Jakarta – PT Pertamina (Persero), PT Pupuk Indonesia (Persero) and Mitsubishi Corporation agreed to develop the Green Hydrogen and Green Ammonia Value Chain and Carbon Capture Utilization and Storage (CCUS) businesses. This agreement is in line 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 PT Pertamina (Persero) Iman Rachman, Director of Portfolio & Business Development of PT Pupuk Indonesia (Persero) Jamsaton Nababan and Head of Representative of Mitsubishi Corporation for Indonesia, Takuji Konzo, in Jakarta, Wednesday, 2 March 2022.
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 BUMN, Abdi Mustakim and Assistant Deputy for Food and Fertilizer Industry at the Ministry of BUMN, Zuryati Simbolon.
Deputy Minister of SOEs I Pahala Nugraha Mansury in his speech said, the MoU between Pertamina, Pupuk Indonesia and Mitsubishi is the first step for future collaboration. This MoU is also part of the Green Industry Cluster mission which was previously agreed and inaugurated by PT Perusahaan Listrik Negara (Persero), 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 to make it happen, the key is Partnership ,” said Pahala.
Pahala emphasized that at the G20 Presidency activities that will take place next October, the Indonesian government and SOEs want to show the world the success of the energy transition that is being worked on, one of which is by retiring early from coal power plants. However, all of that can be realized through strong collaboration and synergy between the state and the private sector.
“We also want to show that energy transition efforts can be carried out not only through early retirement of PLTU but also by reducing its utilization through cofiring activities with ammonia and biomass and how to use technology such as carbon capture, ” he continued.
Director of Strategy, Portfolio & Business Development of PT Pertamina (Persero) Iman Rachman who was present on behalf of the President Director of Pertamina said that with the signing of the Memorandum of Understanding between PT Pertamina (Persero), PT Pupuk Indonesia (Persero), and Mitsubishi Corporation, it is hoped that soon the form of strategic cooperation will be realized, both in the short and long term and will support the achievement of national targets on a massive scale.
“The first step to realizing the development of Blue/Green Hydrogen and Blue/Green Ammonia in Indonesia will of course 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 Power Plant. Steam (PLTU) Coal.
The green hydrogen produced from the EBT 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 co-combustion of ammonia in coal-fired power plants.
Pertamina, Iman added, will support and encourage collaboration with SH Power and NRE as Pertamina’s energy transition motor. SH Power and NRE, together with partners, have identified the NRE potential of more than 10 GW which can be used for Green Hydrogen throughout Indonesia.
Pertamina’s full commitment in implementing ESG aspects has encouraged Pertamina’s ESG rating to increase globally. Pertamina has received an ESG Risk Rating by Sustainalytics of 28.1 and is considered to be at Medium risk in experiencing a material financial impact from ESG factors.
“Hopefully the passion, hard work and commitment that has been done will not stop here, but this achievement is the beginning of a journey to bring global change for the better,” said Iman.
President Director of PT Pupuk Indonesia (Persero), Bakir Pasaman, stated that Pupuk Indonesia warmly welcomes this collaboration with Pertamina and Mitsubishi. This is in line with the Government’s target to increase access to green energy and achieve the Net Zero Emission target. And we in the fertilizer industry, have carried out a number of initiatives to be able to support the Government’s program, one of which is the use of new and renewable energy (EBT) as an energy source for our factories in Pupuk Kujang and Petrokimia Gresik.
“We in the fertilizer industry are very optimistic about the development of green hydrogen, green ammonia and blue ammonia. Hydrogen transportation has a high level of difficulty and is very expensive. Therefore, to obtain an economical transportation cost, one alternative is to transport the hydrogen in the form of ammonia. Pupuk Indonesia is very experienced in operating ammonia plants and this is an advantage . We hope Fertilizer
Indonesia can make a significant contribution in the development and construction of green ammonia and blue ammonia factories which will be developed in Indonesia,” said Bakir.
He added that Pupuk Indonesia is ready to support the G20 agenda for the green energy transition in the context of the decarbonization program in Indonesia.
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