EnviTec Biogas : signs cooperation agreement for the construction of a biogas plant in Indonesia

Lohne, 21 February 2017 - Lohne-based EnviTec Biogas AG today announced the signing of a cooperation agreement with PT Herfinta Farm & Plantation (Indonesia) and Calfield SDN BHD (Malaysia) for the construction of a biogas plant in North Sumatra, Indonesia. The plant will contribute a total of 4 MW to the green energy transition in Indonesia.

The contract signing ceremony in Berlin was attended by His Excellency Dr.-Ing. Fauzi Bowo, Ambassador of Indonesia and His Excellency YBhg Dato' Zulkifli bin Adnan, Ambassador of Malaysia. 'For us, this is a key milestone on the path towards gaining a foothold in the promising Indonesian market,' says Jörg Fischer, CFO of the internationally active biogas plant manufacturer.

The joint venture set up by the contractual parties will trade under the name PT Power Energi Nusantara Indonesia, and construction will start as soon as it has been approved by local utilities and construction authorities.

'Thanks to the sustainable use of waste materials, the local palm oil industry will no longer be a mere consumer but also a producer of renewable energy that avoids significant emissions of greenhouse gases,' says Marcello Barbato, EnviTec Sales Manager South East Asia. Technical planning of the joint venture is the result of several years of development work by EnviTec Biogas AG and is also innovative, since the project will also utilise 'empty fruit bunches'. To date, the palm oil industry has used at most wastewater in biogas plants. Digestion of empty fruit bunches is a more complex task and so these were left unused or incinerated for energy recovery. Unlike incineration, digestion in a biogas plant has the advantage of producing digestate that can significantly reduce the volume of artificial fertiliser used in the plantations.

With this innovative strategy and the exclusive sourcing of input material from palm oil production waste, the German biogas all-rounder is making the most of this opportunity to establish a long-term position in the Indonesian palm oil industry. With over 600 oil mills, Indonesia is one of the world's leading producers of palm oil. Until now, wastewater and waste products from palm oil production have not been consistently used for energy recovery - even though the government recently introduced a subsidy structure to support the generation of renewable energy. Apart from Indonesia, Malaysia is also pursuing the goal of greater use of renewable energy. According to the Renewable Energy export initiative from the German Federal Ministry for Economic Affairs and Energy, electricity demand will require an enormous medium-term expansion to capacity of around 6,000 MW by 2020. Alongside conventional energy sources, renewable energy is playing an increasingly important role for Malaysia's energy mix. 'Taking all of these factors into account, we have been setting up feed-in legislation based partially on the German model since 2011,' commented Zulkifli Bin Adnan during the signing ceremony. In general, the government has set itself the goal of meeting at least 11% of electricity demand from renewable energy sources by 2020. 'This is therefore an exciting project for both of our countries, and one model for the successful transfer of technology from Germany to the ASEAN region,' summarised the Indonesian ambassador Fauzi Bowo.

About EnviTec Biogas AG

EnviTec Biogas AG covers the entire value chain for the production of biogas, including the planning and turnkey construction of biogas plants and biogas upgrading plants as well as their commissioning. The company takes charge of biological and technical services on demand and also offers full plant and operational management. In addition, EnviTec also operates its own biogas plants. In 2011, EnviTec Biogas along with EnviTec Energy GmbH & Co. KG and its 100% subsidiary EnviTec Stromkontor GmbH & Co. KG expanded its business operations into the direct marketing of upgraded biomethane as well as the marketing of green electricity and balancing energy. With a presence in 17 countries worldwide, EnviTec Biogas AG is represented by its own companies, sales offices, strategic partners and joint ventures. In 2015, EnviTec generated revenue of €174.9 million and EBIT of €3.4 million. The EnviTec Group currently has around 370 employees. EnviTec Biogas has been listed on the Frankfurt Stock Exchange since July 2007.

Contact:
Katrin Hackfort
EnviTec Biogas AG
Tel: +49 2574 8888-810
Email: k.hackfort@envitec-biogas.de