Indonesian state energy company Pertamina New & Renewable Energy (Pertamina NRE) has signed a memorandum of understanding with Singapore-based clean technology firm CRecTech to explore the development of a biogas-to-biomethanol pilot facility at the Sei Mangkei Special Economic Zone in Indonesia.
The collaboration will initially focus on a joint feasibility study for the pilot plant. If results prove favourable, the partners intend to deploy CRecTech's proprietary CRecREF catalytic technology at the Sei Mangkei Biogas Power Plant, which would convert carbon-based gases into biomethanol for use as a cleaner fuel and chemical feedstock.
Pertamina NRE has identified Sei Mangkei as a priority location due to its large-scale feedstock availability, with palm oil mill effluent (POME) from Indonesia's substantial palm oil sector representing a key potential source of biogas. The initiative is also seen as strategically relevant to maritime sector decarbonisation, where biomethanol is increasingly cited as a low-carbon bunker fuel candidate.
John Anis, chief executive of Pertamina NRE, said the partnership represented 'a concrete step toward accelerating green energy development in Indonesia', adding that the company hoped the initiative would progress beyond the pilot stage to commercial scale.
Kang Hui Lim, chief executive of CRecTech, said the CRecREF technology was 'specifically designed' for on-site conversion of low-quality biogas streams into high-value green chemicals, without the capital requirements of conventional methanol plants.
Both parties said they hoped the project would position Sei Mangkei as a hub for green fuel production, generating economic benefits including job creation and increased domestic investment in renewable energy infrastructure.
