Pertamina NRE Partners with Singapore's CRecTech to Explore Biomethanol Business
Jakarta – Pertamina New & Renewable Energy (Pertamina NRE) is intensifying its efforts in developing new and renewable energy businesses, as demonstrated by the signing of a Memorandum of Understanding (MoU) on Wednesday (01/04/26) with CRecTech Pte. Ltd. (CRecTech) regarding the exploration of a pilot biogas-to-biomethanol facility in the Sei Mangkei Special Economic Zone (KEK) in Sumatra, Indonesia.
CRecTech Pte. Ltd. is a Singapore-based clean technology company that converts carbon-based gases into high-value chemicals and fuels through its CRecREF™ catalytic technology, with a focus on supporting decarbonisation and green chemistry development.
The signing of this MoU represents a strategic step in promoting the more optimal utilisation of domestic renewable energy resources, particularly biogas, which holds significant potential in Indonesia. This initiative not only opens opportunities for developing next-generation green fuels but also serves as a milestone for significant benefits to Indonesia in the global clean energy supply chain. Furthermore, biomethanol development has the potential to support decarbonisation in the maritime sector while creating added economic value from local resources.
CEO of Pertamina NRE, John Anis, stated that this collaboration is part of the company’s strategy to accelerate the development of clean energy based on local resources.
“This collaboration is a concrete step by Pertamina NRE in accelerating the utilisation of biogas into high-value-added products such as biomethanol. Indonesia has substantial potential, both in terms of market and raw material availability, especially from palm oil waste that has not been optimally utilised thus far. Through partnership with CRecTech, which possesses innovative technology, we are optimistic about building a competitive and sustainable green fuel value chain. Moving forward, we hope this initiative will not stop at the pilot stage but can be scaled up to larger commercial levels, thereby providing tangible impacts on the development of Indonesia’s green energy ecosystem,” said John.
Through this collaboration, Pertamina NRE and CRecTech will conduct a joint study to evaluate the feasibility of developing a pilot biogas-to-biomethanol facility in KEK Sei Mangkei. If the study results show positive potential, the collaboration will proceed with the utilisation of CRecTech’s CRecREF™ catalytic technology at the Sei Mangkei Biogas Power Plant (PLTBg).
“CRecTech’s CRecREF™ technology is specifically designed for applications like this, converting low-quality biogas streams into high-value green chemicals directly at the production site, without the need for large investments like conventional methanol plants. Indonesia has vast biogas potential, and Pertamina NRE is the right partner to transform that resource advantage into commercially viable biomethanol supply. We are pleased to formalise this collaboration and look forward to demonstrating the potential that can be realised in Sei Mangkei,” explained CEO of CRecTech, Kang Hui Lim.
This MoU is also driven by the global acceleration of the transition from conventional marine fuels to more environmentally friendly alternatives, particularly in the shipping sector, which is shifting from conventional fuels to low-carbon fuels. Moreover, Indonesia itself has significant biogas potential, especially from the palm oil sector through the processing of palm oil mill effluent (POME). Pertamina NRE has identified several locations in its portfolio, including Sei Mangkei, which have large-scale raw material availability.
In the future, the development of this integrated biogas-to-biomethanol value chain is expected to position KEK Sei Mangkei as a hub for green fuel production in Indonesia. This initiative not only strengthens Indonesia’s contribution to global emission reduction efforts but also provides tangible benefits to the national economy through job creation, increased investment, and the optimisation of domestic renewable energy utilisation.