The construction of 25 biomethane-compressed natural gas (bio-CNG) plants in North Sumatra, capable of processing 387,000 cubic meters of palm oil waste, was started on Wednesday with the groundbreaking of the first plant in Langkat.
The construction of 25 biomethane-compressed natural gas (bio-CNG) plants in North Sumatra, capable of processing 387,000 cubic meters of palm oil waste, was started on Wednesday with the groundbreaking of the first plant in Langkat.
PT KIS Biofuels Indonesia aims to complete construction in the next two years, with the plants claimed to be the biggest of their kind in Southeast Asia as they could potentially reduce carbon emissions by 3.7 million tonnes per year.
Company CEO K.R. Raghunath said that they have prepared a US$110 million investment to bring this project to fruition. “We aim to complete the construction of these 25 bio-CNG plants by December 2024,” he said, after the groundbreaking ceremony in Langkat, on Wednesday.
The first plant is located in an oil palm plantation area owned by PT United Kingdom Indonesia Plantation (AEP Group) in Langkat.
From April through November 2023, KIS Indonesia in partnership with AEP Group and Mahkota Group will commission the first three phases of the project with a projected bio-CNG output of up to 1,230 metric million British thermal units (mmbtu) per day.
Energy and Mineral Resources (ESDM) Ministry's Director of Bioenergy Edi Wibowo was hopeful that the project would help the plantation industry reduce carbon emissions and solve waste problems.
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