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PLN to Build Biomass Plant Worth Rp 120 Billion in South Sorong

JAKARTA - State-Owned Electricity Company PT PLN will build a biomass plant from sago tree bark with 2x1.5 MW of capacity in South Sorong, West Papua, with investments worth Rp120 billion.

The power plant is expected to fulfill the electricity needs of sago factory, with capacity of about 100 tonnes per day, constructed by state forest company (Perhutani), said PLN President Director Nur Pamudji on Friday.

"The investment value is quite big, about US$4 million per MW or seven times of diesel power plant which only US$0.6 million per MW. However the operational cost is cheaper," he said after the signing of Memorandum of Understanding on electricity supply of Perhutani`s sago factory.

The power plan for construction is by PLN`s subsidiary, PT Prima Layanan Nasional Enjiniring, while PT Barata Indonesia will maintain the contstruction of the sago factory.

Both sago factory and power plant targeted to start under the operation in a year or 2014.

Meanwhile, the electrical power also will be reserved for the surrounding community.

Pamudji believed his company received sago tree bark supplies from Perhutani as part of generating investment returns.

Perhutani to repay the investment outlay per months plus operating costs and PLN`s reasonable profit.

He also said that in addition to sells electricity, PLN to sells steam to the drying needs of sago.

"So, we sell both the electricity and the steam," he said.

The biomass power plant in Sorong will be the first to construct by PLN.

Currently, PLN always buy the biomass plant from a palm oil mills in Sumatera.

Pamudji revealed that PLN will be the constructor for the Sorong biomas power plant because no one interested during the project bidding process.

"No one ventured, because the high risk," he said.

In addition, the biomass supply can not be controled by PLN, so it is better to buy the electricity.

However, PLN plan to buy another biomass power plants in several islands, such as Nias, Lombok, Sumbawa and Sumba as the pilot project. [Antara]

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