PT Freeport Indonesia (PTFI) plans to replace the Steam Power Plant (PLTU) with a capacity of 200 mega watts (MW) with Gas Power Plants (PLTG).
PTFI President Director Tony Wenas said this was in line with the company's plan to reduce the emission target by 30 percent by 2030. For this reason, his party will utilize liquid natural gas or Liqueied Natural Gas (LNG).
"So now our PLTU is around 200 MW, it's been a long time, from 1995 it's true that we are refurbishing again, it's better if we replace the new one using LNG fuel. So it's much cleaner. That way the reduction in carbon emissions will be even greater," said Tony, who was met in Jakarta, Monday, October 23.
Even though he was determined to replace the fossil fuels, Tony admitted that his party was still looking for LNG sources that would be used as power plants.
He said that the use of LNG as a substitute for PLTU is a solution to use cleaner energy so that it can suppress accreting emissions, which are currently successfully carried out by PTFI.
Tony said, from the 30 percent target set in 2030, PTFI has reduced carbon emissions by 24 percent this year.
"So I'm sure 2030 will be achieved even more, because by 2030 it is planned that the gas power plant using LNG will be operational. So automatically the reduction in emissions from burning coal emissions so LNG will have more reductions," explained Tony.
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Previously, based on a Freeport-McMoran Inc. report for the third quarter, PTFI disbursed at least US$1 billion in PLTU replacement with PLTG in 2027.
Moreover, the Indonesian government is also determined to retire early on the PLTU in Indonesia. Recently, the Minister of Finance (Menkeu) Sri Mulyani has released Minister of Finance Regulation Number 103 of 2023 concerning Providing Fiscal Support Through Funding and Financing Frameworks in the Context of Accelerating Energy Transition in the Electricity Sector.
The regulation, which was stipulated on October 4, 2023, supports early retirement financing for coal power plants using state funds.
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