Pertamina And Chrevron Cooperate To Explore Low Carbon Business Opportunities

JAKARTA - PT Pertamina (Persero) and Chevron New Ventures, a subsidiary of Chevron Corporation, officially collaborated to explore low-carbon business opportunities in Indonesia.

Pertamina President Director Nicke Widyawati said Pertamina as the largest state-owned company in Indonesia is committed to accelerating the energy transition in accordance with the government's target.

"This partnership is a strategic step for Pertamina and Chevron to complement each other's strengths, as well as develop low-carbon energy projects and solutions to encourage domestic energy independence and security," Nicke said in a press statement quoted by Antara, Friday, May 13.

Pertamina and Chevron plan to consider new geothermal technology; carbon offsetting through nature-based solutions; carbon capture, utilization, and storage (CCUS); and the development, production, storage, and transportation of low-carbon hydrogen.

Indonesia has been developing geothermal energy as energy since 1974 and is now the second-largest country that has installed geothermal electricity capacity.

Pertamina through its subsidiary Pertamina New Renewable Energy (NRE) has a total installed capacity of geothermal electricity reaching 1.877 megawatts from 13 geothermal work areas.

A total of 672 megawatts come from work areas that are operated alone and 1.205 are joint operation contracts (JOC).

The self-operated work area with a total capacity of 672 megawatts includes Sibayak 12 megawatts, Lumut Balai 55 megawatts, Ulubelu 220 megawatts, Kamojang 235 megawatts, Karaha 30 megawatts, and Lahendong 120 megawatts.

In addition, Pertamina is also diversifying geothermal development. Currently, ongoing pilot projects are green hydrogen being developed in the Ulubelu area with a production target of 100 kilograms per day and brines to power being developed in the Lahendong area and having a potential capacity of 200 megawatts from several other work areas.

The company is also developing the implementation of CCS) and CCUS as one of the company's strategies to reduce carbon emissions in two oil and gas fields, namely Gundih and Sukowati. Pertamina is also studying the commercialization of the application of CCUS technology in Sumatra.

Pertamina's collaboration with Chevron is part of the two companies' efforts to support the Indonesian Government's carbon neutrality target by 2060. Pertamina is committed to increasing its renewable energy mix from 9.2 percent in 2019 to 17.7 percent in 2030.

"Through the potential of our work in Indonesia, and throughout the Asia Pacific region, we hope to provide affordable, reliable, and always clean energy, and help the industries and consumers who use our products achieve their low-carbon goals," said Chevron New Energies President, Jeff Gustavson.

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the Indonesian government already has an energy transition roadmap contained in the Grand National Energy Strategy.

In the roadmap, the use of renewable energy is targeted to reach 23 percent by 2025. The government recognizes the importance of a collaborative approach to achieve low-carbon goals.

"Of course, efforts to increase low-carbon energy projects cannot be done alone. We hope that world-class oil and gas companies, such as Pertamina and Chevron can partner to cut carbon emissions and encourage the energy transition as mandated by the Indonesian government," concluded Luhut.