28-6-2023 (JAKARTA) PT Pertamina, the state energy company of Indonesia, revealed its plans to commence bioethanol production from sugarcane and cassava later this year, while also venturing into green hydrogen using geothermal energy. These developments were announced by Pertamina CEO Nicke Widyawati during a conference on Wednesday.
Indonesia, known as the world’s largest consumer of palm oil biodiesel, has been actively working towards implementing bioethanol mandates for gasoline in an effort to reduce fuel imports and carbon emissions. However, the challenge lies in securing an adequate supply of feedstock.
“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,” stated Pertamina CEO Nicke Widyawati during the conference.
The introduction of biodiesel mandates in the Southeast Asian nation has resulted in significant cost savings by reducing its diesel import bills.
Last year, Pertamina announced its intention to initiate a hydrogen production trial in 2023 at the Ulubelu geothermal plant located on Sumatra island. The plan involves producing 100 kg (220 lb) of hydrogen per day.
“Indonesia is blessed with huge potential of geothermal, around 27GW (gigawatts), and now out of 27, less than 10 per cent is operated to become electricity,” shared Widyawati. “We have (an) ambitious target to double or triple the capacity in five to seven years. Not just for electricity but geothermal also (to) produce green hydrogen.” She further revealed that hydrogen production has already commenced.
Addressing recent allegations, Widyawati reiterated Pertamina’s denial of purchasing crude oil from Russia, despite Western sanctions imposed on the country. Although ship-tracking data has shown Russian oil being discharged in Indonesia, it is common for such cargoes to be transferred to other ships for subsequent delivery to different destinations.
As Pertamina expands its bioethanol production and embarks on green hydrogen initiatives, it aims to contribute to Indonesia’s energy sustainability while reducing its carbon footprint. The company’s efforts align with the nation’s long-term goals of harnessing renewable resources and achieving energy self-sufficiency.