JAKARTA The construction of the first compressed Biometan Gas Plant (CBG) in Indonesia that utilizes liquid waste from the oil palm mill has officially started.
The project, which was initiated by PT Perkebunan Nusantara IV PalmCo, sub-holding plantations under PTPN III Persero, is expected to be an important milestone in the development of renewable energy from palm oil commodities.
The laying of the CBG factory's first stone at the Tinjowan Palm Oil Factory (PKS), Simalungun, took place last weekend. This factory is the result of a collaboration between PalmCo and PT reNIKOLA Primary Energy, a green energy company from Malaysia.
PalmCo President Director, Jatmiko K. Santosa, said this project is a big milestone for companies in implementing palm oil-based green energy solutions.
"With a production capacity of around 162,000 MMBTU per year, the Tinjowan CBG plant has the potential to reduce carbon emissions to 30,000 tons of CO2 each year, equivalent to the emissions of thousands of motorized vehicles," said Jatmiko in his statement, Monday, September 15.
Jatmiko said that the biometan gas produced comes from processing Palm Oil Mill Effluent (POME), liquid waste has been an environmental challenge for the palm oil industry. Through the purification process, biogas is transformed into a quality biometan equivalent to natural gas.
"This is also an example of circular economic practice, converting waste into clean energy with economic value," he said.
This factory with a strategic investment value is scheduled to be completed in 14 months and will start full operation in the fourth quarter of 2026. The net energy generated will be supplied to PT Pertagas Niaga (PTGN), a subsidiary of Pertamina Gas Negara (PGN), with a 10 year sale and purchase contract scheme and a Build-Own-Operate-Transfer (BOOT) model.
Jatmiko said this step is in line with the PalmCo decarbonization roadmap which targets an emission reduction of up to 54.46 percent of the business scenario as usual (business as usual) until 2030.
\PalmCo itself has already developed new renewable energy through biogas from palm oil waste, starting in 2019 using Palm Oil Mill Effluent from palm oil factories in Riau.
"The groundbreaking of the CBG factory is a starting point to expand similar programs to 20 other factories under PalmCo," said Jatmiko.
In the future, this initiative is expected to be a model for the national palm oil industry to contribute to reducing emissions and developing alternative energy.
" PalmCo's efforts to optimize waste are a source of clean energy while strengthening its position as a pioneer of green energy from the plantation sector in Indonesia," he added.
Meanwhile, the President Director of Operations of PT reNIKOLA Primary Energy, Dr. Amran Yusuf, expressed optimism about this synergy. He believes cooperation with PalmCo will accelerate the development of green energy in the plantation sector.
"The first CBG plant in this plantation SOE is not only technological innovation, but also a real commitment to reducing carbon footprint and supporting a sustainable energy transition in Indonesia," said Amran.
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