PLN Nusantara Power Converts Palm Oil Waste into Co-firing Fuel at PLTGU Belawan, Supporting Decarbonization and the Clean Energy Transition
Jakarta, August 15, 2025 — PT PLN Nusantara Power (PLN NP) once again demonstrated its strong commitment to supporting the clean energy transition and achieving the Net Zero Emissions (NZE) target through the launch of Bio Compressed Natural Gas (BioCNG) co-firing at the Combined Cycle Gas Power Plant (PLTGU) Belawan. This first-of-its-kind innovation in Indonesia aims to prove the effectiveness of BioCNG as an alternative fuel for power generation. The BioCNG feedstock is derived from palm oil waste sourced from North Sumatra.
The BioCNG co-firing initiative marks a significant milestone in Indonesia’s journey toward NZE by 2060 and was attended by the Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, and the Director of Technology, Engineering, and Sustainability of PT PLN (Persero), E. Haryadi.
In her remarks, the Director General of EBTKE expressed strong appreciation for PLN NP’s achievement in delivering Indonesia’s first BioCNG co-firing initiative.
“I highly appreciate this first BioCNG co-firing initiative by PLN Nusantara Power as a concrete effort to develop new and renewable energy in the power generation sector. This aligns with the renewable energy mix achievement of 14.5% in the first half of the year. Through BioCNG, the renewable energy mix—particularly in North Sumatra—will continue to increase,” said Eniya.
Meanwhile, E. Haryadi emphasized that the launch of BioCNG co-firing represents concrete action rather than mere discourse in accelerating NZE by 2060 and realizing a greener Indonesia.
“By integrating BioCNG as an alternative fuel, PLN has successfully reduced dependence on fossil energy while utilizing organic waste as clean energy. This is a circular economy practice that delivers environmental, social, and economic benefits,” he stated.
As the world’s leading palm oil producer, Indonesia has enormous potential in managing palm oil waste, which—if left untreated—can become a source of environmental pollution. With proper processing, however, this waste can be converted into BioCNG, a renewable and environmentally friendly energy solution with strong potential to substitute LNG, whose prices are subject to volatility.
BioCNG co-firing at the PLTGU Belawan gas turbine in North Sumatra represents one of PLN NP’s strategic steps to reduce reliance on fossil fuels while lowering the carbon footprint of the electricity sector. BioCNG, produced from the processing of Palm Oil Mill Effluent (POME), is a carbon-neutral renewable energy source. With its high methane content, BioCNG can replace a portion of natural gas demand in power generation, thereby reducing carbon emissions and supporting the sustainability of Indonesia’s renewable energy agenda.
President Director of PLN Nusantara Power, Ruly Firmansyah, stated that the implementation of BioCNG co-firing serves as a technical proof-of-concept for BioCNG utilization in gas turbines at PLTGU Belawan.
“In addition to using LNG as fuel, through BioCNG co-firing we see significant potential in palm oil waste as a biomass energy source. Our calculations indicate that the future electricity generation potential from BioCNG is substantial. This initiative supports environmental sustainability and energy efficiency, delivering tangible impacts in the form of better air quality and lower carbon emissions,” Ruly explained.
PLTGU Belawan has a total installed capacity of 1,184 megawatts (MW) and continuously contributes 10.96% to the Sumatra power system and 30.75% to the North Sumatra (Sumbagut) power system. In 2024, biomass co-firing at the plant reached 854 thousand MWh, and this figure is expected to increase further with the application of BioCNG as an alternative fuel.
Through this initiative, PLN Nusantara Power reaffirms its commitment to actively supporting decarbonization, accelerating the clean energy transition, and developing environmentally friendly and sustainable energy sources for Indonesia.
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About PT PLN Nusantara Power
PT PLN Nusantara Power is a subholding of PT PLN (Persero), dedicated to serving the Indonesian nation while supporting national economic growth by providing high-quality, reliable, and environmentally friendly electricity. PLN Nusantara Power operates power plants across Indonesia with a total installed capacity of 18,573 MW.
With a vision to become a Leading and Trusted Power Generation Company for Sustainable Energy in Indonesia and the Global Market, PLN Nusantara Power is committed to achieving Net Zero Emissions through the development of more than 6.3 GW of new and renewable energy, while pioneering green power generation nationwide. The Company continuously innovates and improves while upholding the principles of Good Corporate Governance (GCG).