TSE Group inaugurates first BPGG and CBG facility in Papua

Palm oil plantation and processing holding company Tunas Sawa Erma (TSE) Group inaugurated the first biomass gasification power plant (BPGG) and compressed biomethane gas (CBG) facility in the island of Papua. The facility will be operated by its subsidiary, PT Berkat Cipta Abadi.

The renewable energy (renewables) facility is located in Merauke Regency, South Papua Province. TSE Group President Commissioner Robert Seung stated that the project is part of the company's roadmap toward achieving a global net-zero emissions target.

"Through this facility, we are not only managing palm oil industry waste, but transforming it into real energy solutions," Robert said at the inauguration ceremony with "Green Power, Born from Waste" as its theme on Aug. 1, 2025. 

The inauguration was also attended by South Papua Governor Apolo Safanpo and Merauke Regent Yoseph Gebze. The BPGG is designed to process 1,000 cubic meter (m³) of palm oil mill liquid waste (POME) per day. The resulting methane gas is used as an environmentally friendly source of electricity for factory and office operations.

The remaining gas is compressed into CBG, an alternative fuel to diesel, which is projected to reduce diesel consumption by up to 1 million liters per year. With a power production capacity of 2 megawatts (MW), the facility is sufficient to supply the 150-ton-per-day Kernel Crushing Plant (KCP). In addition to improving energy efficiency, this initiative can reduce greenhouse gas emissions by up to 60,708 tons of CO₂ per year.

South Papua Governor Apolo Safanpo assessed that the construction of the facility aligns with the national plan for energy and food self-sufficiency.

"This is a strategic initial step and could serve as a model for other regions in Papua," he said.

Going forward, TSE Group plans to develop similar facilities in five other business units. Furthermore, TSE's green expansion also includes the implementation of electric vehicles, the utilization of solar energy, and the use of environmentally friendly fertilizers across all company operations.