Renewable energy

The Company’s renewable energy business segment focuses on optimizing the utilization of solid waste generated from its palm oil and wood product operations. Through a circular economy approach, this solid waste is processed into alternative energy sources with added value. Currently, the main products of this segment include Palm Kernel Shells and wood pellets, which are used as biomass fuel.

In 2022, in collaboration with erex Singapore Pte. Ltd., the Company established PT Dharma Sumber Energi, which focuses on utilizing palm kernel shells as raw materials for biomass power generation. This initiative is part of the Company’s efforts to support the provision of more environmentally friendly and sustainable energy.

Subsequently, in 2023, the Company partnered with Sumitomo Forestry Co., Ltd. to establish PT Biomassa Lestari Nusantara, located in Boyolali, Central Java. The company is engaged in the production of biomass derived from wood and wood waste to meet the growing demand in the renewable energy market.

In addition, since September 2020, the Company has also developed a supporting unit within its palm oil segment through the Bio-CNG initiative. This development aims to reduce emissions and waste from palm oil mills, while promoting more efficient and sustainable resource utilization.

Renewable energy

Environmentally Friendly Biomass Energy

Processing biomass from palm kernel shells and wood pellets into fuel for biomass power plants in Japan.

Business Growth

Through PT Dharma Sumber Energi, a joint venture with erex Singapore Pte. Ltd., the Company supplies RSPO-certified palm kernel shells to biomass power producers in Japan under a long-term contract of 15 years. The average annual shipment volume reaches approximately 60,000 metric tons. In addition, the Company is also developing other biomass products, namely wood pellets, with an installed plant capacity of 60,000 tons per year. This initiative aims to further expand the Company’s contribution to renewable energy supply while optimizing the sustainable utilization of waste.