To Strengthen "Wood Chip" Supply, PT Mentari Biru Energi Builds a Factory in Bangka

Name: To Strengthen "Wood Chip" Supply, PT Mentari Biru Energi Builds a Factory in Bangka
Uploaded: 2023-07-11T12:38:52Z
Duration: 20 min 32 s
Description: One of the efforts to achieve the target of the energy transition is to mix biomass with coal for electricity generation.

One of the efforts to achieve the target of the energy transition is to mix biomass with coal for electricity generation.

This article has been translated using AI. See Original .

Agustinus Yoga Primantoro

· 5 minutes read

The following article was translated using both Microsoft Azure Open AI and Google Translation AI.

PT Mentari Biru Energi, a subsidiary of PT Maharaksa Biru Energi Tbk, has just inaugurated the construction of a wood chip factory or wood chip . The plantwill specifically meet the needs of coal-mixed biomass or co-firing steam power plant or co-firing a href="https://www.kompas.id/label/bangka-belitung?track_source=automate_body_url">PLTU Air Anyir in Bangka Regency, Bangka Belitung Islands Province.

Located approximately 11 kilometers from the center of Pangkalpinang City, the factory is located in Air Duren Village, Mendobarat District, Bangka Regency, Bangka Belitung Province. Covering an area of 6,800 square meters, the factory is expected to start operating in early November 2023 with a production capacity of 3,000 tons per month and will increase to 12,000 tons per month.

President Director of PT Maharaksa Biru Energi Tbk Bobby Gafur Umar said, the wood chips produced by the factory will supply the needs for co-firing PLTU Air Anyir. Currently, the biomass mix of the 2 x 30 megawatt (MW) PLTU has reached more than 5 percent.

wood chips

In that event were also present, among others, the Regent of Bangka District, Mulkan, the Chairman of the Regional People's Representative Council (DPRD) of Bangka District, Iskandar, the Project Director of PT Mentari Biru Energi, Widi Pancono, and the Supervisory Board of the Indonesian Renewable Energy Society, Fauzi Imron, as well as the local government officials.

Apart from the wood chip factory, PT Maharaksa Biru Energi Tbk also plans to develop other biomass production in the form of wood pellets. The investment value for the two projects is estimated to reach more than Rp 200 billion.

In particular, the production of wood chips is prioritized to meet the needs of the Air Anyir PLTU, while wood pellets are planned to be exported to a number of countries, such as Japan, South Korea and China. This is inseparable from the huge potential on Bangka Island, including access to an international scale port, namely Tanjung Ular Port, West Bangka Regency.

Investments are expected to have a positive domino effect on the community. Although not many, the creation of job opportunities, such as laborers, mechanics, and security personnel, will prioritize local residents. Not only that, the corporate social responsibility (CSR) program can also have a broad impact on the community.

The raw materials used for the production of wood chips are taken from community plantation forests (HTR). According to Bobby, most of the HTR in Bangka Island tend to be left alone so that they are less productive.

"Not only do we focus on harvesting wood, we also prioritize environmental sustainability by planting trees. The wood that can be used is only high-caloric woods, such as Acacia plants, Kaliandra plants, and Kanef plants," he said.

In addition to having an impact on the PLTU supply chain, the wood chip factory is also expected to have an economic impact on the surrounding community. One of them is regarding employment, which is planned for all factory employees to come from Bangka Regency, the majority of whom come from Air Duren Village.

"There are 30 direct factory employees and more than 100 indirect employees," said Widi.

On the other hand, the Bangka Regency Government is open to investments that prioritize the welfare of the community. This welfare can be achieved through the absorption of labor as well as the establishment of supply prices that benefit both the community and investors.

“Investment is expected to have a positive domino impact on society. Even though there are not many, the creation of jobs, such as manual labor, mechanics, and security officers, will give priority to local residents. Not only that, corporate social responsibility (CSR) programs can also have a broad impact on society," said Mulkan.

In addition, the Bangka Regency Government is committed to facilitating investment, as has been done by the central government by issuing Law Number 11 of 2020 concerning Job Creation. Not only regulations, legal certainty in conducting business will also be guaranteed so that investment can continue and develop.

Iskandar added, the construction of the wood chip factory could become a new opportunity for the community to boost their economy. This is because, so far, the people on Bangka Island have depended on mining and have not utilized production forests optimally.

Also read: Reliability Certainty is a Consideration for the Implementation of ”Co-Firing”

Energy transition

As is well known, Indonesia has a commitment in the Paris Agreement to achieve net zero emissions (NZE) by 2060. Biomass is an alternative to reduce the level of dependence on energy produced by coal.

The Supervisory Board for the Indonesian Renewable Energy Society, Fauzi Imron, explained that currently the average co-firing of PLTU in Indonesia has only reached 3 percent. PT Mentari Biru Energi's wood chip factory, which supplies its production to the Air Anyir PLTU, will be a model for other PLTUs as well as the largest wood chip factory in Indonesia.

"We appreciate the efforts of the company for supporting the targets of the energy transition program. With the existence of the factory, co-firing might be able to reach 10 percent or more," he said when met in Pangkalpinang, Bangka Regency, Bangka Belitung Islands Province.

Data from PT Perusahaan Listrik Negara (Persero) or PLN stated that the implementation of biomass co-firing as of June 2023 had been carried out in 37 PLTUs based on the people's economy. Emission reduction is estimated to have reached 1.2 million tons of carbon dioxide (CO₂) with biomass used reaching 1.5 million tons.

Also read: Biomass Regulations for PLTU are Still Finalizing the Concept

The Assistant Manager of Operations and Maintenance for Power Generation of the State Electricity Company (PLN) Bangka Belitung Generating Unit, R Arif Nurruddin, explained that the biomass required by the Air Anyir power plant is approximately 60 tons per day or 1,500 to 1,800 tons per month. This amount is equivalent to 5 percent of coal substitution.

"The target for the future, co-firing can reach 15 percent, depending on supply. Yesterday we tested up to 15 percent using wood chips and there are no problems with the engine or so far it's still normal," he said when met at the Air Anyir PLTU area.

Editor:

MUHAMMAD FAJAR MARTA

To Strengthen "Wood Chip" Supply, PT Mentari Biru Energi Builds a Factory in Bangka

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Energy transition