PLN EPI Targets the Use of 10 Million Tons of Biomass in PLTU by 2030

Electrical energy (between)

JAKARTA - PT PLN Energy Primary Indonesia, targets the use of biomass up to 10 million tons by 2030 as an effort to replace fossil molecules in national electricity generation.

PLN EPI Hokkop Situngkir's Director of Bioenergy explained that his party targeted 10 million biomass to be applied in the biomass cofiring program.

"Until the end of 2025, PLN EPI targets the use of biomass to reach 2.5 million tons. As a result, through the use of biomass, PLN EPI has managed to reduce carbon emissions by 2.6 million tons of carbon dioxide (CO2e) equivalent from 14 types of biomass," said Hokop, Wednesday, December 17.

Hokkop is optimistic that the target can be achieved given the vast potential for bioenergy in the country. PLN EPI noted that the national biomass potential is very large, ranging from agricultural waste, forestry, wood, to pulp (waste agro, waste forestry, waste wood, waste pulp), Indonesia's biomass potential is estimated to reach 280 million tons per year.

However, so far the new utilization has reached 20 million tons, while the potential that is considered easily accessible reaches 60 million tons.

"For the next 2-3 years, we have the potential of around 7.3 million tons, which we actually have in front of our eyes. Bioenergy is unique because its fossil molecules are replaced with biological molecules. In life cycle assessment, this has been proven to be able to significantly reduce carbon emissions," said Hokop.

However, he continued, to pursue this target, cross-sector collaboration is the main key to encourage the utilization of national biomass potential as part of the energy transition and strengthening the renewable energy mix.

Hokkop said that Indonesia has a very large and diverse biomass potential, even equivalent to countries that have previously developed bioenergy massively such as Brazil. However, this potential has not been fully utilized because of the limited synergy between stakeholders.

"This is a very wide open opportunity, but there must be collaboration from all interests," said Hokkop.

On the same occasion, the Indonesian Biomass Energy Society (MEBI) encourages the use of biomass in various industrial sectors and is not limited to the electricity sector.

MEBI Chairman Milton Pakpahan recommended an increase in biomass production to support the target of the Electricity Supply Business Plan (RUPTL) based on EBT, especially the Bioenergy Power Plant (PLT Bio) of 0.9 gigawatt (GW) by 2034.

Currently, there are around 480 megawatts (MW) of Biomass PLT which are in the construction, tender, and planning stages, with a biomass requirement of around 2.5 million tons.

"You can imagine, 4.7 [million tons] in 5 years is the responsibility of co-firing. Please help PLN also find a solution, so the solution is in the long term," he explained.

Not only that, MEBI also hopes that the use of energy sources from this bio-based raw material will continue to prioritize the principle of circular economy in its implementation. According to him, the use of biomass should not be based on primary wood as fuel.

"Biomass is about using waste or with a circular economy," added Milton.

On the other hand, the Economist of the Institute for Development of Economics and Finance (Indef) Imaduddin Abdullah said bioenergy has a strategic value, namely being able to drive the local economy.

Imaduddin explained that bioenergy has great potential in supporting the national energy transition as well as supporting energy resilience. Bioenergy is also relatively more reliable than a number of other types of energy.

"So that the movement of bioenergy indirectly, or maybe directly, has an impact on producers in the upstream which are indeed many local economies. So we do see that this [bioenergy] has a strategic role," he said.

However, Imaduddin admitted that there were still a number of challenges such as in the architecture of the bioenergy market. These challenges include supply chain fragmentation, price volatility, export share and market architecture which is still limited.