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Pertamina and Air Liquide Indonesia to develop CCU

Pertamina and Air Liquide Indonesia to develop CCU
The cooperation agreement was realized through a Joint Study Agreement (JSA) signed by the President Director of Pertamina, Nicke Widyawati (centre left), and President Director of PT Air Liquide Indonesia, Marloes Moerman, that took place in Paris, France, on May 17, 2022. Also present at the signing of this collaboration were Deputy Minister of BUMN I, Pahala Nugraha Mansury (left), François Jackow, Group CEO of Air Liquide, and Laurent Dublanchet, VP for European and International Affairs at Air Liquide (photo courtesy Pertamina).

In Indonesia, the state-owned energy company PT Pertamina (Persero) and Air Liquide Indonesia, a subsidiary of France-headed industrial gases major Air Liquide, have agreed to collaborate in developing Carbon Capture and Utilization (CCU) technology at the Balikpapan Refinery Processing Unit.

Within the framework of this JSA, Pertamina and Air Liquide will conduct a joint study on carbon dioxide (CO2), syngas, and flue gas capture technology application from hydrogen production in the Balikpapan Refinery area.

The captured CO2 emissions will be compressed and channeled to a potential CO2 storage area in the Kutai Basin, East Kalimantan, as a solution for low-carbon hydrogen production aka “Blue Hydrogen”.

Some of the CO2 will also be converted into value-added products, such as methanol which can be mixed with fuel oil for low-carbon fuel production.

Aligned with national GHG reduction ambitions

Deputy Minister I of State-Owned Enterprises, Pahala Nugraha Mansury, said that the government has committed to reducing greenhouse gas (GHG) emissions and Net Zero emissions by 2060 as outlined in Presidential Regulation No. 98/2021.

The Presidential Regulation is translated into 48 derivative rules, and several regulations are being drafted, such as National Determined Contribution (NDC) per sector, Carbon Economic Value CEV), and carbon Tax.

The Ministry of SOEs has committed to start decarbonization and actively leading the decarbonization agenda with three initiative pillars, which include reducing end-to-end emission, building adjacent businesses, and exploring step-out opportunities, said Pahala Nugraha Mansury.

According to Deputy Minister Pahala, this initiative has an aggressive target of reducing around 85 million tonnes of carbon dioxide equivalents (CO2eq) per year or contributing 10 percent to the NDC in 2030.

The CCUS technology application can increase oil and gas production while reducing greenhouse gas emissions significantly, added Deputy Minister Pahala.

Pahala continued that the CCUS technology enables Pertamina’s refineries to make available CO2 for either storage (CCS) or use (CCU) and integrates this sector into a circular economy.

CCUS one of the initiatives to reduce carbon

President Director of Pertamina, Nicke Widyawati, said that the carbon capture, utilization, and storage (CCUS) technology application is “one of the initiatives to reduce carbon emissions from Pertamina’s refinery facilities, as well as a solution to increase oil and gas production in the energy transition era.”

It is a form of Pertamina’s commitment to implementing Environmental, Social, and Governance (ESG) aspects and supporting GHG emissions reduction.

Currently, the energy transition is a priority issue. Pertamina has played an important role in leading the transition of Indonesia’s energy industry, said Nicke Widyawati.

She also added that Pertamina is targeting a 30 percent reduction in GHG emissions and increasing the renewable energy mix from 9.2 percent in 2019 to 17.7 percent in 2030.

At the same time, Indonesia holds the G20 Presidency by prioritizing the transition to sustainable energy as one of the main issues.

We hope that the signing of the JSA between Pertamina and Air Liquide will have a positive impact on accelerating the implementation of low-carbon technology and providing Low Carbon Energy Resilience in Indonesia, ended Nicke Widyawati.

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