PNG Biomass seeks support of PNG Power and government

By ERIC PIET
PNG Biomass wants the full support of PNG Power Ltd and Government so it can go ahead with the construction of a biomass power plant.
Stakeholder engagement manager Jessie Mitir told the petroleum and energy summit yesterday said they wanted confirmation to be given for construction of the power plant.
Mitir said they had come a long way in terms of investment, following correct processes.
She said after going through all approval resulting from the very-transparent tender process, and being picked to develop the project, they were now kept waiting by Government.
“We are ready for the final investment decision (FID),” she said.
“We can’t be made to wait by the Government and PNG Power after all approvals were done by the NEC (National Executive Council), and ICCC (Independent Consumer and Competition and Commission) price approval.
“We want the Government to stand behind PNG Power and make us to move ahead, through a security arrangement from Treasury.
“We believe that we are close to getting the financial commitments from PNG Power and the Treasury Department.
“If we do, we will enter construction phase by the middle of this year, and provide first power into the Ramu Grid by mid-2022.
“Upon the request of PNG Power, we have brought our power rate down, now only to be delayed for this long.
“We want to go ahead with our FID since we have followed all processes for this project to be given to us to develop it.”
According to Mitir, PNG Biomass, a fully-owned Oil Search Ltd company, would provide 30 megawatts of power into the Ramu grid under a 25-year power purchase agreement.
The biomass would come from its 16, 000 hectares of plantation in the Markham Valley of Morobe.
Meanwhile, Mitir said that to ensure project success, landowners are a major partner in this development.
“Landowners are at the core of the project, and are crucial participants through local jobs for youth and women, and business participation,” she said.