Jakarta, April 25, 2024 - PT Energasindo Heksa Karya ("EHK"), an Indonesian gas distribution company owned by PT. Rukun Raharja, Tbk and Tokyo Gas, PT Tripatra Engineering ("Tripatra"), a subsidiary of PT Indika Energy, Tbk, and PT Pasir Tengah ("PASTE"), a subsidiary of PT Widodo Makmur Perkasa Tbk, have just signed a Memorandum of Understanding ("MOU") regarding a collaboration on Compressed Bio Methane ("CBM") development. This strategic collaboration aims to develop and utilize the potential of CBM derived from organic waste from PASTE's livestock operations. The feasibility study for this project is located in Cianjur, West Java, and is estimated to produce between 300mmbtud to 600 mmbtud of CBM.
Methane gas will be extracted from organic waste and purified into biomethane. This step not only reduces greenhouse gas emissions but also provides a cleaner energy alternative to fossil fuels, especially for customers in West Java. The initiative aims to utilize methane gas produced from organic waste from PASTE's farms in West Java. By leveraging advanced technology, the MOU encompasses feasibility studies for biogas production and carbon credit formation. This step reflects the commitment of the Parties to promote sustainable energy innovation and active participation in supporting Indonesia's government initiatives towards achieving net zero emissions by 2060.
As the largest private gas distribution company, EHK aims to build value chains from biomethane production to supplying customers by leveraging its experience in selling natural gas through gas pipelines and compressed natural gas (CNG) in Indonesia. Mr. Agustinus Hendrayana, President Director of PT Energasindo Heksa Karya, stated, "The feasibility study we conducted last year in the same area has shown significant potential for biogas development. We hope to commence this CBM project within the next six months, and infrastructure development will commence in the first quarter of 2025. This is a crucial step for EHK and our partners in our contribution to clean and sustainable energy."
Tripatra, one of Indonesia's leading engineering-based solution providers for the energy and downstream sectors, leverages its expertise in engineering, procurement, and construction (EPC) and project management to build environmentally friendly energy processing facilities. This initiative reflects Tripatra's commitment to sustainability and is part of a broader strategy to facilitate Indonesia's energy transition towards environmentally friendly energy. Mr. Raymond Naldi Rasfuldi, President Director & CEO of TRIPATRA, welcomes the collaboration in CBM production development. "This collaboration aligns with TRIPATRA's vision. With technical expertise and cutting-edge technology, we believe we can optimize the efficiency and productivity of this project development."
As a producer of organic waste in West Java, PASTE will lead in the utilization of organic waste such as animal manure effectively. Internally, PASTE has already utilized organic waste to produce organic fertilizer. Furthermore, PASTE also sees opportunities in supplying decarbonized energy sources to the energy industry. This aligns with our commitment to implementing zero waste to reduce greenhouse gas effects and support environmentally friendly industry transformation in Indonesia. Mr. Heri Prasojo, President Director of PT Pasir Tengah, appreciates the opportunity to participate in CBM development collaboration. "It is an honor for us to contribute to this collaboration. With our resources, research, and experience in organic waste management, we will do our best to ensure the success of this CBM development collaboration."
