Unilever taps palm oil waste to power sustainable growth in Indonesia
To address this, Unilever partnered with KIS Group to source biomethane from nearby mills participating in its sustainable palm oil programme.
INDONESIA – In a bold move toward industrial decarbonisation, Unilever has launched Indonesia’s first commercial biomethane offtake, converting palm oil mill effluent (POME) into clean energy to power its largest greenhouse gas-emitting facility, Unilever Oleochemical Indonesia (UOI) in Sei Mangkei, North Sumatra.
The initiative marks a significant milestone in Unilever’s global climate strategy, which aims to eliminate Scope 1 and 2 emissions by 2030.
Following a major expansion, UOI became the company’s top-emitting site.
To address this, Unilever partnered with KIS Group, a leading biogas provider in Asia, to source biomethane from nearby mills participating in its sustainable palm oil programme.
POME, a nutrient-rich liquid waste from palm oil processing, is typically seen as an environmental hazard.
But through anaerobic digestion, KIS captures methane from POME, purifies and compresses it into bio-compressed natural gas (bioCNG), and delivers it to UOI using trucks powered by the same fuel, a closed-loop model that exemplifies circular economy principles.
Currently, biomethane from two mills supplies the facility, with plans to expand to nine mills by 2027.
This would generate over 800,000 MMBtu annually, covering nearly 25% of UOI’s energy needs.
The leftover solids from the process are repurposed as organic fertiliser for local plantations, further enhancing the sustainability footprint.
“Expanding operations sustainably is a priority,” said Saikrishna Devarakonda, Managing Director of UOI.
“Partnering with KIS allows us to reduce emissions while continuing to grow cost-effectively”.
Beyond corporate goals, the project supports Indonesia’s renewable energy transition and reduces reliance on imported fossil fuels.
Estimates suggest that POME could meet more than 5% of the country’s natural gas demand in 2024.
Unilever’s approach also strengthens supply chain traceability and enforces its ‘no deforestation’ policy by working directly with compliant mills and bypassing traditional intermediaries.
This ensures that palm-derived ingredients used in global products are sourced responsibly.
KR Raghunath, CEO of KIS Group, emphasised the broader impact: “Unilever Indonesia achieves decarbonisation, and the country becomes more independent of energy imports. This model demonstrates multiple benefits for business and the environment”.
As industries seek scalable solutions to climate challenges, Unilever’s biomethane programme offers a compelling blueprint, where waste becomes fuel, growth aligns with sustainability, and corporate ambition drives national progress.
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