Energy Use and Renewable Energy

We are committed to reduction of fossil fuel usage and optimizing renewable energy sources. There is ample scientific evidence that fossil fuel is a major contributor to increase GHG emission that cause anthropogenic warming of the planet. The significant energy demand comes from the processing and the logistical transport involved for palm products.

Our renewable energy usage comes from our biowaste products for example palm shell and palm fiber from processing of our fresh fruit bunches. By 2021, about 41% of our energy is sourced from renewable energy, mostly biomass from palm shells and fibers. We also operate a renewable energy reactor as a methane capture project which produces 1.8 MW which is supplied to the local grids (Perusahaan Listrik Negara) in one of our concession units in Belitung Island.

We have set our targets to increase the renewable energy usage with planned biogas projects across all our palm oil mills for energy optimization and having at least one additional methane capture facility by 2023. With these strategic initiatives, we aim to increase our renewable energy portfolio to above 60% and to reduce our fossil fuel dependence by 20% in the year 2025. The Board of Directors has tasked the Vice President Director for the adaptation and mitigation of these project initiatives.

Additionally, we proactively implement other energy saving initiatives in our non-processing activities. This includes replacing fluorescent lamps with light-emitting diodes (LED) lights in all our mills and biogas facilities; utilizing teleconferences for meetings; utilizing solar cells for lighting in the estates; and replacing older air-conditioning units with newer energy-saving models. With these initiatives which we have already implemented, we have reduced our non-renewable energy consumption by 25.6% in 2021 compared to the previous year.

(All statements and data are accurate as of 31 December 2021)