New and Renewable Energy Development in

PT. Pertamina : Role of Energy Company in Climate Action

Andianto Hidayat

VP R&T Planning and Commercial Development

PT. Pertamina (Persero)

Jakarta, 9 Juni 2020

COVID-19 Impact on Energy Business Landscape

3

''Instrumen kebijakan dan modalitas, pelajaran dan praktik terbaik yang telahdilaksanakan Indonesia diharapkan dapat menjadi pendukung pemulihan dari pandemiCovid-19 menuju kondisi sosial ekonomi yang lebih hijau, adil, inklusif, dan tahan iklim dimasa depan,'‘

3https://www.wemeanbusinesscoalition.org/build-back-better/

• Speed up the transition to an inclusive, equitable, resilient low-carbon economyImplement regulations and incentives to achieve just transition and net-zero emission

• Increase the use of 100% clean energyInvest in the development of clean energy, to make improvement of networks and storage, and procurement of clean energy from the private sector

• Support clean and healthy mobilityIncrease financing for electric vehicles and infrastructure

• Encourage low carbon infrastructure developmentUtilize public spending on infrastructure to drive demand for low carbon materials

• Support the transition of the low carbon industrial sectorInvest in the development of low carbon technology and use the power of public procurement to drive demand for low carbon materials

• Invest in climate change with Nature based

Supporting farmers to invest in environmentally friendly agriculture

• Avoid environmental protection rollbacks

Ibu Siti Nurbaya dalam “Virtual Ministerial Dialogue with Local and Regional Governments Strengthening Coordination to Implement the Paris Agreement”, 28 Mei 2020

Build Back Better COVID-19 Policy

1) Total capacity of methanol from coal gasification projects with PTBA is 2 million MT/year, where commitment off-take Pertamina is 1 million MT/year

2) 1st and 2ndgeneration. 1G on-stream di 2023, dan 2G on-stream di 2024 3) Partnership with Gesit Motor Manufacturing4) Total installed capacity at Pertamina Group, PSC Rokan, SPBU, New Bio NRE Plant, Catalyst factory, and PTPN Group5) Include Biogas, Biomass, Waste to Energy – installed at PTPN Sumatera & Kalimantan, Tangerang, Semarang and Manado 6) 2024 : 2 x 20kbd dan 2026 : 3 x 20kbd

Pertamina Initiatives in New & Renewable Energy

• CO2 Capture and Utilization• Renewable Hydrogen

• Waste to Energy• Used cooking oil for Biogasoline

Biodiesel beyond B30, Bioethanol, Green Refinery, CPO for Co-Processing

• Battery manufacturing via partnership with battery technology providers

• Setup charging infrastructure for E2W (B2B Battery Swap) and E4W

Monetize PGE Geothermal assets via IPPs to develop 1.1 GW of Geothermal Projects

• Develop domestic solar-based IPPs in high solar irradiation areas

• Strategic partnership for solar cell manufacturing and thin-film technology

Since 2007, Pertamina is shifting its business to New and Renewable Energy. Some initiatives are introduced to move towards a cleaner energy in order to support Government in its emission reduction target

NR

E P

roje

cts

Renewable Energy

Geothermal

Bioenergy

Biofuel

1st Gen

FAME blending

Co-processing

Biorefinery

1st Gen Bioethanol

2nd Gen2nd Gen Bioethanol

Bio pyrolysis oil3rd Gen

Algae oilBiopower

Biogas to power

Solar PV

Solar PV Installation

Solar PV manufacturing

New Energy Coal gasificationCoal to DME

Coal to methanol

Energy Storage Li-ion battery

Cell manufacturing

Pack design

BESS developmentCarbon capture &

utilization

CO2 capture & storage

CO2 utilization

CO2 to methanol

CO2 for EOR

commercial

precommercial

research

Geothermal

Solar PV Installation

FAME Blend

POME Biogas to Power

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New & Renewable Energy Development Status in PertaminaNRE Business in Pertamina aim to provide

sustainable energy in transportation and power generation sectors, as well as utilizing waste

Biofuel

1st G1.5th G

(edible source e.g. vco, cpo, corn syrup, cassava,

sugar,mollases, etc )

2nd G(non-edible resource e.g. UCO, Coconut shell, Palm EFB, Corn cob, bagasse)

3rd G(non-conventional

resource e.g. algae, tail gas)

Direct blending

Hydrotreating

Pyrolisis + Hydrotreating/Catalytic cracking

Fermentation+Dehydration

Fractionation+Hydrolysis+Fermentation+Dehydration

Cultivation+Extraction+Hydrotreating

Gas Fermentation

FAME Biodiesel

Green Diesel

Bioethanol*

Green Diesel/ Green Gasoline

Cellulosic Bioethanol

Green Diesel

Ethanol

Catalytic Cracking Green Gasoline

Cleaner Fuel in Transportation Sector : Biofuels Development

Sep 2018

B20

Jan 2020

B30

End of2020

B50

Governments’ Target for Biodiesel Implementation

Pertamina's Strategy in Developing Biodiesel Implementation:

1. Biodiesel Supply

Blending biodiesel at blending terminal

2. Cooperate with OEM

Establish cooperation with OEM for the

development of B50 from technical aspects

3. FAME Upgrading

Developing technology of H-FAME (Partial

Hydrogenation FAME) and Refined FAME

4. Green Refinery HVO

Developing technology for HVO production

Waste Utilization : Used Cooking Oil for Biogasoline

60% Gasoline25% Kero/Diesel

10% WaterGas (Balance

Catalytic Cracking with Selective Catalyst

• Pertamina currently developing demo plant for processing vegetable oil and used cooking oil to green gasoline

• Used Cooking Oil can be collected from households or Restaurant.

• As a way out to reduce municipal waste, especially Post-COVID 19

Indonesia produces around 66 - 67 million tons of waste in 2019.The general composition of waste in Indonesia is:

• 55 - 70% organic (biodegradable/perishable)• 30 - 45% inorganic (non-biodegradable/non-perishable);• and less than 1% toxic/hazardous waste (B3).

Source of waste in Jakarta The composition of Jakarta waste

Source: Waste to energy guide book

Integrated Waste Management

MSW to Energy Process

Municipal Solid Waste to Energy

Conclusion : Challenges and Stakeholder’s Roles

Challenges for NRE projects implementation in Indonesia still lie mainly in the economical aspects. Supporting policy, regulation, and price mechanism are an important drivers in bringing NRE project to run.

Collaboration and partnership are seen as a catalyst in the NRE projects, especially for implementing new technology in Indonesia. Strong coordination between Private Sectors/BUMN with Government and Key Stakeholder in the industry is also a major aspect in introducing renewable products.

Pertamina is committed to diversify its business portofolio to New and Renewable Energy. Its implementation is aimed to support the Government in achieving its energy mix target, optimizing domestic natural resources and reducing emissions to create clean alternative energy.

Post-COVID 19, NRE projects are more challenging to compete with the lower demand and price of conventional energy. A boost in domestic economical growth are needed to increase the demand side. The slower growth of economy in recovering from COVID 19, the longer it will take to achieve NRE target of implementation.

Terima KasihTerima Kasih

BACK UP SLIDES

Indonesia's energy mix 2020-2040 (market as driver scenario) shows that fossil-based energy will still be dominant. The main driving factors include coal, oil and gas. Whereas NRE will be estimated to grow faster than fossil-based energy.

Indonesia Energy Mix 2020-2040

Each energy company has a different approach and strategic development based on its corporate vision

and country’s natural resources

Global Map Overview

BU

MN

Syn

erg

yP

rod

ucts

Raw material

mining / processComponents

Cell Module/packEnd customer

End-of-life /

service

Extraction/process of

raw materials

Manufacturing of key

components

Assembly of battery

cells

Assembly of cells into

functional packsSecond life, end of

life management

Lithium

Cobalt

Nickel

Mangan

Graphite

PE

Organic solvent

Lithium salts

Cathode

Anode

Separator

Electrolyte

NMC

NCA

LFP

LMO

LCO

Electric Vehicle (EV incl HEV)

Electric Motorcycle (EMC)

Electric Bus (E-Bus)

Electric Stationery Storage (ESS)

Refurbishing

Recycling

Charging

Swapping

OthersBMS & Pack

Battery manufacturingLi-ion battery

value chain

Battery installation in

main applications

Collaboration with

nickel & cobalt

producer

Collaboration with

cathode producerCollaboration with

Indonesia Automotive

company

Collaboration with

electricity provider

Collaboration with

battery pack supplierPertamina will build

battery cell

manufacturing plant

Majo

r

Pla

yers

Potential Collaboration

Cleaner Fuel in Transportation Sector : Battery for EV

Pertaminainitiatives in

Battery Cell will inline with Gov’t

target to increase local content and

absorb local mining production

Support in Power Generation : Renewable Electricity

Jawa & Bali

Head Office (0.2 MW)

SPBG Jabodetabek150 kWp (25 x @5kW)

Cilacap (1 MW)

Jawa Barat

Sumatera:

RU II Dumai (4MW)

PTPN III Sei Mangkei Sumut (5MW)

O&M PTPN II (2MW)

Keterangan

PLTSurya

PLTBiogas

PLTBayu

On Stream

EPC

Detail Study

Kalimantan:

Badak (4 MW)

PTPN XIII Pontianak (2MW)

PLTBg PTPN IIISei Mangkei (2MW)PLTBg PTPN IIPagar Merbau danKuala Sawit (2 MW): O&M

Solar PV and Biogas DevelopmentCurrent installed 5.2 MWp for PV and 4.4 for Biogas Power

Geothermal Development

235 235 235 235 235 235 235 235

120 120 120 125 130 135 155 175

220 220 220 220 230 230 230 23012 12 12 12 12 12

30 30110 110 110 115 115 115

110 110 110165 16510

20 5540

1112

Usulan RKAP 2020

857

12

2021

842

3055

1017

2023

672

55

2025

55

20262024

877

55

727

12

2022Prognosa 2019

3030 30 30 30672**

+7,5%

New WK 1 A&B

Seulawah Hululais

Kerinci (Sungaipenuh) Lumutbalai

Karaha

Sibayak

Ulubelu

Lahendong

Kamojang

*) 1 MW = 47,3 BOEPD**) Termasuk Lumut Balai #1 (55MW) COD 2019

Installed capacity in 2019 is 672 MW

88% of geothermal installed capacity in Indonesia is within PGE GWAs(31% own operation & 57% JOC)

31%

57%

12% PGE Geothermal Area

Other Geothermal Area

PGE-JOC Geothermal Area

CO2 Capture and Utilization to Methanol

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1.460 ton CO2

1.990 ton H2O

0.2 ton H2

1.592 ton O2

By product

0.768 ton H2O

1 ton CH3OH (Methanol as

a product)

Final Net CO2 savings : 1.28 ton CO2 / ton methanol

Sources :- Carbon Recycling International company presentation- Tecno economic and environmental evaluation of CO2

utilization for fuel production, 2016

Use Renewable Energy Sources

Pertamina is currently conducting research for CO2 utilization to Methanol with combine process technology of electrolysis and

renewable power generation.

• CO2 source can be derived from off-gas of Refinery, or Natural gas with high CO2 content

• Renewable power generation could be generated from Geothermal. Pertaminais conducting study together with Pertamina Geothermal Energy to evaluate this option.

Available MSW Processing Technology

Anaerobic Digestion

Pirolisa , ± 400 oC

Sanitary Landfill

Gasifikasi, ± 600 oC

Gas Engine Genset

Thermal Oxidizer Boiler Steam Turbine Genset

Electrical Power

Methane, CH4Gas Engine Genset Electrical Power

Electrical PowerSteamSyngas (H2 + CO)

Gas Turbine Genset

Steam Turbine Genset

Electrical Power

SteamSyngas (H2 + CO)

Methane, CH4

Gasifikasi Plasma, ± 1600 oC-1800oC

Thermal Oxidizer Boiler Steam Turbine GensetElectrical

Power

SteamSyngas (H2 + CO)

Steam / HeatGenerasi 3

Gasifikasi Plasma, ± 1650 oC-1800oC

Gas Turbine Genset Steam Turbine GensetElectrical

Power

Syngas (H2 + CO)

Generasi 4 : modifikasi Plenum , Coke Bed + O2 injection

Steam / Heat

1

Incinerator, ±850 oC

Thermal Oxidizer Boiler Steam Turbine GensetElectrical

Power

SteamFlue Gas (CO2 + H2O)

2

3

4

5

6

7

17

COVID-19 Impact on Energy Business Landscape