Ecobiz.asia — PT Pertamina New & Renewable Energy (Pertamina NRE) has signed a memorandum of understanding (MoU) with CRecTech Pte. Ltd. to explore the development of a pilot facility to convert biogas into biomethanol at the Sei Mangkei Special Economic Zone.
The partnership forms part of Pertamina NRE’s strategy to expand renewable energy development based on domestic resources, particularly biogas, which has significant potential in Indonesia.
Pertamina NRE CEO John Anis said the collaboration aims to accelerate the conversion of biogas into higher value-added products.
“Indonesia has strong potential both in terms of market and feedstock availability, especially from palm oil waste. Through this partnership, we are optimistic about building a competitive and sustainable green fuel value chain,” he said in a statement on Wednesday (April 8, 2026).
Under the MoU, both parties will conduct a joint study to assess the feasibility of developing the pilot facility. Subject to positive results, the project will proceed with the deployment of CRecTech’s CRecREF™ catalytic technology at the Sei Mangkei biogas power plant.
Biomethanol development is seen as having strong potential to support decarbonization, including in the maritime sector, which is increasingly shifting toward low-carbon fuels. Indonesia has abundant biogas feedstock, particularly from palm oil mill effluent (POME).
Pertamina NRE has identified several sites within its portfolio, including Sei Mangkei, that have sufficient feedstock availability to support such development.
Going forward, the biogas-to-biomethanol value chain is expected to position Sei Mangkei as a hub for green fuel production while boosting investment and renewable energy utilization in the country.
CRecTech CEO Kang Hui Lim said the company’s technology is capable of converting low-quality biogas into high-value green chemicals directly at the source.
“Indonesia holds vast biogas potential, and this partnership opens opportunities to transform it into commercially viable biomethanol supply,” he said. ***
