Ceria-PLN collaboration, supporting energy transition by purchasing renewable electricity until 2030

Ceria Group management and PLN directors take a group photo after signing the NRE electricity purchase (REC) and PJBTL amendments on Monday, 20 May. (Source: Ceria)

Jakarta—In an effort to accelerate the clean energy transition in Indonesia, Ceria Group, one of the main producers of electric vehicle battery materials, and PT PLN (Persero) signed a Renewable Energy Certificate (REC) Purchase Agreement and a Land Borrowing Agreement for Inter Temporal Capacity (ITC) Power Plants on Monday, May 20, 2024, at PLN Headquarters, Jakarta.

Derian Sakmiwata, CEO of Ceria Group, said that Ceria is a pioneer in using RECs in the integrated nickel refining industry (mine mouth smelter).

“This REC and ITC agreement ensures Ceria’s commitment to producing green nickel products with the pyrometallurgy process through the Rotary Kiln Electric Furnace (RKEF) technology, which produces Ferronickel with a nickel content of 22%, and Nickel Matte Converter, which produces nickel content above 73%. The hydrometallurgy process through high-pressure acid leach (HPAL) technology also produces mixed hydroxide precipitate (MHP) for the electric vehicle (EV) battery market,” he explained in a written statement on Tuesday, May 21.

The REC certificate Ceria ensures that the electricity used comes from renewable energy sources, thus supporting the sustainability aspects of the company’s Environmental, Social, and Governance (ESG) policy.

“The use of REC certificates by Ceria will gradually increase from around 80,000 units in 2024 to 2.2 million units in 2030,” Sakmiwata added.

Renewable Energy Certificate (REC) is a certificate issued by PLN with international recognition through APX, Inc., based in the United States. Each unit of REC certificate represents 1 Megawatt-hour (MWh) of electrical energy consumption from renewable energy sources.

Ceria and PLN have also agreed to amend the Power Purchase Agreement (PJBTL) to provide a total capacity of 414 MVA, or approximately 352 MW. This agreement refines the technical and administrative aspects of the PJBTL signed in 2018, and electricity supply will begin gradually in mid-2024.

In addition, PLN will provide additional power using a gas-fired Barge-Mounted Power Plant (BMPP) with a capacity of 2 x 60 MW. PT PLN’s affiliate, Indonesia Power (IP), will construct the jetty and other supporting facilities, with a completion target in the Ceria area.

“The gas-fired BMPP will be connected to the PLN Kolaka Smelter Substation to maintain the electricity reliability of the Ceria smelter,” Sakmiwata explained.

Ceria will also fully support PLN in providing land to develop Inter Temporal Capacity infrastructure in the Ceria area, with the planned construction of a 200 MW Gas Engine Power Plant (PLTMG) by PLN Batam. The next target is the addition of 200 MW of Gas and Steam Power Plant (PLTGU) capacity.

Using electricity from PLN, which is sourced from renewable energy, ensures that the carbon footprint of coal-fired power plants is not present in the Ceria smelter production process.

“With PLN’s support, Ceria is ready to be at the forefront of the nickel industry’s transformation to a sustainable future. This step shows Ceria’s commitment as a pioneer in green nickel production, which provides tangible benefits for the environment, society and the nation,” said Sakmiwata. (Hartatik)


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