Plans to begin distributing biomethane in 2027
Indonesian natural gas transportation and distribution company PT Pertamina Gas Negara Tbk (PGN) has partnered with NeutraDC Singapore (NDSG) to supply biomethane to power the company’s planned data centers in Singapore.
The two companies signed a memorandum of understanding to establish the parameters for biomethane supply to NDSG. Details on the volume of supply were not disclosed.
“PGN’s collaboration with NDSG shows the potential for wider biomethane distribution while fostering a clean energy ecosystem to meet national transition targets,” said Rosa Permata Sari, PGN’s director of strategy and business development.
The natural gas company will produce biomethane from palm oil mill effluent as part of a broader strategy to capitalize on low-carbon energy opportunities within Singapore.
The initiative is part of PGN’s “Step Out” strategy, which aims to leverage assets with Pertamina’s subholdings to expand into low-carbon businesses. The expansion into biomethane is viewed as a “quick win” fuel, offering significant potential to reduce carbon emissions while enhancing overall energy security.
The company plans to begin distributing biomethane to customers in West Java through its existing infrastructure in 2027.
“Indonesia, with its vast agricultural resources, has significant potential to develop biomethane as part of the clean energy transition,” Rosa said.
Biomethane is a form of purified biogas formed when organic waste, such as food scraps, manure, or crop residues, breaks down without oxygen. Created through a process known as anaerobic digestion, biomethane matches the composition of natural gas, offering a cleaner, more sustainable alternative.
NDSG is a subsidiary of Telkom Indonesia. Last March, Telkom Indonesia consolidated its Singapore data centers under the NeutraDC unit in a $219 million deal. The unit currently operates three data centers in Singapore.
According to its website, NeutraDC operates two hyperscale data centers in Cikarang and Batam in Indonesia; as well as three core data centers in Sentul, Serpong, and Surabaya; and 21 Edge facilities across Java, Bali, Sumatra, Sulawesi, and Kalimantan.
Source: DCD
