đź“Ť Sumatra & Kalimantan, Indonesia
Start Date: 2025
An Untapped Climate Opportunity
The palm oil industry in Southeast Asia produces Palm Oil Mill Effluent (POME)—a byproduct annually emits 1.5 million tons of methane, equivalent to the greenhouse gas effect of 44.5 million tons of CO₂. Today, most of this methane escapes into the atmosphere due to the lack of viable capture systems or economic incentives.
Yet, this region—home to over 80% of global palm oil production—also holds huge untapped potential to lead in methane mitigation and renewable energy. Capturing this methane and converting it into biomethane (Renewable Natural Gas) presents an opportunity to both decarbonise agriculture and create a new energy export stream.
Our Goal: Proving the Economic Case for Methane Capture
This initiative is a feasibility study to assess the technical and financial viability of capturing methane from palm oil waste, converting it into biofuel, and transporting it to a high demand market with a rising carbon tax and growing demand for cleaner fuels. The project explores how carbon pricing mechanisms and policy incentives can be used to make biomethane commercially viable for producers and attractive for buyers.
Potential: Scaling a Regional Biomethane Industry
- Methane mitigation from one of Southeast Asia’s largest emission sources
- Creation of a renewable energy export market
- New revenue streams for palm oil producers through carbon credits and biofuel sales
- Proof-of-concept for wider application across other agricultural sectors and geographies
Partners:
K2
