Category: Alternative Energy

The Energy, Sustainability, and Climate Business 20 Task Force (TF ESC-B20) has successfully created the First Green Industrial Area in Southeast Asia.

In a statement released on Saturday, the green industry area acts as an industrial decarbonization effort, which has become an important step not only for the industry but also the cluster.

Chair of the TF ESC-B20 Nicke Widyawati said that supporting decarbonization will accelerate the achievement of net zero emission that is targeted by Indonesia in 2060.

Supporting the development of green industry clusters will also attract more foreign investment in the future, encouraging national economic growth and create jobs.

“Decarbonization of the Industrial Cluster allows us to apply an integrated approach to the transition to net zero,” said Nicke Widyawati, Chair of TF ESC-B20 who is also CEO and President Director of Pertamina, in Bali, Friday (11/11).

She continued that one of the important pillars of decarbonization is energy efficiency and circularity, using emerging technologies such as modernization of energy-efficient equipment and components, as well as the adoption of a flaring recovery system.

Other industrial decarbonization initiatives include the application of Carbon Capture, Utilization and Storage (CCUS) technology and the implementation of Nature Based Solutions (NBS).

“Indonesia has 400 billion tonnes of CO2 storage potential in our reservoirs for CCUS. We also have the second largest global NBS potential in the world,” she added.

She further said that energy use in industry is the highest compared to energy use in buildings and the transportation sectors. Therefore, one of the recommendations of TF ESC-B20 is to increase global cooperation in accelerating the transition to sustainable energy use by reducing carbon intensity in various fields as well as industrial decarbonization.

For that reason, energy efficiency is one of the important pillars of decarbonization that will contribute to the Net Zero Emission target.

Globally, energy efficiency has increased by around 13 percent (2000-2017) and can be 12 percent higher if it is not stopped.

“Over the past 10 years, energy consumption has grown rapidly by 47 percent. According to the latest estimates, the annual average CO2 reduction would need to increase fivefold to reach the Paris Agreement targets. The pace of transition needs to be accelerated,” she continued.

New technologies that accelerate industrial and consumer energy consumption are critical to driving efficiency, she reiterated.

Additionally, one of the policy recommendations from TF ESC-B20 is to increase global cooperation in accelerating the transition to sustainable energy use.

“We must further encourage global cooperation that will allow us to accelerate the NZE in line with the G20 theme, Recover Together, Recover Stronger,” she concluded.

Contact: Heppy Wulansari, Pjs. Vice President Corporate Communication, PT Pertamina (Persero)
Mobile: +62 811-296-949, Email: heppy@pertamina.com, URL: https://www.pertamina.com
Written by: Yuni Arisandy Sinaga, Editor: Rahmad Nasution (c) ANTARA 2022

Pertamina is making efforts to decarbonize its business and develop green businesses to support global climate change mitigation and the achievement of Indonesia’s 2060 net-zero emissions target.

“We have two main ways for dealing with climate change; first, we have to decarbonize our carbon assets and business,” Senior Vice President of Strategy and Investment at Pertamina Daniel S. Purba said.

He made the statement during a discussion at the Indonesian Pavilion on the sidelines of COP27 in Sharm el-Sheikh, Egypt, on Friday (November 11, 2022).

To decarbonize its business, Pertamina has started to change its business portfolio by promoting low-carbon energy as well as new and renewable energy at its existing businesses and operations, Purba informed.

“Since it is still economically expensive to introduce the use of renewable energy, the market is not really ready for it. However, for Pertamina, we have started with our own businesses. We can’t wait for the market to be ready immediately, but we have started with our own operations,” he said.

The company’s second climate change mitigation effort involves developing new businesses related to green energy with a number of targets set for biofuels; hydrogen; carbon capture, utilization, and storage; renewable energy; batteries and electric vehicles; and also the carbon business.

Thus, the company’s revenue will continue to flow even though the carbon business will be reduced and the company has started to decarbonize its business, Daniel explained.

To fulfill its commitment to achieving net zero emissions by 2060, Pertamina will slash its carbon emissions by almost 30 million tons by 2030 and reduce around 30-40 million tons of carbon per year by 2060. For that, the company needs to start taking carbon reduction measures from now onward.

In fact, in the period from 2010 to 2021, Pertamina has succeeded in reducing greenhouse gas emissions by 29.09 percent.

“Those two main ways that we have in our road map for climate change mitigation for years to come are by implementing some well-prepared, detailed, and clear programs and strong initiatives in our business groups. So, we are not only dealing with our current carbon business, but also starting to deal with new and renewable energy businesses,” Purba said.

He further said that the asset decarbonization road map is being implemented by Pertamina in each of its business lines, starting from upstream, refineries and petrochemicals, oil, commercial and trade, gas production, integrated marine logistics, and new renewable energy-based power plants.

“There are hundreds of programs behind this road map scheme, and each of our business group entities has committed to applying it,” he added.

To ensure that the decarbonization commitment runs in every line of its business, Pertamina has included the commitment target in the key performance indicators of each business entity.

“So, if you don’t reach the target, it will have an impact on your income. This is to ensure that all parties work very hard and are committed to achieving the target,” Purba said.

Apart from the oil and gas business, Pertamina is also developing the electric vehicle ecosystem in Indonesia by not only producing batteries, but also dealing with all supply chain businesses in the electric vehicle ecosystem.

Contact: Brahmantya Satyamurti Poerwadi, Corporate Secretary, PT Pertamina (Persero)
Email: pcc135@pertamina.com, URL: https://www.pertamina.com
Written by: Yuni Arisandy Sinaga, Editor: Rahmad Nasution (c) ANTARA 2022

Pertamina NRE, Keppel Infrastructure, and Chevron have signed an agreement to explore green hydrogen and green ammonia development projects in Indonesia, primarily in Sumatra.

“The development of green hydrogen and green ammonia has an important role in Indonesia’s Net Zero Emissions road map,” Pertamina NRE CEO Dannif Danusaputro said on Saturday.

Given the existing potential, Indonesia is expected to play a key role in green hydrogen production in Asia, he added.

We are excited about this strategic collaboration because we believe Keppel and Chevron are leading companies that share the same vision of energy transition as we do,” he added.

The collaboration was also welcomed by Keppel Infrastructure CEO Cindy Lim, who expressed her satisfaction over the agreement.

Indonesia is a country with large resources of high renewable and low carbon energy potential, she noted.

Therefore, she said she is pleased to be working with industry leaders, Pertamina and Chevron, to explore the prime use of geothermal energy and other new renewable energy for developing green hydrogen and green ammonia projects.

The cooperation is also meant to support Indonesia’s energy transition efforts as well as investment in new renewable energy supply chains in exploration areas, she added.

“This partnership will expand Keppel Infrastructure’s geographic footprint of creating and capturing added value from its global commitment to net zero and its energy transition,” she said.

Meanwhile, vice president of hydrogen at Chevron New Energies, Austin Knight, expressed his hope to use the shared expertise to study and evaluate low-carbon business opportunities in the region.

“Then, we must work together to find new and innovative ways to continue to produce and deliver cleaner energy for a growing world,” he said.

Pertamina, Keppel Infrastructure, and Chevron signed the Joint Study Agreement (JSA) at the Business 20 (B20) Investment Forum, which was held ahead of the B20 Summit in Bali.

B20 is the official dialogue forum of the G20 that represents the global business community.

The JSA has been prepared to explore the feasibility of developing a green hydrogen facility, with a minimum production capacity of 40 thousand tons per year, supported by at least 250-400 MW of geothermal energy in the initial stage.

The hydrogen production facility will have the potential to be scaled up to 80 thousand to 160 thousand tons per year, depending on the availability of geothermal energy and market demand.

Hydrogen and ammonia have been identified as low-carbon fuels that are an important part of the energy transition plan.

Ammonia can also be used to transport hydrogen and has the potential to replace bunker fuel as a low-carbon solution in the global maritime industry.

With the agreement, Indonesia, which has around 40 percent of the world’s potential geothermal resources, has the opportunity to utilize geothermal energy as a reliable and stable source of energy to produce green ammonia or green hydrogen.

Contact: Dicky Septriadi, Corporate Secretary, Pertamina NRE
Mobile: 08111663456, Email: dicky.septriadi@pertamina.com, URL: https://www.pertamina.com
Written by: Katriana, Editor: Rahmad Nasution (c) ANTARA 2022

State-owned energy company PT Pertamina has prepared some strategies to balance climate resilience and energy security, which include the development of nature-based solutions.

Senior Vice President of Research Technology and Innovation at Pertamina Oki Muraza conveyed this information during a discussion at the Indonesian Pavilion on the sidelines of COP27 in Sharm el-Sheikh, Egypt, on Wednesday (November 9, 2022).

During the discussion, Muraza said that Pertamina has declared its commitment to achieving net-zero emissions by 2060, and the commitment is in line with the emission reduction policy promoted by the Indonesian government.

As part of the commitment, Pertamina is implementing two main strategies: decarbonizing all of its current businesses and building new businesses based on green and sustainable principles.

The decarbonization measures taken by the company have included pushing energy efficiency, zero-flare oil and gas activities, and carbon capture and utilization.

“Some other measures include increasing green electricity in Indonesia, building the electric vehicle ecosystem, and developing nature-based solutions,” Muraza added.

He further explained that the nature-based solution policy itself is not something new to Pertamina. However, synergy is needed between nature-based solutions and the energy sector, and both should go hand-in-hand.

Nature-based solutions involve short- and medium-term policies that can support the acceleration of climate technology implementation, which is a long-term policy.

According to Pertamina, those solutions need to be considered while designing carbon mitigation strategies.

“So, we have to not only be able to capture carbon dioxide with natural plants, but also produce something… including rubber and renewable hydrocarbon products. In the end, we expect to have other products from nature-based solutions,” Muraza said.

He highlighted three pillars that need to be considered in the development of nature-based solutions for realizing business resilience amid the challenges posed by climate change. The three pillars are community involvement, biodiversity and conservation, and sustainable economy.

In line with these, some vegetations that have potential as nature-based solutions, such as Calophyllum inophyllum and Pongamia pinnata, have been developed since they are beneficial for biofuel development.

In addition, the company believes that the development of the mangrove ecosystem can also be a nature-based solution because it could help absorb 264 tons of CO2 per hectare.

“We have conducted several studies with universities and government institutions on how to promote crops that can provide raw material stocks for green refineries,” Muraza said.

He also outlined several initiatives, for instance, capturing methane gas, which can be used for power generation and other purposes, for example, as compressed natural gas.

In addition, the energy company is also developing other initiatives, including processing liquid waste into biomethane and solid biomass waste into ethanol.

Some more initiatives undertaken by Pertamina are the establishment of Carbon Capture and Storage (CCS) centers on the islands of Java, Sumatra, and Kalimantan as well as the development of geothermal utilization in Indonesia.

Contact: Brahmantya Satyamurti Poerwadi, Corporate Secretary, PT Pertamina (Persero)
Email: pcc135@pertamina.com, URL: https://www.pertamina.com
Written by: Yuni Arisandy Sinaga, Editor: Fardah Assegaf (c) ANTARA 2022

State-owned energy company PT Pertamina is seeking to become a world-class player in green electricity generation based on geothermal energy by pursuing a number of technological innovations to increase geothermal utilization.

“We aim to become a world-class player in the geothermal sector. There is an opportunity for that … since, so far, the geothermal potential utilized is still less than 10 percent of the total owned by Indonesia,” said Oki Muraza, senior vice president of research technology and innovation at Pertamina.

He made the remarks during a discussion at the Indonesian Pavilion on the sidelines of COP27 in Sharm el-Sheikh, Egypt, on Tuesday (November 8, 2022).

Indonesia has nearly 24 gigawatts (GW) of geothermal potential, but less than 10 percent of it has been utilized, he noted. Therefore, Pertamina sees a great opportunity to further increase the capacity of geothermal utilization in the country to generate green electricity, he added.

Efforts to increase geothermal-based electricity capacity are aimed at supporting Indonesia’s target of achieving net-zero emissions by 2060 by increasing the use of renewable energy in the proportion of national electrical energy sources, he said.

For that reason, Pertamina has conducted a lot of research on the development of technological innovations for geothermal utilization, which have covered the fields of exploration, development, production-operation, and digitization.

The state-owned energy company is currently developing better technology in the field of exploration, undertaking a comprehensive study of geoscience, and developing new methods that can be applied in the geothermal industry.

“This is something that we have been doing for years so that we technologically master it, starting from exploration, development, production, drilling, and so on,” Muraza said.

Moreover, Pertamina will increase its geothermal capacity, which was recorded at 672 megawatts (MW) in 2020, to 1,128 MW by 2026.

The company is striving to achieve operational excellence in the upstream sector, integrate the development in new areas, and expand the value chain of products from geothermal energy, such as green energy products in the form of green methanol, green hydrogen, nano-silica, green liquid carbon dioxide, and carbon credits.

In addition, Pertamina is also supporting the development of green industrial clusters in the country.

“We hope to accelerate the development of new areas that can be used not only for electricity, but we are also starting to think about possible locations that can be developed for green hydrogen,” Muraza informed.

He added that Pertamina is offering cooperation opportunities to players in the field of geothermal and energy efficiency in Indonesia for implementing technological solutions – developed by the company to build more geothermal power plants and other geothermal products – and optimizing the utilization of geothermal potential in the country.

Contact: Brahmantya Satyamurti Poerwadi, Corporate Secretary, PT Pertamina (Persero)
Email: pcc135@pertamina.com, URL: https://www.pertamina.com
Written by: Yuni Arisandy Sinaga, Editor: Suharto (c) ANTARA 2022

Indonesian state-owned oil and gas company Pertamina has ramped up its geothermal energy capacity as one of the important efforts in achieving its carbon emission reduction target significantly.

During a discussion at the Indonesian Pavilion on the sidelines of the COP-27 event in Sharm el-Sheikh, Egypt, on Monday, Pertamina Geothermal Energy CEO Ahmad Yuniarto explained that the energy company has supported and will continue to extend support to the Indonesian government’s measures to achieve net zero emissions by 2060.

Yuniarto further explained that Pertamina is targeting the achievement of net zero emissions by 2060 with the support of various decarbonization measures and green businesses, including the development of its geothermal capacity.

He also highlighted that the latest National Electricity General Plan carried out to add more installed geothermal capacity in Indonesia will provide significant reduction in carbon emissions in the country.

“We have the opportunity to make a cumulative reduction of up to 1,200 million tons of carbon emissions equivalent,” Yuniarto remarked.

Such a cumulative reduction will have a large potential contribution – from the geothermal sector in Indonesia – for the achievement of urgent net zero emissions.

Yuniarto remarked that Pertamina Geothermal Energy (PGE) currently manages 13 geothermal working areas in Indonesia, with an installed capacity of 1,877 Megawatts (MW), comprising 672 MW operated and managed directly by PGE and 1,205 MW managed under a joint operation contract scenario.

That amount of geothermal capacity represents 82 percent of the total installed geothermal capacity in Indonesia.

Moreover, Yuniarto emphasized the important role of geothermal for energy transition and achieving zero carbon progress, with the energy sector having a 10-fold lower emission footprint than power generation using fossil fuels.

“Pertamina Geothermal Energy is committed, in the next five years, to increase the installed (geothermal) capacity of 600 megawatts,” he stated.

Yuniarto remarked that the commitment will help to avoid the generation of around 15.7 million tons of CO2 equivalent per year.

“This is a big and real contribution from Pertamina while we together strengthen the baseload of renewable energy in Indonesia,” he stated.

Apart from encouraging emission reductions through additional installed geothermal capacity, PGE also supports the rehabilitation of 588 hectares of forest areas.

“This is a fact that many people do not realize that geothermal developers are also working to support (rehabilitation) in nearly 600 hectares of forest areas,” Yuniarto pointed out.

He remarked that PGE, in running its businesses, continues to be committed to geothermal development and ensures the implementation of Environment, Social, and Governance (ESG) to become an integrated part of the company’s geothermal business.

PGE’s role in the implementation of ESG aspects is an effort to provide added value and support to national programs related to the use of new and renewable energy that is environmentally friendly, particularly geothermal.

PGE’s commitment to developing geothermal energy can also contribute to achieving several targets of Sustainable Development Goals (SDGs: the 7th Goal (Clean and Affordable Energy), the 12th Goal (Responsible Construction and Production), the 13th Goal (Climate Change Management), and the 15th Goal (Land Ecosystem).

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Yuni Arisandy Sinaga, Editor: Fardah Assegaf (c) ANTARA 2022

State-owned energy company PT Pertamina develops a number of green business initiatives to support Indonesia’s goal to achieve net zero emission by 2060.

The company has been investing in biofuels, renewable energy, carbon capture, utilization and storage, battery and electric vehicles, hydrogen as well as the carbon business.

“Pertamina is committed to supporting the Indonesia government’s commitment to achieve net zero by 2060 or sooner. Therefore, our business strategy consists of two pillars, namely decarbonizing our core business and developing a green business,” CEO of Pertamina Power Indonesia Dannif Danusaputro stated at the Indonesia Pavilion at COP27 in Sharm El Sheikh, Egypt, on Sunday (November 6).

He explained that Pertamina committed to allocating 14 percent of the projected 2022-2060 capital expenditure of US$70-80 billion US for the development of clean, new and renewable energy (NRE).

This commitment is in line with efforts to use domestic resources to supply domestic energy towards green development and decarbonization.

Pertamina also builds an integrated oil and gas supply chain to supply domestic needs and actively builds NRE portfolio using domestic resources.

The company will develop a greener energy mix by reducing the share of refined products and LPG from 81 percent to 61 percent, increasing the share of gas from three percent to 19 percent and increasing the share of NRE from one percent to 17 percent.

Considering a large investment required for the development of green business and clean technology to support the energy transition, Pertamina cooperates with national and global partners to explore partnerships in decarbonization programs, green businesses as well as accelerate the growth of EBT to achieve net zero emissions.

Banks can also invest in these green business initiatives.

The affordability of the clean energy transition will depend on reducing costs and increasing the availability of capital,” Danusaputro said.

In order to support the energy transition in Indonesia, Pertamina is also optimizing the potential and increasing the installed capacity of NRE where the company has pioneered the use of NRE in Indonesia with a total capacity of 60 GW by 2060.

Pertamina will also commercialize green and blue hydrogen and take a strategic role in Indonesia’s integrated battery and energy storage ecosystem through the development of the battery-powered electric vehicle industry in collaboration with several state-owned companies.

In addition, Pertamina is making efforts to increase refinery capacity to produce green fuel. Through several processes at the green refinery, Pertamina produces high-quality and more environmentally friendly fuel derived from palm oil including biodiesel, green diesel, green avtur and green gasoline.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Yashinta Difa Pramudyani, Editor: Fardah Assegaf (c) ANTARA 2022