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16 December 2015. Yesterday, the PNG Biomass Energy Project, a joint venture between Oil Search and Aligned Energy, secured a Power Purchase Agreement (PPA) with PNG Power Limited (PPL), as part of a long-term strategy to develop solutions for PNG’s power sector.

The Biomass Independent Power Producer PPA is a strategic component of the Ramu Power Project- a project which will enable the connection of up to one million people to a larger, improved electricity grid by 2030.

Under the PPA, PNG Biomass will provide up to 30MW of biomass-derived base load power to the Ramu grid. The construction of an initial 15 MW unit is targeted to commence in late 2016, with the unit expected online in the second half of 2018. A second 15 MW unit is to be deployed, subject to agreement with PPL.

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PNG Biomass will deliver significant environmental, social and employment benefits in addition to the broader economic benefits derived from businesses and households having access to reliable power.

It is expected that PNG Biomass will create over 500 full-time local jobs on a permanent basis in the process of providing reliable baseload biomass power to the industrial centre of Lae, and to many thousands of PNG households connected to the Ramu electricity grid.

Commenting on the agreements, Peter Botten, Oil Search’s Managing Director, said:

“We have been exploring the potential for the Markham Valley Biomass project and for cost effective gas fired generation in the Highlands for a number of years, as part of our commitment to work with PPL to provide household consumers and businesses with reliable electricity in PNG. The agreements announced today represent a tangible step forward in providing cost-effective, reliable and socially sustainable supplies of power to the country. ”

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