Indonesia explores a new pathway from biogas to lower-carbon marine fuel.
Pertamina New & Renewable Energy (Pertamina NRE) is developing an end-to-end bio-methanol ecosystem in Indonesia, linking biogas production with potential domestic and international markets.
The initiative involves three strategic agreements: a Joint Development Agreement (JDA) with Singapore-based technology company CRecTech Pte. Ltd., a Heads of Agreement (HoA) with PT Pertamina Petrochemical Trading (Pertachem), and a Memorandum of Understanding (MoU) with Pertamina International Marketing & Distribution Pte. Ltd. (PIMD).
The production side will start with a pilot biogas-to-bio-methanol facility at the Sei Mangkei Special Economic Zone in North Sumatra, Indonesia. Pertamina NRE will develop the facility with CRecTech under the JDA.
The facility is planned to produce around 50 tonnes of bio-methanol per year using biogas derived from Palm Oil Mill Effluent (POME) at Pertamina NRE’s Sei Mangkei Biogas Power Plant.
CRecTech’s CRecREF catalytic technology enables the conversion of biogas into methanol in two stages, compared with four stages in conventional processes. The technology has the potential to reduce production costs by up to 50%.
Pertamina NRE President Director John Anis said the pilot facility would provide a basis for developing the project at commercial scale.
For the domestic market, Pertamina NRE and Pertachem will explore bio-methanol offtake arrangements, including a potential framework for long-term purchases during the commercial phase.
The move comes as Indonesia’s methanol demand approaches two million tonnes a year, with around two-thirds still supplied through imports.
Pertamina NRE is also exploring opportunities beyond the domestic market. Through its MoU with PIMD, the company will examine the potential supply and marketing of bio-methanol as marine fuel in international markets.
The initiative aligns with global efforts to decarbonise the maritime sector and could give Indonesia an opportunity to contribute to the supply of lower-carbon marine fuel.
PT Pertamina Petrochemical Trading President Director Aribawa said bio-methanol development could provide the foundation for a new business with potential for further growth.
If the pilot progresses successfully towards commercial development, the initiative could give Indonesia a new route to produce bio-methanol from biogas while opening opportunities in both domestic and international markets.
Source: ANTARA News
