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Development of Biomass Co-firing in Coal-Fired Power Plants in Indonesia

Biomass Co-firing

Biomass co-firing is the process of burning biomass and fossil fuels in coal- and gas-fired power plants. Biomass can alternatively be gasified and burned in separate burners by gas or steam fuel then mixed with boiler streams from coal-fired power plants. Biomass co-firing in coal power plants typically involves the mixing of biomass with coal before the burning process. The benefit of biomass co-firing is that it lowers greenhouse gas emissions as normally emmited by coal-fired power plants while also enabling high efficiency power generation from biomass, which is much higher than that of dedicated 100 percent biomass power plants. This efficiency is only achieved in large-scale modern coal-fired power plants.

In 2022, State Electricity Company (Perusahaan Listrik Negara, “PLN”) (Persero) succeeded in implementing biomass mixing or so called co-firing with coal at 28 (twenty eight) Coal-Fired Power Plants with a total green energy produced of 96,061 (ninety six thousand sixty one) Megawatt hour (“MWh”), including at PLTU Suralaya and PLTU Paiton, which are the backbone of electricity in Java and Bali. PLN has been using co-firing technology since 2020. Through this program, the Government of Indonesia makes efforts to encourage the achievement of the New Renewable Energy (“Energi Baru Terbarukan, “EBT”) target of 23% (twenty three) percent in 2025 in the national energy mix, among others by encouraging the construction of new EBT plants and also the substitution of energy use in existing generators.

A. Implementation of Biomass Co-firing

In the 2019-2038 National Electricity General Plan (“Rencana Umum Ketenagalistrikan Nasional, “RUKN”), PLN plans to implement co-firing method on 52 (fifty two) units of Coal-Fired Power Plants in Indonesia. Basically, co-firing program is a plan to substitute coal with biomass materials such as wood pellets, palm shells and sawdust (sawdust) at a certain ratio. In 2024, the total co-firing capacity at PLN’s Coal-Fired Power Plants is estimated to reach 18 (eighteen) Gigawatt hours (“GWh”). The co-firing plan is intended to support the development of EBT in Indonesia. The implementation of co-firing can accelerate the use of EBT without the need for the construction of new power plants.

The Executive Vice President of PLN’s Electricity System Planning stated that with the development of this project, 10 (ten) to 20 (twenty) percent of coal is expected to be converted into biomass (until 2025). 3 (three) to 6 (six) percent of the target for the EBT mix is targeted to be achieved within the next 5 (five) years. In 2022, biomass utilization has been targeted at 450 (four hundred and fifty) thousand tons in order to produce green energy production of 334 (three hundred thirty four) GWh with emission reductions of 340 (three hundred and forty) thousand tons of carbon dioxide. As of April 2022, the realization of co-firing has reached 175 (one hundred and seventy five) thousand tons of biomass and produced green energy products of 185 (one hundred and eighty five) GWh with emission reductions of 184 (one hundred and eighty four) thousand tons of carbon dioxide.

Biomass Co-firing

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B. Regulatory Development

As informed by the Director General of New and Renewable Energy of the Ministry of Energy and Mineral Resources (“MEMR”), the Draft Ministerial Regulation related to the Biomass Co-firing program at Coal-Fired Power Plants has not yet been completed because it still takes time for further discussion with the related stakeholders. The discussion of regulations is still focused on the main issue i.e., the biomass price. The preparation of this regulation of MEMR is motivated by several factors as follows:

  1. Currently, there is no legal basis issued by the government regarding the Biomass Co-firing program for Coal-Fired Power Plants;
  2. PLN is currently conducting Co-firing trials on a number of coal-fired power plants owned by the Parent and Subsidiary units, seven of which have entered the commercial implementation stage;
  3. PLN has issued Regulation of PLN Board of Directors Number 001 of 2020 concerning Guidelines for Co-firing of Coal-fired power plants with biomass fuel (“PLN Regulation”);
  4. Letter of the Director of Strategic Procurement 1 of PLN Number 0622 DAN.01.01/A010300/2020 on April 15, 2020, regarding Requests for Issuance of Technical Policies in the Implementation of Co-firing PLTU Activities (“LDSP”), and Letter from the Director of Mega Project of PLN Number 15461/KIT.10.01/B01040000/2020 July 27, 2020, regarding Application for Issuance of Technical Policy for the Implementation of Co-firing Activities (“LDMP”)

 

C. Current Obstacles

The Biomass Co-firing program at Coal-Fired Power Plants is in principle considered to be able to reduce carbon or greenhouse gas emissions. However, its implementation is considered difficult with various obstacles as follows:

  1. The Government has not yet formulated perfect relevant policies related to coal-biomass power generation, both basic policies and incentive policies for biomass co-firing. It is necessary to further regulate the punitive measures to be enforced in the event of failure to achieve the “green” power plant index. It is also crucial to set up a monitoring and verification system for biomas co-firing that is not affected by humans, and compensatory mechanisms for consumption of biomass resources.
  2. The biomas price at an economical price is yet to be determined because wood chip and wood pellet biomass are export commodities, so the price is determined by the market.
  3. The majority of biomass sources should come from agricultural waste or urban waste with the aim that the Co-firing program does not encourage deforestation or decrease forest area.
  4. There are technical challenges associated with biomass co-firing that are likely to burden PLN e.g., fuel supply, handling and storage challenges, potential for increased corrosion, decreases in overall efficiency, ash deposition issues, pollutant emissions, carbon burnout, impacts on ash marketing, impacts on SCR performance and overall economics.

This article has been published in Coal & Metal Asia Magazine, Vol. 139, page 50 – 52.

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