Pertamina New & Renewable Energy (NRE) aims to expand the geothermal capacity to over 1 gigawatt (GW) by 2025. The company is capitalizing on the rising demand and future prices for carbon credits, which are expected to increase significantly by 2035 and 2050. Carbon credits from geothermal and combined cycle gas turbine (CCGT) projects are currently priced at $4-5 per tonne of CO2 equivalent (tCO2e), with projections of over $20 per tonne by 2035 and over $60 per tonne by 2050.
Pertamina NRE participated in the first carbon trading on September 26, 2023, through the Indonesia Carbon Exchange (IDXCarbon), selling carbon credits from the Lahendong Geothermal Power Plant in North Sulawesi.
Pertamina NRE’s portfolio includes the 1.76 GW Jawa Satu gas-powered plant and the 2.4 MW Sei Mangkei biogas power plant, with significant annual emissions offset capabilities. The company holds nine concessions with state-owned forestry company Perhutani and the Nusantara Capital City Authority, capable of offsetting substantial annual emissions.