JERA, Pertamina collaborate on low-carbon fuels

JERA, Pertamina collaborate on low carbon fuels

JERA Co. (JERA) and PT Pertamina (Pertamina) has announced the signing of a Memorandum of Understanding (MoU) to collaborate on a Business Opportunity Discussion and Potential Collaboration.

The MoU sets out information sharing and discussions to enhance the value of the fuel value chain and to create business opportunities for infrastructure investment in LNG and hydrogen/ammonia, which are low-carbon fuels.

The signing took place under the banner of the ASEAN-JAPAN Economic Co-Creation Forum as a related event of the Asia Zero Emission Community (AZEC) Leaders Meeting.

Salyadi Saputra, Director of Strategy, Portfolio & New Ventures of Pertamina and Steven Winn, Senior Managing Executive Officer and Chief of Global Strategist of JERA formalised the agreement.

The Republic of Indonesia (Indonesia) is expected to see continued increases in its demand for electricity. At the same time, because Indonesia is highly reliant on coal-fired thermal power generation, there is concern that its growing demand for electricity will lead to higher emissions of greenhouse gases, according to JERA.  

The collaboration will include LNG and hydrogen/ammonia transportation and LNG receiving terminal Operation & Maintenance (O&M), as well as capacity building through benchmarking, training and/or exchange to improve the operational efficiency of LNG handling.

In addition, the parties will also consider the development of new businesses related to CCUS Carbon Capture Utilisation and Storage (CCUS).

Through this collaboration, which plays an important role in the energy transition, JERA and Pertamina contribute to Indonesia in achieving net zero emissions by 2060.

“We recognise gas and LNG as pivotal transitional energy sources, anticipating significant advancements in major gas projects within Indonesia,” stated Salyadi Saputra.

“Additionally, our collaborative efforts extend to Low Carbon Fuel, through the development of Green Hydrogen/Ammonia projects, aimed at facilitating power producers in their decarbonisation efforts through fuel substitution.”

READ: NYK, MOL ink time charter agreement

“We understand that gas and LNG are key to the process of decarbonisation in Indonesia. The decarbonisation roadmap is not a one-size-fits-all guideline but needs to be custom-tailored for each country,” added Steven Winn.

“Therefore, we will provide our cutting edge solution to the energy issues in Indonesia and strengthening their value chains for greener fuels.

“This MoU allows us to leverage our experiences and capabilities to help Indonesia achieve net-zero emission.”

JERA and Pertamina will work to solve the short-to medium-term issue of increasing energy demand while also steadily promoting the medium-to long-term issue of energy decarbonisation through collaboration on LNG and hydrogen/ammonia value chains in Indonesia.

In September 2023, Pertamina International Shipping and PT Pelindo inked a partnership agreement for the development of the Jakarta Integrated Green Terminal (JIGT) in Kalibaru, North Jakarta.

More recently, Mitsui O.S.K. Lines, Ltd. (MOL) announced the signing of a long-term charter contract with a vessel operation management firm funded by JERA Co., Inc. (JERA) for a newbuilding liquefied natural gas (LNG) carrier.

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