KUALA LUMPUR: PT Perkebunan Nusantara (PTPN IV) collaborates with reNIKOLA Holdings Sdn Bhd (reNIKOLA) to develop compressed biomethane gas (CBG) plants in North Sumatra.
This partnership was established through a memorandum of understanding (MoU) which was signed by both parties on June 30, 2023, witnessed by Dwi Sutoro, marketing director of PTPN III (Holdings).
Based on the MoU, reNIKOLA will support PTPN IV to uphold the principles of environmental, social, and governance (ESG). This includes plans to build, own and operate four CBG plants at PTPN IV’s palm oil mills, namely PKS Tinjowan, PKS Pulu Raja, PKS Dolok Sinumbah & PKS Pabatu.
In the process, each CBG plant will utilise PTPN IV’s palm oil mill effluent (POME) as a raw material to produce biomethane.
According to PTPN IV director Sucipto Prayitno, PTPN IV, as a subsidiary of PTPN Holding which operates in the oil palm plantation sector, took the initiative to carry out this collaboration, in line with the green house gas (GHG) reduction roadmap launched by the PTPN group to reduce emissions in Business as Usual (BAU) plantation activities, as well as to support government programs to reduce GHG emissions by 29% (own capabilities) or 41% (with international assistance) by 2030 according to NDC (Nationally Determined Contribution).
PTPN IV will reduce methane emissions from POME by utilising it to produce new, renewable energy amounting to 377,523 tCO2 in 2030.
“And with this latest development, we are committed to continuing to expand our ESG practices through collaboration with reNIKOLA, converting POME into purified biogas, better known as Biomethane. Biomethane is produced from biological processing of organic waste via anaerobic digestion process. These CBG plants will reduce the greenhouse effect caused by methane emissions and become an environmentally friendly, sustainable energy solution and function as a low-carbon energy alternative,“ said Sucipto.
Through this method, PTPN IV seeks to facilitate PT Kawasan Industri Nusantara to develop the Sei Mangkei Special Economic Zone as the first Green Industrial Zone in Indonesia. The CBG plants will contribute to reducing carbon emissions, promote sustainable practices and diversify Indonesia’s energy sources.
“As a state-owned enterprise operating in the plantation sector, PTPN IV strives to set industry standards in order to minimise the impact of business on the environment by applying innovative technologies to every business activity as well as building strategic partnerships with industry leaders and experts to encourage Indonesia’s decarbonisation goals,“ said Sucipto.
Meanwhile reNIKOLA managing director Boumhidi Adel said this is their first project abroad.
“reNIKOLA itself is a pure play renewable energy company from Malaysia which is headquartered in Kuala Lumpur. reNIKOLA owns and operates large-scale solar power plants in Peninsular Malaysia with a total generating capacity of 178 MWp. Apart from solar, the company also has several biogas power plants. reNIKOLA has a target to build a RE portfolio of up to 1GWp consisting of solar and non-solar power plants.
“PTPN IV is a state-owned agricultural company that focuses on palm oil production and plays an important role in decarbonising the palm oil industry in Indonesia,“ he added
Currently, reNIKOLA has the goal of developing 50 CBG projects in Indonesia with a total investment over US$300 million (RM1.4 billion) over the next five years. Through the CBG projects, reNIKOLA will help to reduce the impact of climate change so that it can contribute to realising Indonesia’s target of achieving 29% renewable energy by 2030.
“For us, this expansion into Indonesia is another important milestone to expand our renewable energy portfolio as we strive to become one of the leading players in the renewable energy industry in the region,“ Adel concluded.
