A Singapore-based bioenergy firm, Aligned Energy, has signed two memoranda of understanding (MOUs) with Indonesian partners to establish large-scale biofuel production and land restoration projects.
The agreements mark the first push by Aligned Energy, which was formed in 2024, to develop sweet sorghum plantations and biomass-to-fuel projects across Indonesia.
Sweet sorghum can be used as biofuel, producing lower emissions than traditional diesel. The fast-growing plant can also be used as a feedstock for bioethanol and as “green” naphtha, a key ingredent for plastics currently in short supply as a result of the Iran war.
Under the first MOU with PT Beon Parama Energi (PT BPE), Aligned Energy plans to cultivate sweet sorghum on degraded former mining sites.
Bintan has been affected by bauxite mining, which leaves red scars in the earth visible from space [cick to enlarge]. One of the proposed sites for Aligned Energy is Kelong Island. Image: Google Earth
The company aims to develop around 2,000 hectares of plantations on exhausted mining land in Bintan and nearby islands such as Kelong, and is ultimately aiming to produce up to 500 million litres of green diesel over 10 years across multiple sites, according to documents seen by Eco-Business.
It is positioning the initiative as both a renewable energy project and a contribution to mining companies’ regreening obligations.
Aligned Energy is led by Singaporean citizen Jean-Jacques Lavigne, who has worked in Southeast Asia for almost 30 years, most recently in fuel procurement for the super yachts industry.
PT BPE is partly backed by fuel distribution company Parama Energi and Capitol Group, a Jakarta-based conglomerate involved in property, plantations and trading. It is led by founding director Firman Suryadi.
Aligned Energy CEO Jean-Jacques Lavigne (right) and PT Beon Parama Energi founding director Firman Suryadi (left)
A second MOU with PT Cipta Jagat Lestari, an Indonesian advisory and investment firm, expands the scope to integrated biomass-to-fuels projects, with plans to establish partnerships with major national energy players.
“The opportunity lies in building a scalable ecosystem – from sustainable feedstock sourcing with local communities to delivering low-carbon fuels at industrial scale,” Lavigne said in a statement shared with Eco-Business.
The partnerships align with Indonesia’s push to strengthen energy security and accelerate its transition to lower-carbon fuels, while creating new income streams for rural communities through structured biomass supply chains, the company said.
“Our role is to de-risk early-stage development by aligning stakeholders across land access, feedstock aggregation, permitting, and strategic partnerships,” said Yoga Adhi Prabowo, president director of PT Cipta Jagat Lestari.
The project remains at an early stage and is seeking investment. Aligned Energy has yet to develop plantations at commercial scale, with only a test site established in Kijang, Bintan. The company has secured letters of intent from potential buyers but no binding offtake agreements.
Indonesia is one of the world’s biggest markets for biofuels, mainly driven by palm oil derivatives. The government has made biofuels central to its energy security strategy to reduce reliance on imported diesel while supporting domestic agriculture. On Monday, Indonesia’s energy ministry announced a new timeline for the implementation of a biofufel blending mandate, with biodiesel users required to shift to a B50 standard – meaning 50 per cent of palm oil-based fuel – by 2028.
The Riau archipelago has been positioned as a clean energy hub for Indonesia, with cross-border projects planned to supply Singapore with renewable energy, such as the recent S$50 million deal to export hydrogen and solar to the city-state.
The region’s green energy pivot has been blighted by conflict with local communities over land. The Rempang Eco-City project, a glass and solar initiative covering 7,000 hectares of Rempang Island near Batam, sparked community protests amid reports of forced evictions.
