Anglo-Eastern Plantations PLC has successfully completed the first commercial BioCNG/Biomethane plant in Indonesia, located at Blankahan Palm Oil Mill in North Sumatera Province. The plant has an installed capacity to process 1,500 m3 Biogas/hour and will mitigate the emission of methane gas, resulting in an estimated reduction of 52,000 MT of CO2 per year. This initiative aligns with AEP's ESG obligations and demonstrates its commitment to reducing carbon emissions.
The BioCNG Plant, a joint venture between AEP and Knowledge Integration Services ("KIS"), will purify the biogas to increase the methane content and produce about 9,800 m3 BioCNG/day equivalent to 365 MMBTU/day. AEP will receive payments from KIS for methane gas generated to produce BioCNG, and will also share 45% from the sale of carbon credits. The company will take over the total operation and ownership of the plant after 15 years.
AEP has also entered into a separate contract with KIS for the construction of a second BioCNG plant at the Tasik Raja Palm Oil Mill in North Sumatera Province, with similar revenue sharing arrangements. The Director of Bioenergy, Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), Ministry of Energy and Mineral Resources (ESDM), Edi Wibowo, expressed appreciation for the project, stating that it will make a significant contribution in supporting the energy transition in Indonesia.
This significant milestone not only marks the successful completion of the first commercial BioCNG plant in Indonesia but also underscores AEP's dedication to environmental sustainability and renewable energy.