Kaltim Methanol Industry Utilises Pupuk Kaltim's CO2 for Low-Emission Methanol Production
PT Kaltim Methanol Industri (PT KMI) supports Indonesia’s emission reduction targets in the Nationally Determined Contribution (NDC), aligning with global commitments to the Paris Agreement. One such effort is through collaboration with Pupuk Kaltim Group in supplying carbon dioxide (CO2).
In this partnership, KMI initiates the use of CO2 as an additional raw material to boost methanol production at its plant. Meanwhile, Pupuk Kaltim serves as the CO2 material supplier, produced from its manufacturing processes, and PT Kaltim Industrial Estate (KIE) provides the infrastructure for CO2 distribution lines within the industrial zone to facilitate the delivery process.
This collaboration forms part of joint efforts to promote more sustainable carbon management, while strengthening the industry’s contribution to a low-emission energy transition. It represents a strategic step in line with KMI’s vision of contributing to sustainable energy and a better quality of life.
As a company committed to sustainability principles, KMI believes this CO2 supply partnership is not only operationally beneficial but also part of transforming the industry into a leading methanol supplier in Asia towards greener, low-emission processes.
As is known, Pupuk Kaltim produces CO2 from ammonia production processes, part of which is used as a raw material for urea fertiliser production. However, a portion of this CO2 remains underutilised.
Through this partnership, that CO2 will be repurposed as a strategically valuable raw material for the energy sector, particularly for methanol production by KMI. The collaboration is projected to reduce CO2 emissions by up to 27,000 tonnes per year.
This initiative also demonstrates a paradigm shift in industrial emissions management. Carbon dioxide, previously released into the atmosphere, can now be repurposed as a raw material for syngas or low-carbon methanol synthesis, supporting energy efficiency while reducing greenhouse gas impacts.