Government to build three biogas power plants in 2016

The government will develop three biogas power plants each with a capacity of 1 MW in Central, South and East Kalimantan provinces next year.

Funding for the palm oil mill effluent (POME)-based biogas power plants will come from the state budget, said Director General of New and Renewable Energy Rida Mulyana in a statement last week.

He said that similar projects had been carried out in the past, also using state budget funds, including in Rokan Hulu regency (Riau), and in North Sumatra.

Rida said that his office has also encouraged companies to developed POME-based biogas power plants. Among of the companies which have operated biogas power plants include state-owned plantation firms PTPN V in Riau (1 MW, offgrid) and PTPN X in Sidoarjo (2MW), East Java, PT Austindo Bangka Belitung (1.2MW, on grid), and PT Rea Kaltim Plantation in Kutai (7 MW, offgrid).

He said that nine oil plantation companies have recently submitted proposals to develop POME-based biogas power plants with combined capacity of 17.85 MW.

Editing by Reiner Simanjuntak