A Singapore-based bioenergy company, Aligned Energy, signed two memoranda of understanding (MOUs) with Indonesian partners to develop large-scale biofuel production and land restoration projects on (10/04).

The agreements mark the company’s first expansion step since its formation in 2024 into Indonesia’s sweet sorghum plantations and biomass-to-fuel development.

Aligned Energy stated the initiative targets both renewable energy production and land rehabilitation using degraded mining areas.

Sweet Sorghum Biofuel Projects Planned on Degraded Mining Land in Bintan

Under the first MOU with PT Beon Parama Energi (PT BPE), Aligned Energy plans to cultivate sweet sorghum on depleted former mining sites in Indonesia.

The project targets around 2,000 hectares of plantations in Bintan and nearby islands such as Kelong, which have been affected by past bauxite mining activity.

The initiative is also positioned as part of regreening obligations for mining companies, using exhausted land for biomass production.

A test plantation has already been established in Kijang, Bintan, but commercial-scale development has not yet begun.

Biomass-to-Fuel Expansion and Green Naphtha Production Plans

A second MOU with PT Cipta Jagat Lestari expands the project into integrated biomass-to-fuels development.

The collaboration aims to build partnerships with major national energy players and develop a broader ecosystem for feedstock sourcing, land access, permitting, and strategic coordination.

Sweet sorghum is described as a crop that can be used for biofuel production, bioethanol feedstock, and green naphtha, which is used in plastics production.

Aligned Energy has outlined a long-term target of producing up to 500 million litres of green diesel over 10 years across multiple sites, according to company documents.

Indonesia’s Biofuel Strategy and Early-Stage Project Development

The project aligns with Indonesia’s broader biofuel policy direction, which includes strengthening energy security and reducing dependence on imported diesel.

The Indonesian government has announced plans for a biodiesel blending mandate requiring a shift to B50 fuel by 2028, increasing palm oil-based fuel usage.

The Riau archipelago has also been positioned as a renewable energy hub, with ongoing cross-border clean energy initiatives involving Singapore.

Aligned Energy’s project remains at an early stage, with no commercial-scale plantations yet developed and only letters of intent secured from potential buyers, without binding offtake agreements.

PHOTO: UNSPLASH

This article was created with AI assistance.

We make every effort to ensure the accuracy of our content, some information may be incorrect or outdated. Please let us know of any corrections at [email protected].