Pertamina Increases Geothermal Capacity to Achieve Significant Emission Reduction

10 November 2022 - Pertamina increases its geothermal energy capacity as a significant factor in achieving its carbon emission reduction target with the potential for emission reductions from developing its capacity.

During a discussion at the COP-27 Indonesian Pavilion in Sharm el-Sheikh, Egypt, on Monday local time, the CEO of Pertamina Geothermal Energy, Ahmad Yuniarto, explained that Pertamina supports the Indonesian Government's steps to achieve zero carbon emissions or net zero emissions by 2060.

Pertamina is targeting the net zero emissions achievement by 2060 with various decarbonization measures and green business support, including geothermal capacity development.

He highlighted that there would be a significant reduction in carbon emissions when what is stated in the latest National Electricity General Plan to increase geothermal installed capacity in Indonesia is carried out.

"We have the opportunity to make a cumulative reduction of up to 1,200 million tons of carbon emissions equivalent," he explained.

This amount is a hefty potential contribution from the geothermal sector in Indonesia to achieve net zero emissions that needs more attention.

Ahmad explained that Pertamina Geothermal Energy currently manages 13 geothermal working areas in Indonesia with a 1,877 MW installed capacity consisting of 672 MW operated and managed directly by PGE and 1,205 MW managed under a Joint Operation Contract scenario. This amount represents 82 percent of the total installed geothermal capacity in the country.

He highlighted geothermal's important role in energy transition and achieving zero carbon, with the energy sector having a ten times lower emission footprint than power generation using fossil fuels.

"Pertamina Geothermal Energy is committed, in the next five years, to increase the installed capacity of 600 megawatts," he said.

With this commitment, there is the potential to avoid 15.7 million tonnes of CO2 equivalent per year that is generated.

"This is a massive and absolute contribution while strengthening renewable energy baseload in Indonesia," said Ahmad.

Not only encouraging emission reductions through additional geothermal installed capacity, but Pertamina Geothermal Energy also supports 588 hectares of forest areas rehabilitation.

"This is a fact that many people do not realize, in which geothermal developers are also working (rehabilitating) in nearly 600 hectares," said Ahmad Yuniarto.

Ahmad Yuniarto explained that in running its business, Pertamina Geothermal Energy continues to be committed to geothermal development and ensures the Environmental, Social, and Governance (ESG) implementation to become an integrated part of PGE's geothermal business. These ESG aspects implementation is an effort to provide added value and PGE's support to the Government's programs related to new, renewable energy utilization that is environmentally friendly, especially geothermal.

PGE's commitment to developing geothermal energy can contribute to achieving the Sustainable Development Goals (SDGs) of Goal 7 (Clean and Affordable Energy), Goal 12 (Responsible Construction and Production), Goal 13 (Climate Change Management), and Goal 15 (Land Ecosystem).**