GlobalFund Trading Xchange Signs Biomass Trade Pact in Indonesia for European Renewable Energy
GlobalFund Trading Xchange (GFTx) and an Indonesian regional enterprise have signed a biomass trade pact to enhance renewable energy ties between Indonesia and Europe.
On 14 January 2024, GlobalFund Trading Xchange (GFTx) and an Indonesian regional enterprise signed a biomass trade agreement. The collaboration aims to create an extensive biomass corridor connecting the European Union, Asia, and Indonesia. In addition, GFTx is exploring cooperation with Pelindo and KAI for added benefits.
The Heads of Agreement (HOA) signifies the joint aspiration to produce or collect millions of tons of biomass for Europe and Indonesia. GFTx's President-Director, Antonio Roel Storm Gumaru, emphasizes the potential for reciprocal strengthening between Europe and Indonesia, enhancing both energy and food security.
Antonio also added that this HOA will open up space for mutual strengthening of both parties because Europe also exports grain to Asia, especially Indonesia as part of food security and on the other hand, biomass exports from Indonesia and Asia will provide energy security for Europe.
The partner welcomed the EU–Asia Biomass and Food Logistics Hub program, highlighting the HOA's role in optimizing waste management and the biomass supply chain. The agreement supports Indonesia's transition to green energy, aligning with European goals.
Antonio addresses the surge in biomass demand in Europe, citing geopolitical unrest affecting traditional energy supplies. Europe's shift away from coal creates an opportunity for Indonesia's palm oil industry, offering a sustainable solution. GFTx's initiative aims to capture a significant market share and assist in Europe's energy security.
'Europe is starting to move away from coal, countries like Denmark and Norway no longer use coal. This means that in this decade the need for biomass will reach tens of millions of tons per year. The advantage is that Indonesia has a palm oil industry which has millions or even tens of millions of waste or residue, so instead of continuing to cut trees, sending palm oil residue to Europe is a good solution,' said Antonio.
The partner is committed to optimizing logistics and infrastructure in Indonesia. The plan includes advancing funds to manufacturers and suppliers, streamlining the collection and transportation of biomass raw materials.
When asked about how big Europe's demand for Biomass is, Antonio responded by saying that the demand is immediate and very big, because Europe is on the fast track in changing energy sources towards renewable energy.
'In 2025 to 2030, for example, Poland's demand alone will reach 50 million tons of biomass for those 5 years. There is a big possibility that biomass products such as palm shells or other biomass can capture up to 20% of the market so there is room for us to help support their energy security. Save The Tree, Gift from Indonesia,' added Antonio.
Both parties acknowledge the interdependence of Europe and Indonesia, fostering mutual development through this landmark partnership.
