Abstract
Indonesia possesses the greatest potential in the world for bio-compressed natural gas (bio-CNG). This bio-CNG is purified from biogas that is generated from decomposing organic liquid waste at palm oil mills (POMs). Unfortunately, this great potential has not been utilized much due to several obstacles such as the remote location of POMs, transportation mode, and utilization purposes. These factors have a significant impact on the feasibility of bio-CNG selling prices. However, a case study conducted in the Riau province of Indonesia showed that by clustering POMs, selecting appropriate transportation modes, and generating additional income from carbon trading, the feasibility for bio-CNG selling price can be achieved. The study resulted in obtaining two clusters of seven POMs that were spread over a 30km radius from Pekanbaru City. Bio-CNG has a potential to substitute 97 % of gasoil for bus fuel, and trucking transportation was found to result in the lowest bio-CNG selling price, which was 10.7 USD/MMBTU. With additional income from carbon trading, the minimum price can reach 4.84 USD/MMBTU. The utilization of bio-CNG contributes to reducing greenhouse gas emissions, which, in turn, can increase the economic value of bio-CNG. The pattern of usage and the selection of the factors mentioned above should be considered when utilizing bio-CNG resulting from biogas-POME purification. It is still necessary to provide supportive policies from the government.
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