Jakarta, INTI - PT PLN Energi Primer Indonesia (PLN EPI) assessed that developing Compressed Biomethane Gas (CBG) based on palm oil mill effluent (POME) could be one of the most effective solutions for reducing methane emissions and reducing Indonesia's dependence on liquefied natural gas (LNG).
This was conveyed by the Director for Biomass at PLN EPI, Hokkop Situngkir, at the Climate Policy Initiative (CPI) forum on Thursday, June 11.
Hokkop stated that Indonesia has significant potential to convert palm oil waste into an economically valuable low-carbon energy source. Utilizing POME into CBG is considered capable of supporting decarbonization targets while strengthening national energy security.
"If we can utilize the palm oil industry for economic energy purposes, the potential is significant. The resources are there, the technology is there, and the financing is there. It just depends on how we develop the right business model so it can be implemented quickly," said Hokkop.
Palm Oil Waste Utilization
Indonesia has approximately 3,000 palm oil mills with a potential liquid waste of approximately 130 million cubic meters per year. However, most of this potential has not been optimally utilized as a domestic energy source.
On the other hand, POME waste is a significant contributor to methane emissions. PLN EPI estimates that emissions from palm oil waste reach around 20 million tons of CO2e per year.
"We see that POME emissions reach around 20 million tons of carbon equivalent. Almost 90 percent of this can actually be resolved through utilization as a new energy source," he said.
To accelerate the development of the biomethane industry, PLN EPI is building an integrated CBG ecosystem, starting from securing raw material supplies, developing production facilities, and creating markets.
In this model, PLN EPI acts as an aggregator and offtaker, connecting palm oil mills, technology providers, financing institutions, the industrial sector, and power plants.
Pilot Project at PLTGU Belawan
One implementation currently being prepared by PLN EPI is the CBG co-firing project at the combined-cycle power plant (PLTGU) Belawan. For one 130 megawatt (MW) gas turbine with a 2.5 percent co-firing rate, approximately 450 MMBTUD of Bio-CBG is required, derived from the utilization of approximately 330,000 cubic meters of POME per year, equivalent to one CBG facility.
Meanwhile, to meet the needs of four turbines at the Belawan PLTGU, approximately four CBG facilities are required, with a total investment of approximately US$20 million. This implementation is estimated to avoid emissions of up to 500,000 tons of CO2e.
Hokkop explained that the pilot project at PLTGU Belawan serves as an early model for biomethane integration into the national electricity system. In addition to reducing emissions, the co-firing scheme allows the utilization of existing gas generation infrastructure, accelerating the increase in the renewable energy mix without requiring the construction of new large-scale power plants.
PLN EPI also estimates the potential for CBG development nationally to be enormous. Of the total gas-based generating capacity of 18.4 gigawatts (GW), the CBG requirement for a 2.5 percent co-firing scheme is estimated to reach approximately 60,000 MMBTUD, involving approximately 200 palm oil mills. The potential emission reductions could reach approximately 14 million tons of CO2e.
CBG’s Economic Value
In addition to environmental benefits, CBG development also has the potential to create significant economic value. Based on PLN EPI simulations, a single CBG project could generate economic value of up to Rp1.7 trillion and reduce emissions by approximately 700,000 tons of CO2e.
PLN EPI targets the gradual development of its CBG business through 2030. The company's roadmap targets an increase in CBG production capacity from 1,000 MMBtu in 2026 to 2,957 BBTU in 2030. During the same period, three CBG facilities will be built to supply generating needs and support the national dedieselization program.
"Bioenergy is a bridge between the energy transition, energy security, and the people's economy. Waste, which has historically been a source of emissions, can be transformed into a value-added energy source while strengthening national energy independence," said Hokkop.
Conclusion
PLN Energi Primer Indonesia is promoting the development of Compressed Biomethane Gas (CBG) based on palm oil liquid waste (POME) as a solution to reduce methane emissions while reducing Indonesia's dependence on LNG. With a potential liquid waste of up to 130 million cubic meters per year, Indonesia has a significant opportunity to transform palm oil waste into a low-carbon energy source. PLN EPI is building an integrated CBG ecosystem involving palm oil mills, technology providers, financing institutions, industry, and power plants. One of the prepared pilot projects is CBG co-firing at PLTGU Belawan. In addition to environmental benefits, a single CBG project is estimated to generate economic value of up to Rp1.7 trillion.
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