Jakarta – North Sumatra Province will host the largest energy transition and decarbonisation project in Indonesia and Southeast Asia, the Ministry of Energy and Mineral Resources (ESDM) said in a press statement, Thursday (29/9).
The construction of 25 BioCNG factories by PT KIS Group was built on the oil palm plantation area of PT United Kingdom Indonesia Plantation, Bstepan POM, Bstepan Village, Kuala District, Langkat Regency, North Sumatra Province. BioCNG or biomethane is the result of purification of biogas (pure methane), where impurities in the gas compounds are removed to produce methane gas with levels above 95 percent, so that its characteristics resemble compressed natural gas (CNG).
ESDM’s Director of Bioenergy General, New, Renewable Energy and Energy Conversion (EBTKE) Edi Wibowo, said that each of these factories has a capacity of 15,500 m3 BioCNG per day, for a total of 387,000 m3 BioCNG. The production is expected to reduce 3.7 million tonnes of CO2 per year and generate 3.7 million carbon credits per year.
“The efforts made by PT KIS Group have contributed significantly in supporting the energy transition in Indonesia, especially in the context of utilizing new and renewable energy (NRE) into energy sources,” said Wibowo at the groundbreaking ceremony for the BioCNG Plant project.
He said that the project, which collaborates with Anglo-Eastern Plantations PLC and PT Unilever, can be one of the good efforts of the KIS Group in participating in the success of the program to increase the use of NRE in the national energy mix.
PT KIS Indonesia, has built more than 20 biogas plants since 2012. “This form of cooperation is targeted for commissioning from April 2023 to November 2023 for 3 projects that will produce BioCNG volumes of 1,230 MMBtu per day, with an investment value of around USD 15 million,” said Wibowo.
CEO of PT KIS Group, KR Raghunath said he had signed long-term contracts with state-owned plantation company PTPN and other groups to supply organic waste. The development of the BioCNG project is also expected to help oil palm plantations reduce carbon emissions, overcome waste problems and help nearby industries to make more use of NRE, as an effort to reduce dependence on fossil fuels and decarbonisation. (Hartatik)
Banner photo: Chief Executive Officer (CEO) of PT KIS Group KR Raghunath inaugurated the first BioCNG factory in Bstepan Village, Kuala District, Langkat Regency, North Sumatra Province, Wednesday (28/9). (Source: Doc PT KIS)