This involves 1.9 million tonnes of equivalent carbon emissions.

Pertamina New & Renewable Energy (Pertamina NRE) signed a carbon trading cooperation agreement with Pertamina Patra Niaga and Pertamina Geothermal Energy(PGE) that would support the group’s decarbonisation efforts.

Under the agreement, Pertamina Patra Niaga bought carbon credits from Pertamina NRE of 1.8 million tonnes of equivalent carbon emissions for a one-year period, the companies said in a statement.

The move will offset the carbon produced by Pertamina Patra Niaga, the oil and gas trading unit of the group.

“This carbon trading collaboration with Pertamina NRE is not only for our internal needs; it will also be an opportunity for us to offer them, such as in the mining and electricity sectors," said the Chief Executive Officer of Pertamina Patra Niaga Alfian Nasution, adding that these carbon credits could potentially be offered to export-oriented industrial consumers.

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The companies said the designated source of carbon offsets is the Lahendong geothermal power plant units 5 and 6, with a combined capacity of 2x220 megawatts and is managed by PGE.