Targeting to Reduce 81,4 Million Tons of Emission, Pertamina Supports Indonesia’s Net Zero Emission 2060
Glasgow, November 3, 2021 – PT Pertamina (Persero) has shown its determination to contribute in supporting the government’s ambition for Net Zero Emission, by targeting the reduction of Carbon Dioxide (CO2) to 81.4 million tons by 2060.
This target is in line with the President of the Republic of Indonesia’s speech at the G20 forum in Rome that is active participation in dealing with climate change can only be done by working together in concrete actions, not blaming each other. Following this statement, along with handling various other global challenges, such as poverty alleviation and the achievement of SDGs targets, Pertamina moves forward in tackling climate change.
President Director of Pertamina, Nicke Widyawati at the United Nations Climate Change Summit in Glasgow, Scotland (2/11) explained that in tackling climate change, in the energy sector, the President of Indonesia had stated that the energy transition to New & Renewable Energy will continue, but must be in line with the principles of energy security, accessibility, and affordability.
“From that perspective, Pertamina will continue to strive for a balance between climate change agenda and energy security in Indonesia and also for the company’s sustainability,” said Nicke.
In line with the government’s policy that targets a 29% emission reduction by 2030 with global partnership, in the energy sector, the government has the ambition of reducing as much as 314 million tons of CO2e in 2030, of which 183 million tons or more than 50% is a target for the New & Renewable Energy (NRE) sector. This ambition is then translated into a roadmap for Indonesia's energy transition called the National Energy Grand Strategy. In this roadmap, it is stated that the current state of the energy mix is approximately still at 9%, by 2050 it will be increased to 31%.
“To be able to provide significant results in mitigating climate change, with the current business pattern, the oil and gas sector must deduce its emission globally by at least 3.5 gigatons of carbon-dioxide equivalent (GtCO2e) per year by 2050,” said Nicke.
Moreover, if the demand for oil and gas energy remains as normal, the oil and gas sector can abate the majority of its emissions at an avarage cost of less than USD 50 per ton of carbon-dioxide equivalent. This can be done by interventions on the most cost-effective activities. According to Nicke, process changes and minor adjustments will help the company in reducing energy consumption and supporting the least expensive abatement options.
Moreover, Pertamina has several programs that are Environmental, Social & Governance (ESG) programs, most of which are directed toward decarbonization. In 2020, Pertamina had contributed to a 27.08% emission reduction compared to the national target of 26%. These emission reduction achievements include Flare Gas Utilization in Upstream and refinery, utilized for both own use fuel and gas supply to customers. Reuse waste heat in upstream and refineries, and energy efficiency initiatives in geothermal and other activities. Fuel gasification in the upstream sector also contributes, as well as other activities such as the commercialization of CO2 venting to customers in the upstream, and other optimization processes in geothermal activities.
Through these 8 (eight) running initiatives, Pertamina has the largest geothermal capacity in Indonesia and is in the process becoming a national geothermal company and the second-largest geothermal company in the world that will develop in the upcoming five years.
Furthermore, Pertamina is also developing green hydrogen in the geothermal area with a pilot project in Ulubelu Work Area to become the source of bioenergy in Plaju Refinery. Pertamina also participates in the EV battery ecosystem with PLN and MIND ID by utilizing the abundant nickel raw materials and moving from upstream to downstream. Pertamina is also very ambitious in developing gasification with a methanol plant which is expected to be onstream by 2025.
Nicke said, what is also very important is that Pertamina has just signed an agreement with a global energy company to develop Carbon Capture & Utilization and Storage (CCUS). Considering that Indonesia has a very large CO2 reserve and it will become a new center and global value chain in the utilization, capture, and storage of carbon in the future. This initiative will start from South and North Sumatra with a global partnership.
“Pertamina also has very detailed initiatives regarding SDGs program. This is a very ambitious target. With all initiatives, programs, and targets, we are hoping that Pertamina as an energy company in Indonesia can contribute more to climate change that can reduce carbon emissions in the world,” stated Nicke.