en.Wedoany.com Reported - Singapore-based bioenergy company Aligned Energy has signed two Memoranda of Understanding (MOUs) with two Indonesian companies to develop large-scale biofuel production and land restoration projects in the Riau Islands. According to official announcements from both parties, this marks Aligned Energy's first move into the Indonesian market since its establishment.

Under the first agreement with PT Beon Parama Energi, Aligned Energy plans to cultivate sweet sorghum on degraded former bauxite mining lands. Bintan Island and its surrounding islands have over 8,000 hectares of abandoned bauxite mines, most of which have not undergone legally required post-mining restoration. The initial phase of the project will develop approximately 2,000 hectares of plantations, with an ultimate goal of achieving an annual production capacity of 500 million liters of green diesel.

The second agreement, signed with PT Cipta Jagat Lestari, expands the collaboration to include integrated biomass fuel projects. Both parties plan to establish partnerships with major Indonesian energy companies such as Medco Energi and Pertamina to advance the project's implementation. PT Beon Parama Energi is supported by Parama Energi and Capitol Group, the latter of which has business interests spanning real estate, plantations, and trade.

Sweet sorghum is the core feedstock for the project and can be used to produce bio-ethanol, green diesel, and green naphtha. Green naphtha is a crucial raw material for plastic production, and there is currently a global supply gap. This project transforms abandoned mining lands into energy crop plantations while simultaneously fulfilling mining companies' land rehabilitation obligations.

Indonesia is one of the world's largest biofuel markets, and the government has incorporated biofuels into its national energy security strategy. The Ministry of Energy recently issued new regulations requiring biodiesel users to fully adopt the B50 standard by 2028, meaning that palm oil-based components must account for 50% of the fuel.

The Riau Islands have been designated by the Indonesian government as a clean energy hub, with plans to supply renewable energy to Singapore through cross-border projects. Aligned Energy has currently only established a pilot plantation site in Kijang, Bintan Island. The overall project is still in its early development stages and is seeking external investment.

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