Bio-methane project scheme in Indonesia (Photo: jgc.com)

Jakarta - The Indonesian state energy company Pertamina will cooperate with engineering giant JGC Holdings Corporation (JGC) of Japan to turn methane generated in palm oil production into a biofuel.

JGC, Osaka Gas Co., Ltd, and Inpex Corporation of Japan, and Pertamina on April 25 agreed to jointly study the project’s feasibility.

Wastewater from palm oil mills in Sumatra and Kalimantan islands of Indonesia, one of the world’s biggest producers of palm oil, will be fermented and purified to produce biomethane - a renewable alternative to fossil fuels.

The project is expected to start operation in 2025 with an output of 10,000 tonnes per year and increase to 100,000 tonnes per year by 2030.

Biomethane from Sumatra will be transported to Java island - Indonesia’s economic centre, via Pertamina pipelines and sold to customers, starting with Japanese companies operating there. Exports to Japan will be considered going forward.

Wastewater from palm oil mills in Indonesia is often temporarily stored in outdoor lagoons. It ferments and generates methane - a powerful greenhouse gas.

This project will not only serve as a source of renewable energy, but also help reduce the immediate release of methane into the atmosphere.