jfid – In a strategic move towards green energy transformation, Medco Group and Valmet Technologies have signed a memorandum of understanding (MoU) to initiate a biomass processing project in Merauke, Papua.
The signing took place on September 4, 2023, at the Embassy of the Republic of Indonesia (KBRI) in Helsinki, marking the beginning of a collaboration expected to significantly impact the renewable energy sector in Indonesia.
The MoU signing was attended by Budi Basuki, President Director of Papua Project Medco Group, Aleksi Salmirinne, Vice President of the Energy Business Unit at Valmet Technologies Oy, and Indonesia’s Ambassador to Finland, Ratu Silvy Gayatri.
“This partnership is a major step for Indonesia in achieving its renewable energy targets,” stated Gayatri, emphasizing the project’s importance in the context of national and international commitments to green energy transition.
The project aims to develop a Biomass Power Plant (PLTBm) in Merauke with a capacity of 3.5 MW. The biomass used will come from woodchips, projected to reduce diesel oil usage by up to 27.5 million liters over five years.
“The use of biomass not only reduces carbon emissions but also enhances local energy independence,” Budi Basuki said in his official statement.
The partnership between Medco Group and Valmet Technologies is seen as highly complementary. Indonesia has abundant natural resources for biomass, while Finland possesses advanced technology in clean energy.
Ambassador Gayatri added that biomass is a top priority for both countries. “We see great potential in this project not only to meet local energy needs but also to serve as a model for similar initiatives in other regions,” Gayatri explained.
Valmet Technologies will provide energy efficiency solutions through its biopower module technology, which can operate alongside existing diesel power plants.
This technology requires no additional infrastructure for electricity transmission, is unaffected by seasonal or weather conditions, and can create local jobs in the supply chain. “Our technology is designed for efficiency and sustainability, tailored to the geographic conditions and energy needs in Papua,” Aleksi Salmirinne said.
The project is expected to help Indonesia meet its government’s targets to reduce dependence on fossil fuels, aiming for 23 percent renewable energy by 2025 and 31 percent by 2050.
This biomass project is also anticipated to be a crucial pillar in the national strategy to achieve these targets. “We are optimistic that this project will become a successful example of renewable energy initiatives in Indonesia,” Basuki stated.
The collaboration between Medco Group and Valmet Technologies is not only expected to reduce carbon emissions but also to improve local welfare through job creation and the development of technical skills.
According to a report from the Ministry of Energy and Mineral Resources (ESDM), Merauke Regency has the potential to become a renewable energy hub in Papua if the project is successfully implemented as planned.
Ambassador Gayatri also emphasized that this project is a concrete step towards a cleaner and more sustainable future.
“This is a tangible move to reduce emissions and increase the use of renewable energy in Indonesia,” Gayatri concluded in her statement.
This strategic partnership demonstrates the commitment of both companies to support the green energy transition in Indonesia.
By leveraging cutting-edge technology and local resources, this project is expected to serve as a model for other renewable energy initiatives in Indonesia and the Southeast Asia region.
