JAKARTA – The state-owned plantation company PT Perkebunan Nusantara IV PalmCo, has started the development of the Compressed Biomethane Gas (CBG) plant using liquid palm oil waste as raw material, which is the first of its kind in Indonesia.
The pioneering project is being developed by PT Perkebunan Nusantara IV PalmCo, the subholding company of state-owned plantation company PTPN III, with a collaboration with its Malaysian partner PT reNIKOLA Primer Energi.
A groundbreaking ceremony to mark the start of the plant project development was held in the palm oil mill (PKS) of Tinjowan, Simalungun regency of North Sumatera, on Friday (12/9/2025). “The development marked a new breakthrough in using palm wastes for the production of clean energy while reducing potential impacts to the environment.” PalmCo President Director Jatmiko K. Santosa said in a press statement in Jakarta on Monday (15/9/2025).
He said the plant will have a gas production capacity of around 162,000 MMBTU per year. “It is also potential to reduce carbon emissions up to 30,000 tons of CO₂ per year, equivalent to the emissions of thousands of vehicles.
The biomethane gas is produced by the plant by processing the Palm Oil Mill Effluent (POME), the liquid waste of the palm oil mills, which had become an environmental challenge for the palm oil industries.
Through the purification process, the biogas is converted to quality biomethane equal to natural gas. It has also become as an exemplary of circular economic practices, converting wastes to clean energy with economic value.
The strategic biogas plant is scheduled to be completed within 14 months and is expected to start full operation during the fourth quarter 2026. Its production of clean energy will be supplied to PT Pertagas Niaga (PTGN), a subsidiary of PT Pertamina Gas Negara (PGN), with a purchase contract scheme of 10 years and Build-Own-Operate-Transfer (BOOT) model.
Jatmiko said the plant project development is in line with the decarbonization roadmap of PalmCo, which targets to reduce emissions up to 54.46 percent based on business as usual scenario until 2030.
“We’ve planned to develop 20 similar biogas plants under PalmCo,” said Jatmiko.
Meanwhile, Operation Director of PT reNIKOLA Primer Energi, Amran Yusuf expressed his optimism on the synergy. He believes that collaboration with PalmCo will accelerate the development of green energy in the plantation sector of Indonesia.
“The CBG plant is not just technological innovation, but also commitment to reducing carbon trace and supporting the transition toward sustainable energy in Indonesia,” said Amran.
Amran said that looking forward the initiative is expected to become a model for palm oil industries to contribute to the reduction of emissions and development of alternative energy.
“PalmCo’s efforts to optimize the use of wastes as raw material to produce clean energy has strengthened its position as green energy pioneer in the plantation sector of Indonesia,” said Amran. (*)
