Pertamina, Osaka Gas, JGC Holdings, and INPEX Sign Joint Study Agreement on Bio-methane Derived Clean Gas Project

May 2022

PT PERTAMINA (Pertamina), Osaka Gas Co., Ltd. (Osaka Gas), JGC Holdings Corporation (JGC), and INPEX CORPORATION (INPEX) announced that they have entered into a joint study agreement on exploring the feasibility of clean natural gas and liquefied natural gas (LNG) project in Indonesia. The project involves the production of bio-methane from palm oil mill effluent (POME). The project is expected to support the Asia Energy Transition Initiative (AETI), a plan unveiled by the Government of Japan in 2021 that aims to help achieve sustainable economic growth and carbon neutrality in Asia through energy transitions.

Indonesia is the world’s largest producer and exporter of palm oil. The palm oil industry helps support the employment of approximately three million persons and generates 4.5% of the country’s GDP. POME contains large quantities of organic material resulting in significant methane emissions, which apparently has a 25 times higher impact on global warming than CO2. The project is intended to contain POME-derived greenhouse gas emissions by sequestering methane and converting it to biofuels, contributing to the supply of clean energy in a sustainable manner.

Through this joint study initiative, the parties will analyze the feasibility of the project, including cooperation in the research and development of technologies and solutions pertaining to the production of bio-methane from POME resources located in Sumatra and Kalimantan and supplying to consumers in Indonesia, including Java. The aim of the project is to supply bio-methane through the existing gas grid, meet growing natural gas demand, and contribute to the reduction of Scope 1 emissions of gas consumers in Indonesia. The parties will also assess opportunities for the project to leverage carbon crediting mechanisms and bio-methane certification schemes to secure carbon neutrality. Finally, the joint study will also involve identifying bio-methane/bio-LNG and bunker fuel marketing opportunities, including bio-LNG export to Japan and/or other countries.

Pertamina positions this collaboration as a continuation of several green energy development projects it has developed so far as part of a more comprehensive effort to reduce GHG emissions by 30 percent before 2030. In addition to developing New and Renewable Energy (NRE), this collaborative project helps overcome environmental challenges especially by turning palm oil waste into environmentally friendly energy.

(Source: JGC Holdings Corporation)


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