Pertamina and JERA sign MoU for collaborative energy transition
Photo courtesy of Pertamina

Pertamina and JERA sign MoU for collaborative energy transition

Japan’s largest power generation company JERA Co., Inc. and PT Pertamina (Persero) have announced a significant collaboration with the signing of a memorandum of understanding (MoU) to explore business opportunities and potential collaborations in the energy sector. This agreement, formalised during the ASEAN-JAPAN Economic Co-Creation Forum, aligns with the Asia Zero Emission Community (AZEC) Leaders Meeting initiatives.

The MoU outlines a framework for information sharing and discussions aimed at enhancing the fuel value chain’s value and creating business opportunities in infrastructure investment. The focus areas include LNG (Liquefied Natural Gas) and hydrogen/ammonia as low-carbon fuels, covering transportation, LNG receiving terminal Operation & Maintenance (O&M), and capacity building through benchmarking, training, and exchanges to improve LNG handling efficiency. Additionally, the collaboration will explore new business opportunities related to Carbon Capture Utilization and Storage (CCUS).

Addressing Indonesia’s energy challenges

Indonesia, with its robust economic growth and increasing electrification rate, faces the challenge of balancing electricity supply for economic growth with decarbonisation efforts. The country’s reliance on coal-fired thermal power generation raises concerns about escalating greenhouse gas emissions. This collaboration between JERA and Pertamina is pivotal in addressing these challenges and contributing to Indonesia’s goal of achieving net zero emissions by 2060.

A. Salyadi Saputra, director of Strategy, Portfolio & New Ventures at Pertamina, emphasised the importance of gas and LNG as transitional energy sources. He highlighted the potential of green hydrogen/ammonia projects in aiding power producers with decarbonisation through fuel substitution. Saputra also mentioned Pertamina’s involvement in at least eight CCS/CCUS projects in Indonesia, underscoring the company’s commitment to the energy transition.

Steven Winn, senior managing executive officer and chief of Global Strategist at JERA, stressed the need for customized decarbonisation roadmaps for each country. He expressed JERA’s commitment to providing innovative solutions to Indonesia’s energy challenges and strengthening greener fuel value chains.

The collaboration aims to address both short-term and medium-term energy demand increases and promote long-term energy decarbonisation. JERA, as one of the world’s largest power companies, has been actively supporting Indonesia’s energy transition, including research and support for formulating a decarbonisation roadmap for the country’s power sector.