TEMPO.CO, Jakarta - Indonesia-owned gas and oil firm Pertamina is exploring the development of ethanol derived from urban waste through a strategic partnership with LanzaTech, an American firm specializing in the conversion of carbon waste into fuel and chemical materials.
The two companies formalized their cooperation by signing a memorandum of understanding at the Offshore Technology Conference in Houston, United States.
"Through this collaboration, we are pushing for concrete solutions to transform challenges into opportunities by converting waste into economically valuable fuel while supporting the energy transition," stated Pertamina’s Vice President of Research and Technology Innovation, Oki Muraza, in a written statement on Thursday, May 7, 2026.
Under this agreement, Pertamina and LanzaTech will advance waste-to-fuel technology, specifically focusing on converting urban waste into ethanol via a microbial fermentation process. Oki noted that this partnership addresses two issues simultaneously: the surge in domestic waste volume and Indonesia's rising demand for clean energy.
Currently, national waste production reaches approximately 56,600 tons per day, while demand for ethanol is projected to climb to 2.4 million kiloliters by 2030.
LanzaTech utilizes microbial-based fermentation technology capable of transforming diverse carbon sources into value-added products like ethanol. Having operated commercial facilities across several countries, the firm offers modular technology designed for seamless integration with existing infrastructure, such as refineries and urban waste management systems.
According to Oki, this collaboration has the potential to generate new revenue streams while enhancing the efficiency of national waste and energy management. Beyond supporting the energy transition, the project is expected to bolster Indonesia’s reputation as a destination for innovative, technology-driven energy investment.
"Pertamina and LanzaTech are also exploring opportunities to replicate similar projects across various major cities in Indonesia," he added.
LanzaTech Chief Executive Officer Jennifer Holmgren stated that waste-to-ethanol technology facilitates the growth of a circular economy rooted in waste recovery and low-carbon energy.
This partnership further paves the way for new industrial value chains, spanning from waste processing and ethanol production to the utilization of these products as fuel blends and essential raw materials for the chemical sector.
Read: TNI, Police to Crack Down on Own Members in LPG, Fuel Abuse Cases
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