Innovation

In 2023, the reverse osmosis water maker model FD 301-4 was installed to manage the quality and quantity of demineralized water. It aimed to maintain pH levels, reduce corrosion, clean surfaces effectively, and optimize production. Over the year, approximately 619,000 liters of demineralized water were produced, resulting in cost savings of IDR 5.57 billion, excluding potential carbon emission avoidance from water delivery. This also decreases the need for fresh water extraction, which is essential for clean water access in small island communities.

The implementation of reverse osmosis technology has significantly reduced operational costs by eliminating external water purchases and transportation, saving millions. It has improved efficiency by providing a consistent water supply for cooling systems, reducing maintenance downtime, and extending infrastructure lifespan.

Environmentally, it promotes water conservation and lowers the company's ecological footprint by minimizing local water extraction. Socially, it enhances safety by reducing transportation risks and supports community stability. Overall, project strengthens the company's sustainability efforts and positions it as a responsible leader in energy production.

Inspiration

This initiative aligns with broader sustainability goals that become the inspiration for PT Medco Energi leaders. By promoting inclusive and sustainable industrialization and foster innovation by improving water efficiency and reducing the ecological impact of fresh water extraction. The company is also making strides toward integrating innovative technologies that minimize and support longer environmental carrying capacity in the company operating area.

Overall impact

An integration of reverse osmosis technology represents a win-win for sustainability and efficiency across environmental, operational, social, financial, and energy sectors. The company's initiative has reduced ecological impacts through water conservation, generated significant financial savings, and enhanced overall energy efficiency and grid optimization.

1. Environmental Impact

Using reverse osmosis for demineralized water production has minimized the need to purchase fresh water from external sources. The company saved 619,000 liters of water, which helps conserve local freshwater resources and reduce the environmental footprint associated with water extraction, transportation, and usage.

2. Operational Impact

The reverse osmosis technology is more reliable and helps maintain the pH balance of the demineralized water, thereby reducing corrosion in internal piping and cooling systems, leads to minimum maintenance costs and readily available components. This has significantly reduced the downtime for repairs, enhancing overall operational efficiency. Also, with the new RO system, there have been no interruptions in the process area due to reliable cooling, ensuring smoother and more consistent operations.

3. Social Impact

Reverse osmosis has improved safety by eliminating the need to transport water via ships, which involved logistical challenges and safety risks. By ensuring a reliable water supply onsite, the company has reduced potential hazards related to water transportation, which also benefits small island communities by leveraging them utilize the fresh water source for clean water and sanitations.

4. Financial Impact

The reverse osmosis system has significantly reduced costs for the company. By cutting the need for purchased water and eliminating transportation in 2023, it saved about IDR 5.57 billion, positively impacting the bottom line. Furthermore, lower maintenance expenses and fewer operational interruptions enhance productivity and contribute to long-term financial benefits.

5. Energy Efficiency

The RO system is designed to optimize water production while minimizing energy use. By improving the quality and quantity of demineralized water, the system helps to ensure the efficient functioning of the cooling systems without requiring additional energy for repairs or water sourcing. Although the system consumes energy, it reduces the strain on external water purchasing, which would otherwise require extra energy for transportation. Furthermore, improving the cooling systems minimizes energy waste related to poor water quality or system breakdowns.

Business benefit

Conditions before the program: The production and quality of demineralized water have declined due to frequent damage to the water maker, which requires about five days for repairs. This disruption affects both the quality and production reliability, leading to increased costs for purchasing and transporting clean water, as well as safety concerns during transfer.

Conditions after the program: The company has produced 619,000 liters of demineralized water, eliminating the need to purchase external water and saving approximately IDR 5.57 billion in 2023. This has reduced water procurement, transportation, and maintenance costs. Additionally, the reliable cooling system minimizes the risk of corrosion and prevents interruptions in the process area. The new reverse osmosis system requires fewer repairs than the previous water maker.

The reverse osmosis system enhances sustainability by optimizing water usage, improving the company's environmental reputation and regulatory compliance. This innovation boosts company competitiveness with eco-efficiency strategy by more efficient operations, positioning it as a leader in technology within the energy sector.

Social and environmental benefit

Nyoman, the director, mentioned that," Adopting reverse osmosis technology offers social and environmental benefits. Socially, the initiative enhances safety by eliminating the risks of water transportation and utilizing small islands with fresh water for sanitation. With a reliable on-site water supply, the company can operate smoothly, benefiting employees and local communities while ensuring continuous production and regional economic stability. Its commitment to sustainability also bolsters its reputation as an environmentally responsible business, meeting the growing demand for corporate accountability. Environmentally, the system reduces reliance on external water sources, conserving local freshwater and minimizing the environmental impact of water extraction. Additionally, the reverse osmosis (RO) technology improves water quality and reduces corrosion in cooling systems, which extends infrastructure lifespan and decreases waste."

Interview

I Nyoman A Sidimantra, HSE Director