CEO of the Sugar Group Companies Gunawan Jusuf discussed the company’s recent agreement with ENGIE.
Gunawan Jusuf and the Sugar Group Companies are working toward Indonesia’s sustainability, particularly on the island of Sumatra. The company recently agreed with ENGIE to construct renewable energy production units in Sumatra.
The contract between The Sugar Group Companies and ENGIE is the first of its kind on the island of Sumatra in Eastern Indonesia. The contract signals the construction of renewable energy power plants on the island.
Gunawan Jusuf explained the companies would join together to fund the construction of renewable energy production units that function via solar energy and biomass. The solar power projects will have a capacity of 300 MW, and the biomass power projects will have a production capacity of 200 MW for a total of 500 MW of power generation. The solar power projects alone will be a $500 million investment, and the total allotted is more than $1 billion. The companies will invest this money over the course of five years, developing renewable energy projects across Sumatra and Eastern Indonesia.
ENGIE and the Sugar Group Companies view this agreement as a way to invest in the future of Sumatra and Indonesia. The projects will help implement Indonesia’s program to reduce climate change and greenhouse gases. Carbon avoidance is estimated at 1.5 million tons of carbon dioxide per year.
This project will result in one of Southeast Asia’s largest solar power parks.
Battling Sumatra’s Haze
Sumatra is currently dealing with a haze phenomenon, and the contract between the Sugar Group companies and ENGIE will help combat this growing issue. The biomass power project uses waste originating from land clearing and agricultural waste as an energy source.
Land clearing via burning is a major cause of haze that can be reduced via these biomass power projects. This project is one of three recent partnership agreements by ENGIE to increase renewable energy developments and microgrids across the country. The hope is for a more sustainable Indonesia, now and in the future.
Signatory Gunawan Jusuf
Mr. Jusuf, the CEO of the Sugar Group Companies, will serve as a signatory for the agreement. The signatory for France is the Deputy Executive Director for Engie, Mr. Didier Holleaux.
Jusuf continuously dedicates himself to the improvement of Sumatra and all of Indonesia.