Category Archives: Biomass News

Jakarta City to Convert Waste to Thermal Energy

Indonesia produces 64 million tons of waste annually. Jakarta itself produces 6,600 to 6,700 tons of garbage per day. The capital city needs at least three waste-to-energy plants – as per 2012- 2023 master plan for garbage management. Currently, Jakarta has only Bantar Gebang waste treatment facility in Bekasi, West Java to treat its waste. Jakarta city administration spends Rp 133,000 (US$9.77) for every ton of waste that is processed at Bantar Gebang.

Jakarta is expected to construct intermediate treatment facilities (ITF) to process waste into energy in four areas of the capital.

The plants will be located in – Sunter with a capacity to process 1,000 tons of waste per day, Cakung Cilincing (with 1,500 tons per day capacity) and Marunda (capacity for 2,500 tons per day) and another in Duri Kosmabi, West Jakarta.

The facilities are expected to use incinerating machines to produce thermal energy.

PT Jakarta Propertindo will develop the ITF in Cakung Cilincing and Marunda while ITF in Sunter and Duri Kosambi is said to be developed by the Jakarta Sanitation Agency.

Although tenders for the projects were offered in 2012 and foreign companies were selected, no winners are announced yet – due to the change in political leadership.

More on ‘Municipal Solid Waste (MSW) to Energy – Techno-Economics For Growth in Indonesia’ will be discussed by Made Wahyu Wiratma, Growth & Strategy Director, Gas Engine, General Electric Company (GE Indonesia) at CMT’s 3rd Biomass & BioEnergy Asia on 27 February- 1 March, 2017 in Jakarta.

For more information about the event, contact Ms. Hafizah at hafizah@cmtsp.com.sg or call 65 6346 9218.

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Indonesia’s Adaro Energy to Diversify into Renewable Power

Indonesia’s second-largest coal miner by volume, Adaro Energy is planning to diversify its business by exploring the renewable energy domain.

The company via its subsidiary Adaro Power is aiming to slowly make an entry into the green energy domain. As a start, it plans to add 50 megawatts of renewable power. However, the company is still exploring different types of clean energy sources such as solar-cell, geothermal, biomass and micro hydro power for its project.

Adaro is aiming to invest approximately US$75 million to $100 million for the initial project. It plans to secure 70 percent of the funds from loans and the remainder from internal sources. Adaro has enough equity, but the challenge for the company is to acquire a loan.

Meanwhile the Japan Bank for International Cooperation (JBIC) has provided a loan for Batang power plant project in which Adaro owns 34 percent shares. It will be the biggest coal-fired steam power plant in Southeast Asia.

Adaro is hopeful to secure more finance from Japanese banks as well as JBIC for power projects in Indonesia.

More about clean energy projects in Indonesia will be discussed at CMT’s Indonesia Renewable Power on 27 Feb – 1 March, 2017 in Jakarta.

For more information about the event, contact Ms. Grace Oh at grace@cmtsp.com.sg or call +65 6346 9147.

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Indonesia allows IPPs to supply power to customers in remote areas

Indonesia’s power sector that is dominated by state power company Perusahaan Listrik Negara (PLN), will open-up soon. In a ministerial decree, Energy and Mineral Resources Ministry has approved to allow independent power producers (IPP) to sell their power directly to customers, particularly in remote areas or regions that are not serviced by PLN.  The move is likely to end the monopoly of PLN in the power sector.

The decree now awaits ratification from the Ministry of Justice and Human Rights.

IPPs will be allowed to build their own plants, distribute power and also take care of their own costs.

The move will be a boost to renewable power as the smaller IPPs that produce renewable and fossil fuel power, can operate in 2,500 villages across the country which have not been connected to PLN’s power grid.

Prior to this regulation, IPPs were allowed to sell its power to PLN only. The process was marred with lengthy negotiations that often made these small-scale projects unfeasible.

PLN is expected to concentrate on more large-scale projects to support the government’s target of adding 35,000 MW to the country’s power grid by 2019.

One possible challenge for the small scale IPPs is that the electricity produced might be expensive and households might not be able to afford it.

Estimates show that as much as $8 billion might be needed to provide electrification in remote areas. This figure is much higher than PLN’s average base cost of Rp 1,352 (1 US cent) per kilowatt hour. The government might have to step in to subsidize the private sector to address this problem.

More on Indonesia’s power sector developments will be discussed at CMT’s Indonesia Renewable Power on 27 February- 1 March, 2017 in Jakarta.

For more information about the event, contact Ms. Grace Oh at grace@cmtsp.com.sg or call +65 6346 9147.

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Indonesia & Malaysia moving ahead in South East Asia biodiesel market developments

In a new record, Indonesia has consumed as much as 2 million kiloliters of biodiesel in the period between January and October 2016. The government had introduced biodiesel to stabilize the country’s palm oil prices and also to address climate change.

The total consumption of 2.06 kiloliters in the first 9 months of the year translates to almost the monthly requirement of Indonesia.

However only about 7 percent of the 33 million tons of crude palm oil produced in 2016 was used to make biofuel. The Indonesian government aims to raise this number to 26 percent by 2020. Already the use of biodiesel has helped Indonesia reduce 4.3 million tons of carbon dioxide from its greenhouse gas emissions this year. Indonesia expects to obtain 23 percent of its energy from mixed and renewable sources, including biofuels and raise this percentage to 30 percent by 2050.

The other key South East Asian player – Malaysia is planning to raise the current B7 biodiesel mandate to B10. The biodiesel B10 is a blend of 10 percent palm methyl ester (PME) and 90 percent regular diesel while B7 is of a lower blend of 7 per cent PME.

The new measure will also require the industrial sector to start using the B7 blend. The industrial sector has until now been using regular diesel.

The new mandate is expected to create demand for 800,000 tonnes of palm oil per year to be converted into PME. The initiative is expected to help Malaysia’s palm oil stocks and support palm oil prices in the international market.

The Malaysian government, via the Ministry of Plantation Industries and Commodities and its agency Malaysian Palm Oil Board, has taken a gradual approach in rolling out the B5 and then B7 blends in the country.

The country’s biodiesel producers supply PME to the transport sector, starting June 2011 with the B5 programme. Thereafter, the blending percentage was raised to B7 in November 2014.

More about biodiesel market developments will be discussed at CMT’s 3rd Biomass & BioEnergy Asia on 27 February- 1 March, 2017 in Jakarta.

For more information about the event, contact Ms. Hafizah at hafizah@cmtsp.com.sg or call 65 6346 9218.

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Indonesia Consumed More Than 2 Million Kiloliters of Biodiesel in 2016

B10 boon set to support palm oil industry

Air Water set to build Biomass Power Plant in Fukushima

Japan’s industrial gas supplier – Air Water is planning to invest 20 billion yen ($181 million) in a biomass power plant in Fukushima Prefecture. The plant, expected to be one of the biggest biomass power plants in Japan, will have a capacity to produce 75,000kW of electricity.

With a projected start date in 2020, the plant is at par with the biomass power plants built by Sumitomo Corp in Aichi Prefecture, eRex and Kyushu Electric Power subsidiary’s project in Fukuoka Prefecture.

Expected to be the largest domestic power generator, the plant will consume only biomass feedstock. The Osaka based company plans to procure feedstock such as coconut shells, etc., that are produced as waste by palm oil factories in Indonesia and Malaysia, as well as wood pellets from Southeast Asia, North America and other places.

Air Water plans to sell the electricity mainly to Tohoku Electric Power under the feed-in tariff system for renewable energy. Biomass power generators (that consumes coconut shells and imported materials) are allowed to sell 1 kw per hour of electricity for 24 yen for two decades.

The company is also considering selling power to newer retail electricity providers or use it in group operations.

Apart from this biomass power plant, Air Water also plans to build a co-fired plant using both biomass and coal in Yamaguchi Prefecture – in a joint venture with Chugoku Electric Power.

More on Japan’s biomass power projects at 8th Biomass Pellets Trade & Power on 15-18 May, 2017 in Tokyo.

For more information about the conference, contact Ms. Hafizah Adam at hafizah@cmtsp.com.sg or call (65) 6346 9218.

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EU’s Proposal on New Sustainability criteria for Forest Biomass

As the world steps up measures to mitigate the effects of climate change, the European Commission is proposing a new sustainability criteria for forest biomass.

The importance of a new system for forest biomass sustainability has been reiterated by several European forest owners and managers. The new criteria is part of the Clean Energy package.

Europe’s two major regulatory proposals, LULUCF and REDII, is up for consideration by the European Parliament and Council.

Already ample legislation and management systems are available to safeguard the sustainability of forest biomass – which is largely a domestic, decentralised energy source.

What’s notable is that Europe’s forests are not driven by the need for biomass for energy. In fact biomass feedstock used for producing bioenergy is a side product of higher-value timber. Therefore, any demand for bioenergy does not put Europe’s forests at risk. This is a key aspect that EU policy makers need to consider while enacting new sustainable criteria for solid biomass production.

The proposal must therefore avoid unacceptable burdens for the forest owner and be carefully analysed. Some of the stakeholders are of the opinion that carbon emissions can be reduced through the development of forests and their sustainable use. Europe is home to forests that are a source of natural, sustainable and renewable raw material that can be transformed into forest products and replace fossil fuels and highly energy-intensive materials.

The EU has already published proposals to increase the share of renewables to 27% by 2030. The Clean Energy package directs the promotion of use renewable energy resources, including minimum criteria to demonstrate the sustainable production and efficient use of biomass in transport, heat and power.

More on biomass energy regulations will be discussed at 2nd Biomass Trade & Power Europe on 13-14 February, 2017 in Copenhagen.

Email Ms. Hafizah at hafizah@cmtsp.com.sg or call +65 6346 9218 for details for the event.

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Philippines to get 3 Biomass power plants

Bronzeoak, a renewable energy developer, is planning to build 3 biomass plants in Philippines. The company is already building its first biomass plant and expects it to be completed by the second quarter of 2017.

The company has secured $141-million funding from IFC for the three plants. The three plants will be located in San Carlos, South Negros and North Negros.

The company plans to concentrate on completing the San Carlos plant first and the construction at the other plants will be begin thereafter.

The San Carlos plant is undergoing reconfiguration of its boilers from the original capacity of 18 MW to 19.99 MW – which has delayed the project slightly.

The redesigning of the boiler will help to fuel the plant with not just pure sugar cane waste (which is expected to be the main feedstock) but also wood chips, coconut husks or even rice husks and napier grass.

Bronzeoak has signed an agreement with Wuxi Huaguang Electric Power Engineering to supply the boiler of the biomass projects.

Bronzeoak has also completed five solar power projects with a total capacity of 143 MW located in La Carlota City, the municipality of Manapla and San Carlos City.

More about biomass power projects in Asia at CMT’s 3rd Biomass & BioEnergy Asia on 27 February- 1 March, 2017 in Jakarta.

For more information about the event, contact Ms. Hafizah at hafizah@cmtsp.com.sg or call 65 6346 9218.

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Indonesia to tap 60 GW Tidal Power Potential

Investment activities are abuzz as Indonesia targets 23 percent of the total energy mix to be sourced from renewables by 2025.

Tidal power is one of Indonesia’s untapped sources of renewable energy. For the first time, two companies – Arus Indonesia Raya (AIR) and OpenHydro – a unit of French state-owned naval defense company DCNS, plan to generate power from Indonesia’s vast tidal energy.

Estimates show that Indonesia – the world’s biggest archipelago – has the potential for up to 60 GW of tidal power – which translates to more than Indonesia’s total electricity capacity of just over 50 GW in 2015.

The Bali strait is chosen as the pilot tidal array for the project, where it plans to develop up to 20 2-MW turbines over the course of next three years. The power generated is expected to supply power directly to state-owned Pertamina. Each of the turbine that will sit on the seabed, is estimated to cost as much as $7 million in Europe. However, AIR plans to reduce the cost to as little as $4 million by using 70 percent local content in the turbines that will be produced in a factory (to be built in Indonesia).

DCNS website mentions that the tidal power project is expected to generate 300MW of installed capacity by 2023.

Although renewable energy has not taken off in a big way in Indonesia, there are some positive signs. Price of renewable energy has become competitive with fossils energy. According to one estimate, the cost of producing solar and onshore wind power had begun to reach a level where it was competitive with fossil fuels, below 10 cents per KWh.

Renewable energy is estimated to be more affordable on a per-kilowatt-hour basis compared to diesel that many remote islands in Indonesia currently rely on for power.

Indonesia’s coal exports to major consumers – India and China – are also expected to reduce as the two countries are also switching to renewable power. In fact Indonesia’s biggest coal miners – state-owned Bukit Asam and Adaro, are also diversifying into renewables.

More on Indonesia’s renewable power sector developments will be discussed at CMT’s Indonesia Renewable Power on 27 February- 1 March, 2017 in Jakarta.

For more information about the event, contact Ms. Grace Oh at grace@cmtsp.com.sg or call +65 6346 9147.

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Denmark Leads the way in Biomass Power Plants

Dong Energy has converted its Studstrup coal plant to biomass,  while Hofor is set to increase biomass consumption.

Running at a capacity of 360 MW, Dong’s Studstrup new wood pellet fueled power plant is capable of supplying heat to more than 100,000 Danish homes and electricity to about 230,000 homes.

Dong’s second unit also has similar capacity. Dong’s energy plants are expected to reduce emissions by 310,000 tonnes annually in Denmark’s second-largest city as it seek to become carbon-neutral by 2030.

Hofor – the largest utility in Denmark – has already retrofitted one of the units from coal to biomass in 2009, and today consumes around 380,000 tons of wood pellets annually. Hofor also announced plans to replace coal with wood chips at the second Amager unit. HOFOR’s Amagerværket heat-and-power plant will supply electricity and heat for Copenhagen – the city aims to become the first CO2-neutral capital in the world by the year 2025. Installation of the power plant is scheduled to begin in July 2017, and the heat and power production will start in 2019. HOFOR supplies district heat to 500,000 inhabitants, town gas to 300,000 inhabitants, and district cooling to 39 major customers.

Valmet has been roped in to supply biomass-fired power boiler, biofuel storage and conveyor systems to HOFOR power plant in Denmark.

Join the Pre-Conference Site Visit to Hofor’s Amager Power Plant on 13 February at 2nd Biomass Trade & Power Europe scheduled on 13-14 February, 2017 in Copenhagen.

Email Ms. Hafizah at hafizah@cmtsp.com.sg or call +65 6346 9218 for details for the site visit and main conference.

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DONG Energy converts its Studstrup plant to biomass from coal

Valmet to supply biomass-fired power boiler, biofuel storage and conveyor systems to HOFOR

Leading Pellet Producer Drax Biomass Wins SBP Certificate

Drax Biomass has been awarded the first Sustainable Biomass Partnership (SBP) certificate by SCS Global Services – a leading global third-party certifier. Drax won the certificate for its Morehouse BioEnergy and Amite BioEnergy wood pellet manufacturing facilities.

The SBP certification program is the world’s principal standard that recognized sustainable woody biomass production for use in industrial, large-scale energy production.

The biomass facilities at Amite and Morehouse have a production capacity of 450,000 MT of wood pellets annually. Drax sources its feedstock – mainly Southern Yellow Pine wood – from nearby privately-owned working forests.  The process involves collection and storing of thinnings, low-value roundwood, and harvesting residues that are debarked and chipped.  Drax also screens the woodchips for size consistency, and processes them into compressed pellets of uniform moisture, ash content and calorific value.

SCS has assessed Drax’s work at each stage of sourcing and manufacturing process. It also conducted an audit of Drax Biomass’s Baton Rouge Transit storage and shipping facility before awarding the certificate.

SCS has recently qualified as a certification body for SBP after a rigorous process involving review of SCS’ assessment procedures and personnel qualifications as well as  independent observation by SBP of the Drax Biomass facility audit conducted by SCS.

The SBP certification will enable Drax to play an increasingly vital role in responsible biomass pellet production.

More on SBP certification will be discussed at the 2nd Biomass Trade & Power Europe on 13-14 February, 2017 in Copenhagen.

Email Ms. Hafizah at hafizah@cmtsp.com.sg or call +65 6346 9218 for details for the event.

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