Petrokimia Gresik Unveils Tangible Strategies Towards Green Industry At COP28 Climate Change, Dubai

Petrokimia Gresik, a comprehensive Agroindustry company and a member of the Pupuk Indonesia conglomerate, has unveiled several industrial strategies and new projects to support the Government's efforts to reduce carbon emissions. Through these strategies, Petrokimia Gresik has managed to minimize carbon emissions by more than 1.2 million tons annually. This was announced by Dwi Satriyo Annurogo, President Director of Petrokimia Gresik, during his participation as a speaker at the "Pavilion Indonesia Talks Session" at COP28 in Dubai, United Arab Emirates (UAE), on Wednesday evening (6/12).

"Petrokimia Gresik is the most comprehensive fertilizer and chemical producer in Indonesia. Our main products are fertilizers, which are fundamental for the agricultural sector in food production. In our company operations, we continuously strive to minimize carbon emissions resulting from industrial processes."

The strategies implemented by Petrokimia Gresik to minimize carbon emissions include, firstly, the utilization of carbon for raw materials in Urea and ZA fertilizers, as well as using carbon for the production of liquid CO2 and dry ice. Through this strategy, Petrokimia Gresik has utilized approximately 902,700 tons of carbon emissions per year.

Secondly, Petrokimia Gresik maximizes efficiency in combustion in coal-fired boilers as much as possible. Through these efforts, Petrokimia Gresik has managed to minimize carbon emissions by approximately 1,600 tons per year.

The next energy efficiency strategy carried out by Petrokimia Gresik involves using purge gas as an additional fuel source, which reduces natural gas consumption. Through this step, Petrokimia Gresik also minimizes carbon emissions by up to 3,145 tons per year.

Thirdly, Petrokimia Gresik is also transitioning its energy usage by reducing electricity production from coal-fired power plants and replacing it with electricity consumption from the national grid (PLN). This energy transition can minimize carbon emissions by up to 105,000 tons per year.

Fourthly, Petrokimia Gresik's efforts to minimize carbon emissions also involve the utilization of renewable energy, namely by installing solar panels with a capacity of 471 kWp, producing approximately 516,000 kWh per year. Through these panels, Petrokimia Gresik can reduce potential carbon emissions by approximately 447 tons per year. Additionally, Petrokimia Gresik has purchased Renewable Energy Certificates (REC) from PLN, totaling 2,160 units per month. Through this initiative, Petrokimia Gresik can minimize carbon emissions equivalent to 22,550 tons per year.

Fifthly, Petrokimia Gresik is electrifying its operations by using 150 units of electric vehicles, which can reduce carbon emissions by up to 50 tons per year.

"These strategies have been implemented by Petrokimia Gresik and have already made a significant contribution to minimizing carbon emissions," emphasized Dwi Satriyo.

Furthermore, he revealed that Petrokimia Gresik also has plans for projects that can reduce carbon emissions. These include Co-Firing Ammonia in Coal-Fired Boilers, which can reduce carbon emissions by 60,000 tons per year. Additionally, Petrokimia Gresik will construct a soda ash plant, the first of its kind in Indonesia. This plant will have a production capacity of up to 300,000 tons and will utilize 174,000 tons of CO2 as raw material.

Dwi Satriyo explained that soda ash is a commodity with a demand of approximately 1 million tons per year, which is currently entirely imported. This is also driven by the growth of other industries such as glass and ceramics, soap, and detergent industries, which are derivatives of soda ash.

"Petrokimia Gresik will continue to grow into a global company while always maintaining environmental awareness," he concluded.

Meanwhile, at COP28, world leaders are discussing future climate change issues and strategies to reduce global carbon emissions. One of the sessions at COP28 is the "Pavilion Indonesia Talks Session" with the theme "Circular Economic Approach in Decarbonizing Hard-to-Abate Fertilizer Company."

Preparation of Clean Energy Facilities

Meanwhile, as part of COP28, Pupuk Indonesia has signed a Joint Development Agreement (JDA) with PLN and ACWA Power. This JDA is related to the development of clean energy sources, namely the green hydrogen and green ammonia ecosystem, which will be built in the Petrokimia Gresik area.

In response to this cooperation, Dwi Satriyo expressed his positive response to the agreement and supported it by preparing the necessary development facilities. "In this project, Petrokimia Gresik has been tasked by Pupuk Indonesia to prepare land for the construction of electrolyzers, or devices that will produce green hydrogen from water. Subsequently, this green hydrogen will be sent to one of the plants in Petrokimia Gresik to produce green ammonia," said Dwi Satriyo.

In this cooperation, Pupuk Indonesia, together with PLN and ACWA Power, will establish a joint venture (JV) company. This joint venture company will run the project, including selecting EPC contractors (Engineering, Procurement, & Construction) and selling green ammonia for both domestic and international markets.