Enviro News Asia, Jakarta — PT PLN Energi Primer Indonesia (PLN EPI) has identified compressed biomethane gas (CBG) produced from Palm Oil Mill Effluent (POME) as a strategic solution to curb methane emissions and reduce Indonesia’s dependence on liquefied natural gas (LNG). The company presented the initiative during the Climate Policy Initiative (CPI) forum on financing strategies for methane emission reduction in the industrial sector, held in Jakarta on June 11.
Hokkop Situngkir, Director of Biomass at PLN EPI, said Indonesia possesses significant potential to convert palm oil waste into a low-carbon energy source with economic value. He noted that the country has around 3,000 palm oil mills generating approximately 130 million cubic meters of liquid waste annually, although most of the resource remains underutilized.
According to PLN EPI, emissions from POME contribute about 20 million tons of carbon dioxide equivalent each year. Hokkop said nearly 90 percent of those emissions could be mitigated by processing the waste into renewable energy.
He explained that biomethane development supports Indonesia’s target of achieving a 44–48 percent renewable energy mix by 2030 and the country’s Net Zero Emissions goal by 2060. To accelerate deployment, PLN EPI is establishing an integrated CBG ecosystem covering feedstock supply, production facilities, and market development.
Under the scheme, PLN EPI acts as an aggregator and offtaker connecting palm oil producers, technology providers, financial institutions, industrial users, and power plants. The company plans to purchase and distribute CBG for electricity generation, enabling investors to expand projects more rapidly.
One of the projects under preparation involves CBG co-firing at the Belawan Combined Cycle Power Plant (PLTGU Belawan). A single 130-megawatt gas turbine operating with a 2.5 percent co-firing ratio requires about 450 MMBTUD of Bio-CBG, sourced from approximately 330,000 cubic meters of POME annually. Supplying all four turbines at the facility would require four CBG plants and an estimated investment of US$20 million.
PLN EPI estimates that the project could avoid around 500,000 tons of carbon dioxide equivalent emissions. The company views the Belawan initiative as an initial model for integrating biomethane into the national power system while utilizing existing gas infrastructure to accelerate renewable energy deployment without constructing large-scale new plants.
The company also projects broader opportunities nationwide. Indonesia’s 18.4-gigawatt gas-based power generation fleet would require around 60,000 MMBTUD of CBG for a 2.5 percent co-firing scheme, involving about 200 palm oil mills. Such a program could potentially reduce emissions by nearly 14 million tons of carbon dioxide equivalent.
Besides environmental benefits, PLN EPI estimates that each CBG project could generate economic value of up to Rp1.7 trillion while cutting approximately 700,000 tons of emissions. The company plans to gradually expand production capacity from 1,000 MMBtu in 2026 to 2,957 BBTU by 2030, accompanied by the construction of three CBG facilities to support power plants and Indonesia’s diesel replacement program.
Hokkop said bioenergy serves as a bridge between energy transition, energy security, and community-based economic development. He stressed that palm oil waste, which has long been a source of emissions, can become a valuable domestic energy resource that strengthens national energy independence.
The forum also featured speakers from the Indonesian Pulp and Paper Association (APKI), PT KIS Biofuel Indonesia, and the Indonesia Bio Methane Society (IBMS), who discussed strategies to expand biomethane utilization and accelerate greenhouse gas emission reductions in Indonesia. (*)
