Indonesia’s electricity subsidiary PLN Energi Primer Indonesia (PLN EPI), in collaboration with PT Biomassa Energi Group (BEG) and Poland’s G7 Group SP.Z.O.O, has announced plans to develop five new biomass manufacturing facilities.
The move follows the successful operation of their first joint plant processing pelletised oil palm empty fruit bunches.
According to Rogowski Wojciech Marek, legal advisor for G7 Group, the first of the new plants is scheduled to begin operations in 2026 and is expected to produce 120,000 tonnes of empty fruit bunches per year.
The announcement coincided with the signing of a memorandum of understanding between PLN EPI, BEG, and G7 Group, aimed at strengthening Indonesia’s biomass supply chain and boosting exports to Asia and Europe.
Marek said the partnership could see the export of various Indonesian biomass products - including palm kernel shells, palm oil waste wood pellets and oil palm empty fruit bunches - reach three million tonnes per year in the near future.
“Global demand for biomass continues to grow, and Indonesia has all the ingredients to become a market leader,” he said, adding that strategic preparations had already begun prior to the MoU signing.
Hokkop Situngkir, Director of Biomass at PLN EPI, highlighted Indonesia’s vast biomass potential of approximately 130 million tonnes per year, of which only a fraction is currently utilised.
“Our goal is to turn this untapped potential into real opportunities, supporting both the decarbonisation of the national electricity system and the global demand for green energy,” he said.
Hokkop also noted that PLN EPI is expanding beyond domestic energy provision into biomass trading and sustainable fuel exports, while ensuring a stable domestic supply for its co-firing programmes, which mix biomass with coal in power plants.
Indonesia’s PLN EPI and G7 Group plan five biomass plants
