Decarbonization Consortium to Develop Green Hydrogen, Green Ammonia, CCUS Business in Indonesia

Pertamina, PT Pupuk Indonesia, and Mitsubishi Corporation have collaborated under an agreement to develop the green hydrogen and green ammonia value chain and Carbon Capture Utilization and Storage (CCUS) businesses in Indonesia. The move is in line with the country’s aim of reducing emissions by 29 % by 2030.

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Jakarta/Indonesia – Pertamina, PT Pupuk Indonesia, and Mitsubishi Corporation agreed to develop the Green Hydrogen and Green Ammonia Value Chain and Carbon Capture Utilization and Storage (CCUS) businesses. This agreement aligns with the government's target of reducing emissions by 29 % by 2030.

This cooperation agreement was signed by Director of Strategy, Portfolio & Business Development of Pertamina Iman Rachman, Director of Portfolio & Business Development of PT Pupuk Indonesia Jamsaton Nababan, and Head of Representative of Mitsubishi Corporation for Indonesia, Takuji Konzo, in Jakarta.

Present at the signing of this collaboration were Deputy Minister of BUMN I, Pahala N. Mansury, Assistant Deputy for Energy, Oil and Gas Industry at the Ministry of SOE, Abdi Mustakim, and Assistant Deputy for Food and Fertilizer Industry at the Ministry of SOE, Zuryati Simbolon.

In his speech, Deputy Minister of SOEs I Pahala Nugraha Mansury said that the MOU between Pertamina, Pupuk Indonesia, and Mitsubishi is the first step for collaboration in the future. This MOU is also part of the Green Industry Cluster mission previously agreed upon and inaugurated by PT Perusahaan Listrik Negara, Pertamina, and Pupuk Indonesia.

"We are very committed to ensuring that Indonesia can reduce greenhouse gas emissions based on its National Determined Contribution (NDC) by 29 % by 2030, but we cannot do it alone. We know that the key to making sure it happens is Partnership," said Pahala.

"We also want to show that energy transition can be carried out not only through early retirement of Coal Steam Power Plant (PLTU) but also by reducing its utilization through cofiring activities with ammonia and biomass and using technology such as carbon capture," he continued.

Director of Strategy, Portfolio & Business Development of Pertamina (Persero), Iman Rachman said, "The first step to realizing the development of Blue/Green Hydrogen and Blue/Green Ammonia in Indonesia will also be an important milestone to form a wider green industrial ecosystem in Indonesia," said Iman.

According to Iman, in line with the government's decarbonization program, Pertamina cooperates to develop blue/green hydrogen, blue/green ammonia, and Carbon Capture Utilization and Storage (CCUS), with the facilitation of Pupuk Indonesia's production and co-combustion of ammonia at the PLTU.

The green hydrogen produced from the NRE plant will be used to produce green ammonia. Meanwhile, blue hydrogen produced from low carbon generators with carbon emission treatment facilities will be used to produce green ammonia, which can be used for ammonia co-combustion in PLTU.

Iman added that Pertamina would support and encourage collaboration with Power SH and NRE as Pertamina's energy transition motor. Power SH and NRE, together with partners, have identified the NRE potential of more than 10 GW, which can be used for Green Hydrogen throughout Indonesia.

(ID:48088409)