BRIN and PalmCo Are Developing Palm Oil Waste Gas as a Substitute for LPG.

May 27, 2026

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by Muhammad Harianto (Antara) The National Research and Innovation Agency (BRIN) together with PTPN III (Persero) Sub Holding, PTPN IV PalmCo, is developing palm oil waste-based Bio-Compressed Biomethane Gas as an alternative to LPG to strengthen energy security and the renewable energy mix.

"Palm oil waste has long been associated with environmental issues. Now the approach has changed. Waste can actually become a new energy source with economic value and support national energy security," said PTPN IV PalmCo President Director Jatmiko K Santosa in a statement in Jakarta on Tuesday.

He said efforts to find alternative energy sources to replace imported fossil fuels were starting to shift towards the palm oil plantation sector.

Jatmiko said that his party, together with BRIN, is currently finalizing a study on the development of Bio-Compressed Biomethane Gas (Bio-CBG), a biomethane gas based on palm oil waste whose quality is equivalent to compressed natural gas (CNG).

The energy produced from processing palm oil waste is projected to be a substitute for imported LPG and at the same time strengthen the national renewable energy mix.

He said the development of Bio-CBG is part of the company's long-term strategy to optimize palm oil waste into high-value-added energy.

According to him, the joint project with BRIN focuses on processing palm oil mill effluent (POME) and empty fruit bunch biomass into high-grade biomethane. This gas is then purified to meet specifications similar to natural gas.

"Bio-CBG is essentially the 'green twin' of CNG. It has the same function and can be used as an alternative to LPG and other fossil fuels," explained Jatmiko.

According to him, this step is in line with the government's policy direction which is reducing dependence on energy imports.

PalmCo is currently developing a roadmap for palm oil-based green energy development.

One of the ongoing projects is the construction of a Bio-CBG facility at the Tinjowan Palm Oil Mill (PKS), North Sumatra.

In collaboration with partner companies, the company targets the construction of 17 Bio-CBG installations by 2029.

Meanwhile, this year, PalmCo plans to lay the first stone or groundbreaking for 8 new projects.

"We're doing this in stages. We hope the palm oil waste processing facility will not only produce electricity but also usable gas that can be utilized by the industrial and transportation sectors," he said.

Amid rising national energy needs, biomethane development is seen as a new opportunity for the palm oil industry. As the world's largest palm oil producer, Indonesia produces vast amounts of liquid waste and biomass annually.

In the natural process, liquid palm oil waste releases methane gas which has a greater emission impact than carbon dioxide.

Therefore, capturing methane to process it into energy is seen as being able to reduce emissions while creating alternative energy sources.

From a technological perspective, BRIN conducted energy audits and technical evaluations at a number of PalmCo facilities, including the Sei Pagar Palm Oil Mill and Biogas Power Plant (PTBg), Riau.

Hens Putra, Head of the BRIN Process Technology Research Center, said the palm oil sector has significant potential to support the national energy transition agenda if its waste can be optimally utilized.

"Energy is a national priority. This study not only calculates energy potential but also improves efficiency to optimize and sustain palm oil waste processing," said Hens.

According to him, the development of palm-based Bio-CBG is in line with the low-carbon development agenda because it can reduce methane emissions and produce other value-added derivative products.

BRIN also sees opportunities for developing palm oil-based innovation areas or technoparks that integrate research, waste processing, and renewable energy development.

"We hope this model can be replicated nationally and become an example for palm oil-based energy development in Indonesia," he said.

Meanwhile, BRIN Energy Researcher Samuel Pati Senda explained that the results of a field audit at the Sei Pagar PTBg cofiring facility showed an increase in methane gas production efficiency.

Methane production was recorded to increase from an average of 36,706 normal cubic meters (Nm3) per month in 2025 to 46,683 Nm3 per month in the 2026 test period.

"The data shows that the technology for processing palm oil waste into energy is quite mature and worthy of being replicated on a larger scale," said Samuel.

According to him, utilizing palm oil waste into Bio-CBG is not solely related to the provision of alternative energy, but also part of the implementation of a circular economy in the plantation industry.

"Waste, which was previously a source of emissions, can now be converted into clean energy. So there are both environmental and economic benefits," he said.

The development of palm-based biomethane is also considered to be able to strengthen the government's target of achieving a 23 percent renewable energy mix.

Amidst the challenges of the energy transition and high LPG imports, processing palm oil waste into a "green twin" of natural gas is starting to be seen as a realistic solution for the national agro-industrial sector.

Previously, the Ministry of Energy and Mineral Resources (ESDM) stated that utilizing domestic gas is one strategy to reduce the burden of LPG imports, which remains quite high every year.

Energy and Mineral Resources Minister Bahlil Lahadalia stated that the use of domestic gas-based energy is more competitive because the resources and industry are available in Indonesia.

"We have the gas, and the industry is also domestic. Therefore, its development needs to be continuously expanded," Bahlil said in a statement regarding the imported energy substitution program. READ MORE