In a first-of-its-kind initiative, Unilever has started replacing natural gas at UOI with biomethane derived from palm oil mill effluent

Unilever has begun using biomethane produced from palm oil waste to power its operations in Indonesia, marking a significant step towards reducing greenhouse gas (GHG) emissions in its global supply chain.

The move comes after the expansion of Unilever Oleochemical Indonesia (UOI) in Sei Mangkei, North Sumatra, which has become the company’s largest GHG-emitting site worldwide. Determined to meet its goal of cutting Scope 1 and 2 emissions by 100 per cent by 2030 (vs. 2015), Unilever is taking decisive action by shifting to renewable thermal energy.

In a first-of-its-kind initiative, Unilever has started replacing natural gas at UOI with biomethane derived from palm oil mill effluent. This is Indonesia’s first commercial offtake of biomethane and represents a breakthrough for scaling renewable energy solutions in a market still dominated by fossil fuels.

Beyond reducing emissions, this initiative underscores Unilever’s commitment to a more transparent and traceable palm oil supply chain. By sourcing directly from producers and mills and expanding its refining capacity in-house, the company is advancing its ‘no deforestation’ pledge while helping to drive systemic change in the palm oil industry.

“When expanding our operations, we must be doing it sustainably. By partnering with KIS, we’ve been able to innovate a solution that will cost-effectively lower our emissions as we continue to grow,” says Saikrishna Devarakonda, Managing Director of UOI.