ASIATODAY.ID, JAKARTA – Nickel downstreaming in Indonesia is now entering a new era. Slowly but surely, nickel industry players in the country are starting to switch to using new, renewable energy throughout their industrial chain.
It is the Ceria Group, a nickel mining and refining company operating in Kolaka Regency, Southeast Sulawesi, which is the pioneer in implementing it in Indonesia.
Ceria Group aims to improve Indonesia’s bargaining position in the global electric vehicle market by developing a sustainable nickel and electric vehicle battery supply chain.
This step by Ceria Group received full support from the State Electricity Company (PT PLN Persero).
PLN’s real support was marked by the signing of the Renewable Energy Certificate (REC) Purchase Agreement between PLN and PT Ceria Metalindo Prima (Ceria Group), which was held on Monday, 20 May 2024 at the PLN Head Office.
Apart from that, PLN and Ceria Group also signed a Land Use Loan Agreement for the Inter Temporal Capacity (ITC) Power Plant.
This step by PT PLN (Persero) is a real action in supporting the sustainable nickel industry in Indonesia in an effort to achieve the target of reducing carbon emissions towards Net Zero Emission (NZE) by 2060 as planned by the Government.
“We really appreciate PT Ceria Metalindo’s trust in PT PLN (Persero) and have proven its commitment to using clean energy through the Renewable Energy Certificate (REC) Sale and Purchase Agreement,” said General Manager of PLN Main Distribution Unit (UID) South Sulawesi, Southeast Sulawesi , and West Sulawesi (Sulselrabar), Moch. Andy Adchaminoerdin.
Renewable Energy Certificate (REC) is a certificate issued by PLN with international recognition through APX, Inc. based in the United States, as the operator of the Tradable Instrument for Global Renewables (TIGRs), which states that the electricity used by Ceria Group comes from renewable energy sources, with every 1 REC certificate unit representing 1 Megawatt-hour (MWh) of electrical energy consumption.
“We are fully committed to providing reliable, timely electricity services for the Ceria Group and most importantly sourced from clean energy,” continued Andy Adchaminoerdin.
Meanwhile, PT PLN (Persero) Retail and Commerce Director, Edi Srimulyanti, revealed that the nickel downstream policy launched by President Jokowi has encouraged PLN to innovate, one of which is by providing Renewable Energy Certificate (REC) services for nickel industry players. This green innovation opens up opportunities for customers to participate in reducing emissions. Apart from that, it makes it easier for customers to get recognition for their use of renewable energy internationally.
According to Edi Srimulyanti, providing PLN REC services for the Ceria Group is certainly not easy because it has to go through various stages of comprehensive assessment and testing.
Not only the Ceria Group, he said, but every potential customer is sorted and assessed for their commitment and seriousness in producing green and carbon emission-free products.
“Customer profile is very important to get REC. “After we saw Ceria Group’s seriousness in producing green nickel products and electric vehicles/EVs), we were convinced and decided to provide REC services,” he explained.
On that occasion, Edi Srimulyanti also appreciated the Ceria Group for fully supporting PLN in providing loan to use land for the construction of Inter Temporal Capacity (ITC) infrastructure in the Ceria area with plans to build a 200 MW Gas Engine Power Plant (PLTMG) by PLN Batam, and future targets additional capacity of 200 MW Gas and Steam Power Plant (PLTGU).
“We thank Ceria Group for its support in providing land for a public power plant. “Apart from supporting the reliability of Ceria’s electricity supply, the benefits are also for the people of Kolaka in particular and the people of Southeast Sulawesi in general,” he added.
As a National Strategic Project (PSN), Ceria Group, which is owned by a national entrepreneur, has shown real commitment to downstream nickel in Indonesia by building a Rotary Kiln Electric Furnace (RKEF) & High-Pressure Acid Leach (HPAL) nickel smelter.
Ceria Group CEO Derian Sakmiwata said that the REC service from PLN provides certainty of electricity supply for Ceria Group as PLN’s main customer to use clean energy throughout its industrial chain.
This is in line with the Ceria Group Roadmap to become a global player in the green industry, especially in producing green nickel products and Electric Vehicles / EVs) based on Environmental, Social and Governance (ESG).
“Ceria Group’s target market is not only in Asia but will reach the United States (US) and Europe. Therefore, we appreciate PLN’s REC service, where Ceria Group will use 100% electricity from renewable energy. “This has become our commitment to provide high quality green nickel products and shows that there is no carbon foot print in generating electricity from coal in our entire smelter production process,” explained Derian.
Derian added that the use of REC certificates by Ceria Group will gradually increase from around 80,000 units in 2024 to 2.2 million units in 2030.
The adjustment to the Electricity Sales and Purchase Agreement (PJBTL) between PLN and Ceria Group with a total capacity of 414 MVA or around 352 MW, is an improvement regarding the technical and administrative aspects of the PJBTL which was signed in 2018. Electricity supply will begin to be distributed gradually starting in mid-2018. in 2024.
PLN will provide additional electrical power using a Barge Mounted Power Plant (BMPP) with a capacity of 2 x 60 MW using jetty facilities and supporting facilities in the Ceria area which will be built by PT PLN Indonesia Power (IP). The construction of jetties, LNG tanks and LNG regasification facilities in the Ceria Group area will be carried out by PT PLN Energi Primer Indonesia (EPI).
“The gas-fueled BMPP will be connected to the PLN Kolaka Smelter Main Substation to maintain the electricity reliability of the Ceria Group smelter,” he explained.
Ceria Group is also committed to fully supporting PLN in providing land for the construction of Inter Temporal Capacity ITC) infrastructure in the Ceria Group area with plans to build a 200 MW Gas Engine Power Plant (PLTMG) by PLN Batam, and future targets for increasing the capacity of Gas and Steam Power Plants. (PLTGU) 200 MW. (AT Network)
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