Clustered Biomethane Development Targets Production of 830,000 MMBtu per Year
PT reNIKOLA Primer Energi (RPE) is developing a clustered biomethane ecosystem that integrates renewable gas sources from eight palm oil mills owned by PT Perkebunan Nusantara IV (PTPN IV), with production capacity projected to exceed 830,000 MMBtu per year. The project, valued at approximately US$40 million, represents a step towards bringing biomethane derived from palm oil industry waste into the gas distribution network and supplying the energy needs of industrial consumers in Indonesia.
Chief Executive Officer/Director of PT reNIKOLA Primer Energi, Amran Yusof, said the development is supported by a long-term compressed biomethane gas (CBG) sale and purchase agreement with PT Pertagas Niaga (PTGN), a subsidiary of PT Pertamina Gas (PERTAGAS).
“This agreement is a significant achievement in our efforts to optimise the value potential of biomethane in Indonesia. By synergising raw material suppliers, gas infrastructure providers, and long-term market demand, we are building a scalable biomethane ecosystem that demonstrates how agricultural waste can be transformed into a reliable renewable energy source,” said Amran recently.
Under the scheme, PTGN will be the buyer or offtaker of CBG produced by PT reNIKOLA Primer Energi for 15 years. The renewable gas will subsequently be distributed to industrial consumers using the existing natural gas distribution network.
The model is an important part of developing the biomethane market because it brings together supply from multiple production facilities with industrial demand through existing gas infrastructure.
PT reNIKOLA Primer Energi will utilise palm oil mill effluent (POME) from eight PTPN IV mills as the source for biomethane production. Clustered development allows production from multiple locations to be aggregated into a single supply system before being fed into the gas network.
To support distribution, PERTAGAS will build a dedicated biomethane injection station around the Sei Mangkei Special Economic Zone (KEK). The facility will serve as the connection point between biomethane production and the gas distribution network, enabling renewable gas to reach industrial consumers without having to build an entirely new distribution network.
President Director of PT Pertagas Niaga, Toto Yulianto, said integrating biomethane into the existing network opens up a low-carbon energy alternative for the industrial sector.
“Renewable gas has an important role in supporting Indonesia’s energy transition, particularly for industrial consumers who require low-carbon energy solutions. Through this collaboration, we are creating a pathway for biomethane to be integrated into the existing gas network, expanding access to cleaner energy while optimally utilising existing infrastructure,” said Toto.
According to him, in addition to increasing renewable energy supply, PT reNIKOLA Primer Energi’s project is projected to reduce greenhouse gas emissions by approximately 320,000 tonnes of CO2 equivalent per year. The emission reduction comes from capturing methane gas produced from POME that previously had the potential to be released into the atmosphere.
According to the company’s calculations, the emission reduction is equivalent to avoiding the burning of approximately 161 million kilogrammes of coal each year. The project is also expected to create hundreds of jobs during its development and operation and provide economic benefits to the surrounding areas.
President Director of PTPN IV, Jatmiko, said utilising POME to produce biomethane provides an opportunity for the palm oil industry to generate economic value while reducing emissions from its production activities.
“This collaboration reflects our commitment to enhancing the sustainability principles of our operations while creating added value from existing resources. By converting methane emissions from palm oil mill effluent into renewable energy, we are demonstrating how the palm oil industry can make a tangible contribution to low-carbon development in Indonesia,” said Jatmiko.
The development positions PT reNIKOLA Primer Energi not only as a biomethane producer but also as a connector between plantation waste sources, gas network infrastructure, and the low-carbon energy needs of industry. The scheme, with a guaranteed buyer for 15 years, also provides a commercial foundation for developing biomethane on a larger scale in Indonesia.