Contribution to CO2 Emission Reduction (CDM Project)
PT Supreme Energy Rantau Dedap (SERD) acquired Rantau Dedap Geothermal Business License in December 2010 to develop the Rantau Dedap Geothermal Power Plant. The geothermal site is 183 km from Palembang, South Sumatera, and located in three regencies, namely Muara Enim, Lahat and Pagar Alam.
As a part of the company commitment to support the implementation of green energy through utilization of geothermal energy for electricity generation, SERD has a strong intention to work in line with the UN Clean Development Mechanism (CDM) in order to increase the economic viability of the project from selling Carbon Emission Reductions (CERs) and receiving carbon revenues.
This geothermal energy project will contribute to sustainable long-term electricity supply to the Sumatra grid, avoiding considerable amounts of greenhouse emissions (GHG) which would be released by producing the equivalent amount of electricity from fossil fuels. It is estimated that the geothermal project will generate at least 1,730,000 MWh of electricity per year. The project is a grid connected geothermal power plant which will supply electricity to the Sumatra grid. The current emission factor ( in the UNFCCC terminology) of the area is 0.743 tCO2e/MWh. The project activity is therefore estimated to generate emission reductions equivalent to ~1,170,000 tCO2/year.
SERD submitted project notification under the CDM scheme to the Indonesian National Council on Climate Change (NCCC) and to the United Nations Framework Convention on Climate Change (UNFCCC) in February 2011.
The CDM project of SERD has registered in Climate Change (UNFCCC) on November 21, 2012. Registering this project under the CDM before 31 December 2012 marks a key milestone as it ensures that the carbon credits (CERs) will be generated from the projects are eligible in offsetting GHG emissions under the European Union Emission Trading Scheme (EU ETS).
The project utilizes available heat under the surface of earth as a source for power generation and will utilize environmentally safe and sound technology available in the geothermal power generation sector. In addition, the projects will create employment opportunities during the construction and operation of the power plant. In a word, besides demonstrating environmental, social, economic and technological sustainability, the projects also contribute to sustainable development objectives of Indonesia.
