Medco to start operation of biogas power plant in early 2014

By Hiski Darmayana

Medco Group, through its subsidiary PT Multifab, will start the commercial operation of a biogas power plant (PLTB) in Mojokerto, East Java in February 2014.

A reliable source with the company said on Wednesday that the biogas to generate the power will be produced by through a process with sugarcane as its raw materials. It will be part of Medco?s efforts to participate in the development of renewable energy in Indonesia.

?The ground breaking of the plant construction will be conducted next month (July),? the source told Petromindo.com on the sidelines of Palembang Expo in Palembang on Thursday.

Currently, the source said, the company is finalizing a memorandum of understanding (MOU) with PT Perkebunan Nusantara X, which will supply the sugarcane and will also become the consumer of the generated power.

The company is also in the final stage of securing all necessary licenses for the development of the power plant.

Once developed, the new PLTB will initially have a generation capacity of 2 x 1 megawatt (MW). ?After that, we?ll build more with a generation capacity of 4 MW,? said the source.

Editing by Benget Besalicto Tnb