DSNG to Build 6 New Bio-CNG Plants within the Next Two Years
MUARA WAHAU, KALIMANTAN TIMUR, MARCH 25, 2021 – PT Dharma Satya Nusantara Tbk (“the Company”, “DSNG”) is aiming to build 6 new Bio-CNG plants worth USD 47 million of investment within the next two years, demonstrating the Company’s commitment to implement sustainable business practices by utilizing the waste from Palm Oil Mills (POM) and turn it into renewable energy.
That ambitious target has been initiated today by the groundbreaking ceremony of the second Bio-CNG plant in Muara Wahau, East Kutai Regency, East Kalimantan Province. Scheduled to be commissioned in the second quarter of 2022, the second Bio-CNG plant will be utilizing palm oil waste (POME) from two POMs with a capacity of 2 x 60 tons Fruit Fresh Bunch (FFB) per hour and generating electricity of 2 x 850 kilowatts and biomethane gas of 540 m3 per hour. Once this second plant is operating fully, it will reduce greenhouse gas emissions equivalent to 100,000 metric tons of CO2 per year.
President Director of DSNG, Andrianto Oetomo, said that the construction of the second Bio-CNG plant proved DSNG’s commitment in implementing the circular economy concept by reducing waste produced by palm oil industry, while significantly reducing greenhouse gas emissions as well as the fossil fuels consumption.
“In the past two years, we have started introducing the concept of renewable energy-based oil palm plantation as a new business development concept in the future. By building Bio-CNG plants, we will attract an economic gain from less diesel fuel consumption as well as the sustainability benefit of the greenhouse gas emissions reduction,” said Andrianto Oetomo in his statement.
Thus, according to Andrianto, in the next three years, DSNG will run seven Bio-CNG plants and can generate a saving about 16 million liters diesel fuel per year while reducing the greenhouse gas emission of 400 thousand tons CO2 per year.
The First Bio-CNG Plant
Previously, in September 2020, DSNG commissioned its first Bio-CNG plant located in Muara Wahau, East Kalimantan, which has happened to be the first Bio-CNG plant in Indonesia.
The first Bio-CNG plant was developed by utilizing liquid waste from 1 (one) POM with a capacity of 60 tons of FFB / hour, which will reduce greenhouse gas emissions by more than 50,000 tons of CO2, which is equivalent to planting more than 800,000 trees or reducing 11,000 units of passenger vehicles or the equivalent of recycling 17,000 tons of waste.
The first Bio-CNG plant generates electricity with a capacity of 2 x 600 kilowatts, so the total power produced is 1.2 MegaWatt. The electrical energy generated is utilized to power the processing of palm kernels at the Kernel Crushing Plant (KCP) as well as for the Bio-CNG Plant itself.
While the remaining biogas will be upgraded and compressed into Biomethane Compressed Natural Gas with a capacity of 280 m3 per hour, and then being stored in the cylinder tubes.
The Bio-CNG in tubes will be then distributed by Bio-CNG-powered trucks and utilized as the fuel replacement for conventional fossil/diesel fuel at all emplacements (employee housing) and other POMs within DSNG’s operational area in Muara Wahau.
By fully operating its first Bio-CNG plant, DSNG saves at least 2 million liters of diesel fuel consumption at its POMs and KCP per year.
ABOUT PT DHARMA SATYA NUSANTARA Tbk
PT Dharma Satya Nusantara Tbk (DSN Group) was established on 29 September 1980 and engages in palm oil and wood products businesses. Currently, DSNG has 112.6 thousand hectares of planted area and 10 palm oil mills which process Fresh Fruit Bunches (FFB) into CPO with a total capacity of 570 tons per hour. As for wood products, DSNG runs two wood processing plants in Central Java that produce panels and engineered floorings.
MORE INFORMATION
Paulina Suryanti
Corporate Secretary
Jl. Rawa Gelam V Kav. OR / 3B
Kawasan Industri Pulogadung (Pulogadung Industrial Estate)
Jakarta 13930, Indonesia
Email: corporate.communications@dsngroup.co.id