Positive Impact

Biogas is a useful way of ensuring that excess methane gas – a greenhouse gas (GHG) – from the production of crude palm oil is put to work, generating energy instead of being released to the air and harming the environment. Estimates by the Asia Pacific Biogas Alliance indicate that the potential of biomass to biomethane conversion in the production of renewable biogas is enough to displace 25 percent of natural gas demand.

So far, Southeast Asian countries like Indonesia, Thailand and Malaysia have been actively looking to increase the use of biogas in order to fulfil their respective bioenergy targets. Indonesia has set a bioenergy capacity target of 810 megawatts (MW) by 2025, Thailand’s goal is 5,570 MW by 2036 and Malaysia aims to achieve 1,065 MW this year.

Besides that, biogas also presents a lucrative investment opportunity for financiers looking to finance renewable energy projects. Such opportunities lie within the transition process from traditional biomass like fuelwood to more modern versions like biogas and biofuels.

In December 2017, Thailand’s Siam Commercial Bank provided financial support amounting to US$110 million for the construction of a palm complex. The project aims to become Thailand’s premier and most advanced palm oil complex which would integrate all palm oil processes. This includes the extraction of biomass energy for biogas plants.

“The project will help support palm oil growers and the production of alternative energy to promote Thailand's sustainability,” the bank stated in a press release.