PLN operates first biofuel power plant

State-owned electricity company PT Perusahaan Listrik Negara (PLN) has began the operation of the company?s first biofuel power plant in Bagan Besar near Dumai in Riau province.

The operation of the biofuel power plant, which has a capacity of 10 megawatt is part of the government?s program to promote the use of biofuel in the country?s power plant operation.

To enable it to use bio fuel, the power plant has been equipped with a fuel converter which has the function to blend crude palm oil (CPO)-based biofuel with diesel oil.

?This is the first power plant in the Asia and Pacific using biofuel,? Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Wednesday.

The government bought the converter from German company Neaue Maschinenbau Halberstadt GmbH for about Rp 29 billion. The use of biofuel could save the plant?s operating costs by up to 50 percent, according to the government?s estimate.

PLN?s director for Java and Bali, Murtaqi Syamsuddin, said that with the use of such a fuel converter, the operating costs would be still costly because the operator should also pay an extra cost for its maintenance.

"This is a pilot project. The power plant is operating, but it is still in the commissioning stage," he said.

According to him, using the biofuel produced by Pertamina might be less costly because the plant operator would not need to buy a converter. (Bernard)