SOE Synergy Supports Gas Supply from Renewable Energy for Industry

Bali, 18 October 2022 – Efforts to increase the contribution of new and renewable energy (NRE) in the national energy mix are increasingly being carried out by SOEs. One way is to encourage Compressed Biomethane usage for the industrial sector in the country. It was marked by the signing of upstream-to-downstream cooperation in the supply of Compressed Biomethane between Pertamina NRE (PNRE), Pertamina Gas Subholding through its affiliate, Pertagas Niaga, and PT Perkebunan Nusantara III (Persero) (PTPN III) at the State-owned Enterprises International Conference in Bali, Tuesday (18/10).

The signing was carried out by the CEO of Pertamina NRE, Dannif Danusaputro, President Director of PTPN III, Mohammad Abdul Ghani, and President Director of PT Pertaga Niaga, Aminuddin, witnessed by Deputy Minister of BUMN I, Pahala Nugraha Mansury and Director of Strategy, Portfolio and Business Development of Pertamina, A. Salyadi Dariah Saputra. Compressed renewable gas is believed to significantly contribute to Indonesia's energy transition to realize the use of new and renewable energy (NRE).

The collaboration between Pertamina NRE and PTPN III includes the development of a biomethane production facility, where PTPN III will supply the raw material. Namely in the form of palm oil liquid waste or better known as palm oil mill effluent (POME), produced from palm oil mills ("PKS" ) owned by PTPN III in Bah Jambi, Sei Silau, and Sei Meranti. POME is processed into biogas and then purified and compressed into compressed biomethane at Pertamina NRE's plant.

Pertagas Niaga purchased compressed biomethane from Pertamina NRE with 300 MMBTU/day per PKS location. In the first stage, this compressed biomethane will be supplied to meet industrial needs in the North Sumatra region. Compressed biomethane usage supports the achievement of Nett Zero Emission in 2060 or sooner.

"Pertamina NRE is Pertamina's spearhead in making the energy transition. We focus on the clean energy business. We are very enthusiastic about the cooperation between SOEs for gas supply from this renewable energy source. This synergy is part of the energy transition efforts carried out by SOEs," said Dannif.

On the same occasion, Ghani said, "This follows the PTPN Strategic Program, also designated as the National Strategic Program (PSN). PTPN III (Persero,) as the Holding BUMN Plantation, has launched the Acceleration Program for the Development of New Renewable Energy through the development of a liquid waste-based BioCNG plant. palm oil (POME)”, said Ghani, President Director of PT Perkebunan Nusantara III (Persero)”.

Meanwhile, Aminuddin stated, "We target the flow of Compressed Renewable Gas in the third quarter of 2023 and be able to provide continuous supply for domestic industries that use renewable and environmentally friendly energy," Aminuddin explained. Amin added that this is a breakthrough for Pertagas Niaga because for the first time, it will supply the industry with non-fossil gas.

Utilization of compressed biomethane, in addition to contributing well to the environment is expected to reduce LPG imports so as to help save state finances. Sources of raw materials for producing compressed biomethane in Indonesia are very diverse. As the largest producer of crude palm oil (CPO), Indonesia has great potential to utilize CPO waste as well as agricultural waste and other livestock waste to become biogas and biomethane as renewable energy.

Pertamina is fully committed to implementing ESG and supporting Sustainable Development Goals. The carbon trading initiative strongly supports Goal 13, namely tackling climate change.**