KIS Biofuels Commences Construction of Asia's First Bio-CNG Plant

PT KIS Biofuels Indonesia has started the construction of 25 commercial biomethane-compressed natural gas (bio-CNG) plants in North Sumatra, capable of processing 387,000 cubic meters of palm oil waste. The company expects the US$110-million project to be completed in Dec 2024. The groundbreaking of the first plant, located in an oil palm plantation area owned by PT United Kingdom Indonesia Plantation (AEP Group) in Langkat, North Sumatra, on Wednesday marked the beginning of the project.

KIS Biofuels Indonesia CEO KR Raghunath claimed the project was the first large-scale commercial bio-CNG project in Indonesia and Asia. From April to Nov 2023, KIS will commission the first three plants, capable of producing 1,230 MMBTU of bio-CNG per day. "KIS has signed long-term contracts with PTPN, AEP Group, Mahkota Group, and other groups to supply organic wastes," he said.

Energy and Mineral Resources (ESDM) Ministry's director of bioenergy Edi Wibowo was optimistic that the project would help the plantation industry or palm oil mills reduce carbon emissions and solve waste problems simultaneously. Other industries may also use the clean energy produced by these plants and be less reliant on fossil fuels. "We hope this project will significantly support Indonesia's energy transition to improve the renewables portion in the country's energy mix to 23 percent by 2025 and reach the net-zero emissions by 2060," he elaborated.