KIS, Toyota Tsusho to produce biomethane in Indonesia

Market: Natural gas
06/10/26

Biogas company KIS Group and Japanese trading house Toyota Tsusho have launched a joint venture to produce and sell biomethane derived from palm oil mill effluent (Pome) in Indonesia.

The two companies launched the joint venture, KIS Toyota Tsusho Biomethane Indonesia (KTBI), in September, Toyota Tsusho said on 5 October. KIS Group's Indonesian subsidiary KIS Biofuels Indonesia (KBI) holds a 51pc stake in KTBI, while Toyota Tsusho Indonesia holds the remaining 49pc.

KTBI is developing a project to upgrade biogas into high-purity biomethane. The biogas is generated from Pome at palm oil mills in South Sumatra. KTBI aims to begin commercial operations in 2027, with plans to sell around 150,000 mmBtu/yr (2,880 t/yr) of Pome-derived biomethane, Toyota Tsusho said.

The biomethane will be supplied to buyers in the manufacturing industry in West Java, via pipelines of Perusahaan Gas Negara (PGN), the gas subsidiary of Indonesian state-owned Pertamina.

Indonesia is one of the world's major producers of natural gas. But while its gas production has been declining in recent years, demand continues to grow. The country is also the world's largest producer of palm oil and has abundant biomass resources such as Pome, driving growing interest in biomethane as a biomass-based complement to natural gas supplies.

Argus assessed Indonesian RED-compliant refined Pome oil at $1,220/t fob on 5 October.

By Kohei Yamamoto

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