Japan?s METI supports Listrindo Kencana biomass power project

Japan?s Ministry of Economy, Trade and Industry (METI) announced Tuesday it had approved five private-sector international projects aimed at helping reduce greenhouse gas emissions, which is a significant point mentioned in the Kyoto Protocol.

One of the projects is PT Listrindo Kencana?s 12-MW biomass power plant project in Bangka Island on which Japanese firm Mitsubishi UFJ Securities Co Ltd is the Clean Development Mechanism (CDM) advisor to the project and is also a project participant.

Listrindo is a subsidiary of PT Sawindo Kencana, a palm oil operator with a 7,000-ha palm oil plantation and a palm oil mill and a kernel crushing plant on Bangka Island. The power plant will utilize biomass residue from the palm oil mills as fuel.

The US$4.2 million project will be implemented in two phases: Phase I involves the installation of Plant I which is a 6MW power plant, and Phase II will add another 6MW as Plant II. The Plant I is expected to be fully online by May 2007. Phase II will start construction in 2008.

The project is designed to supply renewable electricity to the island?s electricity grid. Without the project, the grid only has 40MW of installed power generators in total and frequently unable to meet the electricity demand causing regular blackouts.

Getting the METI?s approval is a step towards registration as a United Nations CDM project, under which companies from rich countries invest in developing nations and then claim credits back home. (Robert)