Palm Oil Mills Save Millions liters of Fuel by Using Wastes

JAKARTA – PT Dharma Satya Nusantara Tbk (DSNG) will develop six more new power plants by using Bio-CNG that is processed from waste of  palm oil mills during the next two years. The company has prepared a total investment of US$47 million or around Rp676.8 billion (Rp14,400 per US dollar).

The company has already operated its first Bio-CNG based power plant since September 2020 in Muara Wahau area in Kutai Timur regency of East Kalimantan province. The second Bio-CNG plant, as part of the development of the new six plants, has been undergoing the first stage development at the same area. It will be fired by utilizing the effluent from two units of palm oil mills with the production capacity of 2 x 60 tons per hour.

Scheduled to start operation during the second quarter 2022, the second Bio-CNG power plant will generate power at the capacity of 2 x 850 kilowatt and bio-methane gas at the capacity of 540 m3 per hour. Besides, the operation of the two Bio-CNG plants will reduce the greenhouse gases at equivalent of 100,000 metric  tons of CO2 per year.

DSNG President Director Andrianto Oetomo said that the development of the new Bio-CNG plants had reflected the seriousness of DSNG in implementing the concept of circular economy by reducing the liquid waste from the palm oil mills, reducing the greenhouse gases, and significantly reducing the use of conventional diesel fuel.

“During the last two years, we’ve been promoting the concept of palm oil industry development based on the renewable energy as our future concept. By developing the Bio-CNG plants, we will get two benefits, namely the reduction of diesel fuel use in our operation of palm oil industry and increase of sustainability by reducing the greenhouse gas emission,” he said in a written statement released on Thursday, 25 March 2021.

Andrianto said that during the next three years, DSNG will have seven Bio-CNG power plants. By operating the seven Bio-CNG plants, DSNG will save the use of diesel fuel at around 16 million liters per year, and reduce greenhouse gases at the equivalent of 400,000 tons of CO2 per year.

He said that its first Bio-CNG plant in Muara Wahau, East Kalimantan, has been operated since 2020 as the first of its kind in Indonesia. It is operated with the use of liquid waste from one unit of palm oil mill at the capacity of 60 tons of fresh fruit bunches (FFB) per hour. It will reduce greenhouse emission at 50,000 tons of CO2, which is equivalent to more than 800,000 trees or a reduction of emissions from 11,000 units of passenger cars.

The Bio-CNG power plants generate power at the capacity of 2 x 600 kilowatt, so that total power generated is 1.2 MegaWatt. The electricity from the Bio-CNG plants will be used for the processing of palm kernel oil at the kernel crushing plant (KCP) and the production process of BioCNG.

The excess of biogas production will be compressed into Biomethane Compressed Natural Gas with the capacity of 280 m3 per hour and then will be stored in canisters.

The Bio-CNG canisters will be distributed  by trucks which also use Bio-CNG to workers’ residential areas and other palm oil mills in the operational areas of DSNG in Muara Wahau, as a replacement of the conventional diesel fuel to generate power plants.

With the operation of the first Bio-CNG, DSNG can save at least 2.0 million liters of diesel fuel per year, which was used to power the generator sets (genset) in the palm oil mills and kernel crushing plant. (*)

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