Outstanding matters with Govt delaying Biomass project: Firm

THE PNG Biomass project in Morobe is subjected to a final investment decision by Oil Search, now planned to take place in the second half of the year.
PNG Biomass is Oil Search’s renewable energy and sustainable tree farming business in the Markham Valley.
According to a statement, the go-ahead was delayed several times due to a time-consuming process with the Government to deliver on their commitments to start the project.
It said once the Government resolved the final outstanding matters, Oil Search could move the project swiftly into construction to bring 30 megawatts of renewable, affordable and clean energy to the Ramu grid and Lae businesses.
Project director Michael Henson noted that it was important not to forget the project would also bring significant sustainable development to the region.
“We designed PNG Biomass with a two-fold purpose; to power the Ramu Grid with low-emission renewable energy and to do that we use an inclusive economic growth model to empower communities to maximise benefits for them,” he said.
“The value we create with PNG Biomass is shared between landowners, communities, women, youth, future generations, local and regional businesses, provincial and national government and Oil Search.
“This is a great example of creating shared value.
“This project is equally a sustainable investment for Oil Search in the energy transition and an investment in the people and prosperity of PNG.”
Henson said it was now time to realise the benefits of the renewable energy and sustainable development project.
“Over the last year, we have expanded our tree farm to 3,000 hectares,” he said.
“We signed the long-term lease with the landowners of the power plant land and just finished clearing the power plant site, we are ready to commence construction.
“In the next few months, boreholes will be drilled to supply water to the power plant.
“We just need the Government to deliver on its commitments to move this project forward.
“Landowners of the Ganef community were glad to see us clear the site, but they are getting restless.
“They have committed their land to build the power plant, but construction has not commenced yet.”