JAKARTA – Three state-owned companies (BUMN), utility company PT PLN, plantation company PTPN Group, and forestry company PT Perhutani, have agreed to establish a synergy to increase the use of biomass in coal-fired power plants (PLTU) as part of efforts to make the plants greener in line with the government’s green target in 2030.
The synergy was realized through the signing of a head of agreement (HoA) on the biomass procurement and development of biomass industry to support the coal-biomass co-firing program of PLTU on Friday, 16 July 2021, by PLN President Director Zulkifli Zaini, PTPN Group President Director Mohammad Abdul Ghani, Perhutani President Director Wahyu Kuncoro. It was also witnessed virtually by State-Owned Enterprises (BUMN) Deputy Minister Pahala Nugraha Mansury, the ministry of energy and mineral resources’ (MEMR) Renewable Energy and Energy Conservation Director General Dadan Kusdiana, and the MEMR Electricity Director General Rida Mulyana.
“PLTU Co-firing has a big contribution to increase the percentage of new and renewable energy sources in the national energy mix. To realize the target, the synergy of these three BUMN companies is badly needed to secure the supply of biomass for the co-firing program of PLTU. It will also increase added value for Perhutani and PTPN businesses. This is a win-win deal,” said Pahala.
PLN President Director Zulkifli Zaini said that the co-firing program of PLTU is also aimed to help realize the national target of renewable energy contribution to the national energy mix at 23% in 2030.
“PLN will implement it in 52 PLTUs across Indonesia. For the purpose, we will need biomass supply of 9.0 million tons per year in 2025. We hope it will be fulfilled by Perhutani and PTPN from their nearest operations to the 52 PLTU locations,” said Zulkifli.
The HoA stipulates, among others, the commitment of Perhutani to provide woodchips or sawdust, commitment of PTPN to supply plantations’ wastes, including palm kernel shells (PKS) and empty palm fruit bunches, while PLN as offtaker will use the biomass to reduce coal use for power generation in the 52 units of PLTU.
“This is a new kind of synergy for the three BUMN companies. We hope the government will support our green booster program, especially by ensuring a friendly regulation on the use of biomass for power generation,” added Zulkifli.
PTPN Group President Director Mohammad Abdul Ghani said that PTPN Group has quite big potential of biomass from its plantations of oil palm, rubber and sugarcane, which are operated by its 15 subsidiaries across the country. “From oil palm plantations, we can supply now over 500 thousand tons of empty palm fruit bunches per year to PLN. We can increase it up to 750 thousand tons per year in 2024. Hopefully, this green program will reduce greenhouse emission and improve the air quality around the power plants up to the healthy level,” said Ghani. (*)
Source: mediaindonesia.com | Featured image via wwf.org.uk
