PT Kilang Pertamina Internasional (KPI), a subsidiary of State oil and gas company Pertamina, is inviting investors to join the Green Refinery Cilacap project, which has completed its first phase construction and is moving forward with Phase 2.

Phase 2 aims to double the Hydrotreated Vegetable Oil (HVO) processing capacity from 3,000 barrels per day (bpd) to 6,000 bpd and to increase the sustainable aviation fuel (SAF) bio-component from 2.4 percent to 100 percent.

This refinery is one of the National Strategic Projects (PSNs) intended to help the government achieve its renewable energy mix target of 23 percent by 2025.

Isnanto Nugroho, Director of Planning and Business Development at KPI, emphasized KPI’s openness to strategic partners for the Green Refinery Cilacap project.

“We assure you that the Green Refinery Cilacap project is progressing and on track. We are currently conducting the selection process for strategic partners and are open to working with potential partners, including banks, export credit agencies, and multilateral institutions,” Isnanto said in a media statement as quoted on Wednesday, July 10, 2024.

Isnanto highlighted the company’s readiness to collaborate with investors interested in the massive Green Refinery Cilacap project. He outlined the project's advantages, noting that it holds PSN status, which ensures support from existing policy frameworks. Additionally, the Green Refinery Cilacap will be built on existing Pertamina land.

Corporate Secretary of KPI, Hermansyah Y. Nasroen, noted the strategic value of the Green Refinery Cilacap as an investment target.

“The Green Refinery Cilacap addresses the demand for more environmentally friendly products, as it can produce HVO, SAF, and bio-naphtha,” he said.

Moreover, the project adds significant value by processing Indonesia’s abundant biofuel resources. KPI, as Pertamina’s refining and petrochemical business subsidiary, brings extensive experience and expertise to the project.

The project, aimed at increasing production capacity from 3,000 barrels per day (bpd) to 6,000 bpd, focuses on producing Hydrotreated Vegetable Oil (HVO), Sustainable Aviation Fuel (SAF), and bio-naphtha from used cooking oil (UCO).

“The new unit of Green Refinery Cilacap will be equipped with infrastructure including a palm oil treater, fractionator, and offsite facilities,” Hermansyah said.

The Cilacap Refinery exemplifies an integrated refinery aligned with Indonesia's energy transition ambitions.