PMTF-SSGC-AE ink MoU to promote renewable natural gas

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SSGC Alternate Energy (Pvt.) Limited (SSGC-AE) and Pakistan Machine Tool Factory (PMTF) have entered into a Memorandum-of-Understanding (MoU) meant to unlock the potential of “Green Molecules” Renewable Natural Gas. As a result of this strategic understanding, PMTF will supply biogas/biomethane, a renewable natural gas, to SSGC-AE.

The MoU was signed by Mr Imran Maniar, Chairman, SSGC-AE and MD, SSGC and Major General Abid Mumtaz Malik (R), MD, PMTF in a simple yet impressive ceremony held at SSGC Head Office on October 20, 2023. The ceremony was witnessed by Acting DMD (Operations and UFG) SSGC, Mr. Saeed Rizvi and his team members and Hamid Ali, Business Development Manager, PMTF.

SSGC-AE, SSGC’s wholly-owned subsidiary, was established in 2022 to address energy challenges in the country. SSGC-AE’s core mission revolves around the implementation of alternative energy projects, including renewable and eco-friendly fuel ventures such as biogas and biomethane, thermal energy-based electricity generation and forward-looking initiatives like coal-to-gas conversion with carbon capture and storage capabilities, as well as green hydrogen production.

SSGC-AE is proactively spearheading the promotion of Green Molecules endeavours by urging prospective investors and market project developers to engage in biogas and biomethane production. This renewable gas can be derived from non-food organic sources, including cow dung, municipal waste, rice husk, energy crops and similar substrates. This strategic initiative is thus geared towards establishing a sustainable and eco-friendly energy ecosystem.

Urban centers produce massive amounts of solid bio-waste, the disposal of which is a challenge for civic agencies. Alternatively, this waste can be effectively utilised for energy generation. The MoU envisions that PMTF will produce bio-gas / biomethane by tapping into waste materials and producing renewable natural gas through biogas plants. This environmentally friendly gas will be made available for purchase by SSGC-AE, who will oversee its local distribution to third-party entities.

This understanding between the two companies will be a major step forward towards augmenting gas supplies to a large extent, especially in the context of fast-depleting gas reserves and promoting an alternative resource. The move will also encourage local and foreign investors to invest in this untapped energy source for setting up large-scale bio-gas plants, and help in local job creation and economic growth. Emphasis on renewable natural gas also carries numerous environmental benefits, including substantial contributions to the vital process of de-carbonization, which will yield a net reduction in methane emissions and hydrocarbons.

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