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Mitsubishi Power Signs MOU with Indonesia’s PLN Group and Bandung Institute of Technology (ITB) on Joint Policy Proposal to Promote Biomass Co-firing at Thermal Power Plants in Indonesia

Mitsubishi Power, Ltd., a subsidiary of Mitsubishi Heavy Industries (MHI) Group, has concluded a memorandum of understanding (MOU) with Indonesia’s state-owned electricity provider PT. PLN (Persero) (PLN) and two of its subsidiaries (PT. Indonesia Power and PT. Pembangkitan Jawa-Bali), and Bandung Institute of Technology (ITB) on joint formulation of a policy proposal to promote the adoption of biomass co-firing at Indonesia’s thermal power plants.

Thermal Power Plant in Indonesia

The industry-academia collaborative team will undertake studies mainly on selection of appropriate biomass fuel and their combustion evaluations, and equipment modification plans, in a quest to make effective use of Indonesia’s abundant biomass resources. Economic evaluations will be carried out in cooperation with PLN Group, which operates numerous thermal power plants in the country. After conclusion of the MOU, the focus will be to make a roadmap for promoting biomass co-firing in Indonesia, including selection of the optimal biomass fuel and pilot facility from among PLN Group’s power plants. This will be based on the results of technical feasibility tests conducted by Mitsubishi Power in Japan together with policy analysis and market research performed in Indonesia under ITB’s leadership.

The Indonesian Government is currently carrying out an energy policy that aims to reduce carbon emissions by raising the nation’s use of a renewable energies mix to 23% by 2025, and decreasing CO2 emissions by 29% by 2030 through energy conversion assuming reduced use of fossil fuels. Under this policy, besides expanding adoption of wind, solar and geothermal renewables, a central role is accorded to promoting use of biomass fuel at existing coal-fired power plants, and the newly agreed activity aims to support that initiative. Plans call for a proposal covering technical requirements and preparation of the relevant legal and financial support frameworks to be completed by September 2021, followed by cooperation to promote the adoption of biomass co-firing in Indonesia and the realization of a pilot project.

Iswan Prahastono, Director of the PLN Research and Development Center, expressed his solid expectations toward the collaboration’s success. “I am confident,” he said, “that PLN Group, ITB and Mitsubishi Power, in joining forces and coordinating and applying their respective strengths based on their respective economic considerations, will successfully support Indonesia’s energy situation through use of renewable energies.”

Ken Kawai, President and CEO of Mitsubishi Power, spoke of the company’s robust commitment to the new initiative. “For more than 50 years, Mitsubishi Power has contributed to Indonesia’s energy landscape by providing approximately 18 GW of power generating systems, including gas turbine combined cycle, geothermal power and highly efficient coal-fired power. Our new collaboration with PLN Group and ITB signals our continued drive to support Indonesia’s development by using existing facilities to formulate a proposal that will meet the country’s energy needs in terms of both environmental sustainability and economic efficiency.”

Leveraging the newly concluded MOU, Mitsubishi Power, by providing next-generation environmentally friendly power generation technologies, will boost low-carbon and carbon-free energy sources as its way of contributing to stabilization of power supplies and protection of the environment in Indonesia.

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