Biomethane production company, PGN, to deliver fuel for Singapore's data center operations

In a significant step towards a greener future, PT Pertamina Gas Negara (PGN) has announced plans to supply biomethane to NeutraDC Singapore, the Singaporean subsidiary of PT Telkom Data Ecosystem. The partnership is set to commence in the first quarter of 2026, marking a milestone in the adoption of renewable energy in the data centre sector.

PGN views biomethane as a "quick win" renewable fuel, particularly suitable for powering data centres. The Indonesian company, with its vast agricultural resources, has significant potential to develop biomethane as part of the clean energy transition. PGN plans to produce biomethane from palm oil mill effluent, a sustainable and locally-sourced resource.

The partnership between PGN and NeutraDC Singapore is part of a broader strategy by PGN to capitalize on low-carbon energy opportunities within Singapore. This move aligns with the Singaporean government's goal for all data centres in the country to achieve a power usage effectiveness performance of less than 1.3 at 100% IT load and to use only energy efficient IT infrastructure.

Data centres accounted for roughly 1.5% of global electricity consumption in 2024 and are expected to use twice as much energy by 2030, with artificial intelligence driving a major portion of future energy demand. Biomethane, also known as bioLNG or renewable natural gas, could significantly reduce carbon emissions from data centres. When used in fuel cells, it converts into electricity and heat with minimal emissions, providing a dispatchable and sustainable alternative to traditional energy sources.

The partners have not disclosed any details on the volume of biomethane supply, but PGN expects to begin supplying biomethane to customers in West Java using its existing infrastructure by 2027. The company's 'Step Out' strategy aims to harness the assets of Pertamina subholdings to expand into low-carbon businesses.

RG(E) offers support to data centres to reduce carbon emissions, and the Singapore government offers incentives such as the Energy Efficiency Grant, the Investment Allowance for Emissions Reduction, and the Green Data Centre Roadmap to encourage businesses to invest in energy-efficient and green data centre projects.

Rosa Permata Sari, Director of Strategy and Business Development at PGN, stated that the partnership shows the potential for wider biomethane distribution and fostering a clean energy ecosystem. As Singapore plans to add at least 300MW more of data centre capacity to the existing 1.4GW of combined computing capacity of more than 80 data centres in Singapore, the demand for renewable energy sources like biomethane is expected to grow.

This partnership between PGN and NeutraDC Singapore is a promising step towards a more sustainable future for the data centre industry in Singapore and beyond. As more companies embrace low-carbon energy solutions, we can expect to see a reduction in carbon emissions and a move towards a cleaner, greener planet.

Biomethane production company, PGN, to deliver fuel for Singapore's data center operations