Consistently Supporting Decarbonization, Pertamina NRE Agrees on Carbon Credit Commercialization with PTPN III

Jakarta, February 1, 2024 - Pertamina New & Renewable Energy (Pertamina NRE) and PT Perkebunan Nusantara III (PTPN III) announce a strategic partnership in the commercialization of the carbon credits project. This collaboration aims to enhance contributions to reducing greenhouse gas emissions and supporting environmental sustainability. The partnership agreement was signed by the Director of Strategic Planning and Business Development of Pertamina NRE, Fadli Rahman, and Vice President Director of PTPN III, Denaldy Mulino Mauna.

This cooperation focuses on carbon credits commercialization from the Biogas Power Plant (PLTBg) Sei Mangkei. PLTBg is one of the renewable energy power plants whose carbon credits can be calculated from two sides: clean energy generation and the capture of methane gas that would be released into the atmosphere.

"Pertamina NRE and PTPN III have been collaborating strategically since 2019 by establishing PLTBg Sei Mangkei. We are advancing this strategic collaboration to a higher level through carbon credits commercialization from PLTBg Sei Mangkei. It demonstrates both parties' consistency in showing commitment to the energy transition towards net zero emissions by 2060," Fadli expressed.

The PLTBg generation process utilizes Palm Oil Mill Effluent (POME) waste from PTPN III's palm oil mill processed at the Waste Water Treatment Plant (IPAL). The POME waste is stored in a covered lagoon to prevent emissions because the methane gas produced by the POME waste is unreleased into the atmosphere. Next, the methane gas is processed to produce electrical energy with a capacity of 2.4MW. Initial estimated carbon credits generated from this project are 15 thousand to 25 thousand tons of CO2 per year.

Meanwhile, Denaldy Mulino stated, "The sustainable plantation sector plays a crucial role in environmental preservation. This collaboration allows us to optimize the environmental benefits of our activities while also opening doors for income diversification through carbon credits."

This agreement also includes cooperation in research and development of the latest innovations and technologies to improve efficiency and sustainability in their operations, as well as the project implementation and other potentials that can generate carbon credits, which is also part of this agreement.

Pertamina's Commitment to Supporting Net Zero Emission

Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, added that in alignment with the government, Pertamina also aspires to achieve net zero emissions no later than 2060. This aspiration is achieved through three strategic initiatives: decarbonization in existing operational activities, building low-carbon businesses, and carbon offset.

"Pertamina is committed to decarbonizing across all of its business lines, in this case including partnering with counterparts, to achieve the Net Zero Emission target," Fadjar stated

Pertamina NRE is the forefront subsidiary of Pertamina in realizing this aspiration, where its business focuses include low-carbon solutions, renewable energy, and green business development.

In line with its commitment to supporting sustainable development goals, Pertamina NRE proactively implements environmental, social, and governance (ESG) aspects and has recently received an ESG score of 13 from Sustainalytics, a global ESG rating agency, indicating low risk. It places Pertamina NRE as the third-best in the world in the independent power producer and traders (IPP & traders) sector.**