Biofuel as a Key to Accelerating Energy Transition

Baku, November 14, 2024 – PT Pertamina (Persero) is positioning biofuel, a plant-based fuel, as a strategic key in supporting Indonesia's energy transition. This initiative has garnered full support from both legislative and governmental bodies.

The Deputy Speaker of the People's Consultative Assembly (MPR RI) and a member of Commission XII of the House of Representatives (DPR RI), Eddy Soeparno, emphasized that Indonesia possesses abundant biofuel resources. Pertamina's B35 program is a tangible effort to reduce emissions.

"Indonesia has an abundant supply of biofuel sources. Currently, we use B35, a biodiesel with 35% content from crude palm oil (CPO). We also have sugarcane and cassava, which can be utilized as biofuel feedstocks," said Eddy Soeparno during a panel discussion at COP29 on Wednesday (13/11/2024).

Additionally, Pertamina has developed Sustainable Aviation Fuel (SAF) based on biofuel, including used cooking oil. Recently, Indonesia blended 5% sustainable aviation fuel, tested on a flight about two years ago, with plans for further development.

The CEO of Pertamina New & Renewable Energy (PNRE), John Anis, highlighted that PNRE is a pioneer in low-carbon business within the Pertamina Group. Besides increasing renewable energy generation capacity, it is also advancing biofuel development.

"We have numerous programs, all based on what we call a dual-growth strategy. We still need fossil fuels, but cleaner ones, and at the same time, we must transition to low-carbon businesses. Thus, we maximize our traditional businesses while developing low-carbon ones," said John Anis.

He also explained that PNRE has a bioethanol development roadmap through 2031 to support decarbonization in the transportation sector. By 2034, John projected that biofuel demand could reach 51 million liters.

Currently, Pertamina NRE is collaborating with PT Sinergi Gula Nusantara (SGN) to build a bioethanol plant in Banyuwangi with a production capacity of 30,000 kiloliters (KL) per year.

"For bioethanol, we aim to increase production capacity, partly by reactivating the Glenmore plant in Banyuwangi, using molasses as the raw material without disrupting sugar production," John added.

In the carbon business, Pertamina NRE has become a major player in carbon credit trading in Indonesia, commanding a 93% market share. Pertamina NRE's carbon credits are sourced not only from low-carbon power plants but also from nature-based solutions (NBS). Since pioneering carbon trading in the carbon exchange last year, 864,000 tons of CO2 carbon credits have been sold. Pertamina has partnered with strategic partners under its NBS initiatives.

"To accelerate the energy transition and achieve the 75 GW renewable energy-based electricity target in the next 15 years, collaboration is essential to make investment and renewable energy development more aggressive and accessible at affordable prices for the public," John concluded.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**