Pertamina New & Renewable Energy (Pertamina NRE), a subsidiary of State-owned energy company Pertamina, has set a target of 6 GW of installed capacity of clean energy-based power plant development by 2029.
The target is a reflection of Pertamina’s ambition to add its clean energy business portfolio as reflected in the business conducted by its subsidiary, Pertamina NRE, through its low carbon, renewable energy and development business pillars. The 6 GW target will be contributed from gas-to-power and renewable energy-based power plants, such as geothermal, solar power, and biogas.
Until the first semester of 2024, the installed capacity of power plants operated by Pertamina has reached around 2.6 GW.
“Pertamina has a dual growth strategy, namely strengthening the existing oil and gas business and developing a low-carbon business as a future business driver. Pertamina NRE is at the frontline to develop clean energy and new businesses,” CEO of Pertamina NRE, John Anis, said on Friday, June 21, 2024.
Pertamina NRE has also set a number of other targets in 2029, including sales of carbon credits at 19.2 million tons of CO2 equivalent in 2029. In September last year, Pertamina NRE became the first seller of carbon credits in the inaugural IDX Carbon trade with a traded volume of around 800 thousand tons of CO2 equivalent.
Pertamina NRE also targets net hydrogen production to reach 7,000 tons per year by 2029 and bioethanol of 840 thousand kilo liters. Meanwhile, in the battery and electric vehicle ecosystem business, Pertamina NRE targets production of 51.4 GWh. With all these targets, the investment budget prepared will reach US$6.2 billion by 2029. The amount is more than eight times the investment budget this year.
This year Pertamina NRE is focusing on several priority initiatives, including the development of bioethanol business to support the increased utilization of biofuels in Indonesia in collaboration with Pertamina Patra Niaga, the development of the 55 MW Lumut Balai 2 geothermal area, the development of overseas geothermal business, carbon business, and hydrogen for mobility.
Pertamina NRE posted US$411.5 million in revenue in 2023, a 6 percent increase from 2022. Meanwhile, Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) and net profit were recorded at US$331.77 million and US$146.60 million respectively, or an increase of 11 percent and 24 percent compared to 2022.
On the operational aspect, in 2023 Pertamina NRE managed to increase electricity production to 5,452 GWh, an increase of 17 percent compared to 2022. The increase was contributed from various types of generation, including gas-to-power, geothermal, solar and biogas.
The power plants operated by Pertamina NRE also showed good reliability, as indicated by the equivalent availability factor (EAF) at 97.20 percent of the target of 89.37 percent, and the equivalent forced outage rate (EFOR) of only 0.21 percent, or far below the specified tolerance limit of 2.43 percent. This operational performance is also supported by good HSSE (Health, Safety, Security and Environment) performance, where the total safe working hours recorded at 18,518,447 and without fatalities.
Other achievements of Pertamina NRE during 2023 include the success of its subsidiary, Pertamina Geothermal Energy (PGE), to hold an initial public offering (IPO) on February 25, 2023 and to issue global green bonds totalling US$400 million last year. Pertamina NRE also became the sole seller of carbon credits at the inaugural trade during the launch of the carbon exchange on September 26, 2023, inaugurated by President Joko Widodo.
