PT Dharma Satya Nusantara Tbk (IDX: DSNG) prepared US$47 million to construct six bio compressed natural gas plants in the next two years - Photo by the Company

JAKARTA (TheInsiderStories) – Palm oil producer, PT Dharma Satya Nusantara Tbk (IDX: DSNG) prepared US$47 million to construct six bio compressed natural gas (CNG) plants, said the management today. The construction is part the effort to use palm oil waste into renewable energy in the next two years.

According to the president director, Andrianti Oetomo, the first phase of the Bio-CNG construction has started today through the groundbreaking of the second plant in East Kutai Regency, East Kalimantan Province. The second factory will be built by utilize the palm oil waste from two mills with a capacity of 120 tones per hour and its targeting to be operate in the second quarter of 2022.

The Bio-CNG plant will produce 2×850 kilowatts of power and bio-methane gas with a capacity of 540 cubic meters per hour and will reduce greenhouse gas emissions equivalent to 100,000 metric tons of CO2 per year. Oetomo said, with the development of these projects, in the next three years, Dharma Satya will have seven Bio-CNG plants and can save around 16 million liters of diesel per year also greenhouse gas emissions equivalent to 400,000 tons of CO2 per year.

The manufacturer has commissioned the first Bio-CNG plant in September 2020 with a processing capacity of 60 tones per hour and will create a reduction in greenhouse gas emissions equal to 50,000 tons of CO2. The electricity produced 1.2 Megawatts and can be utilized for the processing of palm kernel and Bio-CNG plant.

Recently, Dharma Satya announced to allocated funds up to Rp1 trillion (US$69.44 million) in this year to complete the development of palm oil mills in East Kalimantan. The factory with a processing capacity of 60 tones per hour is targeted to operate in the second half of 2021.

Another factory being built is in Nangabulik, Central Kalimantan with a processing capacity of 45 tones per hour. Total investment of both factories around Rp393 billion. With the addition of the two mills, the company will have 12 plants with a total capacity of 675 tones per hour or 1.2 million tones of crude palm oil (CPO).

Currently, the manufacturer has planted area around ​​112,450 hectares. The firm also has a wood processing factory that produces panels, engineered flooring and engineered doors in collaboration with Japan’ Daiken Corporation.

Recently, the Indonesian Vegetable Oil Industry Association projects that the CPO production in 2021 will grow by around 3 percent to 48.4 MT of CPO from this year’ 47 MT of CPO, inline with the increasing of prices. Crude Palm Kernel Oil production also will increase by about 4 percent from 4.6 MT of CPO to 4.8 MT of CPO in 2021.

The executive director, Sahat Sinaga, also believed that there will be an increases in domestic palm oil consumption by around 14 percent to 19.75 MT of CPO in 2021. Its projected that starting next year, the domestic consumption palm oil for food will be around 8.8 MT of CPO, for non-food items around 1.67 MT of CPO and for biodiesel around 9.2 MT of CPO.

According to him, this increases in biodiesel consumption provided the B30 program was running. While, palm oil exports in 2021 will also increase by 11 percent to 36.7 MT of CPO due to an increase in downstream palm oil product exports by around 16.6 percent to 29.29 MT of CPO. In addition, the CPO exports will experienced a decline of around 8 percent to 7.4 MT of CPO.

US$1: Rp14,400

Written by Editorial Staff, Email: theinsiderstories@gmail.com