In September 2020, DSN Group commissioned the first Methane Compressed Natural Gas Plant or Bio-CNG Plant in Indonesia for the palm oil industry. The electricity from the Gas generators is used to power our in-situ Palm Kernel Crushing Plant (KCP) which had previously depended on Diesel generators for power. The excess methane gas captured is further scrubbed or purified to approximately above 90% methane content and then compressed in the Bio-CNG Plant with a capacity of 280 m3/h. The Bio-CNG gas is secured safely in gas containers for mobility to transport around our plantation.
The Bio-CNG Project is aligned to DSN Group’s commitment in building the circular economy of Palm Oil. As such, we aim to add more methane capture facilities in the near future to produce more portable renewable energy from our Palm Oil Mill Effluents.
The containers of Bio-CNG gas are distributed to several sites in our plantations where it is used to replace fossil fuels typically in electricity generators, as well as in transportation vehicles.
This project provides DSN Group a form of sustainable in-situ renewable energy (RE). Using this RE, we estimate that we could reduce our utilization of approximately 2 Million liters of diesel fuel per year for our power generation and vehicles (based on present diesel prices) in our first BioCNG project.
More importantly, DSN Group will also reduce its Green House Gas emission by approximately 50,000 tones CO2 per year. In simple terms, the reduction of more than 50,000 tones CO2, is equivalent to planting of over 800,000 trees or removing 11,000 units of passenger’s car from being used or removing 17,000 tons of landfill or trash. Indirectly, the methane capture will also improve our wastewater treatment and hence water quality by reducing the Biological Oxygen Demand.