Pertamina Develops Several Green Business Initiatives to Support Emission Reduction

November 10, 2022 - PT Pertamina develops and invests in several green business initiatives to supporting Indonesia in achieving Net Zero Emissions by 2060, including those related to biofuels, renewable energy, carbon capture, utilization and storage, batteries, and electric vehicles, hydrogen, and carbon businesses.

"Pertamina is committed to supporting the Indonesian Government's commitment to achieve Net Zero Emissions by 2060 or sooner. Therefore, our business strategy consists of two pillars, namely decarbonizing our core business and developing a green business," said the CEO of Pertamina Power Indonesia, Dannif Danusaputro, in the COP 27 Indonesia Pavilion followed online in Jakarta on Sunday.

Dannif said Pertamina had committed to allocating 14 percent of the projected 2022-2060 capital expenditure of USD 70-80 billion for clean, new, and renewable energy development. This commitment follows efforts to utilize domestic resources to supply domestic energy towards green development and decarbonization.

Pertamina builds an integrated oil and gas supply chain to supply domestic needs and actively builds a new and renewable energy (NRE) portfolio using domestic resources.

Pertamina will develop a greener energy mix by reducing refined products and LPG share from 81 percent to 61 percent, increasing gas share from three percent to 19 percent, and increasing NRE share from one percent to 17 percent.

Dannif said the green businesses and clean technology development to support energy transition require a large investment. Therefore, Pertamina cooperates with national and global partners to explore partnerships in decarbonization programs and green businesses and accelerate NRE growth to achieve net zero emissions. Banks can also invest in these green business initiatives.

"The clean energy transition affordability will depend on reducing costs and increasing capital's availability," he said.

To support Indonesia’s energy transition, Pertamina is also optimizing the potential and increasing new and renewable energy installed capacity where Pertamina has pioneered new and renewable energy (NRE) utilization in Indonesia with green and blue hydrogen production of 3 million tons per year in 2060 as well as the total capacity installed NRE of 60 GW in 2060.

Pertamina will also commercialize green and blue hydrogen and take a strategic role in Indonesia's integrated battery and energy storage ecosystem through the battery-powered electric vehicle industry development in collaboration with several state-owned companies.

Moreover, Pertamina is making efforts to increase refinery capacity to produce green fuel. Through several processes at the green refinery, Pertamina produces high-quality and more environmentally friendly fuel derived from palm oil, namely biodiesel, green diesel, green avtur, and green gasoline, which is currently being developed.

Pertamina has also achieved an ESG score at the medium risk level with a 22.1 score. It shows Pertamina's commitment to implementing environmentally friendly businesses and adhering to good corporate governance.**