Green Refinery, Pertamina Refinery's Commitment to Achieve Net Zero Emission Target
Jakarta, July 14, 2023 - PT Kilang Pertamina Internasional (KPI) is committed to developing its existing operating refineries to produce more environmentally friendly products. Green Refinery, one of the initiatives for environmentally-friendly oil refining (green fuel), marks a significant milestone and tangible proof of Pertamina Refinery's support in achieving the Net Zero Emission (NZE) target by 2060.
The Green Refinery development as a strategic initiative aims to achieve the national Renewable Energy (NRE) Mix target by 2025, which aims to produce more environmentally friendly fuels using renewable feedstocks. The feedstocks processed at Pertamina Refinery include Refined Bleached Deodorized Palm Oil (RBDPO), and in the future, there are plans to develop Used Cooking Oil (UCO) processing into biofuels.
The efforts to develop Green Refinery at Pertamina Refinery, similar to the initiatives taken at the Cilacap refinery, have successfully produced green fuel with a capacity of 3 thousand barrels per day (KBPD) from RBDPO feedstock, which is refined palm oil, resulting in 100% Green Diesel called Pertamina Renewable Diesel (Pertamina RD). Pertamina RD is currently available in the domestic market and has the opportunity to support Renewable Power needs fulfillment from Generator Sets (Gensets) for the EWTG G20 event and the Formula E World Championship. In addition to the domestic market, Pertamina RD is also exported to the European market in 2022.
Another green fuel product that could be produced through the Green Refinery is Sustainable Aviation Fuel (SAF) for aircraft fuel (Bioavtur), which has undergone successful test flights in 2022 using CN235 aircraft. The next step will be the commercial flight test soon to test Bioavtur (SAF) on one of the commercial aircraft from the largest state-owned airline in the country.
The Green Refinery development will continue, such as the second phase of Green Refinery Cilacap, which aims to increase the processing capacity to 6 KBPD and expand the range of feedstocks to include Used Cooking Oil (UCO) specifications. Green Refinery Cilacap Phase 2 is targeted to be onstream by 2026 to improve product quality and reduce exhaust gas emissions. In addition to Cilacap, the Green Refinery Plaju development with a processing capacity of 20 KBPD will produce Pertamina RD (HVO), Bioavtur (SAF), and BioNaphtha, targeted to complete in 2027.
Taufik Aditiyawarman, the President Director of PT KPI, stated that the Green Fuels development from Pertamina's Green Refinery demonstrates Pertamina Refinery's commitment to achieving Sustainable Development Goals (SDGs), particularly Goal 7, "Clean and Affordable Energy," and aligns with Pertamina Refinery's commitment to maintaining national energy resilience and supporting Net Zero Emission (NZE) by 2060.
"Green Refinery Pertamina is Pertamina Refinery's commitment to producing quality and environmentally friendly fuels," said Taufik.
The roadmap for Pertamina Refinery's development currently follows the National Energy General Plan (RUEN), where the demand for petroleum products is expected to continue increasing until 2040. Based on the RUEN, the development roadmap for Pertamina Refinery is structured as follows: (1) Processing capacity from 1.05 million barrels per day (BPD) to 1.4 million BPD, (2) Petroleum product production from 700 thousand BPD to 1.2 million BPD, (3) Petrochemical production from 1.6 million tons per annum to 7.4 million tons per annum. This roadmap also supports the demand for petroleum products, specifically Diesel (Solar) and Aviation Turbine Fuel (Avtur) production, which are produced domestically since 2019 and reduces gasoline imports from 60% to approximately 25%.
With the refinery renewal roadmap, Pertamina's refinery development considers environmentally oriented strategies and environmentally-friendly petroleum products production equivalent to EURO V standards, as well as increasing the Nelson Complexity Index (NCI) or refinery complexity to enhance the production of valuable products.
PT Kilang Pertamina Internasional is a subsidiary of PT Pertamina (Persero) that conducts its main business in oil refining and petrochemicals according to the ESG (Environmental, Social & Governance) principles. PT KPI is also registered with the United Nations Global Compact (UNGC) and is committed to the Ten Universal Principles of the UNGC in its operational strategy as part of implementing ESG aspects. PT KPI will continue to conduct its business professionally to realize its vision of becoming a world-class oil refinery and petrochemical company that is environmentally conscious, socially responsible, and has good corporate governance.
Fadjar Djoko Santoso, Vice President of Corporate Communication of PT Pertamina (Persero), stated that to strengthen energy resilience and independence, Pertamina has built Green Refinery to increase petroleum product production to fulfill domestic needs.
"This green refinery processes domestic plant-based materials available in various regions, allowing us to increase more environmentally friendly biofuels production," said Fadjar.
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.**