Japan-headed industry conglomerate Marubeni Corporation (Marubeni) has announced that it has signed a Memorandum of Understanding (MoU) with PT Pertamina (Persero), an Indonesian state-owned enterprise engaged in integrated energy in Indonesia, on comprehensive collaboration to develop decarbonization projects in Indonesia.
As measures to counter global climate change become increasingly important, reducing greenhouse gas (GHG) emissions has become an urgent issue. Under these circumstances, the two companies are promoting Carbon Capture, Utilization & Storage (CCUS) as an effective measure to mitigate global climate change.
Investigate BECSS project
Through this MoU, the companies will work on joint development of a wide range of decarbonization projects, including a Bioenergy with Carbon Capture and Storage (BECCS) project at Marubeni’s pulp mill in Indonesia, producing biomass fuel, and creating carbon credit from such projects.
Marubeni initiated investing in PT Tanjungenim Lestari Pulp & Paper (TEL) in South Sumatra in 1995 and to PT Musi Hutan Persada (MHP), a forest plantation company adjacent to TEL, in 2003.
Through this integrated production process from wood to pulp, Marubeni says that it has “consistently aimed to supply more sustainable and environmentally friendly pulp to customers mainly in Asia for decades.”
The BECCS project under consideration will be a new initiative to aim for a carbon-negative pulp production process.
Aligned with national decarbonization target
In July 2021, the Indonesian government submitted a long-term decarbonization strategy, including achieving carbon neutrality in 2060, to the Secretariat of the United Nations Framework Convention on Climate Change (UNFCC) to promote both economic growth and decarbonization
PT Pertamina has committed to contributing to the Indonesian government’s 2060 carbon neutrality target by reducing GHG emissions by 30 percent compared to 2010 and developing 10.2 GW of renewable energy capacity by 2026.
Marubeni is enhancing its climate change strategy through the development of CCUS projects to achieve the Marubeni Long-Term Vision on Climate Change announced in March 2021 and is committed to contributing to the sustainable and economic development of Indonesia through these joint development activities with PT Pertamina.
