Overwhelming support for Markham LOs

Markham Valley landowners received overwhelming reaction and support after their October 25th press conference in Port Moresby.

In a statement, PNG Biomass said people were interested to learn more about the delays with the PNG Biomass project that the landowners raised.

The PNG Biomass project is currently experiencing two key delays that are keeping the project from proceeding with a final investment decision to commence construction of the power plant.

“The first delay encountered is an ongoing discussion with PNG Power over changes to the power tariff agreed in the Power Purchasing Agreement (PPA) they signed with PNG Biomass in 2015,” PNG Biomass explained.

“The second delay is the PNG Government to date not standing behind the commitment PNG Power and NEC have made by signing the PPA.

“Both problems have been causing delays to the project, but PNG Biomass has solutions.

“PNG Biomass supports PNG Power in wanting to sell power to its consumers at a much more affordable tariff than today. To find a solution to bring the price of power down to a more attractive level, we have proposed a much lower price to PNG Power based on indications of commitment from leading investors globally – who classify PNG Biomass as the best large-scale renewable power project in the Pacific – to provide concessional funding and grants.

“These investments make the biomass power price less than half of the cost of hydrocarbon fuelled generation on the Ramu Grid and would be a substantially lower cost than any other new IPP on the Ramu Grid using any generation technology.

“With growing demand for electricity, there is also space for multiple power generators, using a diversified range of generation technologies.

“PNG Biomass believes that any IPP should be chosen through an international transparent competitive tender process; PNG Biomass was approved after such a process.

“With PNG Biomass having attracted indicative offers of substantial grants and concessional funding to bring the price of biomass power to a very attractive level, we believe PNG Power is now in a position to recommit to the Project.

“The concessional funding from international financiers and lenders require a commitment from the PNG Government to stand squarely behind PNG Power. PNG Power recommitting to the Project will clear the road for the PNG Government to fully support PNG Biomass.

“PNG Biomass has all required approvals and permits in place. The Project is already delivering benefits to communities, with international support it now has managed to lower its price even more to very attractive levels, and the Project is ‘shovel-ready’ to commence construction.

“All we need is for PNG Power to commit to the Project as they agreed to, and the State to stand behind PNG Power.”

Press release