PTPN IV partners with reNIKOLA to develop 4 CBG plants in North Sumatra

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KUALA LUMPUR: Malaysia’s largest solar company, reNIKOLA Holdings Sdn Bhd, marked its first project abroad by partnering with PT Pekebunan Nusantara (PTPN IV) to develop a Compressed Biomethane Gas (CBG) plants in North Sumatra.

The two companies inked a Memorandum of Understanding (MoU) on June 30 this year, witnessed by PTPN III (Holdings) Marketing Director, Dwi Sutoro, which would see reNIKOLA supporting its partner to uphold the principles of Environemntal, Social and Governance (ESG).

Through the partnership, reNIKOLA will build, own and operate four CBG plants at PTPN IV’s palm oil mills, namely PKS Tinjowan, PKS Pulu Raja, PKS Dolok Sinumbah and PKS Pabatu.

In the process, each plant will utilise PTPN IV palm’s oil effluent (POME) as a raw material to produce biomethane.

reNIKOLA Managing Director, Adel Boumhidi, expressed their excitement with the collaboration, especially with PTPN IV reputation as being a state-owned agricultural company that focuses on palm oil production and plays an important role in decarbonising the palm oil industry in Indonesia.

He added that the collaboration also goes well with reNIKOLA’s goal of developing 50 CBG projects in neighbouring country Indonesia with a total investment over USD 300 million over the next five years.

“Through the CBG projects, we will help reduce the impact of climate change so that it can contribute to realise Indonesia’s target of achieving 29 per cent renewable energy by 2030.

“For us, this expansion into Indonesia is another important milestone to expand our renewable energy portfolio as we strive to become one of the leading players in the renewable energy industry in this region,” said Boumidi.

Targeting to build a renewable energy portfolio of up to 1GWp consisting of solar and non-solar power plants, reNIKOLA owns and operates large-scale solar power plants in Peninsular Malaysia with a total generating capacity of 178 MWp, as well as several biogas power plants.

Meanwhile, PTPN IV Director, Sucipto Prayitno, disclosed that as a subsidiary to PTPN Holding, which operates in the oil palm plantation sector, they took the initiative to partner with reNIKOLA in line with the Green House Gas (GHG) reduction roadmap launched by PTPN Group to reduce emissions in Business as Usual (BAU) plantation activities.

The move was also carried out to support the Indonesian Government’s programme to reduce GHG emission by 20 per cent on its own or 41 per cent with international assistance by 2030.

“PTPN IV will reduce methane emissions from POME by utilising it to produce new renewable energy amounting to 377,523 of total carbon dioxide content,” he explained.

Stressing their commitment, Sucipto said they would continue to expand their ESG practices through collaboration with reNIKOLA, converting POME into purified biogas, or also known as biomethane.

He added that PTPN IV seeks to facilitate PT Kawasan Industri Nusantara (KINRA) to develop the Sei Mangkei Special Economic Zone (SEZ) as the first Green Industrial Zone in Indonesia.

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