Pertamina Explores Development of Ethanol from Waste Fermentation
PT Pertamina (Persero) is exploring the development of ethanol based on urban waste through a collaboration with LanzaTech, a US technology company that develops technology to convert carbon waste into fuels and chemicals.
The two companies signed a memorandum of understanding at the Offshore Technology Conference in Houston, United States.
“Through this collaboration, we are promoting concrete solutions to turn challenges into opportunities, by converting waste into economically valuable fuel while supporting the energy transition,” said Pertamina’s Deputy Chief Executive Officer Oki Muraza, quoted from a written statement on Thursday, 7 May 2026.
Through this collaboration, Pertamina and LanzaTech will develop waste-to-fuel technology, specifically converting urban waste into ethanol through microbial fermentation processes. Oki assessed that this partnership can address two issues simultaneously: the surge in waste volume and the increasing need for clean energy in Indonesia.
Currently, the national waste volume reaches around 56,600 tonnes per day. On the other hand, ethanol demand is estimated to increase to 2.4 million kilolitres by 2030.
LanzaTech develops microbe-based fermentation technology capable of converting various carbon sources into value-added products, including ethanol. The company has operated commercial facilities in several countries and offers modular technology that can be integrated with existing infrastructure, such as refineries and urban waste management systems.
According to Oki, this collaboration has the potential to create new sources of revenue while improving national waste and energy management efficiency. In addition to supporting the energy transition, the project is expected to strengthen Indonesia’s position as a destination for technology- and innovation-based energy investments.
“Pertamina and LanzaTech also open opportunities for developing similar projects in various major cities in Indonesia,” he said.
LanzaTech Chief Executive Officer Jennifer Holmgren stated that the waste-to-ethanol processing technology enables the development of a circular economy based on waste and low-carbon energy.
This collaboration also opens opportunities for developing new business chains, from waste processing, ethanol production, to the utilisation of derivative products as blended fuels and chemical industry raw materials.