AANE to expand capacity of biogas power plant

PT Austindo Aufwind New Energy (AANE), a subsidiary of IDX-listed palm oil firm PT Austindo Nusantara Jaya Tbk (ANJ), plans to expand the production capacity of its 1.2 MW biogas power plant in Belitung, Bangka Belitung Province, to 1.6 MW, Bisnis Indonesia reported on Friday.

The paper quoted ANJ President Director Suwito Anggoro as saying that the company also plans to develop similar power plant in North Sumatra with a greater capacity of 1.8 MW.

While electricity from the first power plant is sold to state-owned electricity frim PLN at a price of Rp 975 per Kwh, the power from the planned second plant will be used for the group?s palm oil processing plants.

Elsewhere, Suwito said the company has allocated capital expenditure worth US$80 million for 2014, mainly to be used to finance the capacity expansion of the Belitung plant, and the construction of the new one in North Sumatra.(*)