President Director of Pertamina Geothermal Energy (PGE), Ahmad Yuniarto, signed the "Signing EPCC Contract Lumut Balai Geothermal Power Plant Unit 2 (55 MW)" JSA with Mitsubishi, and Sepco/WIKA" at the Business 20 (B20) Investment Forum witnessed by the Coordinating Minister for Maritime Affairs and Investment of Indonesia, Luhut Binsar Pandjaitan; Chair of KADIN, Arsjad Rasjid; Chair of B20, Shinta Kamdani; and Chair of B20 Energy, Sustainability and Climate Task Force, Nicke Widyawati, at Singaraja Hall, Nusa Dua Bali, Friday, (11/11/22).
B20 Indonesia Net Zero Summit 2022 Real Steps to Support Net Zero Emissions, PGE Ready to Add 55 MW PLTP Capacity in South Sumatra
Bali, November 12, 2022 - PT Pertamina Geothermal Energy (PGE), as part of Pertamina Power & New Renewable Energy (PNRE) Subholding, signed an agreement for Engineering, Procurement, Construction, and Commissioning (EPCC) for the Fluid Collection and Reinjection System (FCRS) and the Lumut Balai Unit 2 Geothermal Power Plant in South Sumatera construction with the Mitsubishi Corporation Consortium, PT Wijaya Karya (Persero) Tbk., and SEPCO III Electric Power Construction Co. Ltd at the B20 Indonesia Net Zero Summit 2022 event at the Bali Nusa Dua Convention Center (BNDCC).
This project is funded by Japan's ODA Loan in the Government to Government Loan (G to G Loan) scheme between the Japan International Cooperation Agency (JICA) and the Government of Indonesia. The project site is located in Muara Enim and Ogan Komering Ulu Regencies in South Sumatera Province.
The contract's scope will be a turnkey basis whereby the Mitsubishi Corporation Consortium, PT Wijaya Karya (Persero) Tbk., and SEPCO III Electric Power Construction Co. Ltd will undertake design, manufacture, civil works construction, commissioning, performance testing, and warranty for the facility, which comprises a Geothermal Power Generation unit and a Fluid Collection and Reinjection System with a net capacity of 55 MW high voltage terminals.
The facility is designed to operate for more than 30 years and will be operated and maintained by PGE. Electricity produced from clean, renewable, and environmentally friendly energy will be distributed to PLN and has the potential to increase the electrified community of around 55 thousand households in South Sumatra.
The Lumut Balai work area's environmental management has proven to be outstanding with Pertamina Environment Regulation Compliance Assurance (PERCA) and the Blue Company Performance Rating Rating Program in Environmental Management (PROPER) achievement from the Ministry of Environment and Forestry of the Republic of Indonesia (KLHK).
Following the 2022 Indonesia Net Zero Summit theme, Industrial Decarbonization at All Cost, this effort is Pertamina's solid step in supporting sustainable development proclaimed by the Government and reducing global warming impact by reducing carbon emissions to the environment.
Greenhouse gas reduction from the Lumut Balai Units 1 & 2 PLTP Project is included in the Clean Development Mechanism (CDM) as the Kyoto Protocol implementation and has been registered with the UNFCCC with greenhouse gas emissions potential reduction of around 581,518 tons of CO2 equivalent per year.
The 55 MW capacity generated from Unit 2 will add to PGE's total installed capacity, after 55 MW was generated from the Lumut Balai Unit 1 Project, which began operating in 2019. This further strengthens PGE’s position as one of the largest players in Indonesia’s geothermal development, with an installed capacity of 727 MW.
President Director of PGE, Ahmad Yuniarto, explained in carrying out its business, PGE continues to be committed to geothermal development and ensures that the Environmental, Social, and Governance (ESG) implementation is an integrated part of PGE's geothermal business. These ESG aspects application is an effort to provide added value and PGE’s support for Government programs related to environmentally friendly renewable energy utilization, especially geothermal.
PGE's commitment to geothermal energy development can contribute in achieving the sustainable development targets of goals 7 (clean and affordable energy), goals 12 (responsible construction and production), goals 13 (handling climate change), and goals 15 (terrestrial ecosystems) in SDGs (Sustainable Development Goals).
PGE currently manages 13 Geothermal Working Areas (WKP) with an installed capacity of +1.8GW. From that amount, 672 MW is operated and managed directly by PGE, and 1,205 MW is managed under the Joint Operation Contract scenario.
Geothermal installed capacity in the PGE working area contributes 82% of the total installed geothermal capacity in Indonesia, with a CO2 emissions potential reduction of around 9.7 million tonnes of CO2 per year.**