Having A Target Of 6 GWs In 2029, Pertamina NRE Raises Investment Eight Times

JAKARTA - Pertamina New & Renewable Energy (Pertamina NRE) is the spearhead of Pertamina in developing a clean energy business, targeting installed capacity for the development of a clean energy-based power plant to reach 6 GW by 2029.

This target is a reflection of Pertamina's ambition to continue to add a clean energy business portfolio as reflected in the business carried out by its subsidiary, Pertamina NRE, through low-carbon business pillars, renewable energy, and development.

Pertamina NRE CEO John Anis said the target of the 6 GWs would 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 the Pertamina-operated power plant has reached around 2.6 GW.

"Pertamina's dual growth strategy, namely strengthening the existing oil and gas business and developing low-carbon businesses as a driver of future business. For this reason, Pertamina NRE has a very strategic role by being at the forefront of Pertamina to develop a clean energy and new business business," said John Anis, Friday, June 21.

Pertamina NRE also set a number of other targets in 2029, including carbon credit targeted to sell up to 19.2 million tons of CO2 equivalent by 2029.

Last September, Pertamina NRE managed to become the first carbon credit seller in the first trade of IDX Carbon with a trading volume of around 800 thousand tons equivalent to CO2.

Pertamina NRE also targets clean hydrogen production to reach 7000 tons per year by 2029 and bioethanol to reach 840 thousand kiloliters.

Meanwhile, in the battery and electric vehicle ecosystem business, Pertamina NRE targets production to reach 51.4 GWh.

With all these targets, the prepared investment budget will reach 6.2 billion US dollars by 2029.

This figure is up more than eight times the investment budget this year.

This year Pertamina NRE focuses on several priority initiatives, including the development of a bioethanol business to support increased utilization of vegetable fuels in Indonesia in collaboration with Pertamina Patra Niaga, the development of the Geothermal Lumut Balai 2 area of 55 MW, the development of geothermal business abroad, the carbon business, and hydrogen for vehicle fuel (hydrogen for mobility).

Pertamina NRE shows quite good business growth. At its financial performance in 2023, Pertamina NRE posted an increase in revenue of 6 percent compared to 2022, which was 411.5 million US dollars.

Meanwhile, EBITDA and net profit consecutively reached US$331.77 million and US$ 146.60 million, an increase of 11 percent and 24 percent compared to 2022.

In the operational aspect, in 2023 Pertamina NRE succeeded in increasing electricity production to 5,452 GWh, or an increase of 17 percent compared to 2022.

The increase was contributed by various types of generation, including gas to power, geothermal, diesel and biogas.

The power plant operated by Pertamina NRE also shows good reliability, which is shown from the equivalent availability factor (EAF) reaching 97.20 percent of the target of 89.37 percent, and the equivalent force rate (EFOR) is only 0.21 percent, or far below the tolerance limit set at 2.43 percent.