At COP28 in Dubai, Pertamina Conveyed that Geothermal is the Most Potential Renewable Energy

Dubai, December 4, 2023 – To mitigate climate change, PT Pertamina (Persero) consistently accelerates the renewable energy development. The most potential renewable energy source is geothermal, managed by PT Pertamina Geothermal Energy Tbk.

Julfi Hadi, President Director of PT Pertamina Geothermal Energy Tbk, stated that geothermal has evolved into the most potential renewable energy to reduce carbonization in the industrial sector in Indonesia. It creates sustainable opportunities in the transformation towards environmentally friendly energy resource utilization.

"Geothermal has the best availability among other renewable energies and can be controlled. Additionally, with its tremendous potential in Indonesia, geothermal can become a green baseload for the industrial sector, serving as a primary strategic renewable energy source," said Julfi.

Julfi conveyed this during a talk show session titled "Collective Actions in Decarbonization to Support the Achievement of NDC and Net Zero Emission Target" at the Indonesian Pavilion during the 28th Conference of Parties (COP) in Dubai, United Arab Emirates on Sunday (3/12) local time.

At the same event, Mari Elka Pangestu, Indonesia's Special Envoy for The Global Blended Finance Alliance (GBFA), revealed Indonesia's immense geothermal potential as a crucial factor in striving for decarbonization in the national power generation and industrial sectors.

"Collaboration and investments, especially from the private sector, are necessary to accelerate decarbonization across various sectors. Hence, implementing blended finance mechanisms is crucial," said Mari.

Based on the General Electricity Supply Plan (RUPTL) for PLN from 2021-2030 and Pertamina Geothermal Energy's green document, the overall Indonesian geothermal industry is estimated to contribute up to 16 percent of the total national decarbonization target by 2030.

"If Pertamina Geothermal Energy's growth follows an aggressive scenario plan, it will contribute up to five percent of the national carbon reduction by 2030 and avoid 89 million tons of CO2 over the next ten years," Julfi stated.

Moreover, the company has initiatives beyond geothermal to drive decarbonization efforts. "Our strategies include exploring low-carbon businesses such as green hydrogen and green methanol, as well as promoting carbon credit systems in Indonesia by supplying carbon credits to Pertamina Geothermal Energy's main aggregator, Pertamina New Renewable Energy (PNRE)," Julfi explained.

Regarding expanding the company's impact on Indonesia's decarbonization journey, Julfi revealed that Pertamina Geothermal Energy is developing secondary geothermal products.

"Some of the secondary products being developed by Pertamina Geothermal Energy include green methanol, green hydrogen, and silica extraction," Julfi said.

Additionally, at the COP28 event, a joint statement on the Suswa geothermal field partnership was announced between PT Pertamina Geothermal Energy (PGE) (IDX: PGEO), Geothermal Development Company (GDC), and one of PGE's shareholders, Masdar. This joint statement was announced by the President of the Republic of Kenya, H.E. William Ruto, on Saturday (2/12) local time.

This joint statement aims to accelerate the development of the Suswa geothermal field. "This partnership, with an investment value of USD 1.2 billion, is intended for developing 300 MW of geothermal power by 2030. The initial infrastructure for this project will soon commence," stated H.E. William Ruto.

Furthermore, PGE actively collaborates with all stakeholders to accelerate geothermal development. "This is done by exploring new arrangements to supply environmentally friendly electricity to customers, making geothermal electricity more accessible, optimizing technology, and collaborating with ESG-focused financial institutions capable of financing new geothermal projects," Julfi stated.

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.**