Growth Steel Group builds new biomass power plants

Growth Steel Group (GSB) is pressing ahead to complete the construction of two new biomass power plants this year to help ensure power supply for its steel manufacturing operations in Indonesia, Kontan daily reported Monday.

GSG currently operates three biomass power plants, which use oil palm kernel shells as fuel, including a 2x15 MW in Medan, 1x15 MW in Simalungun (both in North Sumatra province), and another 2x15 MW in Jambi.

This year, the company plans to complete the construction of a 1x15 MW biomass power plant in Cilegon, Banten, which is being developed by PT Indocoke Industry, a joint venture with Singapore-based Metal Group Ltd to produce coking coal.

The second is 1x15 MW plant in Pontianak, which GSG Business Development Head Jonatan Handojo said is expected to be completed in the fourth quarter of this year.

GSG claims to be able to build the plants at a relative cheaper cost of about US$900,000 per MW because the components and engine are manufactured by itself.

The company, however, said that a major challenge is the rising price of the feedstock oil palm kernel shell. (*)