Indonesian state power company to run 114 power plants on biofuels
In an effort to reduce its dependence on expsensive oil, beginning next year Indonesia's state-owned power firm Perusahaan Listrik Negara (PLN) will start using locally produced biofuel to fire 114 small- and medium-scale power plants around the country. PLN chief commissioner Alhilal Hamdi said in Jakarta that the plan had been approved following the success of pilot projects for the use of biofuel in an 11 MW plant in Lampung and a 1.5 MW power plant in Nusa Penida, Bali, earlier this year. "Next year, we will start using biofuel in West Nusa Tenggara, East Nusa Tenggara and South Kalimantan," said Alhilal.
In 2004, PLN generated some 120 TWh of electricity, serving 31,000 households and 2200 businesses and large industries. The bulk of its power is generated from oil, coal and natural gas (see graph).
Pure plant oil
Unlike other power companies who are increasingly using solid biomass (agricultural and forestry) to fuel their electricity generating plants, PLN relies on pure plant oil (PPO). On the sidelines of a media gathering to promote the use of PPO for power generation, Alilhal, who is also the head of the Indonesian government's biofuel development committee, explained the rationale behind it. PPO, made from palm oil, is being used to fire the Lampung power plant. He said that power generated by this plant, which used a blend made up of 80% PPO and 20% diesel, was 300 rupiah (3 US$ cents) per KWh, a third below the average cost of electricity produced from oil-based fuels.
"We hope we can save more using this alternative energy source, and therefore help reduce the government's subvention," Alhilal said. According to a review conducted by the State Ministry for Research and Technology's technological assessment and application agency (BPPT), the government could cut the subsidies it pays to PLN to 2.56 trillion rupiahs per year if greater use were made of PPO. In addition, PPO, which can also be blended with kerosene, could cut the amount the government has to pay on the kerosene subsidy to 1.66 trillion rupiahs per year, the review says.
Unggul Priyanto of the BPPT said that the use of PPO would work out much cheaper than diesel or even biodiesel. "The price of diesel and biodiesel for industrial use stands at about 6,000 rupiah per 1000 liters, while palm oil-based PPO is only 4,300 rupiah. This is why the greater use of PPO could save a lot of money," he said:
bioenergy :: biofuels :: energy :: sustainability :: palm oil :: jatropha :: pure plant oil :: biodiesel :: power generation :: electricity :: Indonesia ::
He explained that the cost of PPO was lower as it used nothing except pure vegetable oils, either palm or jathropa oil, without the need for an additional processes or chemical additives, unlike in the case of biodiesel, which required the addition of methanol and glycerin.
Commenting on the question of whether PPO or biodiesel was preferable, Alhilal said that both were alternative energy sources that had important roles to play in helping the country overcome its dependence on oil.
In September, as part of its bioenergy crash program (earlier post) the government pledged to allocate nearly 500,000 hectares of land next year to encourage the development of the country's fledgling biofuel industry.
In 2004, PLN generated some 120 TWh of electricity, serving 31,000 households and 2200 businesses and large industries. The bulk of its power is generated from oil, coal and natural gas (see graph).
Pure plant oil
Unlike other power companies who are increasingly using solid biomass (agricultural and forestry) to fuel their electricity generating plants, PLN relies on pure plant oil (PPO). On the sidelines of a media gathering to promote the use of PPO for power generation, Alilhal, who is also the head of the Indonesian government's biofuel development committee, explained the rationale behind it. PPO, made from palm oil, is being used to fire the Lampung power plant. He said that power generated by this plant, which used a blend made up of 80% PPO and 20% diesel, was 300 rupiah (3 US$ cents) per KWh, a third below the average cost of electricity produced from oil-based fuels.
"We hope we can save more using this alternative energy source, and therefore help reduce the government's subvention," Alhilal said. According to a review conducted by the State Ministry for Research and Technology's technological assessment and application agency (BPPT), the government could cut the subsidies it pays to PLN to 2.56 trillion rupiahs per year if greater use were made of PPO. In addition, PPO, which can also be blended with kerosene, could cut the amount the government has to pay on the kerosene subsidy to 1.66 trillion rupiahs per year, the review says.
Unggul Priyanto of the BPPT said that the use of PPO would work out much cheaper than diesel or even biodiesel. "The price of diesel and biodiesel for industrial use stands at about 6,000 rupiah per 1000 liters, while palm oil-based PPO is only 4,300 rupiah. This is why the greater use of PPO could save a lot of money," he said:
bioenergy :: biofuels :: energy :: sustainability :: palm oil :: jatropha :: pure plant oil :: biodiesel :: power generation :: electricity :: Indonesia ::
He explained that the cost of PPO was lower as it used nothing except pure vegetable oils, either palm or jathropa oil, without the need for an additional processes or chemical additives, unlike in the case of biodiesel, which required the addition of methanol and glycerin.
Commenting on the question of whether PPO or biodiesel was preferable, Alhilal said that both were alternative energy sources that had important roles to play in helping the country overcome its dependence on oil.
In September, as part of its bioenergy crash program (earlier post) the government pledged to allocate nearly 500,000 hectares of land next year to encourage the development of the country's fledgling biofuel industry.
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