PGN to Collaborate in Palm Oil-Based Biomethane Plant, with Potential Investment of US$5 Million per Plant

Palm Oil Magazine
Doc. Special / In an effort to harness environmental sources of energy, PT Perusahaan Gas Negara Tbk. (PGAS) or PGN plans to tap into the potential of palm oil mill effluent (POME) to produce biogas.

PALMOILMAGAZINE, JAKARTA — In an effort to harness environmental sources of energy, PT Perusahaan Gas Negara Tbk. (PGAS) or PGN plans to tap into the potential of palm oil mill effluent (POME) to produce biogas. POME is a byproduct derived from the extraction process of crude palm oil (CPO). By leveraging this material, PGN aims to contribute to renewable energy production and maximize the sustainability of the palm oil industry.

After having further process of biogas, biomethane would be compressed to be compressed natural gas (CNG) and would be distributed to many customer industries, hospitals, hotels, and modern markets.

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To realize the plan, PGN opens the chance to cooperate in 3 to 4 biomethane plant development projects in Sumatera with the whole investment could be reaching US$ 20 million or about Rp 299,6 billion. It was informed at Pertamina Investor Day 2023 on 3 – 4 July 2023. Each project could spend investment about US$ 4 million to US$ 5 million or about Rp 59,6 billion – Rp 74,5 billion.

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Director of Business Development and Strategy PGN, Harry Budi Sidharta said, biomethane production capacity could be reaching up to 432.000 million metric british thermal unit (MMBtu) per year.

Harry also said, the company would transport biomethane from the production center in Sumatera to potential consumers in Sumatera to Java by using pipe gas network. “The project would be in Sumatera where many palm oil plantations develop. PGN has transmission gas pipe in Sumatera and would transport biomethane by using gas pipe network from Sumatera to Java and Sumatera as well,” Harry said, as quoted from press conference, Tuesday, (4/7/2023).

Biomethane Plant Development project would be finished by the late of 2023. By having partnership in the project, the external parties would get profits from Internal Rate of Return (IRR) and demands’ guarantee from the customers. “This would be the opportunity to develop biomethane as renewable source of energy in Indonesia,” he said.

For it has the same characteristic as natural gas, biomethane could be advantaged as vehicle fuel, electricity generation, and heater. Biomethane is better in carbon track.

Prior, Director of Business Development and Portfolio Strategy PT Pertamina, Atep Salyadi Dariah Saputra said, the company has many initiative strategies that need support and collaboration with potential partners and investors.

“Partnership and collaboration would be significant for us. There would be site visit directly to the facility of Pertamina Geothermal Energy in Kamojang and Kilang Pertamina Internasional in Cilacap. Everyone would directly see everything that the commitment of PT Pertamina is not only oil and gas but also in renewable energy,” Atep said. (T2)

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