Jakarta, IndonesiaSentinel.com — Indonesia is advancing its renewable energy development by converting palm oil mill effluent (POME) into a new energy source. This initiative is part of the Compressed Biomethane Gas (CBG) project, which aims to turn palm oil waste processing into a sustainable energy solution.
The CBG unit at the Tinjowan Palm Oil Mill (POM) operated by PTPN IV is expected to produce 161,000 MMBTU (millions of British thermal units) per year. This effort is also projected to absorb 30,000 tons of carbon emissions annually, significantly contributing to the reduction of greenhouse gases (GHG).
The renewable energy initiative follows the signing of a Build Own Operate Transfer (BOOT) agreement between PT Perkebunan Nusantara IV PalmCo, a subsidiary of PTPN III (Persero), and PT reNIKOLA Primer Energi, a joint venture company of Malaysia’s reNIKOLA Group. The agreement aims to develop the first CBG project at the Tinjowan POM in North Sumatra, with plans to build 40 similar facilities at PalmCo’s mills. The total investment is projected to reach USD 240 million, equivalent to IDR 3.7 trillion.
Jatmiko Santosa, President Director of PTPN IV PalmCo, emphasized that this collaboration aligns with PTPN’s vision to contribute to a circular economy that not only focuses on revenue but also prioritizes environmental sustainability.
“This partnership follows a Memorandum of Understanding signed last year and is expected to pave the way for Indonesia and Malaysia to jointly accelerate decarbonization, build a circular economy, and create a sustainable environment for future generations,” Jatmiko said in a written statement from Jakarta on Tuesday, August 20, 2024.
If the plan to build 40 CBG units at PalmCo is realized, the initiative could generate 6.4 million MMBTU, contributing to domestic energy security while also capturing 680,000 tons of CO2-equivalent carbon emissions annually as part of broader decarbonization efforts.
Jatmiko expressed hopes that the partnership between PalmCo and reNIKOLA would serve as a model for other industry players, especially since both Indonesia and Malaysia are the world’s largest palm oil producers and committed signatories of the Paris Agreement. This international treaty aims to reduce carbon dioxide and other greenhouse gas emissions to limit global warming.
“Our goal is for PalmCo to contribute to Indonesia’s target of reducing emissions by 40% by 2030 and achieving net-zero emissions, potentially even sooner than the 2060 deadline,” he added.
Tan Sri Mohamed Al Amin Abdul Majid, Chairman of reNIKOLA Group Malaysia, highlighted that earlier this year, the company established PT reNIKOLA Energi Nusantara in Indonesia. A joint venture was then formed with PT Primer Hijau Energi (PT PHE), a local company dedicated to promoting sustainable energy solutions in Indonesia. This led to the creation of PT reNIKOLA Primer Energi (RPE), the entity responsible for executing the BOOT agreement with PTPN.
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The reNIKOLA Group plans to carry out 40 renewable energy projects over the next three years, involving more than USD 240 million in investments. These initiatives are being pursued in collaboration with B Grimm Power, one of the world’s largest renewable energy producers with over 145 years of experience.
“B Grimm Power, which holds a 45% stake in reNIKOLA Holding Sdn. Bhd., provides ongoing technical and financial support to ensure the success and longevity of these projects. Additionally, reNIKOLA leverages the expertise of its internal engineering team to implement best engineering practices in accordance with Indonesian regulations,” said Tan Sri Mohamed Al Amin Abdul Majid.
(Agung)
