PGN Advances Biomethane Integration into Indonesia’s Energy Supply

Perusahaan Gas Negara (PGN) is taking a major step toward integrating biomethane into Indonesia’s natural gas infrastructure, aiming to boost the country’s low-carbon energy supply. The project, developed in collaboration with PT Toyota Tsusho Indonesia (TTI) and PT KIS Biofuels Indonesia (KIS), is nearing completion in South Sumatra. The facility, which uses palm oil mill waste as its primary feedstock, is expected to produce around 150,000 MMBTU of biomethane annually.

PGN attended the groundbreaking ceremony for the biomethane plant on October 5. The facility will convert organic waste from palm oil mills into biomethane, which will then be distributed through PGN’s existing pipeline network. The company will act as both the primary buyer and transporter, ensuring the biomethane reaches industries like Toyota Motor Manufacturing Indonesia (TMMIN) and other domestic users.

Fajriyah Usman, PGN’s Corporate Secretary, highlighted the project’s significance in advancing Indonesia’s energy self-sufficiency and industrial decarbonization efforts. The biomethane initiative not only helps reduce greenhouse gas emissions but also strengthens the downstream development of the palm oil sector by repurposing waste into valuable energy. Usman expressed hope that this model could be replicated in other palm oil-producing regions.

The project aligns with Indonesia’s Nationally Determined Contribution (NDC) targets and its goal of achieving net-zero emissions by 2060. By leveraging existing natural gas infrastructure, industries can transition to biomethane with minimal adjustments, supporting the country’s growing decarbonization efforts in the industrial sector.