tate-owned electricity company PLN in Papua and West Papau (WP2B) has signed an agreement with PT Merauke Marada Energi to develop biomass power plants in Merauke, whose sale and purchase agreement was made in late January in Sorong, West Papua.
“PT Merauke Narada Energi will develop a renewable power plant that will use biomass energy, which is expected to start production in 2017,” PLN WP2B general manager Yohanes Sukrislismono said in a statement received by The Jakarta Post over the weekend.
Currently, PT Merauke Narada Energi, a subsidiary of PT Medco Energi, is developing a biomass power plant (PLTBm) in Wapeko, Merauke, with a capacity of 1x3.5 MW, which will be distributed to the Special Economic Zone (KEK) in Salor, Merauke, Yohanes said.
(Read also: Incentive cut discourages investment in renewable energy: Expert)
Wood chips will be used as the organic raw material to generate power at the plant.
“We have 250,000 hectares of land to produce wood chips. We have conducted research into using wood chips as raw materials in energy production to help the government supply electricity in Papua,” said PT Medco Energi commissioner Budi Basuki.
The trees that will be used as a source for wood chips include Acacia, Eucalyptus and Meulaluca, Budi said, adding that 26 other tree species are being studied as possible wood chip sources.
PT Medco Energi’s Maluku and Papua regional director Haryanto WS said his company was the first independent power producer (IPP) to operate in eastern Indonesia.
The government has set a target of renewable energy contributing 23 percent of the total energy supply by 2025. Currently, its contribution is only 14 percent. (bbn)
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Thank you for sharing your thoughts. We appreciate your feedback.
Quickly share this news with your network—keep everyone informed with just a single click!
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Get the best experience—faster access, exclusive features, and a seamless way to stay updated.