Biomass
To mitigate this risk, the Company developed an Energy Independence Program based on energy balance and techno-economic analysis as a strategic instrument in supporting climate change mitigation and GHG emission reduction.
Palm Oil Business Unit
These results show their great potential as a boiler fuel, although it must also be noted that the mineral/alkaline content is quite high. Biomass can also be converted into bio-coal as a substitute for coal. The use of biopellets or bio-coal to power plant fuel is more environmentally friendly because it can reduce greenhouse gas emissions. Of all the existing oil palm biomass, 70% are palm tree fronds, while empty fruit bunches reach 10%, and oil palm trunks reach 5%. A lot of oil palm trunk biomass will be produced during replanting.
Through this approach, renewable energy development and operational efficiency initiatives not only reduce emissions but also strengthen energy security, supporting the Company’s target to achieve energy independence in key areas by 2028.
Biomass Mapping Process
This mapping aims to identify and optimize biomass potential using circular economy principles, ensuring that production residues do not become an environmental burden but are instead reused as valuable resources such as renewable energy, organic fertilizer, and biomass fuel, while supporting resource recovery and reducing GHG emissions.
The biomass mapping results serve as the basis for the development of the Energy Independence Program and its implementation roadmap, which includes the utilization of organic and operational waste as alternative energy sources. This will be further implemented through the following initiatives:
- Utilization of Organic Waste and Its Practices
Throughout 2025, DSNG utilized 432,118 m³ of POME to generate 9,766,800 kWh of electricity and to fuel generators and truck operations with Bio-CNG, reducing diesel consumption by 3,793,757 liters. Overall, this initiative contributed to a reduction of around 76,451 tCO₂e in potential emissions, achieved through a combination of POME methane capture and diesel consumption avoidance.
Waste management is carried out in circularly by utilizing POME, empty fruit bunches, fiber, shells, and replanting biomass as sources of renewable energy, organic fertilizer, and raw materials for biogas and Bio-CNG. In addition, POME is also applied as liquid mulch for oil palm, supported by the use of mulch and infiltration pits for water conservation and runoff management, and socialized to the supply chain as a long-term sustainability practice.
- Recycling Used Materials
A wood flooring recycling program that reuses waste materials as raw materials for furniture to support sustainable resource management.
- Utilization of Waste for Renewable Energy
In 2025, the company utilized 198,928 tons of shells, 520,449 tons of fiber, and 24,925 tons of Palm Kernel Expeller (PKE) as biomass for biofuel. The utilization of Bio-CNG and biomass has become a strategic asset in supporting the transition to renewable energy.
Throughout 2025, the Company generated 11.68 million GJ of renewable energy by utilizing 29% shells, 67% fibers, and 4% meal as boiler fuel. In addition to palm biomass, DSNG also produced 620,353 GJ from the utilization of wood waste from the WP Panel business unit, with a total of 36,491 tons of wood processing waste used as boiler fuel.
The use of biomass (shells and fiber) as boiler fuel can drive turbines to generate electricity for the operation of 11 palm oil extraction factories and 1 KCP, thereby reducing reliance on fossil fuels. Throughout 2025, 12 turbines have generated 59,039,178 kWh of electricity, equivalent to 6.02 million liters of diesel fuel.
Wood Products and Renewable Energy Business Unit
DSNG optimizes the utilization of wood waste generated from the WP Panel business unit, as part of the Wood Business Unit’s Energy Independence Program. Throughout the reporting year, WP Panel was able to produce 620,353 GJ from the utilization of wood waste, with a total utilization sourced from 36,491 tons of wood processing waste as boiler fuel. In addition, the Renewable Energy Business Unit – Wood Pellets at PT BLN was also able to utilize 1,596 tons of wood pellet waste outspec results, producing 25,536 GJ as boiler fuel.