Indonesia’s PLN raises biomass targets at coal plants

Biomass consumption at Indonesia's coal-fired power plants is likely to increase this year, in line with government efforts to cut down greenhouse gas (GHG) emissions from the power sector.

PLN Energy Primer Indonesia (PLN EPI) — a PLN unit responsible for ensuring adequate fuel supplies to PLN-owned power plants — said it is aiming to supply 2.56mn t of biomass this year, more than double last year's volume of 1mn t.

The higher biomass consumption in the power generation sector is expected to cut GHG emissions by up to 2.8mn t CO2 equivalent (CO2e). Biomass co-firing resulted in an emissions reduction of 1.05mn t in 2023.

PLN EPI's biomass supply will come from agricultural, plantation and forestry residue and waste such as sawdust, rice husks, corn cobs, sugar cane bagasse, empty palm fruit pellets, palm shells, candlenut shells, and wood chips. Sourcing a variety of biomass products will allow for higher uptake as it addresses supply constraints that could arise if the types of biomass are limited, the company said.

Sourcing is expected to be easier this year following the passage of a ministerial regulation from Indonesia's energy ministry (ESDM) in November 2023, which sets pricing for biomass products meant for power generation. Under the regulation, biomass products sold for power plant use will have a maximum price slightly above the HBA coal reference price, which is set monthly by the ESDM. This will allow power plants to incorporate co-firing without a significant increase in the cost of operations, PLN EPI said.

PLN EPI is also expanding its sourcing to include farmers' associations, co-operatives, and community groups with the goal of having each coal-fired plant's biomass needs supplied by local businesses and communities.

Biomass sources are currently scattered across the country and relatively far from power plant sites. But bringing biomass sources closer to power plants should stabilise supply, making it easier to implement co-firing at additional plants, PLN EPI said.

By Antonio delos Reyes