Pertamina Gas Subholding Pioneers the Utilization of 36,500 MMBTU of Bio-CNG for Retail Customers in Indonesia

Jakarta – PT PGN Tbk, as Pertamina’s Gas Subholding, continues its efforts to expand the utilization of biomethane derived from Palm Oil Mill Effluent (POME) in Indonesia. For its implementation, PGN involves its subsidiary, PT Gagas Energi Indonesia (Gagas), to follow up on the collaboration with PT KIS Biofuels Indonesia (KIS) for the utilization of compressed biomethane (Bio-CNG).

The collaboration for Bio-CNG utilization targeting retail customers is the first of its kind in Indonesia. Initially, KIS will supply approximately 36,500 MMBTU to Gagas in the first year, with the volume expected to increase by up to 100% in the fifth year.

PGN’s Director of Strategy and Business Development, Rosa Permata Sari, emphasized that this collaboration is a follow-up to the MoU signed between PGN and KIS during the G20 Summit in Bali in 2022. “This partnership reflects PGN’s commitment to expanding the use of environmentally friendly energy by optimizing Indonesia’s potential resources. It serves as an example of utilizing sustainable renewable energy sources. The Bio-CNG collaboration between Gagas and KIS for retail customers marks a new step in supporting the Government’s goal of achieving Net Zero Emissions by 2060,” said Rosa on January 11, 2024.

Looking ahead, PGN envisions Bio-CNG as a viable option to enhance natural gas supply in Sumatra, Kalimantan, and surrounding regions. The similar characteristics of Bio-CNG to natural gas distributed by PGN allow for flexible swapping mechanisms between these commodities, including leveraging PGN’s existing infrastructure. The Bio-CNG project has significant potential as a renewable energy source to reduce dependence on fossil fuels and promote environmental sustainability.

Gagas formalized its partnership with KIS at the end of 2023, further strengthened by a meeting between PGN, KIS, and Gagas on Wednesday (January 10, 2024). The meeting, held at PGN’s Headquarters in Jakarta, was attended by PGN’s Director of Strategy and Business Development, Rosa Permata Sari, KIS Director K.R. Raghunath, and Gagas President Director Muhammad Hardiansyah.

Under the Bio-CNG utilization partnership, KIS will process palm oil mill effluent to produce gas with characteristics similar to natural gas. This gas will be compressed and utilized by Gagas for distribution to commercial and industrial customers.

K.R. Raghunath, Director of KIS, stated that capturing methane from palm oil mill effluent through this collaboration will strengthen the biomethane industry in Indonesia and help reduce greenhouse gas emissions. “This project will address emission challenges and support Indonesia in achieving its Net Zero Emissions target,” said Raghunath.

Gagas President Director Muhammad Hardiansyah added, “Gagas remains committed to its role as a provider of environmentally friendly energy through the Beyond Pipeline mode. This time, the supply we receive comes from a more sustainable source—palm oil mill effluent processed by KIS into biomethane, which we will transport in the form of Bio-CNG. The initial phase of this collaboration will take place in Pekanbaru, Riau. If successful, the partnership will be replicated in other regions across Indonesia, such as Bangka Belitung, Sumatra, and Kalimantan.”

“This initiative is expected to generate significant results that benefit not only the companies involved but also the community by utilizing renewable energy. Bio-CNG can be a long-term energy solution, with transportation and commercial applications making it viable for retail. This could potentially open up services to new economic areas that were previously underserved by natural gas pipelines. We hope this effort contributes to national economic development and creates a multiplier effect for society,” Rosa concluded.

Kembali Ke Beranda