Sipef completes first BioCNG plant in N. Sumatra
Tuesday, December 9 2025 - 07:19 AM WIB
By Romel S. Gurky
Belgian plantation group Sipef has completed its first BioCNG® production facility in Indonesia, a project designed to cut emissions and replace fossil fuels in industrial use, the company said in a social media announcement on Monday.
The plant, developed by KIS Group Sustainability for Sipef’s subsidiary PT Tolan Tiga Indonesia in South Labuhanbatu, North Sumatra, will be operated by KIS Group before being handed over to the local unit.
Read also: KIS Biofuels secures Swiss funding to expand BioCNG projects
Sipef said the facility is expected to reduce 54,810 tonnes of CO₂-equivalent emissions per year by capturing methane from palm oil mill effluent and converting it into 109,620 MMBtu of BioCNG®. Consumer-goods producer PT Unilever Oleochemical Indonesia will be the project’s primary offtaker.
The company said the project will also support the local economy through job creation and ongoing employment opportunities.
“This milestone reflects SIPEF’s commitment to responsible by-product management and a reduced carbon footprint,” Managing Director Petra Meekers said. “By converting methane into BioCNG®, we create circular value for our operations and the communities where we work.”
Editing by Alexander Ginting