e-rice:Double productivity Half the emission Sustainable rice - - PowerPoint PPT Presentation

e-rice:Double productivity Half the emission

Sustainable rice farming tools based on System of Rice Intensification method

Arief Sanjaya – Electrical Power Engineering, M.Sc. Program Hilman Prasetya Edi – Sustainable Energy Systems, M.Sc. Program Shelty Juliavonni – Sustainable Energy Systems, M.Sc. Program

Untapped Climate Opportunity in Indonesia’s Agriculture Sector How to Supply Rice in a Sustainable and Low Carbon Way

E-rice is decarbonizing and modernizing rice farming in a low-cost way, suitable for farmer’s financial condition

mediaindonesia.com

Indonesia’s Trilemma in Agriculture Sector

Balance of Supply-Demand Land Use Change Farmers Prosperity

e-rice: Making Technology Accessible to Farmers

#1 #2 PPC Gives Access for Farmers to Utilize e-rice System

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Automated Water and Fertilizer Control, Powered by Solar PV

Low income (± £2/day)

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SRI Method Developed by Indonesian for Indonesia Modern and Sustainable Farming Method

E-rice makes SRI method easier to use and ready to be deployed in remote areas

3 Less Seeds, Less Water, Compost Fertilizer Double Production/Area, Halving CO2 Emission/Area System of Rice Intensification (SRI)

• 84% Less Seeds
• 66% Less Water
• Utilizing Compost Fertilizer
• 5 ton/ha à 10 ton/ha

COMPLEX FARM OPERATION

e-rice

Automation of SRI Method Ease of Operation Suitable for Remote Areas Powered by Solar PV

E-rice is targeting rice farmers around province’s capital city who are well educated and open minded towards modernization

Quick Yield – High Income – Strong Resilience

Productivity Performance Contract (PPC)

Increased Revenue by applying e-rice

B u s i n e s s a s U s u a l

Producer revenue as installment payment Consumer surplus

Revenue (GBP/hectare) Year Contract Duration Start Finish

Engaging Farmers

£26.9k

Net Present Value

187%

Flat IRR

0.88Y

Payback Period

E-rice Designed Based on Farmer’s Point of View Making It Easier to Use and as Engaging as Possible

Grant Funding Scheme Angel Investors Early Development Stage Further Development Stage

Government’s subsidy Soft loan / Concessional funding

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PPC Gives Access to Technology Without the Capital Burden

1.PPC based payment 2.7.5% engagement budget from total price 3.Partnership with local Polytechnique & technicians 4.Capacity building for user

Starting from 100 deployed system to gain trust from Indonesian Farmers

To Become the Biggest Agriculture System Provider With 25% Market Share in the Next 10 Years

100 e-rice devices

S H O R T T E R M T A R G E T L O N G T E R M T A R G E T Risk and Mitigation Plan

Social Risk: Farmers resistant to change

Mitigation Plan:

• PPC as accessible financial scheme
• Highly engaging customer service
• Cooperation with local government & businesses

Scalability and Implementation

25% of market share

Financial Risk: Higher costs (due to Covid-19)

Mitigation Plan:

• Finding other capital source
• Providing emergency working capital to user
• Seeking business interruption insurance
• 1. Register e-rice system patent
• 2. Lesson learned from deployed units
• 3. Capital for workshop and manpower expansion
• 4. New emission restriction regulation
• 5. R&D grant to accelerate learning rate

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If we don’t care about our country, then who else?

Make Farmers Prosperous Again, in a Sustainable Way By Giving Proper Guidance and Education

Indonesia Travel

Short term impact

• Avoiding potentially 471 million tons CO2 from land use change
• Reducing GHG emissions that comes from conventional farming practices
• Increasing Farmer’s revenue stream

Long term impact

• Improving national food security
• Preserving biodiversity
• Developing a sustainable and growing economy for farmers
• Farmers regeneration

£225k

Investment required

First 100 Unit Deployment

• 1. IRR for investment 8%
• 2. MIRR for investment 8%
• 3. PBP at 2 years

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