Biomethane-Compressed Natural Gas (Bio-CNG) Distribution Model In Support of The Liquefied Petroleum Gas (LPG) Substitution Program

Abstract Indonesia’s 2027 vision involves significantly reducing LPG imports to enhance energy independence. The aim is to promote alternative energy sources, such as Bio-CNG, and decrease reliance on imported fossil fuels. By developing and expanding domestic energy production, Indonesia intends to bolster its energy security and sustainability. Indonesia has been facing challenges to overcome the amount of energy imports, one of them being Liquified Petroleum Gas (LPG). Palm oil as one of the raw materials can be used to generate bioenergy in the future. On the other hand, it generates liquid waste, known as Palm Oil Mill Effluent (POME). Using POME to produce Biogas becomes the alternative and sustainable way to control the amount of POME as a waste of Palm Oil Production as well as providing economic satisfaction and benefits. The Ministry of Energy and Mineral Resources (ESDM) encourages the development of Biogas into Biomethane-Compressed Natural Gas (Bio CNG) on a commercial scale as a fuel to replace the LNG. In addition, The Bio CNG is purified from the Biogas that is generated from decomposing POME to replace the demand for LPG. The purpose of this research is to determine the demand value for Bio CNG, create a distribution model for transporting the Bio CNG from the Palm Oil Mill (PKS) to the unloading port as well as identify the transportation cost involved in distributing the Bio CNG. Several methods are used to obtain the purpose of the research such as Capacitated K-Medoids for clustering the area, TSP for determining alternative land transportation routes, VRP for determining modes and routes of the maritime transportation, Simulation, and Optimization for minimizing several storage capacities, and Sensitivity Analysis to access the impact of unit cost change over the component value. The amount of Bio CNG demand for achieving zero emissions in the palm oil industry is 2.18 million tons or 104,052 mmBtu, the amount of POME from the PKS to the Bio-CNG plant either directly or through a last-mile approach. After production, Bio-CNG is transported from the plant to the loading port via a direct route, and then from the loading port to the unloading port with a single CNG ship. The total cost and the unit cost are Rp455,303 million per year and Rp310,276 per mmBtu respectively.