State-owned Pertamina and Japan’s JERA have signed a Memorandum of Understanding (MoU) to work on business opportunities, focusing on enhancing the value of the fuel value chain and infrastructure investment in low-carbon fuels like LNG, hydrogen and ammonia.
According to JERA, through this collaboration, the partners aim to contribute to Indonesia’s goal of achieving net zero emissions by 2060.
The collaboration will include LNG and hydrogen/ammonia transportation and LNG receiving terminal Operation & Maintenance, as well as capacity building via benchmarking, training, or exchange to enhance the operational efficiency of LNG handling.
Furthermore, the parties will also consider the development of new businesses related to CCUS (Carbon Capture Utilization and Storage).
Steven Winn, Chief of Global Strategist of JERA, said, “We will provide our cutting-edge solution to the energy issues in Indonesia and strengthening their value chains for greener fuels. This MOU allows us to leverage our experiences and capabilities to help Indonesia achieve net zero emission.”
The two companies will work to solve the short to medium term issue of increasing energy demand while also steadily promoting the medium to longterm problem of energy decarbonization through collaboration on LNG and hydrogen/ammonia value chains in Indonesia.
“Our collaborative efforts extend to Low Carbon Fuel, through the development of Green Hydrogen/Ammonia projects, aimed at facilitating power producers in their decarbonization efforts through fuel substitution,” said Salyadi Saputra, Director of Strategy, Portfolio & New Ventures of Pertamina.
He also said that the development of CCUS is a promising collaboration, given Pertamina’s substantial portfolio of at least 8 CCS/CCUS projects in the country.
Indonesia’s Deputy Minister for Maritime Sovereignty and Energy Coordination, Jodi Mahardi, also told ANTARA that Indonesia stands at the forefront of the green industrial era, with a potential CO2 storage capacity ranging from 400 to 600 Gtons in depleted reservoirs and saline aquifers.
"In aiming for net zero by 2060, Indonesia is dedicated to develop CCS technology and establish a CCS hub. This initiative will not only contain domestic CO2 but also from overseas through international cooperation," he said.