Pertamina NRE & Pupuk Indonesia Aim for Hydrogen Development

Source: www.gulfoilandgas.com 8/2/2021, Location: Asia

PT Pupuk Indonesia (Persero) agreed to synergize with Pertamina NRE (PNRE). This synergy is carried out to explore opportunities for hydrogen development and energy supply. This assessment is contained in a memorandum of understanding or Memorandum of Understanding (MoU) which was held virtually, Monday (2/8/2021). The signing was carried out by the President Director of Pupuk Indonesia, Bakir Pasaman, and Dannif Danusaputro as the Chief Executive Officer of PNRE.

Deputy Minister of BUMN I, Pahala Mansury said that the collaboration between Pupuk Indonesia and Pertamina Power Indonesia was in line with Indonesia's net zero emission target.

"In the future SOEs need to strive to achieve Indonesia's target of net zero emissions before 2060, and in 2030 what we need to do is ensure that carbon emissions owned by Indonesia or produced by Indonesia will decrease by up to 29 percent," explained Pahala.

Meanwhile, the President Director of Pertamina in his speech said that Pertamina was making an energy transition in line with Indonesia's Grand Energy Strategy, namely from development dominated by fossil-based energy to new and renewable energy.

"The SOE synergy between Pertamina Power Indonesia as a PNRE subholding with Pupuk Indonesia is in accordance with Pertamina's energy transition target in the next 5 to 6 years to increase the energy mix of new and renewable energy by 10 GW, namely 6 GW gas-based, 3 GW renewable energy, and 1 GW of new energy which includes hydrogen,” said Nicke.

President Director of Pupuk Indonesia, Bakir Pasaman, said that this collaboration was not limited to hydrogen development and energy supply. Instead, the use of technological facilities and equipment and the commercialization of green ammonia and blue ammonia by using hydrogen as a raw material produced by Pertamina Power Indonesia.

This is in line with the efforts of the Indonesian government in recent years, which has been aggressively campaigning for carbon emission reductions in order to create a more sustainable and environmentally friendly industry.

"Pupuk Indonesia Group pays great attention to reducing carbon emissions and we have studied the development of green ammonia, as well as blue ammonia," said Bakir.

Ammonia is the main raw material for producing fertilizers. Meanwhile, green ammonia and blue ammonia are ammonia that is processed and produced from renewable energy sources. This type of ammonia has a low carbon content, so it is more environmentally friendly and can be used as raw material for fertilizers in the future.

For blue ammonia production, blue hydrogen is used from fossil energy sources. Carbon formed from the blue ammonia production process, namely CO2, must be re-injected into the bowels of the earth, and related to this is known as Carbon Capture Storage (CCS) Technology. From an economic point of view, it is more efficient if CO2 can be injected into an oil or gas reservoir that is no longer used, and is located close to a fertilizer factory. Meanwhile, green ammonia is produced using green hydrogen from clean energy sources, such as geothermal energy.

Pertamina is currently developing hydrogen as a new energy, both blue hydrogen and green hydrogen. For green hydrogen, currently, studies and trials are carried out in the Ulubelu geothermal working area which is managed by Pertamina Geothermal Energy. Pertamina NRE some time ago also signed a collaboration with a number of parties to develop Carbon Capture Utilization and Storage (CCUS) technology, especially in the Gundih Field and Sukowati Field.

Furthermore, this MoU also includes a number of things such as a study on the need for green ammonia and blue ammonia by Pupuk Indonesia, a study on the buying and selling price of hydrogen raw materials by Pertamina Power Indonesia, the utilization of facilities for each company to support the implementation of Carbon Capture Storage (CCS). In addition, the development of personnel competencies in the commercialization of New and Renewable Energy (EBT) technology. Finally, a study of strategic development that benefits both parties.


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