Energasindo Heksa Karya (“EHK”), an Indonesian gas distribution company in which PT. Rukun Raharja and Tokyo Gas has a stake, and PT Moriuchi Indonesia (“MI”), in which Moriuchi Fabrics has a stake, have recently signed a memorandum of understanding regarding a biogas feasibility study.
The parties will conduct feasibility study about biogas production by utilizing methane from the organic waste such as manure excreted from livestock on the farm, POME (waste water from the palm oil mill), waste water from the factory, municipal solid waste of landfill and so on. The study also includes the delivery of the biogas with truck from the potential biogas source to MI Bandung plant to be used as fuel for boilers instead of compressed natural gas (CNG).
MI has been working to reduce carbon emissions by converting diesel fuels to CNG, which has a relatively low carbon coefficient. Through the introduction of biogas, MI will reduce CO2 emissions and actively promote measures to combat global warming.
EHK will also consider to generate carbon credits in the future and contribute to the realization of a carbon-neutral society, which is the goal of the Indonesian government.