PT KIS Biofuels Indonesia and PT Tasik Raja (Anglo Eastern Plantation) are collaborating on Indonesia's second BioCNG (Compressed Natural Gas) project and the largest plant in Southeast Asia, located in North Sumatra. The products from this project will be sold to PT Unilever Oleochemical Indonesia. The clean energy from palm oil mill effluent (POME) and liquid waste from palm oil processing will be transformed into crude palm oil (CPO). The facility produces 182,000 MMBtu of bio-CNG on an annual basis, and claims to reduce carbon dioxide (CO2) emissions by 52,000 tonnes per year. Each project employs 30 local people. PT KIS Biofuels Indonesia has set ambitious targets for the first phase of its BioCNG projects, with plans to complete 25 projects by 2027, representing a total investment of USD 125 million, and by 2030, with a target of building 100 BioCNG projects, estimated to require an investment of USD 500 million. This renewable fuel has the potential to reduce dependence on fossil fuels and is an alternative fuel for transport, industry and power generation. Deliveries of BioCNG to Unilever will be made using BioCNG-fuelled trucks, representing a commercial first in Indonesia.
Prior to this, in October 2024, PT KIS Biofuels Indonesia and PT Tolan Tiga Indonesia constructed the inaugural commercial BioCNG facility in South Labuhanbatu, spanning 120 square metres and representing an investment of USD 3.6 million. This facility is situated within the Palm Oil Mill (PKS) Kebun Perlabian, owned by SIPEF Group, with a production capacity of 320-350 MMBTU BioCNG daily. KIS Group constructed three BioCNG facilities in North Sumatra, along with four non-commercial facilities, one of which is located in Pangkalanbun, Central Kalimantan. SIPEF Group is currently developing two more in partnership with KIS Group. Deputy Regent of South Labuhanbatu, Syahdian Purba Siboro, has voiced his support for the construction of the BioCNG plant. The project is a key component in the region's sustainable economic development strategy, with a commitment to environmental responsibility, alongside the creation of employment opportunities, the advancement of energy infrastructure and the enhancement of the skills of local labour in the renewable energy sector.
