The First Commercial Biomethane Factory In Indonesia Officially Operates, Its Capacity Is 387,500 M3

JAKARTA - Indonesia officially has its first commercial bioCNG pabio. The BioCNG/Biomethane factory, located in Bujakan POM, Bhagahan Village, Kuala District, Langkat Regency, North Sumatra Province, was inaugurated after going through the construction process for approximately three months.

This factory was built by PT KIS Biofuel Indonesia part of the planned construction of 25 (twenty five) Bio-CNG factories with a capacity of 15,500 M3 BioCNG per day, with a total of 387,500 M3 Bio-CNG per day, which is expected to result in a reduction of 3.7 million tons of Co2 per year and produce 3.7 million carbon loans per year.

"We really appreciate the success of the first BioCNG Plant Development project that has been implemented by KIS Group in Langkat. We hope that this BioCNG plant will run well and make a significant contribution in supporting the energy transition in Indonesia, especially in the context of utilizing biogas into energy," said Director of Bioenergy, Directorate General of New Energy, Renewable and Energy Conservation (EBTKE), Ministry of Energy and Mineral Resources (ESDM), Edi Wibowo representing the Director General of EBTKE of the Ministry of Energy and Mineral Resources in his remarks quoted Wednesday 24 January.

Edi said, in supporting the energy transition program, the Government of Indonesia through various documents and policies has prepared targets, strategies and programs for utilizing new and renewable energy in stages, measurable and quickly. Among them is by setting a target for the utilization of EBT of 23 percent by 2025 as stated in the National Energy Policy.

Edi said, the Indonesian government through the Ministry of Energy and Mineral Resources has also compiled the National Energy Grand Strategy (GSEN) as an effort to reduce dependence on fossil energy consumption, including breakthroughs that are currently in the study stage, namely the use of large-scale biogas or industry as a substitute for LPG, namely Bio-CNG or CBG (Compressed Biomethane Gas).

To develop BioCNG, the Ministry of Energy and Mineral Resources made various efforts, such as issuing SNI 9164 Biometanas for Fuel in 2023 with BSN, as well as conducting live and launching Business Licensing for KBLI 35203 for the procurement of bio gas that oversees the licensing of biogas fuel as fuel for the Ministry of BKPM.

In addition, the Ministry of Energy and Mineral Resources cooperates with several partners in order to develop the BioCNG Project through plant development projects, work on pre-feasibility studies, economic studies, assessment of trade management policies and industrial studies as well as BioCNG raw materials.

Edi hopes that in the not too distant future, BioCNG can be used to replace non-subsidized LPG for the industrial and commercial sectors (12 and 50 kg), so that it can be one of the solution options in the Government's efforts to reduce LPG imports.