PLN Gandeng JERA Develops Gas Business To Green Hydrogen

Hydrogen illustration (Photo: Doc. unsplash)

PT PLN (Persero) through PLN Energi Primary Indonesia Subholding (PLN EPI) collaborates with Japanese company JERA Co. Inc to explore opportunities for cooperation and strategic collaboration in supply, supply chain optimization and LNG infrastructure for PLN Group as well as developing a green energy ecosystem in Indonesia.

PLN President Director, Darmawan Prasodjo said, this collaboration focuses on a number of aspects, such as procurement, supply optimization, midstream development of LNG, as well as human resource development for the commercial and market aspects of LNG.

This collaboration also includes the development and optimization of potential green or blue ammonia and green or blue hydrogen for fossil fuel replacement projects.

"Green hydrogen is one of the solutions in dealing with energy transition. Therefore, green hydrogen development is our main focus in efforts to accelerate energy transition," Darmawan said in a statement to the media, Monday, February 12.

President Director of PLN EPI, Iwan Agung Firstantara, said that gas acts as a substitute for fuel/solar and coal in the short term and in the medium term.

In the long term, he said, gas or LNG plays an important role in the energy transition to complement the development of renewable energy.

"To achieve this goal, PLN EPI is developing an LNG contract portfolio and LNG midstream infrastructure in order to reduce fuel consumption at PLN Group's power plants," said Iwan.

Furthermore, Iwan hopes that this collaboration can optimize the LNG supply chain, infrastructure development, human resources, and green energy utilization technology within the PLN Group.

Executive Officer, Head of the Platform Business Group JERA Shinsuke Nakayama said that JERA and PLN EPI as joint companies were originally formed to consolidate primary energy by the country's largest Electricity Company, have similarities in characteristics and similarities in vision and business model. His party is committed to supporting PLN EPI to develop a reliable primary energy supply chain for Indonesia.

"We know that PLN is currently developing its business and strengthening its energy supply chain. So we are very happy to be able to join and support PLN's journey to provide reliable energy supply for Indonesia," he said.

In addition, Nakayama believes that the development of the LNG supply chain will be able to maximize PLN's energy supply. He also saw that the LNG development initiative and green energy were part of a decarbonization effort that was in line with the energy transition.

"We hope that this collaboration will be able to create a brighter future for Indonesia and PLN through the decarbonization of the energy sector," he concluded.