Pertamina, Osaka Gas, JGC Holdings, and INPEX Agree to Collaborate on Bio-Methane Clean Gas Project

Jakarta, May 12, 2022 - PT Pertamina (Persero), represented by the Director of Strategy, Portfolio, and Business Development, Iman Rachman, agreed to cooperate on a clean bio-methane gas project with three gas companies from Japan. It includes Osaka Gas Co., Ltd. (Osaka Gas), JGC Holdings Corporation (JGC), and INPEX CORPORATION (INPEX). This cooperation agreement was virtually held at the Asia Green Growth Partnership Ministerial Meeting (AGGPM 2022) (25/4).

The cooperation agreement was witnessed by the Minister of Economy, Trade, and Industry of Japan, the Minister of Energy and Mineral Resources of Indonesia, the Deputy Prime Minister of Energy of Thailand, the Minister of Industry and "Advance Technology" of the United Arab Emirates, and the Minister of Industry and Trade of Vietnam.

The collaboration agreed to conduct a feasibility study on bio-methane production from palm oil mill waste (POME) as clean natural gas and its potential to become liquefied natural gas (LNG) in Indonesia.

This project is part of the Asia Energy Transition Initiative2 (AETI) launched by the Government of Japan in 2021. The goal is to encourage sustainable economic growth while supporting the net-zero emissions achievement through the transition to clean energy in Asia.

Indonesia is the world's largest palm oil producer and exporter, employing three million workers and generating 4.5 percent GDP. Palm oil mill effluent contains organic matter, which results in significant methane emissions. Methane has a global warming impact 25 times greater than CO2. This project is intended to reduce greenhouse gas emissions from palm oil waste by converting it into biofuel that will contribute to a clean energy supply in a sustainable manner.

Through this collaboration, Pertamina and its partners will collectively conduct project feasibility studies, including cooperation in the research and development of technology and solutions related to bio-methane production from POME sources located in Sumatra and Kalimantan. Later, the production of bio-methane will be channeled through Pertamina's gas network to meet the growing demand for natural gas as well as contribute to emission reductions.

This collaboration will also examined opportunities to take advantage of carbon credit mechanisms and bio-methane certification schemes to secure carbon neutrality. In addition, this collaboration will also examine marketing opportunities for bio-methane or bio-LNG and bunker fuel, including exports of bio-LNG to Japan and other countries.

Acting Vice President of Corporate Communication of Pertamina, Heppy Wulansari, said Pertamina positions this collaboration as a continuation of several green energy development projects that have been developed so far. This collaboration supports the government's efforts to reduce GHG emissions by 30 percent by 2030.

"In addition to developing New and Renewable Energy (EBT), this collaboration will help overcome environmental challenges, especially by converting palm oil waste into environmentally friendly energy," Heppy said.

Heppy added that Pertamina would provide several facilities and study locations in Kalimantan and Sumatra. The collaboration is hoped to meet the natural gas needs in the industrial and household sectors and expand the development of the company's natural gas network.

Osaka Gas emphasized that the collaboration is aligned with Daigas Group Carbon Neutral Vision (CNV), launched in Januari 2021, aimed to achieve carbon neutrality by 2050. Under CNV, Osaka Gas will continue to develop technologies and services to solve social problems such as climate change.

Daigas Group will contribute to the collaboration through bio-methane production technology from biogas, bio-methane pipeline injection, and knowledge of natural gas marketing. The goal is to expand the use of bio-methane in Indonesia as well as reduce CO2 emissionsIndonesiaIndonesia and Japan.

The JGC Group said that the program is an important strategy to clean energy transition in Asia to achieve its medium-term management plan, “Building the Infrastructure of a Sustainable Planet 2025.” JGC will contribute by providing its core competencies in program management and delivering world-class engineering capabilities gained through its rich track record in building gas pIndonesia facilities in Indonesia.

INPEX said that through this collaboration, it will seek to be proactively involved in reforming the energy structure towards a net-zero carbon society realization by 2050. Aligned with the Long-Term Strategy and Medium-Term Business Plan (INPEX Vision @2022) launched in February 2022.

INPEX will work together to build a business framework that contributes to the climate change response and explore opportunities to provide clean LNG bunkering solutions at the Bontang LNG Terminal.**