1x12 MW Biomass Power Plant from Empty Fruit Bunch, Aceh Tamiang
|Project||:||1x12 MW Biomass Power Plant from Empty Fruit Bunch|
|Sector||:||Electricity – Biomass Power Plant|
|S&E Categorization||:||B Type 1|
|First Disclosure Date||:||November 2019|
In November 2022, IIF make adjustments to the loan facility structure of the 1×12 MW Biomass Power Plant which was initially signed in November 2019. Moreover, the project location has been moved to a new location located around 3.5 km from the previous one and getting nearer to the designated grid. S&E re-assessment was conducted in September 2021 to identify any new risks and impacts of the new project locations. The re-assessment results in a new S&E corrective action plan and still categorizes the project as Category B where the S&E risks and impacts are considered as moderate.
The project will utilize the Empty Fruit Bunch (“EFB”) from palm oil mill to produce green electricity and help to increase the electricity supply in Aceh Tamiang region. In this area, the EFB was burned in an incinerator to ashes as means of disposal. However, in 2016, the use of incinerators was banned and resulting in EFB piled up at the plant area. Several POMs have tried to utilize the EFB to be used as additional fertilizer, but the rate of EFB utilization is slower than the rate of EFB production. Thus, the biomass power plant project provides the solution to overcome the EFB’s disposal challenge.
Project Main S&E Document
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Last Update: November 2022