reNIKOLA to invest RM1.4bil in RE projects in Indonesia - MIDA | Malaysian Investment Development Authority
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reNIKOLA to invest RM1.4bil in RE projects in Indonesia

reNIKOLA to invest RM1.4bil in RE projects in Indonesia

13 Sep 2023

reNIKOLA Holdings Bhd aims to expand its renewable energy (RE) portfolio by developing 50 compressed biomethane gas (CBG) projects in Indonesia with a total investment of more than RM1.4bil over the next five years.

reNIKOLA managing director Boumhidi Adel said through the CBG projects, the group hoped to reduce the impact of climate change and contribute to realising Indonesia’s target of achieving 29% renewable energy by 2030.

This is following the recent signing of a memorandum of understanding between the group and PT Perkebunan Nusantara (PTPN IV) to develop the CBG plants in north Sumatra on June 30, 2023.

“For us, ths expansion into Indonesia is another important milestone to expand our RE portfolio as we strive to become one of the leading players in the region,” he said.

reNIKOLA will be supporting PTPN IV to uphold the principle of environmental, social and governance or ESG through plans to build, own and operate four CBG plants at PTPN IV palm oil mills, according to Adel.

In the process, each CBG plant will be utilising PTPN IV’s palm oil mill effluent (pome) as a raw material to produce biomethane.

PTPN IV director Sucipto Prayitno said the group took the initiative to carry out the collaboration in line with the greenhouse gas (GHG) reduction roadmap launched by the PTPN Group.

The roadmap aims to reduce emissions in plantation activities, as well as to support government programmes to reduce GHG emissions by 29% through its own capabilities, or 41% with international assistance by 2030.

He said the group would reduce methane emissions from pome by utilising it to produce new, RE amounting to 377,524 total carbon dioxide in 2030.

Sucipto said through the method, PTPN IV would facilitate PT Kawasan Industri Nusantara to develop the Sei Mangkei Special Economic Zone as the first green industrial zone in Indonesia.

“PTPN IV strives to set industry standards in order to minimise the impact of business on the environment by applying innovative technologies to every business activity,” he said.

“Additionally, we will be building strategic partnerships with industry leaders and experts to encourage Indonesia’s decarbonisation goals.

“With this latest development, we are committed to continuing to expand our ESG practices through the collaboration with reNIKOLA,” Sucipto said in a statement.

Source: The Star