Innovation

Medco E&P Natuna Ltd. (MEPN), a subsidiary of PT Medco Energi Internasional, Tbk. (MEDC), operates an offshore exploration and production business to supply gas to Singapore through subsea pipeline. To support their production operations through shore base located in Matak Island, which part of the Natuna Archipelago.

MEPN runs a jetty, airport, warehouse, and dorm to support their Matak base. Electricity has been generated using diesel generators, which have emissions below the government’s threshold limit value standards. The airport terminal, Wisma Belida, and jetty office all have solar photovoltaic systems installed, providing a combined 150 kW peak of renewable energy capacity. 

With the peak-load during the day for air conditioning, solar PV systems have been installed to reduce diesel dependency by 30%. This initiative emphasizes energy efficiency, resource conservation, and a reduction in the company’s carbon footprint. Additionally, it serves as a model for other energy companies, showcasing the potential for excellence while addressing environmental and social issues.

The project demonstrates economic benefits through innovation. The company reduced annual diesel fuel consumption by 61,376 liters and cut maintenance costs by 30%, enhancing operational efficiency.

Inspiration

MEPN embraced sustainability in response to global and national environmental regulations challenges, driven by a commitment to innovation and long-term value creation. The company recognized the energy sector's vital role in addressing urgent issues like climate change and resource depletion, viewing the transition to a low-carbon future as a unique opportunity to lead by example.

The urgent need to reduce greenhouse gas emissions led the company to explore renewable energy solutions. Indonesia’s energy transition agenda, focused on diversifying energy sources and reducing fossil fuel dependence, aligns with company’s goals. The company views its Matak Base operations as a testing ground for innovative approaches that provide environmental benefits while maintaining operational excellence.

MEPN’s investment in solar PV technology reflects its commitment to innovation and sustainability. 

Overall impact

An innovative approach of integrating solar PV technology has delivered significant impacts across operational, environmental, social, and financial dimensions. The overall impact underscores the company’s leadership in adopting sustainable energy practices while strengthening its competitive position in the energy sector.

1. Operational Impact: The integration of solar PV systems has transformed company’s energy management by offsetting 30% of its diesel fuel consumption. This improvement enhances energy efficiency, reduces operational burdens on diesel-powered logistics vessels, and lowers maintenance costs of diesel-generator while increasing reliability at Matak Base.
   
   
2. Environmental Impact: By reducing reliance on diesel generators, the company has reduced emission from combustion and mitigated its ecological footprint, achieving an annual reduction of 167.48 tons CO2Eq. The solar PV systems also contribute in an efficient management of our shared natural resources, and the way we discharge the pollutants, aligning with SDG 7 (Affordable and Clean Energy), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).
   
   
3. Social Impact: The commitment to renewable energy highlights the company role as a responsible corporate entity. By adopting sustainable practices, the company inspires local communities to pursue similar initiatives and strengthens its reputation as a leader in sustainable innovation.
   
   
4. Financial Impact: The reduction in diesel fuel consumption has resulted in annual savings of IDR 1,384,837,000. Over time, these operational efficiencies have bolstered the company profitability. Additionally, the company’s focus on renewable energy positions it favourably with environmentally conscious investors and stakeholders, enhancing its financial resilience.
   
   
5. Brand & Reputation: A proactive adoption of Solar PV technology reinforces company brand as a forward-thinking and environmentally responsible organization. By positioning itself as a leader in renewable energy innovation, It has differentiated itself from competitors and gained trust among stakeholders, including regulators, investors, and the public.

Business benefit

The implementation of solar PV technology has significantly improved MEPN's operations, making the company more sustainable and efficient. It has reduced fuel consumption by 30% and aligned with broader sustainability goals through emission reductions from combustion and renewable energy use. This technology has inspired the community, showcased MEPN’s commitment to sustainability, and provided substantial cost savings and enhanced brand value.

In conclusion, integrating solar PV technology at Matak Base is both environmentally responsible and financially advantageous. This initiative has led to cost savings, enhanced efficiency, and a commitment to go beyond regulatory compliance, thereby supporting company long-term growth and competitiveness in the energy sector.

Social and environmental benefit

Adopting solar PV technology, significantly set lowers greenhouse gas emissions and reliance on fossil fuels. This shift has improved air quality and maintain environmental carrying capacity, reflecting the company’s commitment to sustainability. The systems enhance operations by providing reliable energy, reducing wear on diesel generators, and minimizing maintenance downtime. This lowers emissions and optimizes resource use, demonstrating the company’s commitment to sustainability and climate change mitigation.

Interview

I Nyoman Arga Sidimantre, VP Health Safety & Environment PT Medco Energi Internasional, Tbk.