Indonesia’s state-owned oil and gas company Pertamina is partnering up with supermajors Chevron and ExxonMobil to explore and develop lower-carbon solutions in Indonesia, such as carbon capture and hydrogen.
Chevron’s subsidiary Chevron New Ventures will work together with Pertamina to assess the potential of new geothermal technologies, as well as carbon capture, utilization and storage (CCUS).
Indonesia has already developed its geothermal power as a renewable resource since 1974 and today boasts the world’s second largest geothermal installed capacity (1.877 gigawatts).
On the list of potential opportunities that both sides aim to explore together are also the production, storage and transport of lower-carbon hydrogen and nature-based carbon offsets.
The agreement was signed last week in Washington, DC.
A similar joint study agreement was signed between Pertamina and ExxonMobil to evaluate the potential of different lower-emissions technologies, including hydrogen and carbon capture and storage (CCS).
Both agreements will support the country’s net-zero ambitions and build on already existing long-standing strategic partnerships.
The government of Indonesia has included these steps in its energy transition roadmap, which is part of the larger Grand National Energy Strategy.
As part of this energy transition roadmap, the country is set to have 23% of its energy demand met using renewables by 2025.
For instance, last year ExxonMobil announced a major CCUS project in East Java, where both Exxon and Pertamina each have an equal stake of 45%.
And this is only part of ExxonMobil’s plans to explore the potential for CCS business in the region, as the supermajor has estimated Southeast Asia alone to have in excess of 300 billion metric tons of CO2 storage capacity.
Coordinating Minister for Maritime & Investment Affairs, Luhut Pandjaitan, expressed his support of Pertamina’s efforts by saying: ““Without a doubt, efforts to boost lower carbon energy projects cannot be done alone. In the future, we hope that world-class oil and gas companies, such as Pertamina and Chevron, can partner to further reduce carbon emissions and advance energy transition as mandated by the government of Indonesia.”