TSE Group building a biogas plant in South Papua

As the world's largest producer of crude palm oil (CPO), Indonesia has great potential in utilizing biogas technology. Several biogas factories have been built in palm oil producing areas such as Langkat Regency, North Sumatra and Belitung Island, Bangka Belitung Islands Province. Most recently, a biogas factory is also being built in Boven Digoel Regency, South Papua Province.

"We are building a biogas factory, which will certainly have a large initial investment. I the long term we will reduce the use of fuel in all plantation and factory activities. The development of a biogas power plant fueled by Bio-CNG (bio-compressed natural gas) will, in the long term, definitely be beneficial for the company and the environment," explained Tunas Sawa Erma (TSE) Group Director Luwy Leunufna on Mar. 7, 2025.

With a total investment of US$3.6 million, the biogas factory will be used by TSE Group to convert palm oil mill effluent (POME)  into renewable energy. Two biogas tanks with a capacity of 7,800 cubic meters (m³) built by TSE Group will be capable of producing 2 megawatt (MW) of electricity to support TSE Group's operation in the region, including its palm kernel crushing plant (KCP).

The company estimated that it will be able to reduce emissions by up to 60,708 tons of CO₂ per year compared to without a biogas facility by the time the facility is in operation. The construction of the biogas power plant is part of the company's efforts to support the global target of achieving net zero emissions (NZE) by 2050.

"Through the NZE commitment, we want to try to balance the emissions that have been released [by us]. Therefore, we are carrying out a series of activities such as the construction of the bio-CNG-fueled biogas power plant, replacing the use of oil-fueled heavy equipment with EVs, slowly shifting from B30, to B40, and B50 in accordance with government regulations, building solar panels, and so on. The point is how we intervene effectively to make our emissions neutral or what we know as net zero," explained Luwy.

TSE Group is also committed to supporting Indonesia as a country that ratifies the Paris Agreement. One of the points of the agreement is the voluntary reduction of carbon nationally determined contributions (NDC) to keep the global temperature  increase below 2 degrees Celsius (°C).

The TSE Group Biogas Power Plant will be inaugurated in the near future, and the company plans to eventually build similar facilities in five other company unit locations in stages. This plan is stated in the TSE Group Emission Reduction Roadmap which contains the company's target to achieve NZE.