PT Pertamina Geothermal Energy (PGE), part of Pertamina Power & New Renewable Energy (PNRE) subholding, signed an agreement for Engineering, Procurement, Construction, and Commissioning (EPCC) for the construction of the Fluid Collection and Reinjection System (FCRS) and Geothermal Power Plant Lumut Balai Unit 2 in South Sumatra with the Mitsubishi Corporation Consortium, PT Wijaya Karya (Persero) Tbk., and SEPCO III Electric Power Construction Co. Ltd at the B20 Indonesia Net Zero Summit 2022 event at the Bali Nusa Dua Convention Center (BNDCC).
This project is funded by Japan's ODA Loan, under the Government to Government Loan (G to G Loan) scheme between the Japan International Cooperation Agency (JICA) and the Government of Indonesia.
The project sites are located in Muara Enim and Ogan Komering Ulu Regencies in South Sumatra Province. The scope of the contract will be a turnkey basis where the Mitsubishi Corporation Consortium, PT Wijaya Karya (Persero) Tbk., and SEPCO III Electric Power Construction Co. Ltd will carry out the design, manufacture, civil works construction, commissioning, performance testing and warranty for the facility, consisting of a Geothermal Power Plant unit and Fluid Collection and Reinjection System with a net capacity of 55 MW high voltage terminal.
The facility is designed to be operational for more than 30 years and will be operated and maintained by PGE. The electricity generated from clean, renewable and environmentally friendly energy will be distributed to PLN and has the potential to increase the number of users to around 55 thousand households in South Sumatra.
The environmental management of Lumut Balai's work area has been proven to be very good with the achievement of Pertamina Environment Regulation Compliance Assurance (PERCA) and Blue Company Performance Rating Program in Environmental Management (PROPER) from the Ministry of Environment and Forestry of the Republic of Indonesia (KLHK).
In accordance with the theme of the Indonesia Net Zero Summit 2022, Industrial Decarbonization at All Costs, this effort is Pertamina's real step in supporting sustainable development launched by the Government of Indonesia, and reducing the impact of global warming by reducing carbon emissions on the environment.
Greenhouse gas reduction from the Lumut Balai Unit 1 & 2 PLTP Project, is included in the Clean Development Mechanism (CDM) as an implementation of the Kyoto Protocol and has been registered with the UNFCCC with the potential for reducing greenhouse gas emissions of around 581,518 tons of CO2 equivalent per year.
The 55 MW capacity generated from Unit 2 will increase PGE's total installed capacity, after previously 55 MW generated from the Lumut Balai Unit 1 Project which began operating in 2019. This further strengthens PGE's position as one of the largest players in Indonesia's geothermal development with an installed capacity of 727 MW.
According to PGE President Director Ahmad Yuniarto, in running its business PGE continues to be committed to geothermal development and ensures the implementation of Environment, Social, and Governance (ESG) to become an integrated part of PGE's geothermal business. The implementation of these ESG aspects is an effort to provide added value and support PGE to government programs related to the use of new, renewable energy, especially geothermal, that is environmentally friendly.
PGE's commitment to developing geothermal energy can contribute to achieving the Sustainable Development Goals (SDG) of Goal 7 (Clean and Affordable Energy), Goal 12 (Responsible Construction and Production), Goal 13 (Climate Change Management), and Goal 15 (Land Ecosystem).
PGE currently manages 13 Geothermal Working Areas (WKP) with an installed capacity of +1.8GW. A total of 672 MW is operated and managed directly by PGE and 1,205 MW is managed under a Joint Operation Contract scenario. Geothermal installed capacity in PGE's working areas contributes 82% of the total installed geothermal capacity in Indonesia, with the potential to reduce CO2 emissions of around 9.7 million tons of CO2 per year.
