Indonesia plans to step up the processing of palm oil waste into biogas

Indonesia has the potential to produce up to 3.6 bln m³ of biogas annually from palm oil processing waste. The country’s palm oil mills generate around 125 mln tons of POME each year, a large share of which remains an underutilized energy resource.

According to the Palm Oil Agribusiness Strategic Policy Institute (PASPI), one ton of POME can produce around 28.8 m³ of biogas through methane capture. However, Indonesia currently utilizes no more than 15% of this potential.

The scale of the available feedstock reflects the size of Indonesia’s palm oil industry. Oil palm plantations cover around 16.8 mln ha and produce approximately 250 mln tons of fresh fruit bunches annually.

Biogas produced from POME can be used directly to supply energy to palm oil mills and generate electricity. After purification, it can also be upgraded into biomethane and Bio-CNG for use as transport or industrial fuel. Indonesia is already developing projects to produce Bio-CNG from POME.

To accelerate development of the sector, PASPI proposes mandatory methane capture at palm oil mills, carbon trading mechanisms for such projects and requirements for blending biogas with fossil fuels. These measures could turn huge volumes of palm oil industry waste into a new energy source and create additional value from the sector’s by-products.

Tags: Indonesia, palm oil, biogas