DSNG and Sumitomo Forestry Commissioned the First Wood Pellet Plant in Boyolali

Boyolali, 20 September 2024 – PT Biomassa Lestari Nusantara (BLN), a joint venture between PT Dharma Energi Investama, a subsidiary of PT Dharma Satya Nusantara Tbk (DSNG) and PT Sumitomo Forestry Indonesia, a subsidiary of Sumitomo Forestry Co. Ltd, commissioned (operational trial) of the first wood pellet plant in Boyolali, Central Java. The plant is expected to commence commercial operations soon.

Located in Ngadirojo Village, Gladagsari District, the plant operated on the area of 4 hectares and has a production capacity of 60,000 tons per year. It is the first wood pellet plant to operate in Boyolali and expected to contribute in supporting world sustainable energy needs, as well as driving the local economy, with 100% of the raw materials sourced from the local community in Boyolali and its surrounding.

The event was attended by various stakeholders, including the Ngadirojo Village Head,  Bhabinkamtibmas, Babinsa, and local residents. The ceremony began with a ribbon-cutting and was followed by the cutting of a traditional food called “tumpeng” which carries the meaning of fertility, blessing, and harmony.

“This is part of DSNG’s commitment to implementing the circular economy concept by minimising wood waste and transforming it into value-added products. In addtion, this significant step is a joint effort to contribute to the development of renewable energy in Indonesia,” said Andrianto Oetomo, President Director of PT Dharma Satya Nusantara Tbk.

Toshiro Mitsuyoshi, President Director of Sumitomo Forestry Co. Ltd, added that by pursuing the potential of wood, Sumitomo Forestry aims to contribute to decarbonization through WOOD CYCLE, the circulation of  wood value chain, in the forest, wood manufacturing, and building sectors. In this respect, this project promotes a cascade use of wood and provides an environmentally friendly energy solution.

This wood pellet plant is designed to utilize wood waste with a processing capacity of up to 10 tons per hour, and has the potential to supply renewable energy supply equivalent to 14 MWe. The wood waste is sourced from the local community and industry, including veneer waste from plywood factories in Central Java and surrounding areas. The wood pellets produced by PT BLN are planned to be exported to the Japanese market.

During the commissioning phase, various trials have been conducted to ensure that the plant operates in accordance with high safety and efficiency standards. The management is optimistic that following the commissioning, the plant will soon commence commercial operations and make a significant contribution to the supply of clean energy for Indonesia and the world.

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ABOUT PT DHARMA SATYA NUSANTARA TBK

PT Dharma Satya Nusantara Tbk (DSN Group) was established on September 29, 1980, and focused on palm oil, wood products, and renewable energy businesses. DSNG has 112.2 thousand hectares of planted area and 12 palm oil mills, which process Fresh Fruit Bunches (FFB) into CPO with a total capacity of 675 tons per hour. As for wood products, DSNG runs two wood processing plants in Central Java that produce panels and engineered floorings, with an installed capacity of 150,000 square meters per month for engineered floorings and 12,000 cubic meters per month for panel products. Meanwhile, the renewable energy business started in 2023 with sales from exporting palm kernel shells (PKS) as biomass feedstock for power plants in Japan.

ABOUT SUMITOMO FORESTRY CO. LTD

Sumitomo Forestry Co., Ltd., headquartered at Keidanren Kaikan in Chiyoda-ku, Tokyo, Japan. As of 31 December 2023, the company boasts a capital stock of ¥55,088 million and employs 24,815 individuals on a consolidated basis. Sumitomo Forestry is engaged in a diverse range of business activities, including the Environment & Resources Business, Timber & Building Materials Business, Global Construction and Real Estate Business, Housing Business, and Lifestyle Services Business.

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