Pellet and biomass power plant planned for Korea

Global Logix of South Korea is to invest $20 million (€14.6 million) in a new wood pellet production factory and 10,000MW biomass power plant in Siak, Riau province, according to reports.

Global Logix and the Siak regional administration signed a memorandum of understanding for the processing of oil palm fruit bunches and kernel shells – an underutilised feedstock in the country. Under the agreement, Siak Pembangunan dan Energi, a company run by the administration, will provide this waste.

The plant will process 60,000 tonnes of bunches and 20,000 tonnes of shells a month from nearby palm plantations to produce 10,000 tonnes of wood pellets. In addition, the biomass power plant will need 3 tonnes an hour of oil palm bunches.

Construction could begin in April, with operations due to commence at the beginning of 2016.