PT Pertamina (Persero)
Jln. Medan Merdeka Timur No.1A Jakarta 10110
Telp (62-21) 381 5111 Fax (62-21) 384 6865
http://www.pertamina.com
Investing in Sustainable Biofuel
PT PERTAMINA (PERSERO)
CONFIDENTIAL AND PROPRIETARY
Any use of this material without specific permission of Pertamina is strictly prohibited
Yenni Andayani
Gas and New Renewable Energy Director
20th August 2015
PERTAMINA | 1
Agenda
• Background
• Pertamina Future Strategic Developments in Biofuel
- Co Processing
- Integrated Stand Alone Refinery
• Conclusions
PERTAMINA |
676760
862942949
1,636
1,4961,4181,3681,344
426 960
2020 17 15 13 10
Consumption
(BBL/Day)
Oil Production
Actual Projected
With growing fuel demand and the National production continues to
decline, in 2020 crude oil & fuel imports projected to reach USD 50
Billion
SOURCE: Pertamina
Import MM & BBM
UD 28 Billion
Import MM & BBM
USD 42 – 50 Billion • Deficit in trade
balance due to
energy – oil & gas
• Indonesia
potentially
biggest fuel
importer in the
world by 2019 *)
• Indonesia’s Oil
Reserve : 12-14
years
2
1 2010-2020 growth projected based on projected product growth of 1.8% CAGR
*) Craig Stewart, Indonesian Petroleum Association Chairman 2015
PERTAMINA |
As of November 2014 : Indonesia is the Largest importer of Gasoline
& top 5 importer of Gas oil
Largest importer of
Gasoline in the world :
INDONESIA
MEXICO
UNITED KINGDOM
355,000
340,000
150,000
Barrel/Day
INDONESIA 290,000
Gas oil Volume import
Barrel/Day
3
PERTAMINA | 4
Vision To be a world class national oil energy
company
Mission To carry out integrated core business in oil, gas,
& renewable based on strong commercial
principles
Value Clean; Competitive; Confident; Customer Focus;
Commercial; Capable
Pertamina as State-owned enterprises have seen the growing importance of
renewable energy and it is reflected through changes in our vision and mission
PERTAMINA | 5
Government has aggressively set new biofuels policy, which require
biofuel players to blend up to 20% in 2016
New MEMR Regulation
No. 12 year 2015
Old blending mandate
New blending mandate
Biodiesel (PSO&NPSO) Bioethanol
Fuel Current 2015 2016 2025
20%
2%
25%
20%
10%
1%
10%
1%
Biodiesel Bioethanol
Fuel 2008 2010 Current 2015 2016 2025
10%
10%
20%
15%
5%
5%
7.5%
-%
1%
1%
2.5%
3%
Doubled by 2016
2% 5 %
BioAvtur (BioJet)
Being an SOE, Pertamina will
comply to the aggressive
mandate, as long as it is
economically viable
PERTAMINA | 6
Agenda
• Background
• Pertamina Future Strategic Developments in Biofuel
- Co Processing
- Integrated Stand Alone Refinery
• Conclusions
PERTAMINA | 7
Bioethanol,
FAME/Biodiesel
• GREEN DIESEL
• BIO AVTUR
• 2nd Generation BIO ETHANOL
As well as Algae based
Biofuel (3G)
2025
Establish domestic
production with proven
1G technologies and
available feedstocks
Develop advanced 1.5G
(Green Diesel) leveraging
same feedstock or improved
ones
Grow 2G platform
(if technology develops)
and/or further roll out 1.5G
technology Wave 1
Wave 2
Wave 3
2018
PERTAMINA’s Aspiration in 2025 : 13,9 Million KL from Biofuels
Improved biodiesel1 characteristics
Why 2nd G ?
Biodiesel 1st Generation
(FAME) will hit a
blending wall at 20% due
to technical issues.
2nd Generation of
Biofuel can act as a drop
in fuel, with no max
limitation.
PERTAMINA | 8
To cover National Mandate,
Indonesia need more than
100 Bioethanol Refineries cap.
76,000KL/year in upcoming 10
years
To cover National Mandate,
Indonesia need more than
10 Green Diesel Refineries cap.
10,000 bbl/day in upcoming 10
years
3.2
6.5
2025 2020 2014 2015 2018
3.3
3.3
3.3
3.3 2.8 2.7
0.4
3.3
6.4 4.7
0.4
3.6
8.7
0.4 Other Partnership opportunity
Green Diesel partnership with Pertamina
1 G Transesterification/FAME
Unfortunately, there is still a huge gap between national supply and demand
of Biofuel until 2025, large investment opportunity in biofuels projects and
Pertamina is open for Co-partnership
1
2025
958
76 30
2,380
76 30
2,486
10,472
76 30
10,578
2020
178
2018 2015
391
30 361 852
2014
178 Other Partnership opportunity
1G Yeast Bioethanol
Bioethanol partnership with Pertamina
Bio/Green Diesel Demand & Opportunities
Bioethanol Demand & Opportunities
(Mio KL)
(thousand KL)
As an initial
step,
partnership are
open for
1 Green Diesel
Refinery,
1 Bioethanol
refinery and
1 Bioavtur
refinery. (marked
as green color)
PERTAMINA | 9
0 20 40 60 80 100 120 140 160% from base assumptions
1
4
2
4 Side Product Price
Side product such as naptha, and LPG will
help the project economics more feasible
3 Capex
Has to be maintained to safeguard the
project economics
When one variable is being simulated, Other
variable will remain constant (ceteris paribus), the
result as follow :
Pertamina should put concern on these 5 key success factors, mainly in
securing the profitability of the investment of all Biofuel plant
3
1 Feedstock Price
Feedstock price (eg. CPO and derivatives)
is the most volatile variable among all. A
little changes in price will bring a huge
impact to the project return.
Product Price
Main product price is the most volatile
variable among all, as well as feedstock
price.
2
% Return
5 Opex
Operating cost such as Hydrogen cost, fixed
overhead and G&A will have less impact
than any other observed variable.
5
PERTAMINA | 10
Typical Joint Development scheme with partners :
Integrated Business Concept will be the Key Success Factor in this
business. Scheme ex. is for Green Diesel Project
At the 1st step into the business, our target is to build an integrated JV company, with 90,000Ha
CPO plantation to support our 10,000 bbl/day greendiesel/BHD refinery that will produce EURO
5-equal Diesel Product
CPO
Plantation
(Upstream)
Green Diesel
Refinery
(Downstream)
Greendiesel CPO
And
Derivatives
Integrated JV Company
Market
• ‘Biofuel project will be feasible and sustainable an integrated business model
from upstream to downstream’
• Pertamina is not an expert on plantation, thus we are inviting plantation company
to become one of our strategic partner in developing and end to end biofuel
business scheme
PERTAMINA | 11
ECO GREEN
DIESEL
BIO GASOLINE &
BIO PROPYLENE
Stage 1
Stage 2
Stage 3
2015
GREEN DIESEL
EURO 5
• Location : RU II
Dumai
• Own Catalyst, produced by RnD
Pertamina
• 3 – 10% bio
blending portion in
Hydrotreater
reactor
• Location : RU III
Plaju
• Pioneer in The
World for FCC Co
processing
• 5 % Bio blending
portion
• Producing Bio LPG
& Bio Propylene
• Location : RU VI
Balongan
• Euro 5 Green
Diesel Product with 10% or more
Bio blending portion
• Cetane > 70, Ultra
low sulfur
• Own Catalyst, by
RnD Pertamina
• Minor modification
on Infrastructure
2017 2014
A quick win in Biofuels : Co Processing in our existing Refinery
RBDPO (refined bleached deodorized palm oil)
is The main feedstock for trials
2018 onwards
Commercialization
Biofuels Projects in
Existing Pertamina
Refinery
PERTAMINA | 12
Agenda
• Background
• Pertamina Future Strategic Developments in Biofuel
- Co Processing
- Integrated Stand Alone Refinery
• Conclusions
PERTAMINA |
▪ Indonesia will face an energy challenge in the future, Biofuel will play a
very strategic role.
▪ PERTAMINA consistently supports government’s biofuel mandate and
will target 15 % of sales will be from biofuels in 2025
▪ PERTAMINA is committed to develop 2nd Generation biofuels with
integrated project approach
▪ Partners in Plantation and Process Licensor plays an important role in
2nd generation Biofuels projects
▪ Total investment required for all 3 Biofuel projects is 1.8 bio USD (incl.
Upstream investment). Projects coverage is up to 5% of total demand
▪ Pertamina still holds majority market shares in National fuel demand.
Partnering with Pertamina will be a strategic decision for investor.
Conclusions
13
PERTAMINA | 14
THANK YOU
