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Pertamina striving to decarbonize business to tackle climate change
[22/11/13]
JAKARTA, Nov 13, 2022 - (JCN Newswire) - Pertamina is making efforts to decarbonize its business and develop green businesses to support global climate change mitigation and the achievement of Indonesia's 2060 net-zero emissions target.
"We have two main ways for dealing with climate change; first, we have to decarbonize our carbon assets and business," Senior Vice President of Strategy and Investment at Pertamina Daniel S. Purba said.
He made the statement during a discussion at the Indonesian Pavilion on the sidelines of COP27 in Sharm el-Sheikh, Egypt, on Friday (November 11, 2022).
To decarbonize its business, Pertamina has started to change its business portfolio by promoting low-carbon energy as well as new and renewable energy at its existing businesses and operations, Purba informed.
"Since it is still economically expensive to introduce the use of renewable energy, the market is not really ready for it. However, for Pertamina, we have started with our own businesses. We can't wait for the market to be ready immediately, but we have started with our own operations," he said.
The company's second climate change mitigation effort involves developing new businesses related to green energy with a number of targets set for biofuels; hydrogen; carbon capture, utilization, and storage; renewable energy; batteries and electric vehicles; and also the carbon business.
Thus, the company's revenue will continue to flow even though the carbon business will be reduced and the company has started to decarbonize its business, Daniel explained.
To fulfill its commitment to achieving net zero emissions by 2060, Pertamina will slash its carbon emissions by almost 30 million tons by 2030 and reduce around 30-40 million tons of carbon per year by 2060. For that, the company needs to start taking carbon reduction measures from now onward.
In fact, in the period from 2010 to 2021, Pertamina has succeeded in reducing greenhouse gas emissions by 29.09 percent.
"Those two main ways that we have in our road map for climate change mitigation for years to come are by implementing some well-prepared, detailed, and clear programs and strong initiatives in our business groups. So, we are not only dealing with our current carbon business, but also starting to deal with new and renewable energy businesses," Purba said.
He further said that the asset decarbonization road map is being implemented by Pertamina in each of its business lines, starting from upstream, refineries and petrochemicals, oil, commercial and trade, gas production, integrated marine logistics, and new renewable energy-based power plants.
"There are hundreds of programs behind this road map scheme, and each of our business group entities has committed to applying it," he added.
To ensure that the decarbonization commitment runs in every line of its business, Pertamina has included the commitment target in the key performance indicators of each business entity.
"So, if you don't reach the target, it will have an impact on your income. This is to ensure that all parties work very hard and are committed to achieving the target," Purba said.
Apart from the oil and gas business, Pertamina is also developing the electric vehicle ecosystem in Indonesia by not only producing batteries, but also dealing with all supply chain businesses in the electric vehicle ecosystem.
Contact: Brahmantya Satyamurti Poerwadi, Corporate Secretary, PT Pertamina (Persero)
Email: pcc135@pertamina.com, URL: https://www.pertamina.com
Written by: Yuni Arisandy Sinaga, Editor: Rahmad Nasution (c) ANTARA 2022
Copyright 2022 JCN Newswire. All rights reserved. www.jcnnewswire.com
"We have two main ways for dealing with climate change; first, we have to decarbonize our carbon assets and business," Senior Vice President of Strategy and Investment at Pertamina Daniel S. Purba said.
He made the statement during a discussion at the Indonesian Pavilion on the sidelines of COP27 in Sharm el-Sheikh, Egypt, on Friday (November 11, 2022).
To decarbonize its business, Pertamina has started to change its business portfolio by promoting low-carbon energy as well as new and renewable energy at its existing businesses and operations, Purba informed.
"Since it is still economically expensive to introduce the use of renewable energy, the market is not really ready for it. However, for Pertamina, we have started with our own businesses. We can't wait for the market to be ready immediately, but we have started with our own operations," he said.
The company's second climate change mitigation effort involves developing new businesses related to green energy with a number of targets set for biofuels; hydrogen; carbon capture, utilization, and storage; renewable energy; batteries and electric vehicles; and also the carbon business.
Thus, the company's revenue will continue to flow even though the carbon business will be reduced and the company has started to decarbonize its business, Daniel explained.
To fulfill its commitment to achieving net zero emissions by 2060, Pertamina will slash its carbon emissions by almost 30 million tons by 2030 and reduce around 30-40 million tons of carbon per year by 2060. For that, the company needs to start taking carbon reduction measures from now onward.
In fact, in the period from 2010 to 2021, Pertamina has succeeded in reducing greenhouse gas emissions by 29.09 percent.
"Those two main ways that we have in our road map for climate change mitigation for years to come are by implementing some well-prepared, detailed, and clear programs and strong initiatives in our business groups. So, we are not only dealing with our current carbon business, but also starting to deal with new and renewable energy businesses," Purba said.
He further said that the asset decarbonization road map is being implemented by Pertamina in each of its business lines, starting from upstream, refineries and petrochemicals, oil, commercial and trade, gas production, integrated marine logistics, and new renewable energy-based power plants.
"There are hundreds of programs behind this road map scheme, and each of our business group entities has committed to applying it," he added.
To ensure that the decarbonization commitment runs in every line of its business, Pertamina has included the commitment target in the key performance indicators of each business entity.
"So, if you don't reach the target, it will have an impact on your income. This is to ensure that all parties work very hard and are committed to achieving the target," Purba said.
Apart from the oil and gas business, Pertamina is also developing the electric vehicle ecosystem in Indonesia by not only producing batteries, but also dealing with all supply chain businesses in the electric vehicle ecosystem.
Contact: Brahmantya Satyamurti Poerwadi, Corporate Secretary, PT Pertamina (Persero)
Email: pcc135@pertamina.com, URL: https://www.pertamina.com
Written by: Yuni Arisandy Sinaga, Editor: Rahmad Nasution (c) ANTARA 2022
Copyright 2022 JCN Newswire. All rights reserved. www.jcnnewswire.com
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