KIS Group, Toyota Tsusho form JV for biogas in Indonesia

The KIS Group has announced that its Indonesian subsidiary PT KIS Biofuels Indonesia (KBI) has formed a joint venture with Japan’s Toyota Tsusho Corporation to develop biomethane production and sales business in Indonesia. KIS Group held that the commercial operations are targeted to begin in 2027.

The new joint venture, PT KIS Toyota Tsusho Biomethane Indonesia (KTBI), was established in September 2026. The partnership will focus initially on converting biogas generated from palm oil mill effluent (POME) into high-purity biomethane and supplying it to industrial customers.

The first biogas project is being developed at a palm oil mill in South Sumatra, one of Indonesia’s major palm oil-producing regions. The biomethane will be transported through the pipeline network of state-owned gas company PT Perusahaan Gas Negara (PGN) to customers, including manufacturers in West Java.

KIS Group plans annual biomethane sales of around 150,000 MMBTU. The project is expected to support industrial decarbonisation by replacing conventional natural gas while also preventing methane emissions from untreated POME.

The biogas project will make use of existing gas pipelines and customer-side gas equipment, potentially reducing the capital expenditure required for fuel switching. KTBI also plans to obtain International Sustainability and Carbon Certification (ISCC) to verify the environmental attributes of the biomethane.

The initiative follows a memorandum of understanding between Toyota Tsusho and PGN on biomethane commercialisation signed during the inaugural Asia Zero Emission Community (AZEC) Leaders Meeting in 2023.

According to the companies, the project will be the first in Indonesia to transport biomethane produced in Sumatra to industrial customers in Java.

Raghunath KR, CEO of KIS Group, stated, “Now that we have formed a joint venture with Toyota Group, and with Mitsubishi Corporation as a shareholder, we have the backing of two of Japan’s—and the world’s—largest and most reputable corporations. We couldn’t have asked for more!”

KBI is part of KIS Group, which develops biogas and biomethane projects globally. The group has undertaken more than 90 biogas projects across over 20 countries, while KBI has been involved in Indonesia’s first commercial biomethane production and sales project.