The proposed pilot plant in Sumba, East Nusa Tenggara plant will employ GE’s integrated biomass gasification technology using wood-chips as feedstock.

Estimated cost of the pilot plant is $5m with projected output of 1MW of electricity for households and small industries in the region by 2014.

PLN president Nur Pamudji commented that GE’s technology and expertise can play an important role in the development of biomass power plants in Indonesia.

"The success of this pilot plant in Sumba and other islands will demonstrate the technical and economic viability of extending electricity to rural areas using biomass fuel and will serve as a model for developing biomass power plants in other parts of Indonesia," Pamudji said.

GE Indonesia CEO Handry Satriago added, "We are pleased to support our valued partner, PLN, in their effort to sustainably meet the country’s increasing energy demand and provide much needed electricity to millions of Indonesians in the rural areas."