Targeting 6 GW by 2029, Pertamina NRE to Increase Investment Eightfold
Jakarta, June 21, 2024 - Pertamina New & Renewable Energy (Pertamina NRE) is spearheading Pertamina’s efforts in developing a clean energy business, aiming for a 6 GW installed capacity of clean energy-based power plants by 2029.
This target reflects Pertamina's ambition to expand its clean energy portfolio, driven by its subsidiary, Pertamina NRE, through its three key pillars: low carbon, renewable energy, and development. The 6 GW target will be achieved through contributions from gas to power and renewable energy-based power plants such as geothermal, solar, and biogas. By the first half of 2024, Pertamina's operated power plants already have an installed capacity of approximately 2.6 GW.
“Pertamina’s dual growth strategy strengthens our existing oil and gas business while developing low-carbon businesses as future growth drivers. Pertamina NRE plays a strategic role in leading Pertamina’s clean energy and new business development,” said the CEO of Pertamina NRE, John Anis.
Additionally, Pertamina NRE has set several other targets for 2029, including selling 19.2 million tons of CO2 equivalent carbon credits. Last September, Pertamina NRE successfully became the first carbon credit seller in the initial IDX Carbon trade, trading approximately 800,000 tons of CO2 equivalent.
Pertamina NRE also aims to produce 7,000 tons of clean hydrogen annually by 2029 and 840,000 kiloliters of bioethanol. For the battery ecosystem and electric vehicle business, Pertamina NRE targets a production capacity of 51.4 GWh. With these targets, the investment budget is prepared to reach USD 6.2 billion by 2029, exceeding this year's budget by more than eight times.
This year, Pertamina NRE focuses on several priority initiatives, including developing the bioethanol business to support biofuels increased utilization in Indonesia in collaboration with Pertamina Patra Niaga, developing the Lumut Balai 2 geothermal area with a capacity of 55 MW, expanding the geothermal business overseas, carbon business, and hydrogen for mobility.
Pertamina NRE has shown significant business growth. In 2023, Pertamina NRE recorded a revenue increase of 6% compared to 2022, reaching USD 411.5 million. EBITDA and net profit were USD 331.77 million and USD 146.60 million, respectively, increasing by 11% and 24% compared to 2022.
“I highly appreciate the hard work of the entire Pertamina NRE family for achieving positive performance in 2023. With the trust placed in Pertamina NRE to lead Pertamina Group's energy transition, the challenges are not easy. However, we are confident that with solid collaboration and support from all stakeholders, we can guide the energy transition as expected,” said the CEO of Pertamina NRE, John Anis.
Operationally, in 2023, Pertamina NRE increased electricity production to 5,452 GWh, a 17% increase compared to 2022. This increase was contributed by various types of generation, including gas to power, geothermal, solar, and biogas. Pertamina NRE-operated power plants also demonstrated good reliability, with an equivalent availability factor (EAF) of 97.20% compared to the target of 89.37% and an equivalent forced outage rate (EFOR) of only 0.21%, well below the tolerance limit of 2.43%. This operational performance is supported by good HSSE performance, with 18,518,447 safe working hours and no fatalities.
Other Pertamina NRE’s achievements in 2023 include the successful IPO of its subsidiary, Pertamina Geothermal Energy (PGE), on February 25, 2023, with the PGEO ticker code. PGE also successfully issued a global green bond worth USD 400 million. Pertamina NRE also became the sole carbon credit seller during the initial trading of the carbon exchange launched on September 26, 2023, inaugurated by President Joko Widodo.
In June 2023, the consortium of PGE and Chevron won the tender for Way Ratai geothermal working area in Lampung, and is now ready to begin development. Additionally, several solar power plants (PLTS) in Pertamina's operational areas have been installed and operational, including the 25.7 MW PLTS in WK Rokan, several PLTS in various refinery areas with a total capacity of 5.5 MW, and gas to power in RU Dumai with a capacity of 12.9 MW.
Pertamina NRE also demonstrated excellent sustainability performance, with an ESG rating of 13, categorized as medium risk, ranking third globally in the independent power producer (IPP) sector. This good score proves that Pertamina NRE is proficient in managing environmental, social, and corporate governance risks.
Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, said Pertamina is currently focusing on developing clean energy and accelerating the energy transition.
"Following Pertamina’s business strategy to develop low-carbon businesses, we support Pertamina NRE in continuing its expansion. Its business growth not only contributes to the energy transition in Indonesia and national energy security but also benefits the government’s NZE 2060 target achievement," said Fadjar.
Pertamina NRE is committed to supporting energy security through clean energy development and supporting Net Zero Emissions 2060. Pertamina NRE integrates ESG aspects into its business operations.
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.**