SIG Accelerates Decarbonization and Green Energy Transition for Factories Operations in Tuban

PT Semen Indonesia (Persero) Tbk (SIG) is increasingly aggressive in using Renewable Energy (EBT) in all operational areas as part of the Company's sustainability strategy in reducing Greenhouse Gas (GHG) emissions. One of SIG's subsidiaries, PT Solusi Bangun Indonesia Tbk (SBI), also supports this initiative by using solar energy as an environmentally friendly alternative energy source at the Tuban Factory, East Java.

Indonesia's geographic location, which is along the equator with an average solar energy irradiation of around 4.80 kWh/m2/day, represents enormous potential for the use of alternative solar energy. The Tuban factory itself is in a geographical position with solar energy irradiation above the national average of around 5.4 kWh/m2/day.

This opportunity convinced SBI to collaborate with PT Energi Mitra Indika Bahan Surya, to start developing a Rooftop Solar Power Plant (PLTS) connected to the existing electricity network (On-Grid Connected Rooftop PV System) on ten building roofs with an installed capacity of 6.39 MWp. This Rooftop PLTS will later be operated in parallel with existing electricity from PLN to support some of the operational needs of factories, offices and other supporting facilities at the SBI Tuban Factory. 

"In addition to using alternative fuels to substitute coal in the cement production process, increasing environmentally friendly products and increasing the efficiency of using electrical energy and thermal energy, the use of solar energy is also a concrete manifestation of our commitment to sustainable development. While achieving more efficient operations, this project contributes to the decarbonization that has been launched by SIG to support the government's commitment to reducing the impact of global warming," said Lilik Unggul Raharjo, President Director of SBI on the sidelines of reviewing the PLTS construction project in Tuban.

SIG Corporate Secretary, Vita Mahreyni said, currently the installation of the solar panel has been completed in one of the buildings, namely in the main office building of the Tuban Factory, and installation is continuing in nine other buildings. The Rooftop PLTS installation project is expected to be completed and operational in the third quarter of 2024, to increase the use of EBT and support the achievement of the SIG target of reducing scope 2 GHG emission intensity by 23.9% by 2030 (2019 baseline) as stated in the SIG Sustainability Road Map. 

"The use of solar energy at the SBI Tuban Factory further confirms SIG's commitment to the energy transition towards EBT which is more environmentally friendly and useful in encouraging efficiency in the Company's operational costs, as well as being a positive contribution in supporting the government in achieving the Net Zero Emission target by 2060," Vita Mahreyni. 

As an effort to accelerate the reduction of scope 2 GHG emission intensity, SIG has collaborated with PT PLN (Persero) in the Development of Renewable Energy in September 2023. Through this collaboration, SIG has received support in efforts to transition green energy through EBT sources to meet electricity needs in SIG operational areas.

SIG also explores the initiatives to reduce the intensity of scope 3 GHG emissions, or emissions originating from the company's supply chain generated by sources that are not directly owned or controlled by the Company. Within the scope of reducing scope 3 GHG emission intensity, SIG targets employee transportation facilities (employee commuting), as well as inbound logistics and outbound logistics activities.

Since early February 2024, SIG has been trialling the operation of electric buses for employees at the SIG Tuban Factory to find out how much carbon emissions are reduced and to find the right procurement scheme. Apart from that, trials of an inbound logistics fleet using an electric vehicle (EV) dump truck are also ongoing at the SBI Narogong Factory. 

"The use of electric vehicles is SIG's extra mile effort to decarbonize vehicle operations which cause air pollution, as well as reduce the use of fossil energy to keep the environment sustainable," said Vita Mahreyni.