Pertamina produces environmentally friendly diesel fuel, operates green refinery

Jakarta – PT Refinery Pertamina Internasional (KPI) develops environmentally friendly fuels through the Green Refinery project to encourage the use of renewable energy, company officials said Tuesday (18/10). The green energy project is applied to the Cilacap refinery with a capacity of 3,000 barrels per day.

Pertamina International Refinery Chief Executive Officer (CEO), Taufik Adityawarman said the Green Refinery project at the Cilacap refinery produces Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF) HVO as raw materials in the form of Refined Bleached Deodorized Palm Oil (RBDPO).

“HVO is an environmentally friendly substitute for diesel fuel. Meanwhile, SAF is made from Refined Bleached Deodorized Kernel Palm Oil, where this product can be used as Bio Jet Fuel to be mixed with Avtur,” he said in an official statement, adding that the company capital expenditure (capex) to develop Green Refinery was below USD 200 million.

“The amount of capex is not big. Because we only use refineries that already exist at the Cilacap refinery, which are then improved and adjusted based on the product and technology,” Adityawarman said.

KPI has also marketed their green products to the domestic and export markets under the Pertamina Renewable Diesel (Pertamina RD) brand. For example, in June this product was used as fuel for the generator set for the Formula E event in Jakarta. From August to November 2022, KPI made HVO shipments for the export market of 15,000 tons or around 120,000 barrels in 4 shipments. Export demand comes from Asia such as Japan and several European countries.

Adityawarman said KPI’s Green Refinery will continue to be developed in phase II to reach production capacity of 6,000 barrels per day, targeted to be completed in 2026. In addition, phase II development was also carried out to improve specifications on SAF products. KPI is currently reviewing the use of raw materials such as Palm Oil Mill Effluent (POME) and used cooking oil at the facility.

Pertamina Group also has another Green Refinery project in South Sumatra. The Plaju Refinery operates with a production capacity of 20,000 barrels per day. KPI is also working on the Green/Blue Methanol project in Balongan with a methanol production capacity of 44 kilo tons per year. This methanol product is used as a mixture of gasoline products. This project is currently in the feasibility study stage and commenced the Engineering, Procurement and Construction (EPC) process in 2024, and is targeted to operate in 2027. The investment value for the project reaches 191 million USD. (Hartatik)

Banner photo: Pertamina International Refinery in Cilacap. (Source: Pertamina)

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