Pertamina NRE develops biogas-based bio-methanol ecosystem

Pertamina New & Renewable Energy (Pertamina NRE) is developing an end-to-end bio-methanol ecosystem based on biogas in Indonesia through three strategic agreements.

Pertamina NRE President Director John Anis said in a statement in Jakarta on Wednesday that the three agreements comprise a Joint Development Agreement (JDA) with Singapore-based technology company CRecTech Pte. Ltd., a Heads of Agreement (HoA) with PT Pertamina Petrochemical Trading (Pertachem), and a Memorandum of Understanding (MoU) with Pertamina International Marketing & Distribution Pte. Ltd. (PIMD).

“This signing is not merely ceremonial, but concrete proof that we are building a complete value chain, from production with CRecTech, domestic offtake with Pertachem, to opening a pathway to the international maritime fuel market with PIMD,” said John.

Through the JDA with CRecTech, Pertamina NRE will develop a biogas-to-bio-methanol pilot facility in the Sei Mangkei Special Economic Zone (KEK), North Sumatra.

The facility, with a capacity of approximately 50 tonnes of bio-methanol per year, will utilise biogas derived from Palm Oil Mill Effluent (POME) at Pertamina NRE’s Sei Mangkei biogas power plant.

CRecTech’s CRecREF catalyst technology enables the conversion of biogas into methanol to be carried out in two stages, compared with the conventional process which requires four stages, with the potential to reduce production costs by up to 50 percent.

“The development of this pilot facility will serve as the basis for developing projects on a commercial scale,” he said.

In terms of commercialisation, Pertamina NRE signed an HoA with Pertachem to open a pathway for bio-methanol uptake in the domestic market, including through discussions on a framework towards a long-term offtake scheme in the commercial phase.

John said this step is relevant amid national methanol demand approaching two million tonnes per year, with around two-thirds still met through imports.

Meanwhile, through the MoU with PIMD, Pertamina NRE is exploring opportunities for the supply and marketing of bio-methanol as marine fuel (bunkering) in the international market.

The initiative is in line with the global maritime sector’s decarbonisation drive, which is encouraging the use of low-carbon fuels.

John added that this initiative also opens opportunities for Indonesia to contribute to the supply of low-carbon marine fuel in the global market.

PT Pertamina Petrochemical Trading President Director Aribawa said the development of bio-methanol has the potential to open a new business foundation that can grow in the future.

“For Pertachem, this agreement is a concrete step to build a new business foundation that can continue to develop,” he said.