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Pertamina, PT Pupuk Indonesia, and Mitsubishi Corp. to develop hydrogen and ammonia business

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Hydrocarbon Engineering,


PT Pertamina, PT Pupuk Indonesia, and Mitsubishi Corp. have agreed to develop the green hydrogen and green ammonia value chain, and carbon capture utilisation and storage (CCUS) businesses in Indonesia. 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 PT Pertamina, Iman Rachman, Director of Portfolio & Business Development of PT Pupuk Indonesia, Jamsaton Nababan, and Head of Representative of Mitsubishi Corp. for Indonesia, Takuji Konzo, in Jakarta, Japan, on 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 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 Memorandum of Understanding (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.

Pahala emphasised that at the G20 Presidency activities, which will take place next October, the Indonesian government and SOEs want to show the world the success of the energy transition being worked on, one of which is retiring early from coal power plants (PLTU). However, all of that can be realised with strong collaboration and synergy between the state and the private sector.

Director of Strategy, Portfolio & Business Development of PT Pertamina, Iman Rachman, who was present on behalf of the President Director of Pertamina, said that with the MoU signing between the companies, it is hoped that a form of cooperation will soon be realised, both in the short and long-term, and will massively support the achievement of national targets.

According to Iman, in line with the government's decarbonisation program, Pertamina cooperates to develop blue/green hydrogen, blue/green ammonia, and 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.

Pertamina's commitment to implementing ESG aspects has boosted its ESG rating to increase globally. The company has received an ESG risk rating by Sustainalytics of 28.1 and is considered at medium risk of experiencing a material financial impact from ESG factors.

Read the article online at: https://www.hydrocarbonengineering.com/the-environment/08032022/pertamina-pt-pupuk-indonesia-and-mitsubishi-corp-to-develop-hydrogen-and-ammonia-business/

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