JERA, one of the largest power companies in the world and PT Pertamina (Persero), Indonesia’s largest state-owned oil and natural gas company, announced the inking of a Memorandum of Understanding (MoU) to partner on business opportunity discussion and potential collaboration.
The signing ceremony occurred within the framework of the ASEAN-JAPAN Economic Co-Creation Forum, serving as a pertinent component of the Asia Zero Emission Community (AZEC) Leaders Meeting. A. Salyadi Saputra, director of Strategy, Portfolio & New Ventures at Pertamina, and Steven Winn, senior managing executive officer and chief of Global Strategist at JERA, officiated the agreement.
According to a statement, the Republic of Indonesia, characterized by robust economic growth and a consistently rising electrification rate, is anticipated to witness ongoing surges in electricity demand.
Simultaneously, given Indonesia’s heavy reliance on coal-fired thermal power generation, there exists a valid concern that the escalating demand for electricity could contribute to heightened greenhouse gas emissions. Balancing the imperative for a reliable electricity supply to fuel economic growth with the imperative for decarbonization presents a substantial challenge.
Furthermore, the primary objective of the MoU is to create lucrative business opportunities for infrastructure investment in low-carbon fuels such as LNG and hydrogen/ammonia.
This multifaceted collaboration encompasses various aspects, including the transportation of LNG and hydrogen/ammonia, the operational and maintenance aspects of LNG receiving terminals, and capacity-building initiatives.
Also, these capacity-building efforts will involve benchmarking, training, and exchange programs geared towards optimizing the operational efficiency of LNG handling. Additionally, the agreement contemplates the exploration of new ventures related to Carbon Capture Utilization and Storage (CCUS).
This collaborative effort is pivotal in the context of the energy transition, with JERA and Pertamina actively contributing to Indonesia’s ambitious goal of achieving net zero emissions by 2060. Through their joint endeavours, the two entities are playing a crucial role in steering Indonesia towards a sustainable and low-carbon energy future.
“We recognize gas and LNG as pivotal transitional energy sources, anticipating significant advancements in major gas projects within Indonesia. Additionally, our collaborative efforts extend to Low Carbon Fuel, through the development of Green Hydrogen/Ammonia projects, aimed at facilitating power producers in their decarbonization efforts through fuel substitution,” stated Salyadi Saputra, director of Strategy, Portfolio & New Ventures at Pertamina.
Moreover, Salyadi Saputra highlighted that the collaboration on Carbon Capture Utilization and Storage (CCUS) holds significant promise, especially considering Pertamina’s extensive portfolio, which includes a minimum of 8 CCS/CCUS projects in Indonesia.
