KIS Group: turning waste into cleaner fuel in Indonesia
Country: Indonesia Sector: Bioenergy and circular renewable fuels
Climate finance is often associated with solar power, wind energy or electric mobility. KIS Group shows another important part of the climate transition: turning waste streams into useful energy.
KIS Indonesia Bioalternatives Pte. Ltd. supports the development of bioenergy infrastructure in Indonesia by financing BioCNG projects that convert industrial and agricultural waste into renewable fuels. The company’s projects contribute to greenhouse gas emission reductions by capturing methane emissions and replacing fossil fuels in industrial use. They also support more circular and resource-efficient industrial systems.
Market context: turning palm oil waste into BioCNG
Indonesia is one of the world’s largest palm oil producers. The sector generates substantial volumes of organic waste. One important by-product is Palm Oil Mill Effluent, which must be treated before discharge and can cause environmental harm if not managed properly.
At the same time, Indonesia is seeking to expand its renewable energy mix and reduce emissions across key industrial sectors. This creates a strong case for solutions that can turn waste streams into useful energy.
BioCNG, a cleaner gaseous fuel produced from organic waste, is particularly relevant in this context. It offers an alternative to fossil fuels and can be used by commercial and industrial offtakers seeking to reduce their carbon footprint while managing energy costs.
Climate finance solution
KIS operates at the intersection of waste management, renewable fuel production and industrial decarbonisation. Its model addresses a real operational need on both sides. Palm oil mills need reliable solutions to manage waste and comply with environmental requirements. Industrial offtakers need cleaner energy solutions that support their decarbonisation targets.
KIS is a Singapore-based clean technology company with close to two decades of experience in waste-to-energy, water and wastewater solutions across South and Southeast Asia. Founded in 2006, the group has delivered over 60 projects across multiple countries and sectors.
Its strongest operational footprint has been in India and Indonesia, where it has developed expertise in working with palm oil-related waste streams and industrial offtakers. The company also operates a manufacturing facility in Bangalore, India, which supports quality control, cost efficiency and reliable delivery of key project components.
Capital for long-term climate infrastructure
Historically, KIS has operated mainly as an engineering, procurement and construction provider, designing and delivering turnkey waste-to-energy and treatment systems for industrial clients.
With the support of responsAbility’s financing, the company is expanding into a Build, Own, Operate and Transfer model for BioCNG plants in Indonesia. Under this approach, KIS is responsible for engineering, financing, construction, commissioning, operations and maintenance, while clients benefit from cleaner energy without having to build and operate the assets themselves.
This is an important step in the company’s development. It allows KIS to move from delivering projects for others to building and operating its own long-term portfolio of waste-to-energy assets. The model links waste management, renewable fuel production and industrial demand in one integrated structure.
Why it matters
KIS contributes to climate mitigation in two important ways. First, its projects capture methane emissions from organic waste streams that would otherwise be released or inefficiently managed. Second, the resulting BioCNG replaces fossil fuels in industrial use.
This makes KIS a strong example of climate-relevant infrastructure in a less crowded but highly relevant part of the transition. It connects waste management, methane capture, renewable fuel generation and industrial decarbonisation in one operating model.
KIS illustrates how climate finance can move beyond the more familiar areas of renewable power and electric mobility. It shows how capital can support practical infrastructure in more complex segments of the climate transition, where technical expertise, local execution capacity and suitable long-term financing are critical to implementation.
KIS also illustrates the role of climate finance in supporting circular resource use. By converting environmental liabilities into productive inputs, the company helps make industrial systems cleaner, more efficient and more resilient.
These projects aim to capture methane emissions that contribute to climate change and convert them into green fuel. By doing so, they help diversify Indonesia’s energy mix through locally produced renewable fuels while supporting more efficient waste management.
K. R. Raghunathan Founder and CEO, KIS Group
KIS brings together waste management, renewable fuel generation and industrial decarbonisation in one integrated model. We see strong relevance in a company that can turn complex environmental challenges into scalable infrastructure solutions with clear climate value on the ground.
Kewal Shah Senior Investment Officer, Climate Infrastructure Investments, responsAbility
Sources and explanations
responsAbility, “responsAbility to Invest up to USD 23 Million in KIS Group to Expand Bio-Energy Portfolio”, 2 July 2025. Source for: Singapore-based company, waste-to-energy and related sectors, nearly two decades of experience, over 18 years of experience in waste treatment, South and Southeast Asia, Palm Oil Mill Effluent, Empty Fruit Bunches, BioCNG, water and wastewater treatment systems, projects across India and Indonesia, over 60 projects, BOOT-model bioenergy plants in Indonesia, methane capture and conversion into green fuel.
responsAbility investment documentation. Source for: up to USD 9 million investment amount, if this figure is retained in the article. This figure must be confirmed before publication, as the public responsAbility press release refers to an investment of up to USD 23 million.
KIS Group / responsAbility investment documentation. Source for: founded in 2006, more than 50 projects, manufacturing facility in Bangalore, and any company-specific details not covered by the public responsAbility press release.
BioCNG means compressed biogas. It is a cleaner gaseous fuel produced from organic waste streams and can be used as an alternative to fossil fuels in transport or industrial applications.
Palm Oil Mill Effluent, or POME, is wastewater generated during palm oil milling. If not properly treated, it can create environmental harm. It can also be used as a feedstock for biogas and BioCNG production.
Methane is a powerful greenhouse gas. Capturing methane from organic waste streams and converting it into useful energy can help reduce climate impact.
BOOT stands for Build, Own, Operate and Transfer. It is an infrastructure model in which a company builds and operates an asset for a defined period before transferring it under agreed terms.