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R.E.A Holdings PLC

20 JUL 2014
REA’S THIRD MILL SWITCHES TO RENEWABLE ENERGY

One of the key measures adopted by REA to reduce its own greenhouse gas (“GHG”) emissions is the installation of methane capture facilities at Perdana (“POM”) and Cakra oil mills (“COM”). If palm oil mill effluent (“POME”) is treated in the traditional open pond system significant amounts of methane, a potent GHG, are released into the atmosphere. However, by capturing this gas and converting it to electricity REA is able to generate enough electricity to meet the needs of the mills, offices, workshops and employee housing within the REA Kaltim estates. Although REA’s third mill, Satria oil mill (“SOM”), does not yet have its own methane capture facilities, the completion of an extension to the existing grid means that it is now being supplied by the electricity generated at the COM methane capture facility. This will help to reduce both the carbon footprint and running costs of SOM, which was previously reliant on diesel powered generators for electricity.

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20 Jul 2014