GIS Acceleration Of Decarbonization And Green Energy Transition For Factory-Fabricaty Operations In Tuban

JAKARTA - PT Semen Indonesia (Persero) Tbk (SIG) is increasingly using New and Renewable Energy (EBT) in all operating areas as part of the Company's sustainability strategy in reducing greenhouse gas (GHG) emissions. One of the subsidiaries of GIS, PT Solusi Bangun Indonesia Tbk (SBI) also supports this initiative through the use of solar energy as an alternative energy source that is environmentally friendly at the Tuban Factory, East Java.

The geographical location of Indonesia which is along the equator with an average solar energy irradiation of around 4.80 kWh/m2/day, is a huge potential for the use of alternative energy solar power. The Tuban factory itself is in a geographical position with solar energy irradiation above the national average of around 5.4 kWh/m2/day.

This opportunity ensures that SBI cooperates with PT Energi Mitra Indika Ten Solar Power Plants (PLTS) to start the development of rooftop Solar Power Plants (PLTS) connected to the existing power grid (On-Grid Connected Rooftop PV System) on ten roofs of buildings with an installed capacity of 6.39 MWp. This Roof PLTS will later be operated in parallel with existing electricity from PLN to support part of the operational needs of factories, offices and other supporting facilities at SBI Tuban Factory.

"In addition to utilizing alternative fuels for coal substitution in the cement production process, increasing environmentally friendly products and increasing efficiency in the use of electrical energy and thermal energy, the use of solar energy is also a concrete manifestation of our commitment to sustainable development. While achieving more efficient operations, this project contributes to the decarbonization that has been launched by SIG to support the government's commitment to reduce the impact of global warming," said Lilik Unggul Raharjo, President Director of SBI on the sidelines of a review of the PLTS construction project in Tuban, Saturday 17 February.

SIG Corporate Secretary, Vita Mahreyni said, currently, the construction of solar panel installation has been completed in one of the buildings, namely in the main office building of Tuban Factory, and continued installation in nine other buildings. The installation project of the Roof PLTS is expected to be completely completed and operational in the third quarter of 2024, to increase the use of EBT and support the achievement of the GIS target in reducing the coverage 2 GRK emission intensity by 23.9% by 2030 (baseline 2019) as stated in the Sustainability Road Map SIG.

"The use of solar energy at the Tuban Factory SBI further confirms the commitment of GIS in the energy transition to EBT which is more environmentally friendly and useful in encouraging efficiency in the Company's operational costs, as well as being a positive contribution in supporting the government to achieve the Net Zero Emission target by 2060," said Vita Mahreyni.

As an effort to accelerate the reduction in the emission intensity of GRK coverage 2, SIG has collaborated with PT PLN (Persero) in the Development of Renewable Energy Plants in September 2023. Through this collaboration, GIS gained support in efforts to transition green energy through EBT sources to meet electricity needs in SIG operational areas.

GIS is also exploring initiatives to reduce the emission intensity of GRK coverage 3, or emissions originating from the company's supply chain generated by sources that are not directly owned or controlled by the Company. Within a scope of decreasing coverage 3 GHG emission intensity, SIG targets employee transportation facilities (employee commuting), as well as logistics and logistics outlets.

Since early February 2024, SIG has been testing the operation of an employee carrier electric bus at the Tuban Factory's GIS to find out how much carbon emissions have been lowered and to find the right procurement scheme. In addition, a trial of the logistics inbound fleet using a dump electric vehicle (EV) is also underway at the SBI Narogong Factory.

"The use of electric vehicles is an extra mile GIS effort to decarbonize operational vehicles that cause air pollution, as well as reduce the use of fossil energy to keep the environment sustainable," said Vita Mahreyni.