In a recent conference, the CEO of PT Pertamina, Nicke Widyawati, revealed the company's plans to commence the production of bioethanol derived from sugarcane and cassava this year. Additionally, Pertamina has already initiated the production of green hydrogen by utilizing geothermal energy. These initiatives are part of Indonesia's efforts to reduce fuel imports and carbon emissions while promoting renewable energy sources.
Indonesia, known as the world's largest consumer of palm oil biodiesel, has been actively working to implement bioethanol mandates for gasoline. However, one of the major challenges in this endeavor has been ensuring an adequate supply of feedstock.
Widyawati stated, “This year, we will launch our new product, bioethanol – sugarcane based, cassava based. (There is) a lot of feedstock that can be used. Palm oil is for biodiesel, sugarcane and cassava for ethanol.” Pertamina's pursuit of alternative feedstock for bioethanol production showcases their commitment to diversifying the energy landscape.
The implementation of biodiesel mandates in Indonesia has already resulted in significant cost savings, amounting to billions of dollars, in diesel imports.
Furthermore, Pertamina announced last year its intention to conduct a hydrogen production trial in 2023 at a geothermal plant located in Ulubelu on Sumatra island. The goal is to generate 100 kg (220 lb) of hydrogen daily. Indonesia possesses substantial geothermal potential, estimated at around 27 gigawatts, with less than 10% of it currently utilized for electricity generation.
“We have an ambitious target to double or triple the capacity in five to seven years. Not just for electricity, but geothermal (energy) will also be harnessed to produce green hydrogen,” Widyawati emphasized, underlining the company's commitment to expanding their renewable energy portfolio. Pertamina has already begun the production of green hydrogen, leveraging its access to abundant geothermal resources.
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During the conference, Widyawati also reiterated Pertamina's previous statements, denying any crude oil purchases from Russia, which has faced sanctions from Western countries. Notably, there have been reports of Russian oil being discharged in Indonesia according to ship-tracking data. However, it is common practice for such shipments to be transferred to other vessels for onward delivery.
Pertamina's strategic efforts to produce bioethanol from alternative feedstock and leverage geothermal energy for green hydrogen production exemplify Indonesia's commitment to sustainable and renewable energy solutions. As the country capitalizes on its vast energy resources, it aims to reduce dependency on fossil fuels, enhance energy security, and mitigate carbon emissions.
