NEDO and Japanese Consortium Start CNG-NGV Demo Project in Indonesia

Project overview: proposed CNG Stations

Japanese research and development government agency New Energy and Industrial Technology Development Organization (NEDO), together with Toyota Motor Corporation, Hino Motors Corp., Toyota Tsusho Corporation and Toho Gas Engineering Co., Ltd., with assistance from Nippon Automobile Research Institute, aim to expand the presence of compressed natural gas (CNG) vehicles in Indonesia.

The consortium will commence a demonstration project, through which it will introduce infrastructure and systems that can supply quality CNG fuel according to international standards through the installation of CNG filling stations using Japanese technology in the Jakarta metropolitan area and nearby industrial parks. It will also introduce and operate natural gas vehicles (NGV). By doing so, it aims to encourage energy conservation and reduce greenhouse gas emissions.

NEDO has entered into an agreement (MoU Dec 11) with the Indonesian Ministry of Energy and Mineral Resources’ Directorate General of Oil and Gas (MIGAS) to conduct an environmental improvement project to expand the use of CNG in the country.

NEDO and the consortium of the above five parties will enter outsourcing agreements in the near future, and signed an agreement annex (ID) to promote the project in collaboration with Pertamina, Indonesia’s state-owned oil company.

Overview

Today, in Indonesia, natural gas expansion is proceeding in industrial and transportation fields with the aim of restricting import and consumption of petroleum products. In particular, for compressed natural gas (CNG) vehicles, the goal is to introduce 2 million CNG vehicles and install 646 CNG filling stations by 2025, as part of the National Energy Plan (RUEN) of October 2016. With this background, NEDO, in collaboration with MIGAS, will create an environment where CNG vehicles will be sustainably disseminated.

NEDO, the consortium and Pertamina will install three CNG filling stations in the industrial park of Jakarta and a nearby industrial park, and introduce CNG passenger cars and CNG freight vehicles. The demonstration period is scheduled for December 2017 to March 2021.

Through introduction and operation, the government of Indonesia aims to promote natural gas use, encourages the introduction of infrastructure and systems that can supply fuel for quality CNG vehicles according to international standards, and also encourages energy conservation and greenhouse gas reduction.

Emissions Benefits

When analyzing the effect per unit, from resource mining / refining to driving, NEDO says the energy saving effect of the CNG passenger car is about 7% and greenhouse gas reduction is about 22%. However, given the project aims to replace current diesel vehicles with modern natural gas vehicles, the cumulative energy saving effect is expected to be about 16% and the greenhouse gas reduction is expected to be about 35%.

NEDO also aims to assist various Government ministries to revise and/or introduce the necessary regulations for CNG as a fuel for transportation, to bring them into line with international standards.

Source: New Energy and Industrial Technology Development Organization (NEDO)

This article is adapted from a translated Japanese-language press release from NEDO. We recommend readers verify the statements made by visiting the original document at nedo.go.jp