JAKARTA - In order to optimize the energy transition to renewable energy and follow-up to the readiness of Biomethane development, PT PGN Tbk as Pertamina Gas Subholding agreed on cooperation in Bio-CNG business development with PT KIS Biofuels Indonesia. The cooperation agreement was made with the signing of a Memorandum of Understanding at the SOE International Conference G20 event in Nusa Dua, Bali, Tuesday, October 18.
PGN and KIS have agreed to carry out a joint feasibility study related to the development of the biomethane business starting from development to the development of biomethanes that can be channeled to customers, both in the form of Bio-CNG and direct injection into the PGN gas pipeline infrastructure.
PGN and KIS also agreed to explore joint investments in the context of building Biomethane factories and other supporting facilities. KIS will provide technical/commercial information to PGN related to the production process of Biomethane, transportation, and Bio-CNG customers," explained the CEO of Pertamina Gas Subholding PT PGN Tbk, M. Haryo Yunianto, in a written statement.
Bio-CNG is a compressed biomethane, one of which is through processing of liquid oil palm mills called Palm Oil Mill Effluent (POME). This waste will endanger the environment because it accounts for greenhouse effects if not processed, but if properly utilized it can be an environmentally friendly source of green energy. Biomethane characteristics are similar to natural gas, so they can be used for vehicles, heating, and electrical generators.
PGN will provide the information needed by KIS Group in the preparation of technical and commercial feasible investment models. With the capability of KIS in the Bio-CNG business, PGN hopes that this collaboration can run smoothly, thereby increasing CNG production in PGN Group and maintaining supply resilience with biomethane.
Bio-CNG can be an option for supply in meeting natural gas needs in the Sumatra region. Bio CNG characters that are similar to gas flowed by PGN allow the flexibility of the swap/exchange mechanism between the two types of commodities, added Haryo.
The next cooperation agreement is regarding carbon certification such as how to obtain it and how to trade it. As is known, carbon certification is one mechanism to encourage the use of clean or renewable energy and minimize carbon emissions.
The development of the Bio-CNG project has the potential to become new and renewable energy that can help reduce dependence on fossil fuels and be more environmentally friendly. With abundant raw materials, Bio-CNG can be utilized in the long term, especially for the development of the national economy which provides multiplier effects for the community.
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