Indah Kiat's Perawang is able to generate the majority of its energy needs, (66.5% in 2008, 64.0% in 2009), from process-generated by-products, recycled as renewable fuels. These comprise primarily black liquor, generated from the pulp production process and bark and screenings from the pulpwood raw material. Other purchased renewable fuels accounted for between 2 and 3% of the mill’s energy inputs in these years.
Non-renewable fuels, mainly comprising coal, contributed 24% and 30.5% of energy inputs, respectively, in 2008 and 2009, with diesel oil and marine/ heavy fuel oils - for start-up and stand-by use - accounting for just over 2 per cent.
Installation of a new multi-fuel boiler and gas turbine facilities in 2008 now provides us with a greater capacity to burn non-fossil fuels, and we are committed to find additional sources of renewable fuels, such as palm bunch residues from palm oil production.
Our overall energy efficiency at Indah Kiat's Perawang declined in 2008 and 2009, in comparison with the preceding year. Having several new large paper machines still operating at 20%+ under capacity during the economic downturn of 2008 / 2009 was one reason for this. And the installation and commissioning of additional power plant in 2008 / 2009 meant that efficiency of other power generation units was compromised to some extent, during the integration of these new units.
Direct impact of the new installations shown on our on-site electricity generation which has 6.7 per cent increase from 2,975,915 MWh in 2008 and 3,175,349 MWh in 2009. Comparison of electricity consumption per tonne of products to the IFC World Bank Standard proved to be difficult considering the mill produce electricity, pulp, paper, and chemicals on-site.
For both years there was a surplus of electrical energy generated over and above mill requirements, hence none was purchased from PLN – the state electricity company. The small surplus available of about 7,000 MWh, produced in both 2008 and 2009, was used for community use.