Sinar Mas to develop biomass power plants
Thursday, January 8 2015 - 01:07 AM WIB
The paper quoted Sinar Mas Managing Director G. Sulistiyanto as saying that the business empire was looking to enter the commercial renewable energy sector, saying that the group hoped to gradually set up a number of biomass power plants in South Sumatra.
Each 100 MW of capacity he said, would require around Rp 1 trillion (US$78.55 million) in investment, meaning that Sinar Mas would have to disburse around Rp 10 trillion in total.
The power plants will be operated by Sinar Mas? paper-producing subsidiary Asia Pulp and Paper (APP). They will be fueled by biomass, which is usually produced from residues of agriculture and forestry operations.
Sulistiyanto said the group hoped to carry out the project within eight years. However, the exact date to begin the project is not certain yet, as the group remains in discussions with the government.
?We plan to set up a 200-MW plant in the early stages," he said.
He added that the power generated from the plant would be for commercial use. While it will be based in South Sumatra, the project is expected to be able to supply other regions in the country, depending on the transmission to be built.
?This will be our first experience in developing biomass power plants. We have already have tens years? experience in operating coal-fired plants for our own business operations,? Sulistiyanto said.
Sinar Mas, he explained, already operated coal-fired power plants nationwide and in China with a total capacity of 3,000 MW for its own operations, as well as operating a 2x150-MW coal-fired power plant in South Sumatra and a 170-MW CPO-fueled plant in Italy for commercial use.
The government, as previously reported, is aiming to see around 1,000 to 1,200 MW in additional power generation from bioenergy resources within five years, and has stated that the sector needs massive investment. (*)