Indonesia: PLN strengthens the supply chain of biomass as a substitute for coal

A PT PLN (Persero) subsidiary, PT Energi Primer Indonesia, strengthens the supply chain of biomass as a substitute for coal in Steam Power Plants (PLTU). President Director of PT Energi Primer Indonesia Iwan Agung Firstantara said they had agreed on a memorandum of understanding (MoU) with PT Energy Management Indonesia and PT Alpha Rizki Teknologi for developing and managing biomass.

“This collaboration is to meet the demand for biomass supply to replace PLTU coal by utilizing local resources,” he said here on Sunday.

Firstantara said they are utilizing biomass as a co-firing program for PLTU to reduce greenhouse gas emissions and build a people’s economy through community empowerment in providing biomass. He said that community involvement in the program helps improve the economy and ensures the continuity of the biomass supply in the co-firing program for PLTU.

Biomass Director of PT Energi Primer Indonesia Antonius Aris Sudjatmiko said the MoU was initiated with the two companies last year. During this time, there have been several embryos of joint activities, such as finding local biomass sources. Other activities include collecting unprocessed biomass around the PLTU and seeing the potential for production market facilities where Alpha Rizki Teknologi involve as an investor and Energy Management Indonesia becomes an aggregator for planting biomass through the CSR program. This year, PLN needs 1.05 million tons of biomass products. This amount is expected to increase to 10 million tons in 2025. The enormous demand for biomass requires massive efforts, such as planting energy crops starting with the energy forest ecosystem and synchronizing biomass’s supply chain with coal’s supply chain.

The unused land around coal mines can be used to plant biomass trees that can improve the economic standard of the local community.

“PLN continues to collaborate with various parties to support the government to achieve the target of net zero emission by 2060 and at the same time strive for sustainable economic development through the co-firing program of biomass,” Sudjatmiko said.