Sewatama to build two biogas power plants

By Brigida Ernestina Elu Wea

PT Sumberdaya Sewatama, a subsidiary of IDX-listed integrated energy company PT ABM Investama Tbk, plans to build two biogas power plants using processed waste of oil palm plantations in East Kalimantan as feedstock.

Elan B. Fuadi, President Director of Sewatama, said the company has signed an agreement with two oil plantation firms of the Rajawali Group to realize the project.

Elan said Friday that construction of the two power plants, each with a capacity of 2.5MW, will start this year, and to be completed in two years. Investment requirement per MW is about Rp 25 billion.

He said the electricity will be sold to state power company PT PLN, while the excess to processing plants of oil palm firms in the area.

Editing by Reiner Simanjuntak