Osaka Gas: Commencement of detailed study regarding biomethane supply business in Indonesia

PT Perusahaan Gas Negara Tbk, a subsidiary of Indonesian national oil company Pertamina (hereinafter referred to as Pertamina) engaged in the natural gas supply business, JGC Holdings Corporation (hereinafter referred to as JGC HD), Osaka Gas Co., Ltd. (hereinafter referred to as Osaka Gas ) and INPEX Co., Ltd. (hereinafter referred to as INPEX) have announced that they are aiming to commercialize the use of biomethane derived from the waste fluid generated during the palm oil extraction process in Indonesia (hereinafter referred to as POME: Palm Oil Mill Effluent).

Original Press Release:

Sept. 25 -- Osaka Gas Co., Ltd. issued the following news release:

PT Perusahaan Gas Negara Tbk (hereinafter referred to as PGN), a subsidiary of Indonesian national oil company Pertamina (hereinafter referred to as Pertamina) engaged in the natural gas supply business, JGC Holdings Corporation (hereinafter referred to as JGC HD), Osaka Gas Co., Ltd. (hereinafter referred to as Osaka Gas ) and INPEX Co., Ltd. (hereinafter referred to as INPEX) have announced that they are aiming to commercialize the use of biomethane derived from the waste fluid generated during the palm oil extraction process in Indonesia (hereinafter referred to as POME: Palm Oil Mill Effluent). We would like to inform you that we have started a detailed study.

Until now, four companies, Pertamina, JGC HD, Osaka Gas, and INPEX , have been conducting a joint study toward the utilization of POME-derived biomethane, and it has now been decided to use natural gas pipelines owned by PGN. In addition, we have concluded a memorandum of understanding regarding raw material procurement with a palm plantation and received expressions of interest from customers, leading to the start of detailed consideration. In this study, we will conduct technical studies regarding supply chain construction and biomethane production and supply, with the aim of starting biomethane production in southern Sumatra in 2025.

Indonesia is the world's largest producer and exporter of palm oil. In the country, the palm oil industry is an important industry that supports approximately 3 million people and accounts for 4.5% of GDP, but POME, which contains a large amount of organic content, has a greenhouse effect 25 times that of carbon dioxide (CO 2 ) . There is a problem in that large amounts of methane gas, which is said to have chemical properties, is generated and much of it is dissipated into the atmosphere.

This project will collect the methane gas currently released into the atmosphere from POME, refine it as biomethane, and supply it to consumers in Indonesia using existing infrastructure such as natural gas pipelines, thereby reducing the release of methane gas into the atmosphere. In addition to meeting the country's increasing demand for natural gas, the goal is to reduce CO 2 emissions for consumers by switching from fossil fuels to biomethane . In the future, while expanding the business scale to the entire Sumatra Island and further to Kalimantan Island, we will also consider the possibility of supplying bio-LNG, which is liquefied biomethane, as ship fuel and exporting bio-LNG to Japan and other countries. It's a schedule.

This project was also introduced at the Asia Zero Emission Community (AZEC) held in March 2023 as one of the initiatives contributing to carbon neutrality in the Asian region.

As a gas company under Pertamina, PGN plays an important role in Indonesia's energy transition phase to achieve net zero emissions (NZE) by 2060. By using POME as an environmentally friendly energy source, this project is expected to contribute to solving environmental problems along with the development of new and renewable energy (NRE). For this project, PGN will provide pipeline injection equipment and natural gas pipelines with good access to the raw material POME. In addition, the biomethane produced will not only meet Indonesia's industrial and consumer demands, but is also expected to lead to the further expansion of Pertamina's natural gas network.

Based on the long-term management vision "2040 Vision" and medium-term management plan "BSP 2025" announced in May 2021, JGC HD is accelerating energy transition initiatives toward the realization of a low-carbon and decarbonized society. . The JGC Group has many years of experience in constructing plants for liquefied natural gas (LNG) and other plants in Indonesia, and will work with participating companies to develop this project by leveraging the project management capabilities it has cultivated through numerous projects. We will continue to contribute to the realization of this goal.

Osaka Gas announced the "Carbon Neutral Vision" in January 2021 and the "Energy Transition 2030" in March 2023, and the entire group is working to develop technologies and services that contribute to a decarbonized society and to combat climate change. We strive to solve social issues such as In this project, we will utilize the Daigas Group's biogas refining technology that contributes to biomethane production, our track record of biomethane pipe injection, and the knowledge we have cultivated through our gas sales activities to date. Together with the participating companies, we will contribute to the spread of biomethane in Indonesia and the reduction of CO 2 emissions in Indonesia and Japan.

Based on the "Long-term Strategy and Medium-term Management Plan (INPEX Vision @2022)" announced in February 2022, INPEX is developing an energy structure aimed at realizing a net-zero carbon society in 2050 while meeting the energy demand of Japan and the world. We will actively work on reform. In addition, we will work with participating companies to build businesses that contribute to addressing climate change and promote initiatives aimed at supplying clean energy in Indonesia.

Disclaimer: The Above Content is Auto-Translated

Source: Osaka Gas Co., Ltd.

[Category: Energy]