Photo: A look into Berkat Cipta Abadi’s biogas power plant construction in South Papua. (Berkat Cipta Abadi is a subsidiary of TSE Group.) Integrated with Bio-CNG, this facility seeks to benefit both the company and natural environment

SOUTH PAPUA – As the world’s largest crude palm oil (CPO) producer, Indonesia offers great potential for biogas development and application, with demand high at home and abroad. Conversion facilities have been set up in oil palm growing regions — like Langkat and Belitung Island — and the next to launch is in South Papua’s Boven Digoel Regency.

“We’re building a biogas plant, whose initial investments are obviously high but would really help cut fuel oil use at our farms and mills by long-term. Its integration with Bio-CNG production will also benefit the company and the surrounding natural environment,” Tunas Sawa Erma (TSE) Group’s Director Luwy Leunufna said with certainty.

This facility from oil palm company TSE Group will be the first of its kind in southern Papua, processing palm oil mill effluent (POME) or liquid waste into renewable energy under an investment of USD 3.6 million.

Two air-tight tanks, each with a capacity of 7,800 m3, will generate 2 megawatts (MW) of electricity to power TSE Group’s palm kernel crushing plant and other equipment. The firm expects to reduce up to 60,708 tons of carbon emissions annually or at a higher amount than without the tanks.

Biogas development is part of TSE Group’s contribution to global net zero efforts expected to culminate in 2050. This initiative is based on the awareness and belief that net zero emissions are achievable with teamwork and innovation from all players in the palm oil value chain.

It also shows support for the Indonesian government, who, too, ratified the Paris Agreement, Leunufna added. One of the agreement’s points requires participating countries to make voluntary, nationwide reductions in CO2 emissions (known as “nationally determined contributions” [NDC]) to keep global temperature growth below 2°C.

Photo: With this facility, TSE Group will turn POME (Palm Oil Mill Effluent, or palm oil liquid waste) into renewable energy under an investment of USD 3.6 million

“We strive to offset our emissions through the Net Zero Emissions commitments that we make. That’s why we do these things — biogas and Bio-CNG plant project, electric vehicle use in heavy duty works, state-mandated shift from B30, B40, to B50, solar panel installations, and so on. The point is how we can effectively intervene in the emissions creation process, making them neutral or what we know as net zero,” Leunufna stressed.

The plant’s launch is slated for the near future, where TSE Group will continue with similar projects in five other locations or operational sites of its subsidiaries. This plan is outlined in the “Emission Reduction Roadmap”, which features the company’s net zero goals. (*)

Published On: March 7, 2025
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