Trimegah Bangun Persada

News Detail

NCKL Receives Most Sustainable Nickel Company Award

13 December 2023

Jakarta, CNBC Indonesia - The largest integrated economic media, CNBC Indonesia, hosted the CNBC Indonesia Awards 2023 with the theme 'Maintaining Optimism Amid Uncertainty.' These awards serve as an expression of appreciation for various business sectors and industries that have played a role in bringing positive impacts to the progress of the national economy.

In the category of Most Sustainable Nickel Company, the CNBC Indonesia Awards 2023 were presented to PT Trimegah Bangun Persada Tbk (NCKL). This recognition is given as an appreciation to PT Trimegah Bangun Persada Tbk (NCKL) for its commitment to collaborating with the Indonesian government in achieving carbon emission reductions in line with global targets.

"We express our gratitude on behalf of the company, and I am confident that this will be a catalyst for us to work even better, to contribute even more to Indonesia. From Obi to Indonesia," said Roy Arfandy, the CEO of NCKL, during the CNBC Indonesia Awards 2023 on Wednesday (December 13, 2023).

It is well known that the effort to achieve carbon emission reduction is evident in NCKL's contribution to creating products that support clean and low carbon energy. The battery industry, which supports electric vehicles (EVs), is a fossil fuel free resource.

In addition, the use of electric vehicles reduces the carbon footprint caused by vehicle emissions. NCKL is also actively reducing the use of fossil fuels as an energy source for battery manufacturing processes.

One of the power plants used by NCKL is based on solar energy. As of September 2022, NCKL has used solar panels to power 149 lights at a site with a capacity of 250 kW-peak. This initiative will be expanded to 250 MWp in 2023 and 300 MWp in 2025.

NCKL also reduced the consumption of fossil fuels used in transportation equipment by incorporating a 30% biodiesel blend, which is expected to become more prevalent as a substitute for coal. The company maximizes the use of clean energy by utilizing used cooking oil for power generation, thereby reducing energy consumption by 795 GigaJoules (GJ). The reduction in air emissions is also evident in the air quality, which now complies with WHO guidelines.

Furthermore, the company has significantly decreased its reliance on fossil fuels. According to NCKL's sustainability report, the energy intensity used decreased by 82.3% to 2.1 GJ/ton in 2022 compared to 11.9 GJ/ton in 2021.

Additionally, the reduction in air pollution is experienced by the residents of Obi Island through the development of a half-kilometer-long belt conveyor as a means of transporting production output. The utilization of this conveyor belt will decrease the use of heavy vehicles, thereby reducing the consumption of polluting fossil fuels.

Moreover, the dust produced by heavy vehicles will also decrease with the implementation of this system.

NCKL has also repurposed the by-products of the RKEF smelter process into artificial coral reefs, bricks, tetrapods, precast box culverts, and road coatings. Meanwhile, the residual products from the HPAL processing are reintegrated into former mining pits.

Furthermore, the widespread use of electric batteries has led to an increased demand for nickel. Despite this, NCKL is committed to developing the downstream nickel industry while maintaining a focus on environmental sustainability.

According to S&P Commodity Insight data, global nickel demand is expected to continue rising until 2027, with Indonesia's nickel contributing over 40%. This trend aligns with the world's commitment to shift towards electric vehicle batteries to reduce carbon emissions.

Sustainability Project: Downstream Nickel Through HPAL Smelters

TBP is also concentrating on the development of HPAL plants, which directly impact the electric vehicle battery industry. This project generates mixed hydroxide precipitate (MHP), a crucial component in the production of electric vehicle batteries.

The company's prospectus notes that the HPAL Phase I and II projects consist of two production lines for nickel-cobalt compounds. This project can be utilized to produce MHP, a key raw material for the cathode precursor of electric vehicle batteries.

The company continues its development of the HPAL smelter, anticipated to commence operations in 2024 with an estimated total production capacity of 61-66 thousand tons. Nevertheless, the company's nickel production provides an opportunity to boost ore sales volume to meet the increased production capacity.

It's noteworthy that the HPAL plant boasts advantages in energy efficiency and lower carbon emissions compared to RKEF technology. This will have a positive impact on the environment and address the growing demand for environmentally friendly batteries.

Go Top