This study provides the first techno-economic case study on palm oil biomass waste utilization in remote Papua, Indonesia, with a focus on energy access, sustainability, and policy implications. Specifically, the research examines the renewable energy potential of empty fruit bunches (EFB), mesocarp fiber, palm kernel shell, and palm oil mill effluent (POME) generated by PT Korindo Group in Jair District, Boven Digoel. Based on 2023 production data, the total biomass waste exceeded 1.13 million tons annually, with a combined theoretical energy potential surpassing 3.02 billion kWh/year. Solid biomass, particularly dried EFB, contributes over 98% of this potential, while POME provides an additional source of biogas for decentralized electricity generation. The results indicate that biomass-derived energy could meet the annual needs of more than 3.3 million rural households, reducing dependence on costly diesel, mitigating open burning, and lowering methane emissions from untreated POME. A preliminary economic assessment of a 2 MW biomass power plant demonstrates strong financial viability, with a payback period of 6.3 years and an internal rate of return above 14%. Beyond technical and economic feasibility, the study emphasizes broader sustainability benefits, including rural employment creation, local energy independence, and alignment with Indonesia’s National Energy Policy (KEN, RUEN) as well as Sustainable Development Goals (SDG 7, 8, 12 and 13). These findings highlight the strategic role of palm oil biomass waste in bridging energy transition targets and frontier-region realities. Future work should extend to life cycle assessments, pilot-scale implementations, and community-based governance models to ensure long-term scalability and socio-environmental integration.
Aritonang et al. (Fri,) studied this question.
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