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Biogas Indonesia

  • Biogas Indonesia

    Aim

    To create a market-oriented sector of domestic biogas in Indonesia as a local sustainable energy source by developing a commercial, market-based approach that provides job and business opportunities for masons and local partner organizations in construction.

    Where

    Nine provinces in Indonesia (Lampung, Banten, East Java, Central Java, East Java, Bali, West Nusa Tenggara, East Nusa Tenggara and South Sulawesi).

    Why

    24.5 million,or 40 percent of households in Indonesia, mainly in rural areas, depend on traditional biomass as their primary cooking fuel. The resulting indoor pollution is responsible for an estimated 165,000 premature deaths a year.Domestic biogas provides a sustainable way for individual households with livestock to reduce their dependence on firewood and expensive fossil fuels. A biogas digester converts animal dung into biogas that can be used for cooking,and in some rural non-electrified areas,also for lighting. The bioslurry left over from this process is also an excellent organic fertilizer that can be used to improve crop yields.

    How

    IDBP, also called BIRU (Biogas Rumah), provides a flat subsidy (investment incentive) of US$220 per digester, benefiting low-income farmers even more than those better off. The farmer has to pay 60 to 80 percent of the investment cost, ranging from US$400 for a 4m3 sized digester to US$1000 for a 12m3 sized digester – a considerable amount for many small farmers. In selected areas,the national or district government also provides funding in cooperation with Hivos making use of BIRU’s corporate branding. BIRU means ‘blue’ and is an acronym for Biogas Rumah, which means“biogas for the home”.

    Results so far

    Sixty-four construction and three manufacturing organizations (producing biogas stoves, lamps and other appliances) work with the BIRU program. More than  1,000 masons have been trained, and over 22,697 biogas digesters have been built. Almost all biogas appliances are now locally manufactured.

    The program has created sustainable jobs and businesses for more than 1,000 people: builders; supervisors; brick makers and sand collectors; transporters, stove, tap, and lamp manufacturers; administrators; microcredit officials; bioslurry processors and farm workers.

    BIRU has trained 11,201 biogas digester owners in 112 districts on use and maintenance. Each biogas digester reduces 2.6 metric tons of carbon a year. On3 December 2013, BIRU was registered at the Gold Standard Registry. As biogas reduces greenhouse gas emissions, carbon financing provides income for the long-term sustainability of the program. Yayasan Rumah Energi has a prominent role in the implementation.

    Period and budget

    2012-2018, total of € 9.4 million  (72% from the Netherlands Directorate General for International Cooperation, 21% from EnDev, 4% from Foundation OWE and 3% from Carbon Funds)

    Initiators

    Hivos and SNV

    Coalition partners

    Yayasan Rumah Energi and the Ministry of Energy and Mineral Resources

  • Carbon Finance

    Aim

    To make the technologies required for renewable energy and sustainable, ecological farming practices affordable for rural low-income citizens so they can both improve their living conditions and help reduce the effects of climate change.

    Where

    Kenya, Tanzania, Uganda, Cambodia, Nicaragua, Indonesia

    Why

    Most underprivileged people who live in rural areas depend on the state of their natural environment for their basic livelihoods, but this is coming under increasing threat from climate change. To counter this threat they can use renewable energy sources and climate-smart agricultural methods. Biodigesters for producing biogas are one good example: they both improve living conditions of rural people, especially women, and help to mitigate climate change. Carbon finance makes these new technologies more affordable, which is why Hivos supports access to it for low-income rural communities.

    How

    Since 2011, Hivos’ Carbon Finance program has used carbon finance to develop and support rural projects that build renewable energy systems and introduce ecological, climate-smart farming methods. Hivos sells carbon credits to voluntary buyers who are willing to pay prices that include a contribution to pro-poor sustainable development. All our carbon credits are registered under the Gold Standard. Revenue from carbon credit sales is used to make purchasing biogas digesters affordable and subsidizes program activities such as aftersales services, quality management and training staff and end-users. See the Hivos’ Carbon Finance website for information on its activities in specific countries.

    Results so far (2011-2018)

    76,000 biodigesters installed; 828,000 tons CO2e sold, € 5.0 million in revenue.

    Current period and budget

    2016-2025, €8.5 million

    Partners

    Netherlands Ministry of Foreign Affairs (donor), SNV Netherlands Development Organisation (technical assistance), Climate Neutral Group, MyClimate, National Biogas Programme (NBP) Cambodia, Indonesian Domestic Biogas programme (BIRU), Kenya Biogas Programme (KBP), Tanzania Domestic Biogas Programme (TDBP) and Biogas Solutions Uganda Ltd (BSUL).