PALMOILMAGAZINE, KOTAWARINGIN TIMUR, CENTRAL KALIMANTAN — As global pressure mounts on the palm oil industry to adopt cleaner and more sustainable practices, Bumitama Gunajaya Agro (BGA) Group has taken another concrete step by officially commissioning a biogas project that converts palm oil mill effluent (POME) into renewable energy.
Developed through a strategic partnership with PT Organics Bali and PT Organicsindo Konstruksi Energi—international-scale biogas technology providers—the project is now fully operational at PT Karya Makmur Bahagia (KMB) mill in Kotawaringin Timur. The facility completed its commissioning phase in September 2025 and marks a new milestone in responsible waste management within BGA’s operations.
POME, which naturally generates methane—a greenhouse gas significantly more potent than carbon dioxide—is channeled into a Covered Lagoon BioReactor (CLBR). This modern anaerobic digestion system breaks down high-organic-content wastewater into methane-rich biogas, preventing uncontrolled emissions from being released into the atmosphere.
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With a production capacity of 30,558 normal cubic meters (Nm³) of biogas per day, or roughly 916,740 Nm³ per month, the facility supplies renewable energy directly to the mill’s operations. The conversion of liquid waste into energy is estimated to reduce emissions by up to 327 tons of CO₂ per day, delivering a substantial reduction in the company’s carbon footprint while improving energy efficiency.
Ready for the Carbon Market
Beyond energy generation, the biogas facility is equipped with an enclosed flare system that meets international standards for carbon credit mechanisms. This enables the project to be registered under future emission reduction schemes, opening the door for BGA to issue verified emission reductions (VERs).
The use of biogas as an alternative fuel through co-firing in the mill’s boilers also reduces reliance on fossil fuels. This integration strengthens overall energy efficiency and aligns energy supply more closely with the mill’s production profile.
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“We believe sustainability is driven by innovation and collaboration. Converting liquid waste into renewable energy delivers tangible benefits, and this launch marks an important milestone in our journey toward greater energy efficiency and measurable emissions reduction,” said Rieza Rakhman, Head of Project Planning and Development at Bumitama, in an official statement received by Palmoilmagazine.com on Tuesday (December 9, 2025).
The collaboration underscores BGA Group’s commitment to achieving net-zero targets through investments in proven technologies that are safe, effective, and scalable across other mill units.
Meanwhile, Dr. Robert David Eden, Director of PT Organics Bali, said the project demonstrates how waste management can create both environmental and economic value.
“The KMB facility shows how palm oil mills can cut emissions, strengthen energy resilience, and prepare to participate in the emerging carbon market,” he said.
The project positions Bumitama not only as a producer of sustainable palm oil, but also as an early mover in integrating renewable energy and carbon-market readiness into industrial-scale operations. (P2)
