PMI is furthering its transition to renewable energy by implementing a game-changing solar energy project for its subsidiary Sampoerna in Indonesia. This project will support the company's goal of achieving carbon neutrality in its direct operations by 2025.
The Sukorejo production center currently receives its electricity supply from the national grid, solar panels, and a gas-powered generator. Once the project is completed, the gas generator will be shut down, and the center will be powered solely by the grid, a new biomass boiler, and new photovoltaic (solar) panels.
This change will help PMI achieve its ambitious goal of carbon neutrality in all its production centers by 2025, which is one of the objectives set out in its Low Carbon Transformation Plan (LCTP). The plan outlines how the company is working to decrease its greenhouse gas emissions, particularly carbon emissions.
PMI has adopted a three-step approach to achieve their emissions target:
Reduce consumption and optimize efficiency to reduce greenhouse gas (GHG) emissions. Minimize the use of fossil fuels and promote the transition towards renewable energy sources. Prioritize environmental projects based on natural solutions and purchase high-quality carbon credits to offset unavoidable emissions.
Image source: PMI
What is the most impressive aspect of this project?
The scale of the photovoltaic (solar) panel system. PMI installed over 10,000 panels on 7 hectares of land. As part of our efforts to reduce our impact on the environment, we have planted 999 trees in the area to compensate for the land preparation required to create the space. At Sanbao Lin, we consider nine to be a lucky number, which is why 999 is the particularly lucky number of trees for this project.
What is the next step for this project?
Our goal is to install photovoltaic (solar) panels before the end of March 2023 and biomass boilers before June of the same year.
The plan is to shut down old gas boilers and gas-powered tri-generation engines. All power will be generated by steam produced by biomass boilers, while electricity will be supported by photovoltaic (solar) panels and the grid. A small amount of natural gas will still be used, but it will be offset through activities to balance it out. Inevitable carbon emissions will be offset, preferably through projects developed within our supply chain that generate certified carbon credits, or through purchasing carbon credits.
Our electricity comes from state-owned enterprises with green certificates (renewable energy certificates), meaning that the power they provide is also sustainable and sourced from renewable energy such as solar panels, wind power or hydro turbines. Combined with our direct actions in building biomass boilers and photovoltaic (solar) panels, this will allow us to achieve the scope 1 + 2 (direct operations) target.
What improvements are you hoping to see from this project?
Our aim is to reduce Scope 1 emissions (natural gas) by 72% and Scope 2 emissions (electricity) by 38% by utilizing both biomass and photovoltaic (solar) panels simultaneously.
What is the most significant difference of this project?
In essence, this project will shift the production center's reliance from fossil fuels to renewable energy sources.
And this is just the first step. Our journey to carbon neutrality will continue. Leading corporations are the positive change we need to see. This sends a powerful message and leads to a transformation that I hope others will emulate.
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