Forecast of Biomass Demand Potential in Indonesia: Seeking a Business Model for Wood Pellets
Reduction of coal consumption for power generation and gasoline and diesel consumption for vehicles is indispensable for reducing CO2 emission in Indonesia. At the same time, the country has significant potential to contribute to reducing coal consumption and gasoline and diesel oil consumption through biomass. This is expected to reduce CO2 emission and increase the country’s renewable energy share to 23% in line with its commitment made during the COP 21 conference on climate change in Paris in 2015 to reduce its greenhouse gas emissionsThis study report presents biomass demand from the transportation and power generation sectors as well as biomass supply potential in Indonesia up to 2040 and the development of biomass power generation and the use of wood pellets in Japan. It also proposes a wood pellet business model for Indonesia and provides a set of conclusions and recommendations on how to optimise the role of biomass in achieving low-carbon energy transition in Indonesia.