PGN And KIS Biofuels Indonesia To Produce Bio-CNG

BALI – State-owned PT Pertamina Gas Negara Tbk (PGAS) or PGN, a gas subholding company of PT Pertamina, has signed a memorandum of understanding with PT KIS Biofuels Indonesia to produce Bio-CNG from palm oil waste.

Based on the agreement, which was signed on the sidelines of the G20 International Conference of state-owned enterprises (SOE) in Nusa Dua, Bali, on Tuesday, 18 October 2022, the two companies will conduct a joint feasibility study on development of biomethane from palm oil wastes. The biogas will be distributed to customers in the form of compressed biogas (Bio-CNG) or through the gas pipeline infrastructure owned by PGN.

“PGN and KIS also agreed to study the possibility of joint investment in developing a biomethane plant and supporting facilities. KIS will provide technical and commercial information to PGN regarding the production process of biomethane, transportation, and Bio-CNG customers,” said M. Haryo Yunianto, President Director of PGN.

Bio-CNG is a kind of biomethane that is compressed and is developed from the liquid waste of palm oil which is called  Palm Oil Mill Effluent (POME). Without special treatment it is harmful to the environment and affects the climate change. But through a special process it can become bio-gas that is renewable and friendly to the environment. The characteristics of biomethane is quite similar to the natural gas, so that it can be used for vehicles, heaters, and generators.

PGN hopes that the partnership with KIS Group, which has expertise in Bio-CNG business, will increase the supply of gas in the form of Bio-CNG that will then strengthen the national energy resilience.

“Bio-CNG can be one option to fulfill the need of gas in Sumatera. As the characteristics of Bio-CNG is similar to the natural gas distributed by PGN, then it is possible and flexible for customers to swap between the two types of gas,” said Haryo.

The two companies will also seek collaboration on carbon certification, how to get it and trade it at the international market. The carbon certification is one of the mechanisms to push up the use of clean and renewable energy sources as part of global efforts to reduce carbon emissions.

The development of Bio-CNG project as a renewable energy source that is eco-friendly can reduce Indonesia’s dependence on the fossil fuels, which worsen the climate change.

With abundant supply of raw materials in Indonesia as the world’s largest producer of palm oil, the Bio-CNG can be used in the long term to fuel the national economy, while creating the multiplier effect for the benefits of the Indonesian people. (*)

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