Jakarta (ANTARA) - PLN Energi Primer asserts that substituting coal with biomass co-firing at steam power plants (PLTUs) has created a positive economic multiplier effect.
The company's CEO, Iwan Agung Firstantara, explained that the multiplier effect involves 1.25 million people working in biomass supply chains, from waste collection and production to building the biomass ecosystem at 52 PLTUs in Indonesia.
"This circular economy generates Rp9.34 trillion (around US$606.04 million), empowers 1.25 million people, and produces 10 million tons of biomass annually," he said on Wednesday.
Co-firing, the practice of increasing renewable energy use from biomass, sources organic solid products like rice husks, wood chips, and palm shells.
Beyond economic benefits, biomass use at steam power plants accelerates efforts to achieve net zero emissions by 2060.
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"We've reduced emissions by 11 million tons per year," Firstantara noted.
In 2021, PLN Energi Primer substituted 250,000 tons of coal with biomass. This figure rose to 500,000 tons in 2022 and 1 million tons in 2023.
"Our target for this year is over 2 million tons of biomass co-firing," he said.