PGN Biomethane Project in South Sumatera: Harnessing Palm Oil Waste for Clean Energy

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PGN Biomethane Project in South Sumatera: Harnessing Palm Oil Waste for Clean Energy. Photo by: PGN

PALMOILMAGAZINE, JAKARTA – PT Perusahaan Gas Negara, Tbk (PGN), a sub-holding of Gas Pertamina, has partnered with JGC Holdings Corporation (JGC), Osaka Gas Co., Ltd, and INPEX CORPORATION to conduct an in-depth study on the potential commercialization of biomethane derived from palm oil mill effluent (POME) in Indonesia. The results of this study are expected to be announced by late September 2023.

This innovative project aims to address the issue of POME waste, which is rich in organic materials and emits methane, by utilizing it as a source of clean energy. The biomethane produced could be utilized to meet the industrial gas needs and cater to consumers in Indonesia.

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As the world’s largest palm oil producer and exporter, Indonesia’s economy significantly relies on palm oil, contributing to 4.5 percent of the gross domestic product and employing nearly 3 million individuals. However, the palm oil industry generates waste, specifically POME, which poses environmental challenges. POME, laden with organic material, emits methane, a greenhouse gas that is 25 times more potent than CO2, thus prompting the need for sustainable solutions.

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

As Palmoilmagazine.com quoted from the official page of PGN, the project would involve consortium among PGN, JGC, Osaka Gas, and INPEX to get technical assessment about supply chain, production, and supply of biomethane. Biomethane production from POME in South Sumatera would be scheduled in 2025. In this project, gas pipe network of PGN would be used to distribute biomethane production from palm oil POME.

Director Business Development and Strategy, PGN, Harry Budi Sidharta said that PGN would provide pipeline injection and natural gas pipes that have good access with POME as the material. Biomethane from the project would fulfill not only industrial gas and gas for consumers in Indonesia, but also would be the proof of PT Pertamina Group and project partners to encourage renewable energy development.

Biomethane production would capture methane gas which is usually released to the air (atmosphere) from POME. The methane gas would be purified to be biomethane gas that would be distributed through natural gas pipes and other existing infrastructures. It means, the project would produce clean source of energy and reduce methane gas and carbon emission.

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With the potential expansion in South Sumatera and Kalimantan, the project delivers hoped to procure bio-LNG liquified from biomethane as bunker fuel, bio-LNG export to Japan and other countries, and get other business chances. The related parties involved in the project would be taken as proactive thing to support net zero emission initiative in Asia.

JGC, as part of the consortium, accelerate energy transition initiative as same as its long term – management vision which was planned in May 2021. The company has strong track record in Indonesia by developing LNG plant and others. The collaboration with PGN in biomethane project showed that JGC is committed to minimize emission and support decarbonization.

Osaka Gas also played active role to develop technology and service to support decarbonization. In its experiences in biomethane pipe injection and selling natural gas, Osaka Gas contributed to promote biomethane use in Indonesia and Japan to minimize Co2 emission.

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INPEX, as the partner in the project, also played its role to reform energy structures heading to net zero emission in 2050. With the focus on clean LNG bunkering supply, INPEX contributed to develop responsive business use that has something to do with climate change in Indonesia.

Biomethane project would be the significant thing to solve POME waste and real initiative to take advantages on renewable source to realize energy sustainability. With the supports from PGN, JGC, Osaka Gas, dan INPEX, the project is hoped to be the sample for other industries to chance waste to be clean source of energy, minimize green-house gas emission, do better for the clean and sustainable future. (T2)

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