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Sustainability

Biogas

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. The Bio-CNG gas is secured safely in gas containers for mobility to transport around our plantation. 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.

Currently, DSNG has two Bio-CNG plants. The first one with a capacity of 2×600 kW and 280 Nm3/h, is operational in 2021. While Plant 2 is already operational in 2023 and in the process of being set up with a capacity of 2×850 kW and 540 Nm3/hour.

Bio-CNG Plant

Bio-CNG Output Results 1 & 2

This project provides DSN Group with a sustainable form of renewable energy (RE). As an effort to achieve energy self-sufficiency in Muara Wahau, the Palm Oil SBU has developed a roadmap using the Energy Balance Scenario and Techno-Economic Analysis approach. Continuously, we optimize ongoing efforts toward energy self-sufficiency by utilizing methane gas from POME to produce biogas and bio-CNG at two plants.

In 2024, the operation of two biogas and bio-CNG plants utilized captured methane gas as a renewable fuel. These plants successfully captured methane from 305,675 m³ of POME to generate 7,976,300 kWh of electricity, and Bio-CNG as biofuel (for generators and truck) that reducing 2,747,792 liters of diesel
consumption. This initiative potentially reducing emissions by approximately 136,991 tCO2e by preventing greenhouse gases (GHG) from being released into the atmosphere. By 2024, 48 Bio-CNG-fueled trucks were in operation using 62519 Nm3 Bio-CNG, saving 53766 liters of diesel, and reducing emissions by 139.07 tCO2e.

By 2025, two Bio-CNG plants owned by DSNG will utilize 432,118 m³ of POME to generate 9,766,800 kWh of electricity used in factory, office, and residential operations. In addition, 4,411,345 Nm³ of Bio-CNG is produced as fuel for generators and trucks, which is equivalent to a reduction in diesel consumption of 3.79 million liters and generates cost savings of up to 53.03 billion based on the average diesel price of Rp13,979 per liter.

In 2025, DSNG also carried out the Bio-CNG fuel vehicle transition, as many as 57 Bio-CNG fuel trucks have been converted resulting in the consumption of 164,510 Nm³ of Bio-CNG, which is equivalent to a diesel saving of 141,479 liters and an emission reduction of 379.16 tCO₂e.