Ready for Transition, Pertamina Continues to Grow New Renewable Energy

Jakarta, August 13, 2021 - In commemoration of the 76th Independence Day of the Republic of Indonesia (HUT RI), PT Pertamina (Persero) reaffirmed its commitment and readiness to encourage the growth of new and renewable energy (NRE), which is currently still 1 percent rising to 17 percent in 2030. It is hoped that the surge in NRE can strengthen national energy security and independence in the future. Therefore, Indonesia will grow and be more resilient. 

Acting Senior Vice President Corporate Communication & Investor Relations of Pertamina, Fajriyah Usman, explained that efforts to realize the NRE target commitment are formulated as the Green Energy Transition Program in the Company's Long Term Plan (RJPP). It is in line with the Grand National Energy Strategy. 

"As SOE that manages national energy, Pertamina has anticipated a shift in energy consumption through 8 strategic initiatives to realize energy security and independence by encouraging the continued growth of new and renewable energy," said Fajriyah.

According to Fajriyah, Pertamina's attempts to expand geothermal capacity are among the eight energy transition initiatives currently underway. In 2020, the total installed geothermal capacity in PGE's work area is 1,877 MW, consisting of 672 MW operated directly by PGE and 1,205 MW operated by Pertamina through a Joint Operation Contract (JOC). By 2030, the total installed capacity is targeted to reach a total of 2,745 MW.

Second, to optimize geothermal working areas. Pertamina Geothermal Energy, which manages 15 Working Areas, has initiated to utilize green hydrogen, which will use electricity from Pertamina's Geothermal field with a total potential of 8,600 kilograms of hydrogen per day.

"PGE has formed a special team to study the development of green hydrogen in Ulubelu. According to initial research, The Ulubelu Geothermal Working Area contains a geothermal fluid dominated by hot water and steam that is ideal. Currently, the initiation of the construction of a Green Hydrogen Plant with a capacity of 22-100 kg/day is being planned, with an operation target in 2022," she said.

Fajriyah added that electric vehicles (EV) would dominate the transportation sector in the future. Anticipating this trend, 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. The form of this strategic initiation, according to Fajriyah, can be seen in the presence of a pilot project for Public Electric Vehicle Charging Stations (SPKLU) in 6 locations in Jakarta and Tangerang.

Efforts to increase NRE growth are also encouraged by Pertamina with the construction of a Methanol Plant for gasification. It has a capacity of 1000 ktpa, planned to be on stream in 2025. Along with the construction of a Green Refinery with a capacity of 6 - 850 KTPA in 2025. 

Pertamina continued Fajriyah, also realizes that in the future energy, consumption will be dominated by electricity. Therefore, through its subsidiary Pertamina Power & NRE, Pertamina also continues to increase its generating capacity, targeted to reach 10 Giga Watt (GW) in 2026. Several power plants that rely on NRE are the development of Biomass/Biogas with a capacity of 153 MW, Bio Blending Gasoline and Gasoil, Biocrude from Algae, and Ethanol 1,000 KTPA on stream by 2025. 

Other NRE initiatives carried out by Pertamina also lead to the development of Dimethyl Ether (DME) with a capacity of 5200 KTPA. 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. It includes Solar PV 4 ~ 910 MW, Bayu ~ 225 MW (2024), and Hydro ~ 400 MW.

"Indonesia's energy demand is projected to recover after COVID-19 in 2022 and then grow by around 2.1% per year until 2040. As an Energy BUMN that is mandated to maintain national energy resilience, independence, and sovereignty, Pertamina must prepare for the future, but also provide solutions to current problems," added Fajriyah.

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; Recycle (Biomass, Biogas), Reduce ((Solar PV, EV, LNG Bunkering) and Reuse (CCUS for CO2-EOR, CO2-EGR, and utilization of CO2 into methanol).

"For the entire strategic initiative for NRE, Pertamina will allocate around 9% of the total CAPEX in the 2020-2024 period. This value is higher than international energy companies' EBT investment, which is only 4.3% on average," concluded Fajriyah.**