DSNG Expands Use of Bio-CNG Fuel for Trucks, Faces Challenges in Transitioning Smallholders Vehicles

Palm Oil Magazine
The trucks transporting fresh fruit bunches (FFB). Photo by: Sawit Fest 2021 / Lukman Hakim

PALMOILMAGAZINE, JAKARTA – The trucks transporting fresh fruit bunches (FFB) and crude palm oil (CPO) for PT Dharma Satya Nusantara Tbk. (DSNG) are predominantly owned and operated by local partners. Notably, these long-term partnerships are increasingly utilizing renewable fuel in the form of bio compressed natural gas (CNG). This initiative aims to expand the use of bio-CNG fuel.

As part of its commitment to sustainable palm oil practices, DSNG uses bio-CNG fuel derived from palm oil mill effluent (POME) waste. However, despite adopting this renewable fuel, the company faces challenges. The main issue is converting the smallholders’ trucks to bio-CNG engines, as there are concerns about potential mechanical issues and maintaining normal selling prices once the partnership contracts expire.

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To address these challenges, DSNG provides comprehensive information about the benefits of bio-CNG, including its potential to reduce greenhouse gas (GHG) emissions and lower service and maintenance costs.

Also Read: Launch of Green Transport Rally to Advocate Environmentally-Friendly Vehicles

The big challenge is about to expand bio CNG utilization that should reach the third parties – out of the company, such as, the villagers. They provide transportation services, such as, transporting FFB and CPO of the company.

Until now the villagers do not know bio CNG fuel and its utilization. It is afraid that there would be impacts for the machine of their vehicles and the selling price should be back to normal if the contract of partnership would be over. That is why the company offered rent tariff competitively to put conversion tools and it is committed to return the truck to diesel machine again if the contract would be over.

Director of PT Dharma Satya Nusantara Tbk., Albertus Hendrawan said that the second challenge is the restricted station network to refill bio CNG for a very long distance. “So far, there are only two station units of the company which means every truck should return to the installation to refill it,” Hendrawan recently said to Palmoilmagazine.com.

Every FFB truck would refill bio CNG fuel once a day with the estimation 100 kilometers per day and the volume to be transported at about 50 Nm3 with the pressure 200 bar every refill in average.

The company just operates one bio CNG installation, and it is fully for the internal needs of the company. But DSNG would fully start the pilot project to converse villagers’ trucks.

By the late of 2023, there had been 4 partners (villagers) that transported FFB that would take part in the pilot project. “In the future, as bio CNG installation gets more, the company hoped there would be more villagers’ trucks to be conversed and utilizing bio CNG fuel,” Hendrawan said. (P2)

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