Indonesia's state energy company, Pertamina, signed four agreements on July 25 to explore potential developments of carbon capture storage (CCS) projects or other low-carbon energy initiatives in the country. The largest economy in Southeast Asia is aiming to accelerate the realization of its renewable energy development goals.
One of the partnerships is with Mubadala Energy, the oil and gas unit of Abu Dhabi’s Mubadala Investment Company. The two firms signed an agreement that provides a framework to explore carbon capture, utilization, and storage (CCUS) projects for Pertamina’s and Mubadala Energy’s existing portfolio of assets in Indonesia.
According to the companies, they will also look into potential joint investments in upstream projects that seek to use CCUS applications.
Mansoor Al Hamed, CEO of Mubadala Energy, said, “With our track record as a responsible operator delivering reliable and safe operations, I believe we can harness both companies’ collective expertise to accelerate the deployment of potential CCUS technologies.”
He continued, “And as the UAE prepares for COP28, we are proud to be driving a strategic collaboration that aligns with the net-zero ambitions of both the UAE and Indonesia.”
Indonesia is planning to generate at least 51% of its total energy from renewable sources by 2030. The country also aims to become carbon neutral by 2060 or sooner, with renewable energy providing up to 85% of the energy mix.
CCUS involves the trapping of CO2 emissions from industrial activities such as steel productions and fossil-fuel combustion in power generation. Subsequently, the captured carbon is transported either by ship or through pipelines and securely stored in subterranean geological formations.
Global CCUS uptake needs to expand 120 times from current levels by 2050, increasing to at least 4.2 gigatons of carbon dioxide captured per year, for countries to achieve their net-zero targets, according to McKinsey.
Nicke Widyawati, chief executive of Pertamina. noted, “With over six decades of experience in the energy industry, Pertamina has been integral to Indonesia’s growth story.”
She went on to say, “As the country continues to develop, the company is committed to decarbonization goals and securing Indonesia’s energy requirements.”
The Indonesian state energy firm signed four agreements to study potential developments of CCS facilities in the country. Apart from Mubadala Energy, other collaborations are with Japan Petroleum Exploration Co. Ltd, Japan Organization for Metals and Energy Security, and POSCO International.
Mubadala Energy has assets and operations across 11 countries, mainly in the MENA region, Russia and Southeast Asia. The company, which was previously known as Mubadala Petroleum, has been operating in Indonesia since 2004.
The company also inked an agreement with Abu Dhabi’s clean energy company Masdar last week to explore opportunities related to decarbonization and energy transition initiatives.
The collaboration will primarily focus on the MENA region and Southeast Asia while also exploring “other regions of mutual interest”, the companies said.
Meanwhile, Sharjah National Oil Corporation signed an initial agreement with Japan’s Sumitomo Corporation on July 24 to explore a carbon capture project in the emirate.
The companies will conduct a feasibility study covering the entire CCS value chain, including transport, storage, business models and assessment of regulatory aspects, the Sharjah oil company said.