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PT Pertamina (Persero) Refinery Unit IV

Indonesia’s largest gas and oil company, PT Pertamina (Persero), joined hands with the azbil Group to participate in a Japan-led Joint Crediting Mechanism (JCM) project with Indonesia as the partner country. In this project, Pertamina used advanced Azbil control technology at a power plant to optimize boiler operation, and succeeded in reducing CO2 emissions by significantly more than the initial target.

Installing low-carbon technology aids environmental management

PT Pertamina (Persero) is an oil company established by the Indonesian government in 1957. It was privatized in November 2001 and grew into one of the largest oil and gas companies in the country. Pertamina has oil and natural gas mining bases throughout Indonesia and six oil refineries that produce a wide variety of products, from various fuels (gasoline, light and heavy oil, liquefied natural gas [LNG], jet fuel, etc.) and non-fuel products (asphalt, coke, etc.) to petrochemical products (benzene, paraxylene, etc.).

Indonesia’s high economic growth has continued since 2001, and currently the demand for gasoline and other sources of energy is rapidly increasing, so the strengthening of refinery capacity is a national policy in Indonesia. As an Indonesian state-owned limited liability company, Pertamina is taking the lead in boosting the capacity of oil refineries and additionally in working on environmental issues as well as industrial ones. For that reason it is proactively tackling management issues such as the environment and energy efficiency. No surprise, then, that it chose to participate in the Joint Crediting Mechanism (JCM) demonstration program, which was established and is implemented by Japan.

JCMs involve Japan and a partner country, and aim to disseminate leading low-carbon technology, products, systems, and services among developing countries and to reduce greenhouse gas emissions. Japan’s contributions to greenhouse gas reduction through JCMs are evaluated in a quantitative manner, and are used to achieve Japan’s reduction targets. Azbil was entrusted by the New Energy and Industrial Technology Development Organization (NEDO) with a project entitled “JCM Demonstration and Verification Project: Utility Facility Operation Optimization System in Indonesia.” The boiler system of Pertamina’s Refinery Unit IV, which is located in Cilacap in Central Java province, was selected for the demonstration project.

This case study was published in the 2019 Vol.3 issue of the azbil Group's corporate magazine, azbil.