Category: ESG

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