STC implements a sustainable development strategy in biofuel and palm oil in Aceh
From 2006-2008, STC conducted a strategic assessment of Aceh’s palm oil sector, under the framework of the Aceh Green Vision devised by the province’s first democratically-elected Governor, Irwandi Yusuf. The Aceh Green project’s goal was to promote a sustainable economic recovery of the province in the aftermath of the devastating Tsunami and the long-standing conflict that ended with a peace accord in 2005. This eight-month effort funded by the International Finance Corporation and World Bank culminated in a final report, which contains a review of the constraints and opportunities in the sector and an action plan with follow-on recommendations for policy initiatives, pilot projects, and investment opportunities. One of the key results of this initiative was the creation of the multi-sectoral Aceh Sustainable Palm Oil Working Group.
STC in partnership with Forest Carbon developed a new paradigm for biofuel production in Indonesia by utilizing non-food grade waste streams from the oil palm industry. STC received support from the United States Agency for International Development (USAID) under the Indonesia Forest and Climate Support (IFACS) program to produce a new bio-oil product called “Power Oil”: a substitute for diesel and bunker oil which can be used in power plants and industrial steam engines. Power Oil is produced from high free fatty acid (FFA) crude palm oil pressed from waste fruits or from sludge oils recovered from the palm oil processing facilities. The oil has an FFA content of ~25% containing impurities under 2%.
Power oil can be used to replace conventional GHG-emitting imported diesel in combustion engines used for power production in industrial applications such as mills, mines, hotels or malls.PowerOil cost less to produce than biodiesel.