PGN and Renikola Forge Strategic Partnership for Biomethane Gas Development

Green Energy Initiative in North Sumatra

PT Perusahaan Gas Negara Tbk (PGN), through its subsidiary PT Gagas Energi Indonesia (PGN Gagas), has entered into a significant partnership with PT Renikola Primer Energi to develop compressed biomethane gas (CBG) in North Sumatra. This collaboration, formalized through a Heads of Agreement (HOA), represents a crucial step in Indonesia's journey towards a more sustainable energy future.

Key Aspects of the Partnership

1. Compressed Biomethane Gas (CBG) Development: The partnership focuses on producing CBG from organic waste, which is then compressed for easier distribution and storage. CBG has calorific value and properties similar to Compressed Natural Gas (CNG), making it suitable for various applications across industries, transportation, and households.
2. Supporting Green Energy Transition: By leveraging organic waste from plantations and livestock in North Sumatra, the partnership directly contributes to Indonesia's green energy goals. This initiative aligns with the government's vision of promoting renewable energy sources and reducing dependence on fossil fuel imports.
3. Infrastructure and Distribution: The collaboration includes plans to develop necessary infrastructure for CBG production, conduct feasibility studies, and establish an efficient distribution ecosystem. This comprehensive approach ensures that the CBG can be effectively delivered to end-users.
4. Economic and Environmental Benefits: The use of CBG not only provides a renewable energy alternative but also supports a circular economy. By converting organic waste into a valuable energy resource, the partnership creates economic opportunities for farmers and plantation industries while generating green jobs.

Future Prospects

The partnership between PGN Gagas and Renikola is poised to make a significant impact on Indonesia's energy landscape. As the project progresses, it is expected to:

• Enhance the utilization of renewable energy sources
• Contribute to reducing greenhouse gas emissions
• Support the government's energy transition policies
• Create new economic opportunities in the green energy sector

By developing CBG infrastructure in regions with high organic waste potential like North Sumatra, PGN Gagas is expanding its beyond pipeline energy solutions, which include CBG, CNG, and LNG. This initiative not only supports Indonesia's energy security but also promotes sustainable development in the energy sector.