Biomass from untouched forest stands is increasingly used to produce wood pellets, with demand growing both internationally and domestically
Experts and environmentalists are raising alarms about the rising threat of deforestation in Indonesia linked to the demand for raw materials for “clean energy”—namely, wood pellets. According to a report from Associated Press, WNTab reported this on Monday, October 28.
Journalistic investigations reveal that vast areas of forests are being cleared to meet the demand for wood pellets. Japan and South Korea, in particular, are investing millions of dollars in Indonesia’s biomass industry, and a local utility company plans to increase the share of biomass it burns to generate electricity.
Environmental organizations emphasize that biomass production, which includes the use of plants, wood, and logging residues, poses a serious threat to forest ecosystems. They insist that the transition to “clean energy” should rely exclusively on waste and plant residues. Further deforestation only leads to soil erosion, harms biodiversity, and worsens the impacts of natural disasters.
Research data indicate that since 2020, 9,740 hectares of forests have been cut down in areas where biomass harvesting is allowed. Overall, Indonesia has granted licenses for 1.4 million hectares of energy plantations, one-third of which are pristine, virgin forests. These areas are home to endangered species such as the Sumatran rhinoceros, orangutans, tigers, and elephants.
Notably, in one region of Sulawesi, around 3,000 hectares of forest were cut down for pellet production, and an additional 2,850 hectares were cleared for road construction and industrial infrastructure.
Nearly all of Indonesia’s wood pellet production is exported to South Korea (61%) and Japan (31%). Additionally, the energy company Perusahaan Listrik Negara (PLN) announced plans to replace 10% of coal at 52 power plants with biopellets. The company’s demand is eight times greater than the current total industry capacity—by the end of 2023, the country produced just under 1 million tons of wood pellets.
Earlier, WNTab reported on a major crash in the primary stock markets across Asia.