JAKARTA - PT Perusahaan Gas Negara Tbk (PGAS), Subholding Gas PT Pertamina (Persero) and PT Pertamina Power Indonesia, Subholding Power & Renewable Energy (Pertamina NRE) are exploring the potential for cooperation in developing a low-carbon and renewable energy business. This includes Green Hydrogen & Ammonia (Liquid Hydrogen) and Biomethane.

PGN and Pertamina NRE signed a memorandum of understanding which will become the basis for communication, discussion and study in the context of implementing cooperation on Thursday (13/07/2023). The Memorandum of Understanding was signed by the President Director of PGN Arief Setiawan Handoko and the Chief Executive Officer (CEO) of Pertamina NRE, represented by the Director of Strategic Planning and Business Development of Pertamina NRE, Fadli Rahman.

PGN President Director Arief Setiawan Handoko said that this low-carbon business collaboration will include the development of a Low-Carbon Hydrogen Business, Low-carbon Ammonia, Biomethane, Solar Power Plants (PLTS), Low-Carbon Gas/LNG to Power Business, Renewable Energy Business, and Trading. Credit Carbon. Apart from being oriented towards a future business that is increasingly environmentally friendly, this collaboration will be able to strengthen the role of the Pertamina Group Subholding in order to achieve the Net Zero Emission (NZE) target.

"Both PGN and Pertamina NRE have agreed to carry out several studies/feasibility studies covering technical & technological, market, economic, business, environmental, legal, risk or other aspects for project implementation. For the NZE target and during the energy transition period all elements "Environmentally friendly energy must be involved, so PGN is also prepared to get involved in this business. With its portfolio, PGN is also working with Pertamina NRE to extend the business chain," said Arief.

"Pertamina NRE is always enthusiastic about positive collaborations like this, because accelerating the energy transition requires the cooperation of many parties. The synergy between Pertamina NRE subholdings, such as the one just made between Pertamina and PGN, shows Pertamina's seriousness in supporting the aspirations of net zero emission in 2060 through new and renewable energy development initiatives. Both PGN and Pertamina NRE have high enthusiasm so that from this collaboration the commitment of both parties becomes real action," said Dannif.

PGN and PPI also intensify strategic, technical and commercial cooperation for project development and utilization.

One of the projects to be developed, namely biomethane, has positive prospects in the future. Biomethane has the potential to replace fossil fuels, as well as overcome environmental pollution caused by palm oil liquid waste.

Biomethane is included as energy with abundant and sustainable raw materials, so that it can be processed and utilized in the long term. It is estimated that the BioMethane that PGN can manage can reach 15 MMSCFD which can serve the needs of around 60 industries in the Industrial Area.

"In our opinion, new renewable energies such as biomethane, ammonia and hydrogen are also attractive in the long term going forward. Many parties are considering clean green energy-based investments. Investors will get Carbon Credits due to reduced greenhouse gas emissions. This is also part of the collaboration with PPI related to carbon credits," said Arief.

In addition, said Arief, PGN remains committed to realizing domestic energy independence through strengthening gas supply and expanding gas infrastructure, especially during the energy transition period to NZE. The strategic plan is still ongoing to create added value and increase the utilization of natural gas.

"PGN's core business in the utilization of natural gas continues to run alongside business diversification efforts in EBT. It is hoped that this will become a commodity that can increase flexibility in running an environmentally friendly energy business in a sustainable manner," he said. (LK/LM)