Tuesday, April 16, 2024

Government starts biomass, coal co-firing power plant project in East Kalimantan

Reading Time: 2 minutes
Gusty da Costa

Journalist

yan

Editor

Interview

The Coordinating Ministry for Maritime Affairs and Investment, the Energy and Mineral Resources Ministry, the Environment and Forestry Ministry, the Association of Indonesian Forest Concession Holders (APHI) and the Indonesian Coal Mining Association (APBI) are collaborating on preparing biomass and coal pilot projects. The cooperation was discussed during a visit to the mining company PT Indominco Mandiri reclamation site in Bontang, East Kalimantan, on May 24 and May 25, 2022. 

By 2030, Indonesia aims to reduce greenhouse gas emissions by 29% from the business as usual scenario. One of the efforts is to co-fire coal-fired power plants with biomass to reduce fuel costs and reduce emissions while at the same time improving the efficiency of the firing process. Co-firing biomass is part of the initiative to achieve a 23% renewable energy mix by 2025.

State-owned electricity company PT PLN plans to co-fire coal-fired power plants at 52 sites. As a result, PLN will need 9 million tons of biomass by 2025.

Dirhansyah Conbul, a senior official in the Coordinating Ministry for Maritime and Investment, said the potential for biomass and coal blending could not be utilized as there is neither a policy nor a regulation regarding its use. 

“It is an upcoming market, primarily because industries, which still use coal, can implement co-firing with biomass to reduce emissions,” he said on May 31, 2022. 

The maritime and investment ministry has initiated a cross-ministerial working group to promote biomass to reduce greenhouse gas emissions and increase renewable power generation. 

Indominco mining coordinator Era Tjahja Saputra said the company welcomed the ministries’ efforts to encourage the use of biomass and coal pilot projects. 

The company is in the process of transforming itself into a green enterprise. Co-firing biomass has been simulated at the company’s coal-fired power plant. 

Currently, PLN is not the only company buying wood chips. Industries with independent coal-fired power plants that utilize coal to produce cement and fertilizer also use wood chips. The use of biomass wood chips will significantly improve the quality of exhaust gas from coal boilers by reducing the amount of ash. In addition, the negative impact of H2SO4 emissions from the firing process can be reduced. 

PT Perhutani, a state-owned forestry company, will supply the required biomass wood chips in the form of sawdust, according to forestry expert Dede Hermawan.

“It is planned for the supplier and off-takers to be located in the same locations to ensure the availability of sustainable biomass supply at an economically feasible cost,” he added. 

Irdika Mansur, a mining expert, said on the same occasion that mining reclamation land might be suitable for the production of biomass. In mining companies, coal-fired power plants are typically located near the coal mines, so they can use wood chips to co-fire coals, thereby not destroying existing forests.

Gusty da Costa

Journalist

yan

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

The Upstream Oil and Gas Regulatory Task Force (SKK Migas) has confirmed that the shortfall in oil and gas lifting throughout the first quarter of 2024 was due to floods and low gas demand from downstream industries. 
PT Pertamina Hulu Energi (PHE) is refining the development scenarios for the GQX oil prospect, which is part of the Offshore North West Java (ONWJ) Block. 
World crude oil prices have risen following Israel’s attack on Iran and subsequent Iran’s counterattack on Israel, with the Brent crude futures being pushed to trade above US$90 after closing 1.1 percent higher on April 10, 2024, while the West Texas Intermediate (WTI) prices approached US$86.
Indonesian telecommunications company, XL Axiata, has asked the government to reduce the Frequency Usage Fees (BHP) to expedite the implementation of 5G networks, a crucial agenda in advancing technology in the country.
PT Bukit Makmur Mandiri Utama (BUMA) has set up a contract with Blackwater Operations Pty Ltd, a subsidiary of Whitehaven Coal Mining Limited, to provide pre-strip mining services at Blackwater mine, a metallurgical coal mine in Australia.
PT Freeport Indonesia (PTFI) aims for its new copper smelter in the Java Integrated Industrial and Port Estate (JIIPE), Manyar, Gresik, East Java, to commence operations in early June 2024.