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

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. Th...

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Main Authors: Wiraditma Prananta, Ida Kubiszewski
Format: Article
Language:English
Published: MDPI AG 2021-05-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/14/10/2803
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author Wiraditma Prananta
Ida Kubiszewski
author_facet Wiraditma Prananta
Ida Kubiszewski
author_sort Wiraditma Prananta
collection DOAJ
description 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.
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spelling doaj.art-ce1fa1703bc84806a171d8f4790841f92023-11-21T19:38:21ZengMDPI AGEnergies1996-10732021-05-011410280310.3390/en14102803Assessment of Indonesia’s Future Renewable Energy Plan: A Meta-Analysis of Biofuel Energy Return on Investment (EROI)Wiraditma Prananta0Ida Kubiszewski1Crawford School of Public Policy, The Australian National University, Canberra 2601, AustraliaCrawford School of Public Policy, The Australian National University, Canberra 2601, AustraliaIn 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.https://www.mdpi.com/1996-1073/14/10/2803palm oilbiofuelEROIIndonesiaIndonesian B30 programrenewable energy
spellingShingle Wiraditma Prananta
Ida Kubiszewski
Assessment of Indonesia’s Future Renewable Energy Plan: A Meta-Analysis of Biofuel Energy Return on Investment (EROI)
Energies
palm oil
biofuel
EROI
Indonesia
Indonesian B30 program
renewable energy
title Assessment of Indonesia’s Future Renewable Energy Plan: A Meta-Analysis of Biofuel Energy Return on Investment (EROI)
title_full Assessment of Indonesia’s Future Renewable Energy Plan: A Meta-Analysis of Biofuel Energy Return on Investment (EROI)
title_fullStr Assessment of Indonesia’s Future Renewable Energy Plan: A Meta-Analysis of Biofuel Energy Return on Investment (EROI)
title_full_unstemmed Assessment of Indonesia’s Future Renewable Energy Plan: A Meta-Analysis of Biofuel Energy Return on Investment (EROI)
title_short Assessment of Indonesia’s Future Renewable Energy Plan: A Meta-Analysis of Biofuel Energy Return on Investment (EROI)
title_sort assessment of indonesia s future renewable energy plan a meta analysis of biofuel energy return on investment eroi
topic palm oil
biofuel
EROI
Indonesia
Indonesian B30 program
renewable energy
url https://www.mdpi.com/1996-1073/14/10/2803
work_keys_str_mv AT wiraditmaprananta assessmentofindonesiasfuturerenewableenergyplanametaanalysisofbiofuelenergyreturnoninvestmenteroi
AT idakubiszewski assessmentofindonesiasfuturerenewableenergyplanametaanalysisofbiofuelenergyreturnoninvestmenteroi