KIS Group, Toyota Tsusho Form JV for Biomethane in Indonesia
KIS Group has formed a 51:49 joint venture with Toyota Tsusho to produce and sell biomethane from palm oil mill effluent (POME) in Indonesia, with commercial operations targeted for 2027.
October 08, 2026. By Mrinmoy Dey
The new company, PT KIS Toyota Tsusho Biomethane Indonesia (KTBI), was established in September 2026. KIS Group’s Indonesian subsidiary, PT KIS Biofuels Indonesia, will hold a 51 percent stake in the venture, while PT Toyota Tsusho Indonesia will hold 49 percent.
The partnership expands KIS Group’s international biomethane operations at a time when countries with large agricultural and industrial waste streams are looking to produce cleaner substitutes for conventional natural gas.
As its first project, the joint venture will upgrade biogas generated from palm oil mill effluent, or POME, at a palm oil mill in South Sumatra into high-purity biomethane. The biomethane will then be transported and supplied through the pipeline network of Indonesia’s state-owned gas company, PT Perusahaan Gas Negara (PGN), to industrial customers, including manufacturers in West Java. Commercial operations are expected to begin in 2027, with annual biomethane sales of approximately 150,000 MMBTU planned.
The partnership marks another step in KIS Group’s expansion as a global bioenergy company. Founded in 2006, KIS has grown from India into an international renewable-gas business, with more than 90 biogas projects across over 20 countries. It also follows Mitsubishi Corporation’s acquisition of a minority equity stake in KIS Group’s Indonesian operations in 2025, as well as KIS Group’s BioLNG supply arrangement with Shell. The Toyota Tsusho partnership further expands KIS Group’s network of global partners as it builds its biomethane and renewable-gas business across international markets.
K.R. Raghunath, Founder and CEO, KIS Group, said, “Over the last two decades, we have built KIS from India into a global bioenergy company, taking technology, engineering and execution capabilities developed over years of working with complex waste streams into markets around the world. Our partnerships with global corporations such as Mitsubishi Corporation, Shell and now Toyota Tsusho demonstrate the role that an Indian-origin clean-energy company can play in the emerging global biomethane economy.”
He further added, “Biomethane is increasingly moving from being a waste-management solution to becoming part of the mainstream energy system. Indonesia is a strong example of this opportunity, where a large biomass resource can be converted into renewable gas and supplied to industrial customers through existing infrastructure. Through KTBI, we intend to build a model that can be scaled across Indonesia and other international markets.”
KIS Group’s Indonesian subsidiary has previously launched Indonesia’s first commercial production and sale of biomethane, giving the Group an established operating base in the country. KIS currently owns and operates three BioCNG plants in Indonesia and supplies BioCNG to Unilever under a long-term offtake contract. The South Sumatra project is expected to reduce greenhouse-gas emissions in two ways: by preventing methane generated from POME from being released into the atmosphere and by enabling industrial users to substitute conventional gas with biomethane, the company stated.
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