Green Energy Acceleration, PGN and KIS Biofuels Indonesia Explore Cooperation in Biomethane Development
Bali, October 18, 2022 – To optimize energy transition to renewable energy and follow up on the readiness to develop Biomethane, PT PGN Tbk, as Pertamina Gas Subholding, has agreed to cooperate in developing the Bio-CNG business with PT KIS Biofuels Indonesia. The cooperation agreement was carried out by signing a Memorandum of Understanding at the SOE International Conference G20 in Nusa Dua, Bali (18/10/2022).
PGN and KIS agreed to carry out a joint feasibility study related to the biomethane business development. It startis from the construction to biomethane development that can be distributed to customers in the form of Bio-CNG or direct injection into PGN's gas pipeline infrastructure.
"PGN and KIS have also agreed to explore joint investment for the Biomethane factory and other supporting facilities. KIS will provide PGN with technical/commercial information related to the Biomethane production process, transportation, and Bio-CNG customers," explained CEO of Pertamina Gas Subholding, PT PGN Tbk, M. Haryo Yunianto (18/10/2022).
One method of producing Bio-CNG, a compressed form of biomethane, is by processing Palm Oil Mill Effluent (POME). This waste will endanger the environment because it contributes to the greenhouse effect if not processed. However, if used correctly, it can be a source of green energy that is environmentally friendly. The characteristics of biomethane are similar to natural gas. Thus, it can be used for vehicles, heating, and electric generators.
PGN will provide the information needed by KIS Group in developing a technically and commercially feasible investment model. With KIS's capability in the Bio-CNG business, PGN hopes this collaboration can run smoothly. Thus, it can increase CNG production in the PGN Group and maintain supply security with biomethane.
"Bio-CNG can be an option to meet natural gas needs in the Sumatra region. The character of Bio CNG, similar to gas flowed by PGN, allows flexibility in the swap mechanism between the two types of commodities," added Haryo.
The next cooperation agreement is regarding carbon certification, such as how to obtain and trade it. As is known, carbon certification is one of the mechanisms to encourage the use of clean or renewable energy and minimize carbon emissions.
The development of potential Bio-CNG projects into new renewable energy that can help reduce dependence on fossil fuels and be more environmentally friendly. With abundant raw materials, Bio-CNG can be used in the long term, especially for national economic development that provides a multiplier effect for the community.**