PT PLN EPI, the fuel trading subsidiary of state-owned electricity company PT PLN, has partnered with agribusiness firm PT Bumi Indawa Niaga (BIN) to enhance the biomass supply chain. Together, they will deliver 350 tons of palm shells by sea to the Tidore coal-fired power plant (PLTU) in North Maluku, supporting biomass co-firing operations at the plant.
PLN EPI President Director Iwan Agung Firstantara emphasized that this co-firing program is part of PLN’s ongoing efforts to provide direct economic benefits to the people of the Tidore Islands by utilizing valuable waste materials.
"In support of reducing Greenhouse Gas (GHG) emissions and achieving the Net Zero Emission (NZE) target by 2060, PLN EPI is supplying 350 tons of palm shells via sea for biomass co-firing. The Indonesian government continues to push for the implementation of new and renewable energy (NRE) in the energy sector. One of the strategic steps is biomass co-firing technology at PLTUs," he stated on Saturday.
PLN EPI recorded a successful biomass shipment of 1.62 million tons in 2024, reducing carbon emissions by 1.87 million tons of CO2. The target for 2025 is to increase shipments to 3 million tons for all PLN Group PLTUs, he said.
The Tidore PLTU, located in Tidore Islands, North Maluku Province, is one of the sites implementing biomass cofiring. After testing, palm shells sourced from surrounding island plantations were chosen as the suitable biomass type. PT Bumi Indawa Niaga (BIN), an agribusiness company, utilizes palm shell waste from its sister company’s palm oil mill, PT Gelora Mandiri Membangun, to support this technology.
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Iwan also added that the collaboration with BIN is a strategic partnership to support energy sustainability in North Maluku, requiring extra effort in utilizing sea transportation to address geographical challenges in the archipelagic region.
"With innovations like this, we not only strengthen the local energy system but also make a significant contribution to achieving the national NRE mix target of 23% by 2025," he said.
Meanwhile, Ketut Adi Laskito from BIN expressed full support for the government’s program.
"We support reducing fossil energy use and increasing NRE to cut GHG emissions and achieve NZE," he stated.
Through this initiative, BIN not only supports the transition to clean energy but also provides an economic solution by maximizing the utilization of palm oil waste.
"We hope for a long-term partnership with PLN EPI and the Tidore PLTU to continue developing," he added.
He also noted that supplying palm shells to the Tidore PLTU comes with several challenges. The PLTU’s location in an island region requires sea transportation access. Additionally, palm shell production is highly dependent on weather conditions, causing supply fluctuations and uncertainty.
Due to these two factors, along with limited shipping transport, BIN has adopted a ‘joint cargo transportation’ method. Ships not only carry palm shell supplies but also 1,500 tons of palm kernel, which is being shipped to East Java.
However, if BIN’s supply capacity continues to grow in line with the increasing demand from PLN PLTUs, there is a possibility of sourcing from other suppliers and using dedicated shipping, unlike the current shared transportation approach.
Editing by Reiner Simanjuntak
