Japan's Tess Engineering takes over Indonesian biomass fuel supplier

15, Apr. 2020

International Green Energy has a yard with a roof, a concrete floor, screening machines and magnetic removers and other devices. (Photo courtesy of Tess Engineering)
International Green Energy has a yard with a roof, a concrete floor, screening machines and magnetic removers and other devices. (Photo courtesy of Tess Engineering)

JAKARTA, NNA - Japanese environmental engineering firm Tess Engineering Co. has taken over an Indonesian fuel supplier to source palm kernel shell (PKS) fuel to Japanese biomass power stations.

The Tess group has acquired a 51 percent stake in PT. International Green Energy (IGE) for an undisclosed sum, making it a subsidiary, the Osaka-based company said in a statement on Monday.

Tess Engineering will begin the sale of PKS fuel procured from IGE in Japan by the end of this month. It plans to supply 240,000 tons a year at home, the statement said.

Tess Engineering, which develops and operates power plants using renewable energy, expects strong demand for PKS fuel from the operators of biomass power stations in Japan as the government promotes renewable energy.

Japan has set a goal of raising the ratio of renewable energy, including biomass power, to 22 to 24 percent of the nation's energy mix by 2030 as part of the country's efforts to curb global warming.

To achieve this goal, the Japanese government has implemented various policy measures, including the feed-in tariff system under which utilities are legally required to buy power generated through renewable energy at fixed prices over certain periods.

Among renewable energy, Tess Engineering points out that stable procurement of biomass fuels poses challenges to operators of biomass power plants, unlike solar and wind power generation.

IGE, established in Jakarta 2017, procures, manages and supplies PKS fuel. It has a PKS fuel storage and shipping facility in a 40,000-square-meter lot near Tanjung Buton Port in Riau Province, central Sumatra.

IGE President Dikki Akhmar also serves as chairman of the APCASI, Indonesia's PKS industry association, according to the statement. (NNA/Kyodo)