KIS Group begins construction of Bio-CNG plant in North Sumatra

Bioenergy EPC major KIS Group-Sustainability and agriculture sector company PT SMART Tbk held groundbreaking ceremony of a commercial Bio-CNG plant in North Sumatra of Indonesia.

The Bio-CNG facility at at the Padang Halaban Palm Oil Mill will become KIS Group’s fourth commercial Bio-CNG plant in Indonesia and the first for PT SMART Tbk, signalling a concrete step in advancing Indonesia’s clean energy transition through waste-to-energy solutions in the palm oil sector.

Developed under a Build-Own-Operate-Transfer (BOOT) model, the plant is scheduled to begin operations in Q1 2027. It will capture methane from Palm Oil Mill Effluent (POME) and convert it into renewable Bio-CNG.

The project will produce about 127,000 MMBTU per year, while reducing greenhouse gas emissions by an estimated 62,484 tonnes of CO₂ equivalent annually. The BioCNG produced will be supplied to Unilever Oleochemical Indonesia, replacing fossil-based natural gas in its operations.

KR Raghunath, CEO of KIS Group, said, “With strategic backing from Mitsubishi Corporation and collaboration with industry partners such as PT SMART Tbk and Unilever, we are showing that commercial-scale renewable energy solutions can deliver both environmental impact and economic value.”

President Director of PT SMART Tbk, The Biao Leng, added, “This project is part of our roadmap to reduce the carbon footprint of our upstream mill operations by turning waste into clean, renewable energy, while supporting Indonesia’s transition to a lower-carbon economy.”

With more than 20 years of experience and over 90 projects across 14 countries, KIS Group says it continues to advance biogas and biomethane development globally. The Bio-CNG generated from the Padang Halaban facility will contribute to Indonesia’s climate goals while supporting greater energy independence.