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YOGYAKARTA INTEGRATED GREEN GAS & BIO-CNG PILOT PROJECT

 

Indonesia produces millions of tons of agricultural residues annually, particularly rice straw and corn residues. In regions such as Yogyakarta, a significant portion of this biomass is either openly burned or left unmanaged,

CONCEPT NOTE

Catalytic Seed Funding Proposal (EUR ~500,000)

Project Proponent
PT Nurin Inti Global
Independent Engineering & Project Development
Yogyakarta – Indonesia


1. Background & Rationale

Indonesia produces millions of tons of agricultural residues annually, particularly rice straw and corn residues. In regions such as Yogyakarta, a significant portion of this biomass is either openly burned or left unmanaged, resulting in:

  • Greenhouse gas emissions
  • Local air pollution and health risks
  • Lost economic value for rural communities

At the same time, Indonesia faces increasing demand for:

  • Clean industrial gases (Nitrogen & Oxygen)
  • Sustainable energy carriers (Bio-CNG / Green Gas)
  • Decentralized, resilient energy infrastructure

This project proposes an integrated circular economy solution that converts agricultural residues into:

  • Biogas / Bio-CNG (renewable energy)
  • Industrial gases (N₂ & O₂) via Pressure Swing Adsorption (PSA)
  • By-products that support soil improvement and rural income

The initiative is designed as a pilot / demonstrator project, aimed at de-risking technical, social, and financial aspects before replication at scale across Indonesia.


2. Project Objective

Overall Objective

To establish a replicable pilot model for converting agricultural waste into renewable gas and industrial gases through an integrated Biogas + PSA system, supporting Indonesia’s climate and rural development goals.

Specific Objectives

  1. Demonstrate technical integration of biogas upgrading and PSA-based gas separation
  2. Validate sustainable feedstock supply from local farmers
  3. Reduce emissions from open biomass burning
  4. Create a bankable project structure ready for blended finance and private investment
  5. Provide a scalable blueprint for replication in other agricultural regions

3. Project Description

Location

Yogyakarta Province, Indonesia

Core Components

  • Biogas production unit using agricultural residues (rice straw, corn waste)
  • Gas upgrading & purification
  • PSA system for Nitrogen & Oxygen production
  • Bio-CNG preparation for energy use
  • Supporting infrastructure, monitoring, and community interface

Project Nature

  • Pilot / Demonstration (Pre-Commercial)
  • Not a full commercial rollout
  • Designed to catalyze future private capital

4. Expected Impact

Climate & Environmental

  • Reduction of GHG emissions from biomass burning
  • Renewable gas substitution for fossil-based energy
  • Improved waste management practices

Socio-Economic

  • New income streams for farmers
  • Local job creation
  • Capacity building in green infrastructure

Market & Financial

  • De-risked project ready for:
    • Commercial investors
    • Development finance institutions
    • Green banks and climate funds

5. Requested Support (Seed / Catalytic Funding)

Amount Requested

EUR ±500,000

Purpose of Funding

The requested support will be used exclusively for early-stage catalytic activities, including:

  • Pre-FEED & detailed technical validation
  • Pilot-scale equipment integration & testing
  • Environmental and social baseline studies
  • Feedstock supply structuring with local communities
  • Regulatory & permitting preparation
  • Monitoring, reporting, and impact assessment
  • Investment readiness & replication roadmap

⚠️ The funding is not intended to finance full commercial CAPEX.


6. Financing Strategy & Sustainability

This seed funding is positioned as catalytic capital to:

  • De-risk the project technically and institutionally
  • Crowd-in private investors and lenders
  • Enable blended finance structures in the next phase

Following successful pilot implementation:

  • Private capital will be mobilized for scale-up
  • The model will be replicated in other provinces
  • The project transitions to full commercial operation

7. Governance & Implementation

  • Project developed and managed by PT Nurin Inti Global
  • Dedicated SPV structure planned for scale-up phase
  • Transparent governance and reporting mechanisms
  • Alignment with Indonesian regulations and development priorities

8. Alignment with Development Partner Priorities

This project directly supports:

  • Climate mitigation and circular economy
  • Renewable energy transition
  • Sustainable agriculture & rural development
  • Innovation-driven, scalable infrastructure solutions
  • Indonesia’s national climate and energy objectives

9. Conclusion

The Yogyakarta Integrated Green Gas & Bio-CNG Pilot Project represents a high-impact, low-regret investment opportunity for development partners seeking to support climate action while enabling private sector participation.

Seed support at this stage will unlock a pathway toward scalable, bankable green infrastructure across Indonesia.


Contact

Ahmad Fakar
Independent Engineering Consultant
PT Nurin Inti Global | Email: afakar@gmail.com | Yogyakarta – Indonesia

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