Supporting NZE 2060 Government Target, Here are Pertamina's Green Initiatives

HANOVER, April 21, 2023 - Following the national target, Pertamina aims to achieve net zero emissions (NZE) by 2060 or earlier, specifically in Scopes 1 and 2. It was conveyed by the Director of Strategic Planning and Business Development of Pertamina New & Renewable Energy (Pertamina NRE), Fadli Rahman, at the Indonesia Partner Country Hannover Messe Conference on Thursday (20/4).

"Pertamina is known as the largest energy company in Indonesia. We have a strategic role in ensuring national energy security. However, what the public does not know much about is that Pertamina is very serious about realizing sustainable business," said Fadli.

He added that in 2022, Pertamina ranked second in the environmental, social, and governance (ESG) score in the integrated oil and gas sector. This position increased from the previous year's seventh position.

From 2010 to 2021, Pertamina reduced emissions by 29.07% or 7.4 million tons of CO2 equivalent. The reduction was contributed by several activities, such as emission reduction from processes, emission reduction from combustion processes, energy efficiency, and low-carbon energy utilization.

To achieve the NZE 2060 aspiration, Pertamina is implementing two strategic initiatives, namely decarbonizing its current business and building green business. There are six green business initiatives currently developed by Pertamina, namely biofuel production, renewable energy development, carbon sink, clean hydrogen development for transportation and industry sectors, battery and EV ecosystem development, and carbon trading. Emissions reduction in Scopes 1 & 2 in 2060 from these six initiatives is estimated to reach 25-30 million tons of CO2 equivalent or contribute about 2% to the national NZE aspiration.

Biofuel production is carried out in Pertamina's refineries with a target capacity of up to 200,000 barrels per day for hydrotreated vegetable oils (HVO) and hydro-processed esters and fatty acids (HEFA) by 2060. Meanwhile, for clean hydrogen development, a production capacity of 1.8 million tons per year is targeted for 2040. Clean hydrogen development is sourced from geothermal resources managed by Pertamina NRE, one of Pertamina's sub-holdings. Pertamina NRE collaborates with several strategic partners, such as Sembcorp, IGNIS, Keppel, Chevron, TEPCO, Krakatau Steel, and Pondera in clean hydrogen development initiatives.

Another renewable energy being developed by Pertamina is solar power plants (PLTS). PLTS has been built and utilized in several Pertamina operational areas, including more than 300 petrol stations. Fadli said that renewable energy utilization is part of Pertamina's efforts to make its business process greener.

Equally important, decarbonization is also carried out through carbon sink initiatives. To realize national energy security, Indonesia still needs fossil energy, which is currently, Pertamina’s main business. However, to reduce carbon emissions in the upstream oil and gas sector, Pertamina carries out carbon sink initiatives in two ways, namely carbon capture storage (CCS/CCUS) and nature-based solutions (NBS) initiatives. For CCS/CCUS, Pertamina collaborates with strategic partners from Japan and the United States, while for NBS, collaboration is carried out with Perhutani.

"As the largest national energy company, Pertamina plays a strategic role in ensuring energy supply needs fulfillment to the community today. And at the same time, Pertamina also ensures energy resilience for future generations, one of which is through green energy development," said Fadli closing his presentation.**