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Sewatama Signed Biogas Plant Power Purchase Agreement with PLN

JAKARTA ( – Through its subsidiary PT Nagata Bio Energi, PT Sumberdaya Sewatamahas officially signed Power Purchase Agreement for 2.4 MW Suka Damai Biogas Power Plant.

The agreement was signed by the President Director of PT Nagata Bio Energi, Elan B. Fuadi and the General Manager of PT PLN for South Kalimantan and Central Kalimantan regions, Purnomo, at PLN Head Office. Jakarta, Monday (25/4).

“After signing this agreement, we are soon to start the construction, and we hope the plant can be operated and support the electricity program in South Kalimantan within a year,” said Elan.

Suka Damai Biogas Plant is located in Tanah Bambu District, South Kalimantan. It is a Built Own Transfer project between PT Nagata Bio Energi and PT Suryabumi Tunggal Perkasa, the subsidiary of PT Eagle High Plantation, Tbk. The agreement between both companies was signed in June 2015 in Jakarta.

“We are also ready to assist the other plantation or mill owners to increase its sustainability by mitigating greenhouse gas emission through energy conversion,” said Elan.

Elan also showed his appreciation to all parties that supported this PPA. The government, through the Ministry of Energy and Mineral Resources and PLN, was very cooperative in providing information regarding all requirements needed and providing assistance throughout the process until the signing of this PPA today.

“We really appreciate all cooperative efforts that supported this PPA. Moreover, by accomplishing this PPA, we are grateful to begin the construction of Biogas Power Plant as soon as possible to fulfil the expectation of the plantation/mill owners”.

Elan also stated that his party also supports the government to implement POME to electricity conversion. “We give full support to the government in their effort to mitigate carbon emission and waste-to-energy conversion through the recent updated regulation”.

According to Elan, this implementation will be beneficial to many parties. First of all, the plantation/mill owner will benefit sharing from the electricity sales. Secondly, the plantation owners will get an acknowledgement for their efforts in mitigating greenhouse emission. It will add the value of palm oil products since the world trade currently requiring sustainability practices that can be shown by managing carbon foot print.

The government of Indonesia, as the number one palm oil producing country with over 31,01 million tons production capacity per year, will benefit from the active roles and participations from many parties in mitigating the carbon emission, and we, as the developer, also give contribution by involving local workers in this project.

The development of this power plant utilizes the POME produced by palm oil mill of PT Eagle High Plantation, Tbk. In its process, resulted POME will be treated to produces biogas which is later used as fuel for biogas engine.

Yovie Priadi, the President Director of PT Sumberdaya Sewatama, stated that Sewatama has numerous expert teams both in thermal energy and renewable energy. “Today we are grateful that our team can cooperate well to complete several technical and environmental requirements as well as necessary corporate requirements to accomplish this PPA with PLN”, he said.

Yovie also stated that his party has a flexible cooperative mechanism which will also be beneficial to the plantation/mill owners, especially the Eagle High group, since the cooperation was agreed to use the Built Operate Transfer method. This scheme will give benefits such as cost efficiency and added value at the end of the term of agreement, the plantation/mill owner can still focus on its business core, which are producing and selling their palm oil products, while with our competency and experience in electrical industry, we are ensuring that this project runs well and on time.

“This ongoing biogas power plant project is our commitment to support the government 35.000 MW electrification program. In our business plan, we are balancing our business portfolios in temporary power, operations and maintenance, and independent power producer (IPP) within the next five years. The implementation of this renewable energy based power plant project using POME is one of the company’s real steps to fulfill the plan”, closed Yovie in today’s interview. (*)

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