Indonesian state energy giant Pertamina is hooking up with Japanese partners Inpex, Osaka Gas Co and JGC Holdings Corp to explore the feasibility of producing bio-methane from palm oil mill effluent (POME) with a view to using this for domestic supply and marine bunkering.
The quartet have signed up to a joint study agreement under which they will cooperate on the research and development of technologies and solutions on the production of bio-methane from POME resources located in Sumatra and Kalimantan.
The project aims to supply bio-methane through the existing gas grid to consumers in Indonesia, including Java to meet growing gas demand while contributing to emissions reductions.
Inpex said the joint study will also identify bio-methane, bio-LNG and bunker fuel marketing opportunities, including bio-LNG export to Japan and other countries.
The company, which is aiming to engage in energy structure reforms that will create a net-zero carbon society by 2050, said it will explore opportunities to provide clean LNG bunkering solutions at the Bontang LNG Terminal in Indonesia.
Bio-LNG is already being used, primarily in northwest Europe at present, as a drop-in fuel for LNG bunkering to reduce carbon emissions.
In addition, the study group quartet plans to assess opportunities to leverage carbon crediting mechanisms and bio-methane certification schemes to secure carbon neutrality.
Announcing the tie-up, Inpex said Indonesia is the world’s largest producer and exporter of palm oil.
POME contains large quantities of organic material resulting in significant methane emissions.
The project intends 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, Inpex said.
Pertamina, which is moving to cut its greenhouse gas emissions by 30% before 2030, will provide facilities and locations to access raw materials for the project.
Inpex said the project is expected to support the Asia Energy Transition Initiative, a plan unveiled by the Government of Japan in 2021 to achieve sustainable economic growth and carbon neutrality in Asia through energy transitions.
