Decarbonization Pertamina, Air Liquide Indonesia to Develop CCU Technology

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Under a joint study agreement, Pertamina and Air Liquide Indonesia have teamed up to develop Carbon Capture and Utilization (CCU) technology at the Balikpapan Refinery Processing Unit in Indonesia. The two firms will jointly conduct a study on CO2 Syngas and Flue Gas capture technology application from hydrogen production at the site.

Paris/France – Pertamina and Air Liquide Indonesia have agreed to collaborate in developing Carbon Capture and Utilization (CCU) technology at the Balikpapan Refinery Processing Unit. This cooperation agreement was realized through a Joint Study Agreement (JSA) signing by the President Director of Pertamina, Nicke Widyawati; and President Director of Air Liquide Indonesia, Marloes Moerman; in Paris, France.

Present at the signing of this collaboration were Deputy Minister of Bumn I, Pahala Nugraha Mansury; Group CEO of Air Liquide, François Jackow; and VP for European and International Affairs, Laurent Dublanchet. Within the framework of this JSA, Pertamina and Air Liquide will conduct a joint study on CO2 Syngas and Flue Gas capture technology application from hydrogen production in the Balikpapan Refinery area.

The captured CO2 emissions will be compressed and channeled to a potential CO2 storage area in the Kutai Basin, East Kalimantan, as a solution for low-carbon hydrogen production or blue hydrogen. Some of the CO2 will also be converted into value-added products, methanol which can be mixed with fuel oil for the low-carbon fuel production.

Deputy Minister I of State-Owned Enterprises, Pahala Nugraha Mansury, said that the government has committed to reducing Greenhouse Gas (GHG) emissions and Net Zero emissions by 2060. According to Pahala, this initiative has an aggressive target of reducing around 85 million tons of CO2e/year or contributing 10 % to the National Determined Contribution in 2030.

"The CCUS technology application can increase oil and gas production while reducing greenhouse gas emissions significantly," added Pahala. Pahala continued that the CCUS technology enables Pertamina's refineries to make available CO2 for either storage (CCS) or use (CCU) and integrates this sector into a circular economy.

President Director of Pertamina, Nicke Widyawati, said the Carbon Capture, Utilization, and Storage (CCUS) technology application is one of the initiatives to reduce carbon emissions from Pertamina’s refinery facilities, as well as a solution to increase oil and gas production in the energy transition era.

Nicke also added that Pertamina is targeting a 30 % reduction in greenhouse gas (GHG) emissions and increasing the renewable energy mix from 9.2 percent in 2019 to 17.7 percent in 2030.

"We hope that the signing of the JSA between Pertamina and Air Liquide will have a positive impact on accelerating the implementation of low-carbon technology and providing low carbon energy resilience in Indonesia," added Nicke. Through this collaboration, it is hoped that it will accelerate green technology application in providing low-carbon energy while maintaining global climate change.

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