Pertamina appoints South Pole to sell geothermal carbon credit

PT Pertamina Geothermal Energy (PGE), a geothermal arm of state oil, gas company PT Pertamina (Persero) has signed Emission Reduction Purchase Agreement (ERPA) with Swiss firm South Pole Carbon Assets Management Ltd.

Under the deal, South Pole will conduct tender on emission reduction produced by PGE with minimum price of 6 Euros per tonne, PGE President Abadi Poernomo said on Friday.

ERPA will cover emission reduction produced from Ulubelu unit 3 and 4 (2x55MW) in Lampung and Lumut Balai unit 1 and 2 (2x55 MW) in South Sumatra. Both power plants will produce annual emission reduction of 1.1 million tonnes of CO2, he said.

Both power plants will start operations in 2014, he said, adding that South Pole will receive 12 percent fee.

PGE is also in the process of selecting vendor to tender carbon emission reduction for its other power plants including Lahendong unit 5 and 6 in North Sulawesi, Karaha unit 1 in West Java, Lumut Balai unit 3 and 4 and Kamojang unit 5 in West Java with total emission reduction of 1.15 million tonnes of CO2 annually, Planning and Development Director Zainal Ilmie Bachrun said.(giok)