WWF 2024: Targeting Low-Emission Business Growth, This is Pertamina NRE’s Priority
Nusa Dua, Bali, May 21, 2024 – Pertamina New & Renewable Energy (Pertamina NRE) is leading the energy transition and decarbonization within the Pertamina Group, focusing on low-emission business development. It was conveyed by the CEO of Pertamina NRE, John Anis, during a panel discussion titled “Indonesia’s Energy Transition Roadmap” at the Indonesia Pavilion at the 10th World Water Forum on Monday (May 20).
Following the G20, Indonesia is hosting a global-scale forum, this time the 10th World Water Forum. Indonesia as the host is a testament to the country's strong commitment to environmental and sustainability issues. Besides water, other sustainability topics, including energy transition, were also discussed during the event. In the panel discussion, John outlined initiatives contributing to the energy transition roadmap in Indonesia.
“The establishment of Pertamina NRE is a form of Pertamina’s commitment to supporting the government in achieving the Net Zero Emission target,” John said.
As the largest state-owned energy company in Indonesia, Pertamina is mandated to ensure energy security while supporting the aspiration of carbon neutrality by 2060, maintaining a focus on business growth. It is achieved through a dual growth strategy: strengthening existing businesses and developing low-carbon businesses.
In his presentation, John emphasized that Pertamina NRE is at the forefront of the strategy to build a low-carbon business. Several business portfolios are strategic priorities for Pertamina NRE, including gas to power, geothermal, energy efficiency, clean hydrogen, and other renewable energies like solar, wind, and biomass. Additionally, there are businesses in batteries, carbon, and bioethanol. By 2029, Pertamina NRE aims for the installed capacity of geothermal and other renewables to reach approximately 6 gigawatts (GW), bioethanol production capacity to reach around 630 thousand kiloliters (KL), clean hydrogen production capacity to reach around 77 thousand tons per year (ktpa), and roughly 19 million tons of CO2 carbon credits traded.
Several Pertamina initiatives are expected to significantly drive decarbonization in the upstream oil and gas and other industries, including energy efficiency, carbon capture and storage (CCS/CCUS), and carbon credits based on nature-based solutions (NBS) or technology-based solutions. Specifically for carbon credits, Pertamina NRE has been trading them on the carbon exchange, with the total trading volume reaching around 561 thousand tons of CO2 to date. Buyers of these carbon credits come from the mining, banking, and aviation sectors.
For geothermal energy, Pertamina NRE, through its subsidiary PT Pertamina Geothermal Energy Tbk. (PGE), targets the installed capacity of self-operated geothermal areas to reach 1.4 GW by 2029. Currently, PGE's installed geothermal capacity is 672 MW, which will be increased aggressively through organic and inorganic growth. Pertamina NRE will also become a supplier of bioethanol for biofuels produced by Pertamina, specifically Pertamax Green. In line with national economic growth, the demand for Pertamax Green is projected to reach 51 million KL by 2034.
Vice President of Corporate Communication at PT Pertamina (Persero), Fadjar Djoko Santoso, stated that Pertamina fully supports the government's target to achieve Net Zero Emission by 2060 or sooner. Various emission reduction initiatives are implemented across all its businesses, particularly through PNRE, which plays a significant role in the energy transition.
“Energy transition and decarbonization initiatives continue across all business lines to ensure energy sustainability in the future,” concluded Fadjar.
Pertamina consistently demonstrates its strong commitment to supporting sustainable development goals (SDGs), not only through business initiatives but also through sustainable business practices by implementing environmental, social, and governance (ESG) aspects.**