of Supply

DME vs LPG

1. Regulatory :

Mandatory & Obligations

2. Price :

o Fuel Tax & Subsidies

o Taxes

3. DME Standards

4. Investment :

Capital Investment

Incentives

Key success factors for developing DME (4 Ps) :

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Research Development Engineering Operation

1. Optimum Blended Fuels

2. Improvement of Performance

3. Industrial/Household

Application

Value Proposition :

Enhance the industrial

competitiveness

Goals :

• Properties of DME-LPG Blended Fuel • Properties of DME-Diesel Blended

Fuel • Materials Testing : valve, seal, regulator, hose, etc • Product Quality Upgrading • Standards of DME

Engineering Design: •Conceptual •Basic Design •Detailed Design

Promotion Socialization Services

Membrane Seal Valve Bearing LPG-DME Fuel Valve

Bearing

Other Materials (PTFE,

FFKM)

1. Indonesia has a great potential for developing DME as a

domestic fuel supply due to its abundant and varied

feedstock, and the need of LPG substitution in the near

future

2. To commercialize the R&D outcomes, further

collaboration between Indonesian - International

institutions or companies is greatly appreciated in

achieving more mutual benefits for the Asian countries.

3. Standardization of DME fuel in any application is our

current concern to be established soon.

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