Pertamina Shipping Reveals Decarbonization Strategy for Blue Economy

Dubai, December 4, 2023 – PT Pertamina International Shipping (PIS) is committed to promoting environmentally friendly shipping for the blue economy. During the 2023 United Nations Climate Change Conference of the Parties (COP) 28 in Dubai, United Arab Emirates, PIS presented several strategies to reduce emissions.

"We have already managed to reduce nine percent of our emissions generated in 2022, amounting to 1.9 megatons CO2eq," stated the President Director of PIS, Yoki Firnandi, on Saturday (3/12).

During the discussion themed "Ocean High-Level Panel: Embodiment of Blue Economy Through a Sustainable Use of Coastal and Marine Resources to Save the Ocean Environment" at the Indonesia Pavilion - COP 28, Yoki explained four strategies for emission reduction.

Firstly, environmentally friendly vessel design. PIS owns 19 environmentally-friendly ships and three vessels that fulfill the International Maritime Organization (IMO) tier-three emission standards.

The second strategy involves fleet renewal complying with The International Convention for the Prevention of Pollution from Ships (MARPOL) and the Minister of Transportation Regulation No. 29 of 2014 concerning the Discontinuation of Ship Operations.

Thirdly, fuel reduction through hull cleaning (four percent efficiency), vessel operation speed optimization (22 percent efficiency), and energy storage devices incorporation (two percent efficiency).

Fourthly, lower emission intensity, such as in the Pertamina Gas Amarylis very large gas carrier (VLGC).

Moreover, Yoki explained that PIS would utilize a blend of biofuels in its fuel mix. "We will use 60 percent gasoline and the rest from biofuel," said Yoki.

Furthermore, PIS will also develop ammonia and hydrogen.

Yoki also emphasized the importance of technological development to realize all these innovations.

PIS has outlined three stages of emission reduction. Firstly, the short-term phase, from 2022 to 2025, which focuses on vessel operation speed restrictions. Then, the medium-term strategy from 2026 to 2030 involves fuel replacement and the operation of environmentally friendly vessels.

Lastly, the long-term strategy from 2030 to 2060. PIS aims to reduce emissions by 20,000 tCO2eq by utilizing other energy sources like hydrogen and green ammonia. "We realize that in moving forward, there must be emission reductions in the maritime sector. Hence, we have a roadmap toward NZE 2060," stated Yoki.

In line with PIS's plans, at the national level, the government has prepared a roadmap for the blue economy. Deputy for Maritime Affairs and Natural Resources of the Ministry of National Development Planning (Bappenas), Vivi Yulaswati, mentioned that the maritime sector plays a crucial role in blue economy development.

"We have developed a blue economy action plan and index to monitor its progress," said Vivi. She added that her institution collaborates with various parties to promote blue economy development in different regions, including with the Pertamina Group.

The government also collaborates with the international community to develop the blue economy. Head of Ocean Action Agenda at the World Economic Forum, Alfredo Giron Nava, stated they have agreed with the Coordinating Ministry for Maritime Affairs and Investment to implement the National Blue Carbon Action Partnership (NBCAP).

This partnership aims to aid in the blue carbon ecosystems restoration in Indonesia. Moreover, Indonesia's marine and coastal ecosystems possess rich resources that can significantly contribute to global environmental sustainability. "The synergy between the government and this international forum needs support from the private sector and coastal communities," explained Nava.

This discussion session was attended by Senior Vice President & Executive Chair of Konservasi Indonesia, Meizani Irmadhiany, and Director-General of Marine Spatial Management of the Ministry of Maritime Affairs and Fisheries, Victor Gustaaf Manopo.

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.**