We hope that Pertamina, as an energy company of Indonesia, will energize everyone to contribute towards a greener future by reducing global carbon emissions,Jakarta (ANTARA) - Indonesian energy company PT Pertamina (Persero) will allocate around nine percent of its total capital expenditure (Capex) for the 2020-2024 period for its entire new and renewable energy (NRE) initiatives.
Such a percentage allocated by Pertamina is over two folds the international industry benchmark that averages at 4.3 percent, as noted by the company in its written statement here on Tuesday.
This aspiring target indicates its determination to implement the Environmental, Social and Governance (ESG) aspects toward sustainability.
Moreover, for its transition to new and renewable energy (NRE), Pertamina has identified eight strategic initiatives.
Those initiatives encompass increasing geothermal capacity, developing green hydrogen as a climate-friendly fuel, joint-venture to develop batteries, using methanol as a renewable energy source, construction of a green refinery plant, development of more power plants that rely on NRE, development of dimethyl ether (DME) as an alternative fuel, and the implementation of the reduce, reuse, and recycle (3R) policy.
CEO and president director of Pertamina Nicke Widyawati stated that the company aims to be a world-class energy player by being globally competitive, highly productive, and efficient while also prioritizing its sustainability initiatives.
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"We hope that Pertamina, as an energy company of Indonesia, will energize everyone to contribute towards a greener future by reducing global carbon emissions," Widyawati noted.
For instance, in term of increasing geothermal capacity, Pertamina, through its subsidiary, Pertamina Geothermal Energy (PGE), has planned to expand its installed capacity from the geothermal power plant in order to provide higher contribution to the reduction of greenhouse gas (GHG) emissions in Indonesia.
PGE believes that such an expansive plan will help Indonesia to achieve a net zero emission target by 2060.
Pertamina's subsidiary, PGE, is planning to issue its own green bonds in the first half of 2022.
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Proceedings of the green bonds will be used to refinance the company's existing conventional loans and also to finance its capital expenditure (capex) plan in developing new geothermal projects in Indonesia.
Through such an initiative, PGE expects to gain an additional 456 megawatts (MW) -- from its current 672 MW -- in installed capacity from its geothermal power plant in the next six years.
PGE highlighted its aim to have a total installed capacity of 1,500 megawatts by 2030.
PGE has also expressed optimism that with such an additional capacity, it would contribute significantly to Pertamina's plan to decarbonize its assets and reduce emissions by 30 percent by 2030.
Apart from increasing geothermal capacity, efforts to boost NRE growth are also encouraged by Pertamina with the construction of a methanol plant for gasification. It has a capacity of 1,000 Kilo-Tons Per Annum (KTPA) planned to be on stream in 2025 along with the construction of a green refinery, with a capacity of six to 850 KTPA in 2025.
Anticipating the trend when electric vehicles (EV) would dominate the transportation sector in future, Pertamina is participating in the Joint Venture (JV) Indonesia Battery Company, which will produce 140 GWh batteries by 2029 and at the same time develop an EV battery ecosystem, including the swapping and charging business.
Furthermore, realizing that in future, energy consumption will be dominated by electricity, Pertamina through its subsidiary, Pertamina Power & NRE, also continues to increase its generating capacity, targeted to reach 10 Gigawatts (GW) in 2026.
Several power plants that rely on NRE are the development of Biomass and Biogas, with a capacity of 153 MW, Bio Blending Gasoline and Gasoil, Biocrude from Algae, and Ethanol 1,000 KTPA on stream by 2025.
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Other NRE initiatives by Pertamina also lead to the development of Dimethyl Ether (DME), with a capacity of 5,200 KTPA. Meanwhile, the coal-to-LPG processing plant is planned to operate in 2025.
Pertamina will also develop the NRE sector from 2020 to 2026 by increasing the installed capacity of power plants from other energy sources in Indonesia.
In addition, as a form of support for the government's steps in reducing greenhouse gas emissions, Pertamina has also implemented a Circular Carbon Economy in several areas by implementing the 3R pattern.
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Reporter: Yuni Arisandy Sinaga
Editor: Fardah Assegaf
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