Pertamina, Japanese Firms to Produce Clean Energy from Palm Oil Waste

TEMPO.CO, Jakarta - State-energy firm Pertamina, in part of the Asia Energy Transition Initiative (AETI) the Japanese government initiated in 2021, partnered with three Japanese gas companies to realize a biomethane clean gas project utilizing waste from palm oil.

The three companies are Osaka Gas Co., Ltd. (Osaka Gas), JGC Holdings Corporation (JGC), and INPEX CORPORATION (INPEX).

"This collaboration agrees to study the feasibility of producing biomethane from palm oil mill waste (POME) as clean natural gas and its potential to become liquefied natural gas (LNG) in Indonesia," said Iman Rachman, Pertamina’s director of strategy, portfolio, and business development on Friday, May 13. 

The aim of the project is to promote sustainable economic growth while at the same time supporting the achievement of net-zero emissions in the Asian region through the energy transition to clean energy. Iman said that Indonesia is one of the largest producers and exporters of palm oil in the world.

Indonesia absorbs three million workers annually from the palm oil industry and also accounts for 4.5 percent of gross domestic product (GDP). However, palm oil mill effluent contains organic matter which results in significant methane emissions, as methane contributes to global warming 25 times larger than CO2. 

This project is aimed to reduce greenhouse gases produced by palm waste and change it into biofuel that will contribute to the supply of clean and sustainable energy. 

The collaboration will also examine opportunities for companies to take advantage of the carbon credit mechanism and bio-methane certification to secure carbon neutrality. In addition, the company will examine marketing opportunities for bio-methane or bio-LNG and bunker fuel, including exports of bio-LNG, to Japan and other countries.

Read: Malaysia Eyes Export Gains Amid Global Palm Oil Shortage

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