Biomethane production is accelerating in Thailand, Indonesia, and Malaysia. But what exactly is biomethane, how is it produced, and why does it matter for these Southeast Asian countries? Let’s explore the opportunities, challenges, and regional leadership starting with Thailand.
Thailand is emerging as a regional leader in biomethane production, driven by strong policy support and abundant agricultural resources.
• Capacity target: 5,570 MW of bioenergy by 2036
• Current progress: Over 335 MW of biogas projects are underway
• Main feedstocks: Livestock manure, food industry waste, and farm residues
Thailand’s strength lies in its government backing and organized policy environment:
• Feed-in tariffs offer guaranteed pricing for biomethane-generated power
• Tax incentives lower upfront costs for investors
• Clear regulations reduce development risk for new projects
Thailand’s extensive farming sector ensures a steady supply of biomass inputs. Biomethane plants in Thailand are typically located near farms or factories, reducing transport costs and maximizing local energy efficiency.
A remarkable example of biomethane development in Thailand is the plant constructed by PVE Group, EPC partner for biogas and biomethane upgrading, for Chiang Mai University at Prachuab Kirikhan. This facility significantly contributes to Thailand’s renewable energy goals.
• Emission reduction: The plant has reduced greenhouse gas emissions by over 52,000 tonnes of CO₂ equivalent since operations began in 2020
• Economic Impact: Over 3.3 million kilograms of BioCNG (CBG) have been distributed, generating more than 51.5 million baht in income for local farmers and communities, and creating local employment opportunities25.
• Clean Fuel Alternative: The CBG produced meets the quality standards of natural gas for vehicles (NGV), providing a clean, locally sourced alternative to gasoline and supporting Thailand’s energy diversification goals25.
By capturing methane from cassava wastewater, the plant now provides renewable power to the starch facility and the local grid, replacing fossil fuels and lowering environmental impact, clean BioCNG from biomethane for fleets and factories.
Biomethane projects like Chiang Mai University’s deliver clear local benefits:
• Reduce pollution and odor from untreated waste
• Create skilled and unskilled job opportunities
• Supply reliable and affordable clean energy
Several other projects are contributing to Thailand’s biomethane ecosystem:
• Plants located near dairy farms help convert animal waste into energy
• Food processing facilities now use biogas upgrading units to turn waste into electricity and heat, cutting operating costs
Thailand’s supportive policy environment encourages both local and international investment in biomethane:
• Feed-in tariffs make renewable energy financially viable
• Investment tax breaks help lower capital costs
• Streamlined licensing allows faster permitting and project execution
Thailand plans to expand its biomethane plant network nationwide, aiming to increase use in sectors such as transport, industry, and power generation. This will help reduce emissions, improve energy access, and boost the clean economy.
| Year | Target Capacity |
|---|---|
| 2025 | 335 MW |
| 2036 | 5,570 MW |
Despite strong momentum, the country still faces challenges:
• Infrastructure limitations: Some biomass sources are located in remote areas
• Workforce gaps: Skilled technicians for upgrading technologies are still limited
• Public awareness: Increasing awareness is vital to encourage local adoption
Yet the benefits clearly outweigh the challenges. With stable policy, growing technical expertise, and rising private sector interest, Thailand is well-positioned to lead in biomethane potential and production in Southeast Asia.
Indonesia is rapidly expanding its biomethane industry, with significant progress driven by the palm oil sector and growing government support. As Southeast Asia’s largest economy and the world’s top palm oil producer, Indonesia is uniquely positioned to scale up biomethane production to meet both domestic and international energy demands.
Indonesia has set a clear national goal to achieve 810 megawatts (MW) of bioenergy capacity by 2025, with a substantial share expected from upgraded biogas systems. Among the most anticipated projects is a large-scale biomethane plant in South Sumatra, which will utilize Palm Oil Mill Effluent (POME) and is scheduled to begin operations by 2025. These projects form part of a broader transition toward cleaner fuels and energy self-reliance.
Palm Oil Mill Effluent (POME) is one of the most underused organic waste streams in Indonesia. When untreated, POME emits methane—one of the most potent greenhouse gases. By capturing this methane and upgrading it to biomethane, Indonesia can:
• Convert pollution into a valuable fuel source
• Reduce methane emissions from the palm oil sector
• Support local economies by decentralizing energy production
POME is continuously produced throughout the year, offering a steady, scalable feedstock for long-term biomethane production.
Indonesia is home to Asia’s largest compressed biogas plant, located in Langkat Regency, North Sumatra. This facility turns palm oil waste into pipeline-quality biomethane that reduces reliance on imported Liquefied Petroleum Gas (LPG).
• Reduces national LPG imports and fossil fuel dependence
• Lowers the trade deficit through domestic energy production
• Creates jobs and strengthens rural energy infrastructure
Beyond POME, Indonesia also utilizes rice husks to produce renewable thermal energy. A standout project in East Java uses rice husks to power a brewery, fully replacing its natural gas consumption. This initiative showcases the flexibility of biomass and its potential in various industries.
• Cuts CO₂ emissions by over 80%
• Supports local agricultural waste recycling
• Offers cost-effective energy for medium-sized enterprises
Indonesia’s growing biomethane potential is not only an environmental solution but also a strategic economic driver.
• Lowers fuel costs for industrial sectors
• Expands job creation in engineering, operations, and logistics
• Enhances rural development through small and mid-scale energy projects
• Reduces methane and carbon emissions substantially
• Improves water and air quality in industrial zones
• Contributes to Indonesia’s Nationally Determined Contributions (NDCs) under the Paris Agreement
With rising energy demand and pressure to decarbonize, biomethane production in Indonesia is poised to play a transformative role. Government policy, strong feedstock availability, and increasing private-sector interest ensure that Indonesia’s biomethane sector will be central to the region’s clean energy future.
Malaysia’s biomethane sector has experienced significant growth over the past few years, driven predominantly by the country's thriving palm oil industry. With robust policy support and rapidly evolving technology, Malaysia stands out as a regional leader in renewable gas development.
| Location | Owner | Feedstock | Usage |
|---|---|---|---|
| Sabah | Government (SIRIM) | POME | Vehicle fuel |
| Peninsular Malaysia | Felda and Sime Darby | POME | Natural gas alternative |
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