Toyota Tsusho sets up biomethane JV in Indonesia
In Indonesia, Toyota Tsusho Corporation said it established PT KIS Toyota Tsusho Biomethane Indonesia (KTBI), a joint venture company, with PT KIS Biofuels Indonesia (KBI), a company active in the biomethane business, in September 2026. The joint venture will produce and sell biomethane in Indonesia and aims to commence commercial operations in 2027.
As a first step towards developing the biomethane business throughout Indonesia, KTBI is undertaking a project to upgrade biogas derived from POME generated at a palm oil mill in South Sumatra Province into biomethane and to transport and sell it. KTBI aims to commence commercial operations in 2027.
KTBI plans to supply the produced biomethane to customers, including those in the manufacturing industry, in West Java Province via the pipeline network of PT Perusahaan Gas Negara (Persero) Tbk (PGN), an Indonesian state-owned gas corporation. Plans are to sell approximately 150,000 MMBtu* annually.
This project is expected to provide dual benefits in both suppressing atmospheric emissions of POME-derived methane and reducing greenhouse gas emissions by switching from fossil-based gases to biomethane. In addition, users can advance their decarbonization efforts while curtailing capital investment as biomethane can be used with existing gas-operated equipment and pipeline networks. Furthermore, KTBI will work to make these environmental benefits more visible and enhance the market value of its biomethane by pursuing certification under ISCC, an international sustainability certification system.
This project is being undertaken pursuant to the memorandum of understanding on the commercialization of biomethane that was concluded by PT Toyota Tsusho Indonesia with PGN at the first Asia Zero Emission Community (AZEC) Leaders’ Meeting in 2023. This will be the first project in Indonesia to supply biomethane produced on Sumatra, where many palm oil mills are located, to customers on Java, where manufacturing industries are concentrated.
Category: Fuels
