Ecobiz.asia — A consortium of international and Indonesian companies has launched a pilot project to cultivate pongamia on a former coal mining site in South Kalimantan, aiming to assess its potential as a biofuel feedstock and source of carbon credits, based on a press release issued on Tuesday (April 14, 2026).
The consortium comprises Mitsui O.S.K. Lines, PT Hasnur Group Indonesia, Hanwa Co., Ltd., NH Foods Ltd., Four Pride Management Pte. Ltd., and SPIL Ventures.
The pilot project will be conducted on approximately 10 hectares of land in Tapin Regency over a five-year period from 2026 to 2031. Activities will include cultivation trials, growth data collection, and evaluation of pongamia’s viability for biofuel production and carbon credit generation.
Pongamia is a leguminous tree whose seeds contain 30%–45% non-edible oil, making it suitable for biofuel production without competing with food supply. The plant is well-suited to tropical and subtropical climates, including regions across Southeast Asia.
The consortium will also assess the feasibility of utilizing degraded land, such as former coal mine sites, for sustainable biomass production. Key areas of evaluation include cultivation suitability, supply chain development, and challenges for future commercialization.
Technical support for the project will be provided by Badan Riset dan Inovasi Nasional (BRIN) and a Japanese national university, particularly in plant cultivation and seed production.
The initiative is expected to contribute to decarbonization efforts by developing alternative biofuel sources while promoting land rehabilitation and carbon sequestration. The consortium said insights from the pilot phase will inform potential large-scale commercialization in the future. ***
