By William Jhanesta
In an inspiring commitment to combat climate change, IDX-listed energy company PT Medco Energi Internasional Tbk (IDX: MEDC) is taking significant strides to contribute to the national greenhouse gas emission reduction target. Embracing business diversification, Medco aims to achieve Net-Zero Emissions (NZE) targets for scope 1 and 2 by 2050 and scope 3 by 2060, across both the petroleum and non-petroleum business segments.
In the oil and gas sector, Medco has already initiated crucial steps to reduce emissions. The implementation of carbon capture storage (CCS) technology is being studied for potential application at several of its fields including in Natuna Block B, Corridor, Sampang, Madura Offshore, Tomori, and South Sumatra Block. By exploring CCS technology, Medco is showcasing its commitment to environmentally sustainable practices in the oil and gas industry.
Moreover, Medco is dedicated to maintaining a strong gas portfolio, recognizing the significance of natural gas as a vital transition fuel in the energy landscape. Efforts to extend the reserve life of gas resources and grow gas production demonstrate the company's dedication to national energy security and the global energy transition.
Beyond fossil fuels, Medco is actively fulfilling its low-carbon energy ambitions by embracing renewable energy sources. Through its subsidiary, PT Medco Power Indonesia, the company has already operated the Sumbawa solar power plant (PLTS) with a capacity of 26 MWp. Additionally, Medco Power is diligently working on the construction of a 2x55 MWp solar power plant in Bali, further solidifying its renewable energy endeavors.
Figure 1. PLTS Sumbawa. Source: Medco Power.
Not stopping at solar, Medco has set its sights on wind power development. In late May, the company secured a grant from the US Trade and Development Agency (USTDA) to finance the feasibility study of its 111 MW wind turbine in West Sumbawa, West Nusa Tenggara Province.
Geothermal energy is also a focal point of Medco's green journey. Started as one of the shareholders in the 330 MW Sarulla geothermal power plant project in North Sumatra, Medco is now developing the first geothermal plant in East Java, Ijen Unit-1 (35 MW). The recent collaboration announcement with partners like MOECO and GreenFire emphasizes Medco's determination to optimize its geothermal energy portfolio.
Figure 2. Geothermal drilling activity of the Ijen Unit-1 project.
During the 47th IPA Convention and Exhibition 2023, Ridho Wahyudi, Medco's Manager of Capital Market, unveiled the company's ambitious targets for renewable energy integration. Medco aims to achieve a renewable energy mix of 26% in its business lines by 2025 and an even higher 30% by 2030. These targets exceed the government's national energy mix goals, showcasing Medco's leadership in driving the transition to a sustainable and green energy future.
Figure 3. Medco's ambition in achieving NZE. Source: Medco’s Presentation.
As Medco continues its remarkable journey towards a net-zero future, it sets an example for the entire energy industry. With their ambitious targets and diverse approach to renewable energy, Medco proves that dedication, innovation, and collaboration can drive us closer to a cleaner and more sustainable world. The world will be closely watching Medco's progress, eager to witness the realization of these inspiring ambitions.
Editing by Reiner Simanjuntak
