Phase 2 · Step 3 — Feasibility & Technical Summary
Technical pitch document for the USD 40M raise. Revised 2026-05-16.
1. Technology overview
The platform deploys Covered Lagoon Anaerobic Digestion (CLAD) — a proven, in-ground digestion configuration — at all three plants. CLAD operates on the principle of in-ground or partially-in-ground lagoons covered by a gas-tight membrane. Anaerobic bacteria digest the organic feedstock over a hydraulic retention time of twenty-five to thirty-five days, producing raw biogas that collects under the membrane cover. Operating temperature sits in the mesophilic range of roughly 35 to 40 degrees Celsius, and Indonesian climate supports lagoon operation without supplemental heating in most cases.
CLAD was selected over the more capital-intensive Continuously Stirred Tank Reactor (CSTR) configuration after evaluating both at concept stage. CSTR offers higher throughput per unit footprint and tighter operating control, but its capital intensity and ongoing mechanical complexity do not pay back at the feedstock scales contemplated here. CLAD's lower capital cost per tonne of capacity, its proven Southeast Asian operating record, and its compatibility with the Indonesian climate make it the right fit for all three sites. The Penang bio-methane plant in Malaysia — operating today, supported by the same technical-consultant lineage that supports this project — uses CLAD on a comparable feedstock mix and provides the operating reference.
The output product is Compressed Bio-Methane Gas (CBG) at pipeline specification, meaning biogas upgraded to 97 percent or higher methane content. CBG was chosen over alternatives — electricity generation for grid sale, bio-CNG for transport, or sale of raw biogas — for three reasons. PGN's pipeline network already covers two of the three sites and provides immediate offtake access. Pricing at USD 15 per MMBTU on the prevailing CBG market benchmark delivers stronger revenue per unit of biogas produced than equivalent electricity output sold to PLN. And Indonesia's gas-import-substitution policy provides a structural demand tailwind that does not apply equally to electricity.
Biogas upgrading from the raw 55-to-65-percent methane content to pipeline-spec 97 percent or higher is handled by either membrane separation or pressure swing adsorption (PSA), with the technology selection per plant finalized against scale economics and supplier availability. Both technologies are mature, supplier-available across Asia, and well-suited to the throughput at each of the three sites.
2. Plant configurations
The three plants share the CLAD core technology but differ in upstream feedstock preparation and downstream offtake routing to suit their respective sites.
PD Pasarjaya — Jakarta urban hub-and-spoke. The Pasarjaya plant sits on the Mega AD site in the Pulogadung / Cakung industrial corridor, with a plant footprint of three to five hectares. Feedstock arrives at 350 tonnes per day from Jakarta's traditional markets, of which roughly 90 percent is organic — exceptionally high purity, pre-sorted at source by the 153 markets aggregated under PD Pasarjaya. No Materials Recovery Facility (MRF) is needed at the plant because the upstream sorting is already done. Net organic feedstock to the digester runs 315 tonnes per day.
Jakarta congestion is a logistics challenge. The plant addresses it through a hub-and-spoke arrangement: market trucks deliver feedstock to two transfer stations on the city edge (Cengkareng and Tg Priok / Koja, each on a 0.7-to-1.5-hectare footprint), and bulk-haul vehicles then move the consolidated feedstock from the transfer stations to the Mega AD plant. The arrangement reduces feeder-haul distance from 18.4 to 10.4 kilometres per tonne — a 43 percent improvement.
CBG output from Pasarjaya is delivered into PGN's Jakarta distribution grid via direct pipeline interconnection. The Pulogadung / Cakung corridor sits within PGN's most developed pipeline network, so grid injection is straightforward.
Bandung — peri-urban with full MRF and animal co-digestion. The Bandung plant sits on 3.5 hectares at the Sarimukti site, on Perhutani-owned forestry land accessed through an IPPKH forestry-use license. Feedstock arrives at 700 tonnes per day of municipal solid waste (MSW) at roughly 50 percent organic purity, supplemented by 75 tonnes per day of animal feedstock — manure, slaughterhouse byproducts, and livestock waste from the West Java livestock catchment covering Bandung Regency, Garut, Subang, and Cianjur (poultry and slaughterhouse operations). Net organic input to the digester is 425 tonnes per day, the highest of the three plants.
A Full MRF separates the organic fraction from mixed MSW at the plant gate. The MRF is provided in-kind by Kota Bandung's environmental agency (DLH), which removes both the capital expense and the operating burden of MRF from the project's scope. The animal feedstock stream arrives separately by supplier truck and is homogenized with the MSW organic stream before dosing into the covered lagoon.
CBG output is delivered into PGN's West Java distribution grid, which covers the Bandung area at sufficient capacity for direct injection.
Lamsel — peri-urban with light MRF and animal co-digestion, off-grid optionality. The Lamsel plant sits on roughly 2.5 hectares at TPA Lubuk Kamal, an active municipal landfill in Kecamatan Natar, Kab. Lampung Selatan. Feedstock arrives at 500 tonnes per day of MSW at 50 percent organic purity, supplemented by 75 tonnes per day of animal feedstock from the Lampung Selatan dairy and poultry catchment near Kec. Natar. Net organic input is 325 tonnes per day.
A Light MRF in the project's CAPEX scope separates organics from residual inerts in the aggregated MSW at TPA Lubuk Kamal. The active-landfill location means MSW is already aggregated at a single geographic point, simplifying the feedstock-receiving step.
CBG output from Lamsel has two channels available. Where PGN pipeline coverage extends, direct grid injection is the primary route. Where the grid does not reach, Pertamina's off-grid CBG distribution via truck-mounted compressed-gas vessels delivers to industrial buyers in Lampung — cement, palm oil processing, and manufacturing facilities. The anchor pricing of USD 15 per MMBTU holds across both channels.
3. Operating evidence
The platform's operating assumptions are anchored on actual data from the Penang bio-methane plant in Malaysia, which has been running for years on the same CLAD technology and a comparable feedstock mix to the Indonesian plants. The technical-consultant relationship — Greenviro Solutions Sdn Bhd on Penang, Greenviro on these three SPVs — provides direct continuity from Penang operating data into this project's design choices.
Utilization. Penang operates at 90 percent or higher annual utilization. The Indonesian plants target the same 90-percent-plus utilization in the base case, with sensitivity testing extending down to 80 percent for stress conditions.
Biogas yield per tonne of feedstock. MSW organic yields approximately 80 to 120 cubic metres of biogas per tonne. Animal feedstock yields approximately 300 to 500 cubic metres per tonne — three to five times higher per unit mass. At 75 tonnes per day of animal feedstock alongside 250 to 350 tonnes per day of MSW organic, the animal stream represents 15 to 20 percent of total feedstock mass at Lamsel and Bandung but contributes 25 to 40 percent of total biogas output at those plants. The PD Pasarjaya plant operates on MSW organic alone.
Parasitic load. The plant uses 5 to 10 percent of its biogas production internally for plant operations — mixing, pumping, and upgrading. Net biogas available for upgrading to CBG is therefore 90 to 95 percent of gross production. Penang's actual operating parasitic load anchors this range.
Raw biogas methane content. The methane content of raw biogas before upgrading runs 55 to 65 percent, with the balance being CO2, water vapor, and trace hydrogen sulphide. Upgrading via membrane or PSA delivers 97-percent-or-higher methane in the CBG product, meeting PGN pipeline specification and Pertamina off-grid distribution standards.
OPEX scaling. OPEX scales with plant capacity from the Penang reference baseline, with site-specific adjustments. Bandung's in-kind MRF reduces OPEX scope versus a project-funded MRF, Lamsel's light MRF adds some OPEX versus Pasarjaya's no-MRF configuration, and the animal-feedstock supply chain at Lamsel and Bandung adds a feedstock-handling line that Pasarjaya does not have.
The convergence between Penang operating data and the Indonesian plants' design points means the financial model's operating assumptions are not extrapolations from theoretical performance. They are direct transpositions from a comparable plant already running in the region.
4. Feedstock & site readiness
Feedstock supply continuity is anchored at each plant on named sources with defined commercial arrangements. Permits and land arrangements are sequenced to each plant's award timing.
Pasarjaya. Feedstock comes from Jakarta's traditional markets aggregated under PD Pasarjaya — the regional state-owned market authority that runs 153 markets across the city. The Top-48 markets are used; Kramat Jati is excluded because of an existing Black Soldier Fly facility processing the same waste stream. PD Pasarjaya bears the feeder-truck logistics from market to transfer station; the project handles bulk-haul from transfer station to plant. The Memorandum of Understanding with PD Pasarjaya was signed in October 2025 and has been extended to October 2026 to align with the project award. Land at the Mega AD site is held under a long-term commercial lease rather than purchased — Jakarta land scarcity makes lease the more capital-efficient choice.
Bandung. The Sarimukti site is Perhutani-owned forestry land. Access is via an IPPKH (Izin Pinjam Pakai Kawasan Hutan) forestry-use license, a standard permit under Indonesia's Omnibus Law and OSS one-stop permitting framework. The IPPKH process is well-established for utility infrastructure on forestry land and runs in parallel with the Letter-of-Award processing rather than gating it. MSW feedstock arrives from Kota Bandung's existing municipal collection routed to Sarimukti — the city is the source, and the project receives the organic fraction after the in-kind MRF separation. Animal feedstock supply contracts cover the West Java catchment (Bandung Regency, Garut, Subang, Cianjur) and are sequenced to award timing. The Memorandum of Understanding is signed and the Feasibility Study has been presented; award steps are proceeding.
Lamsel. Site access is at TPA Lubuk Kamal, an active municipal landfill in Kecamatan Natar. The active-landfill choice simplifies feedstock aggregation because MSW already lands at a single geographic point through the regency's existing collection routes. Animal feedstock supply contracts cover the Lampung Selatan dairy and poultry catchment near Kec. Natar. The regency government provides road infrastructure to the site as in-kind support, addressing the access-road continuity needed for both the construction phase and ongoing feedstock delivery. The Memorandum of Understanding is ready, with the investment partner and awarding entity (regency or provincial level) in final confirmation.
Across the three plants, the regulatory framework is supportive. Perpres 109/2025 mandates non-thermal treatment for wet and organic waste, which directly fits CLAD-based anaerobic digestion. PMK 130/2020 grants a five-year corporate-tax holiday at 100 percent to qualifying renewable-energy infrastructure within the CAPEX bracket that all three plants fall inside. The Omnibus Law and OSS one-stop permitting system streamline the licensing process across the board.
5. Construction & equipment sourcing
The construction approach across all three plants follows a two-year build schedule, with EPCC delivery split between an overall contractor team and an AD-specific specialist to keep technical expertise concentrated where it matters most.
EPCC contracting structure. Samaiden and Citaglobal handle overall EPCC scope on each plant — civils, mechanical, electrical, balance-of-plant, and the broader build sequencing. Orec delivers the anaerobic-digestion-specific scope as either an engineering package within the overall delivery or as a dedicated AD-only EPCC sub-package, depending on the per-site contracting approach. Samaiden and Citaglobal operate in their established Southeast Asian geography. Orec is a specialist on the AD technology family being deployed. The contracting split keeps AD expertise concentrated with the specialist while the overall delivery sits with broader EPCC operators.
Commissioning approach. Each plant follows a one-year approvals stage before construction begins, then a two-year construction schedule with commissioning at the end. The Year 1 Approvals stage covers Letter-of-Award processing, initial engineering, plan development, permitting clearance, and long-lead equipment deposits. Construction Year 1 covers digester lagoon civils, MRF where applicable, long-lead equipment manufacture and delivery, and contractor mobilization. Construction Year 2 covers balance of plant, biogas upgrading installation, interconnection to the gas grid or off-grid distribution capability, commissioning, and ramp-up working capital. Commercial Operations Date (COD) is reached at the end of Construction Year 2 for each plant, three years after award.
Equipment sourcing strategy. The platform sources equipment under a three-tier strategy.
Critical equipment — digester membranes, biogas upgrading modules, instrumentation — is sourced from Europe. European supply provides the proven twenty-plus-year reliability needed for the components on which long-run plant performance depends. The supplier relationships and qualifications carry across all three plants.
Non-critical equipment — pumps, valves, mechanical components, standard process equipment — is sourced from China. Chinese supply provides cost-competitive, mature supply chains where the failure-mode risk and replacement economics permit the trade-off.
Local content — civil works, infrastructure, standard mechanical and electrical equipment, project-management services — is maximized to Indonesian content wherever capable domestic supply exists. The local-content emphasis aligns with Indonesia's domestic-supply policy and supports the regulatory framework that creates the market for the project in the first place.
This sourcing approach delivers reliability for long-life critical components, cost competitiveness for routine mechanical equipment, and policy alignment through Indonesian content where it is available.