This step to increase the GPP capacity is taken through the inking of an agreement for Engineering, Procurement, Construction, and Commissioning (EPCC) for the construction of the Fluid Collection and Reinjection System (FCRS) and Geothermal Power Plant at the Lumut Balai Unit 2 in South Sumatra.
The agreement signing was conducted by PGE with Mitsubishi Corporation Consortium, PT Wijaya Karya, and SEPCO III Electric Power Construction Co. Ltd on the sidelines of the B20 Indonesia Net Zero Summit 2022 event held in Bali on Friday (November 11).
The project for the construction of FCRS and geothermal power plant in South Sumatra is funded by Japanese Official Development Assistance (ODA) Loans under the Government to Government (G-to-G) Loan scheme with the Government of Indonesia.
The project site is located in the districts of Muara Enim and Ogan Komering Ulu in South Sumatra Province.
The contractual scope of the project will be a turn-key basis on which PGE partners will carry out the design, manufacturing, civil works construction, commissioning, performance testing and warranty for the facility that consists of a Geothermal Power Unit and an FCRS, with a net capacity at high-voltage terminals of 55 Megawatts (MW).
The geothermal facility is designed to be operational for more than three decades and will be operated and maintained by PGE.
The electricity generated from the clean, renewable and environmentally friendly energy facility will be channeled through the installations of the state-owned electricity company PLN, so that it has the potential to increase the number of new residents receiving electricity to reach around 55 thousand households in South Sumatra.
Moreover, the working area at the Lumut Balai GPP Unit has proven to have good-quality environmental management with the achievement of Pertamina Environment Regulation Compliance Assurance (PERCA) and the Blue category for Company Performance Rating Program in Environmental Management (PROPER) from the Ministry of Environment and Forestry.
In accordance with the theme of the 2022 Indonesia Net Zero Summit -- "Industrial Decarbonization at All Cost," the effort to increase GPP capacity is one of Pertamina's concrete measures in supporting sustainable development proclaimed by the Indonesian government.
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The effort was also aimed at mitigating the impacts of global warming by reducing carbon emissions in the environment.
Greenhouse gas reductions from the GPP Project at Lumut Balai Unit 1 and 2 are included in the Clean Development Mechanism (CDM) as an implementation of the Kyoto Protocol. It has also been registered with the UNFCCC, with the potential for reducing greenhouse gas emissions of around 581,518 tons of CO2 equivalent per year.
GPP capacity of 55 MW, which will be generated from Unit 2 of the GPP in the province, will increase PGE's total installed GPP capacity, after earlier some 55 MW generated from the Lumut Balai Unit 1 Project that became operational in 2019.
The new unit will further strengthen PGE's position as one of the largest players in Indonesia's geothermal development, with a total installed capacity of 727 MW.
PGE's President Director Ahmad Yuniarto explained that in carrying out its business, PGE remains committed to the development of geothermal energy and ensures that the implementation of the Environment, Social and Governance (ESG) aspects is an integrated part of the company's geothermal energy business line.
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The implementation of the ESG aspects is the company's effort to provide added value and to support the national programs related to the use of environmentally-friendly new and renewable energy, especially geothermal energy, he remarked.
PGE's commitment in developing geothermal energy can contribute to achieving several targets in sustainable development goals (SDGs): Goal No.7 on clean and affordable energy, Goal No.12 on responsible construction and production, Goal No.13 on handling climate change, and Goal No.15 on land ecosystems.
PGE currently manages 13 Geothermal Working Areas, with an installed capacity of +1.8 Gigawatts (GW).
A total of 672 MW of geothermal capacity is operated and managed directly by PGE, and some 1,205 MW is managed under the Joint Operation Contract scenario.
Geothermal energy capacity from power plants in PGE's working areas contributes 82 percent of the total geothermal energy capacity produced in Indonesia and has the potential to contribute to the reduction of carbon dioxide emissions of around 9.7 million tons of CO2 per year.
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Reporter: Yuni Arisandy Sinaga
Editor: Fardah Assegaf
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