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T Riau Investment Corporation (RIC) and regional development firm PD Pembangunan Pekanbaru have established a joint venture with Singapore-based G20 Environmental Solutions Group (ESG) to build four waste-based power plants in Pekanbaru, Riau.

The three companies will form a joint venture company called PT G20 ESG (Pekanbaru), with 50 percent of the shares owned by G20 ESG and 25 percent held respectively by PT RIC and PD Pembangunan.

The four waste-based power plants will have a combined output of 40 megawatts and cost Rp 600 billion (US$66 million) to build, the project is scheduled to be completed this year.

Pekanbaru Mayor Firdaus said his administration had provided a 500-square meter site at the Muara Fajar landfill to build the power plants.

The project, he said, was part of the administration’s efforts to overcome the waste crisis in Pekanbaru.

“The potential of waste is quite enormous as the volume can reach 300 tons daily. It should be utilized to meet the power demand which remains in deficit. Although Pekanbaru has been linked to the Sumatra power interconnection, power supply remains inadequate,” he said.

“Actually, for the Pekanbaru municipality, the main issue is not power but how to resolve the ongoing waste crisis. We hope waste can serve as an energy source and will have multiplier effects, such as resolving the waste crisis, improving people’s welfare, creating new job opportunities and a healthier environment,” said Firdaus.

G20 ESG chief executive officer Andrew Skidmore said the project in Pekanbaru was the first of its kind carried out by the company in Indonesia. He said that the potential of developing waste-based power plants in Riau was big as the region had abundant household waste, including palm oil waste which has great potential to be processed into electricity.

He said current science and technology was able to process initially worthless garbage and palm oil waste into electricity.

PT RIC investment risk management director Detri Karya said based on their initial design, the respective power plants would be able to process 10 tons of garbage hourly.

“They have the potential to be expanded to process four times the volume,” said Detri, estimating that the project would commence in the next five or six months as they had to prepare for legal arrangements and licensing. “G20 ESG has urged the immediate construction of the project, but we must make thorough preparations,” Detri said.

“G20 ESG has experience in building urban waste processing technology, while RIC is involved in power generation and has the experience of selling power to state power company PLN. I’m sure the joint venture will be of mutual benefit to every stakeholder, especially the community in Pekanbaru,” added Detri.