Barriers and Opportunities of Bio pellets Fuel Development in Indonesia: Market Demand and Policy

Indira Pradnyaswari, Jeremy N. Pongrekun, Pandu Ridhana, Ibnu Budiman*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference paperAcademicpeer-review

4 Citations (Scopus)

Abstract

Biopellets, part of biomass, have excellent prospects to be developed further in Indonesia. The potential for developing biomass energy is estimated at 50 GWe, while the installed capacity is still around 1600 MW by 2018. This study analyzed the barriers and opportunities of bio pellets development in Indonesia. Data were collected from a systematic literature review and interviews with related stakeholders. Lack of market demand is one of the main barriers to boosting bio pellets development in Indonesia. We found that a lack of national demand was one of the barriers. National demand accounts only for about 10% of total production, with the highest coming from Java - produced for power plants and other industries such as food, cosmetics, ceramics, and furniture industries. About 90% of the biopellets market demand originates from Japan and Korea. Recently, the Indonesian government is drafting a regulation to support cofiring for coal power plants to increase national demand for biomass (including biopellets). This may open a window of opportunity to increase the national market demand for biopellets in Indonesia.

Original languageEnglish
Title of host publication IOP Conference Series: Earth and Environmental Science
Volume997
Edition1
DOIs
Publication statusPublished - 4 Mar 2022
Externally publishedYes
Event1st ASEAN International Conference on Energy and Environment, AICEE 2021 - Virtual, Online
Duration: 14 Sept 202114 Sept 2021

Publication series

NameIOP Conference Series: Earth and Environmental Science
PublisherInstitute of Physics Publishing
ISSN (Print)1755-1307

Conference

Conference1st ASEAN International Conference on Energy and Environment, AICEE 2021
CityVirtual, Online
Period14/09/2114/09/21

Keywords

  • barriers and opportunities
  • bio pellets
  • Indonesia
  • market demand
  • policy

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