State electricity company through subsidiary PT PLN Energi Primer Indonesia signed Thursday (20/4) a Memorandum of Understanding with PT CDE Asia Pasifik and PT Citadel Investama Abadi to develop biomass production facility and supply biomass to PLN's coal power plants in Aceh as well as North Sumatra and Riau, respectively, starting 2023.
"Until April 2023, PLN EPI has signed 10 strategic biomass partnership MoUs to supply 1.162 million tons of biomass this year," PLN EPI President Director Iwan Firstantara said as quoted from kontan.com, not stating how long these contracts will last.
The company recently reported low biomass uptake throughout the first quarter of 2023, reaching 20% or 220,000 tons out of the total 1.08 million tons needed to co-fire 34 coal power plants this year, targetting to acquire 10.2 million tons for 52 coal power plants by 2025.
Read also: PLN EPI signs deals with biomass suppliers
"One of the reasons being the low biomass buying price capped by coal's highest benchmark price, which prompts producers to export their biomass instead," PLN EPI Corporate Secretary Mamit Setiawan said Thursday (20/4) to katadata.co.id., adding that biomass exports will curb green energy development, increase fossil fuel and lpg imports to patch the gap and, in the long run, reduce soil fertility.
PLN is currently lobbying the government to support its function as national biomass offtaker through warrantied regulations.
Editing by Reiner Simanjuntak
