The project activity is to install a new 14 MW cogeneration plant and supply power to the grid and steam to a nearby palm oil mill. It is a greenfield project since there was no production of power to the grid on site before the implementation of the project.

The project activity will reduce the grid system’s dependency on fossil fuel resources and reduce the emissions of GHG emissions. The bio energy plant will be fuelled with biomass waste from the existing palm oil extraction process. This biomass is abundantly available and was earlier incinerated, but since the ban on open air burning entered into force the biomass has to be disposed in landfills.