Jakarta – Renewable energy company PT Pertamina Geothermal Energy Tbk (PGEO) will benefit from selling carbon credits to its controlling party, PT Pertamina Power Indonesia (PPI). The appointment of PPI as PGEO’s carbon credit aggregator is following the mandate of its parent company, PT Pertamina (Persero).
In the agreement between PGEO and PPI, Pertamina Geothermal will sell 389,752 tCO2e of carbon credits from the Lahendong Geothermal Power Plant (PLTP) Units 5 & 6 from January 1, 2021 to December 31, 2022. The PLTP, which has been fully operational since 2022, has a capacity of 2×20 MW to supply electricity in North Sulawesi and Gorontalo.
“The potential total transaction value of carbon credit trading is USD 1.14 million, or 0.0007% of the company’s equity following the interim financial statements as of June 2024, which amounted to USD 1,474,032,” wrote PGEO management on the Indonesia Stock Exchange (IDX) information disclosure website, Wednesday, December 18.
The sale of carbon credits to PPI is also believed to bring early profits to PGEO. PGEO will receive a profit of US$ 339,250 in 2024 and US$ 378,646 in 2025. Meanwhile, PPI only receives approximately 7.5% of the transaction price.
On the other hand, trading PGEO’s carbon credits through PPI as an affiliated party also comes with its risks. Such as the potential for delayed revenue if PGEO’s carbon credits are sold through PPI and take longer to sell. This is because all of PGEO’s carbon credits are sold through PPI.
“However, this risk can be mitigated because PPI is an aggregator of carbon credit sales and purchases in groups, sub-holdings and subsidiaries of Pertamina,” said PGEO Management. (hs)
