PGN And Pertamina NRE Explore Low Carbon Business Cooperation

JAKARTA - PT PGN Tbk as Pertamina Gas Subholding and PT Pertamina Power Indonesia as Subholding Power & Renewable Energy (Pertamina NRE) is exploring the potential for equal development of the carbon and renewable low-energy business. In this case, it includes Green Hydrogen & OKIA (Liquid Hydrogen) and Biomethane.

PGN and Pertamina NRE signed a memorandum of understanding that would be the basis for communication, discussion, and study in the context of implementing cooperation on Thursday, July 13. The Memorandum of Understanding was signed by PGN President Director Arief Setiawan Handoko and Pertamina NRE Chief Executive Officer who on that occasion was represented by the Director of Strategic Planning and Business Development of Pertamina NRE, Fadli Rahman.

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

"Both PGN and Pertamina NRE have agreed to carry out several feasibility studies/studies which include technical aspects & technology, markets, economics, businesses, environments, laws, risks or other aspects for project implementation. For NZE targets and during the energy transition period, all environmentally friendly energy elements must be involved, PGN is also preparing to enter into this business. With its portfolio, PGN also makes cooperation with Pertamina NRE to extend the business chain," said Arief.

"Pertamina NRE has always been enthusiastic about positive collaborations like this, because accelerating the energy transition does require the cooperation of many parties. Synergy between Pertamina NRE subholding as has just been done between Pertamina and PGN shows Pertamina's seriousness in supporting the aspirations of net zero emissions in 2060 through the initiative to develop new and renewable energy. Both PGN and Pertamina NRE have high enthusiasm so that from this collaboration the commitment of the two parties becomes a 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 is biomethane, which has positive prospects for the future. Biomethane has the potential to replace fossil fuel oil, as well as overcome environmental pollution caused by liquid waste from palm oil.

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

"In our opinion, new renewable energy such as biomethane, ammonia, and hydrogen is also interesting in the long term ahead. Many parties are considering green energy-based net investment. Investors will get Carbon Loans due to reduced greenhouse gas emissions. This is also part of the collaboration with PPI regarding carbon credit," 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 to NZE. The strategic plan continues to run to create added value and increase natural gas utilization.

"The core business of PGN in natural gas utilization continues to run together with efforts to diversify its business at EBT. It is hoped that it can become a commodity that can increase the flexibility of running an environmentally friendly energy business in a sustainable manner," Arief concluded.