Asian Agri operates fifth biogas power plant, plans to build more

PT Asian Agri, one of the world?s largest palm oil companies, has started the operation of its fifth biogas power plant, marking its aggressive drive into the renewable energy sector.

The 2MW biogas power plant, which uses palm oil mill effluent (POME) as feedstock, is located in Ukui, Pelalawan Regency, Riau, and was inaugurated by the Director General of New and Renewable Energy Rida Mulyana on Saturday.

Asian Agri to date has constructed five biogas power plants with combined capacity of 10 MW, located in North Sumatra, Riau, and Jambi. The electricity from the power plants are used for company own use and households around its plantations.

General Manager of Asian Agri Freddy Widjaya told reporters that the company has set a target to develop a total of 20 biogas power plants until 2020. Investment for each 2MW biogas power plant is estimated at US$4.5 million.

Editing by Reiner Simanjuntak