CEO of Pertamina NRE: Clean Hydrogen is the Solution for Decarbonizing Heavy Industry and Transportation
Tangerang, July 13, 2023 - Through its subsidiary, Pertamina New & Renewable Energy (Pertamina NRE), Pertamina is currently developing clean hydrogen and is optimistic that it could play a significant role in achieving net zero emissions (NZE) by 2060. It was stated by the Chief Executive Officer of Pertamina NRE, Dannif Danusaputro, at the EBTKE Conex forum on Wednesday (12/7).
Although the development has not been done before, Indonesia has considerable potential for clean hydrogen as a fuel. Indonesia possesses several advantages that contribute to this potential. It includes an abundance of diverse energy sources. Secondly, the large market size encourages high hydrogen demand in the future, especially in the heavy industry and transportation sectors.
"Currently, hydrogen has not yet reached the expected economic value, but we believe that hydrogen could be a game-changer in the new energy sector because clean hydrogen is a solution for emission reduction, particularly in sectors where decarbonization is challenging, such as heavy industry and transportation. Therefore, clean hydrogen development is one of the priorities for Pertamina NRE," stated Dannif during a panel discussion titled "The Power of Possibility: Unlocking Business Opportunities in Indonesia's Energy Transition."
Hydrogen is obtained through the electrolysis of water, the separation of water compounds into hydrogen gas and oxygen using electrical energy. Clean hydrogen is hydrogen produced using electricity from green energy-based generators or fossil energy while capturing its CO2 to prevent it from being released into the atmosphere.
Pertamina Group has significant potential in clean hydrogen development. Hydrogen development could monetize its energy portfolio. In its hydrogen development roadmap, Pertamina NRE aims to become a pioneer in the Southeast Asian market before 2027. From 2027 to 2030, Pertamina NRE plans to start exporting clean hydrogen to international markets and simultaneously target the domestic market. And starting in 2031, Pertamina NRE ambitiously aims to become a clean hydrogen exporter and lead the hydrogen economy in Indonesia.
Currently, Pertamina NRE has collaborated with several strategic partners, both domestically and internationally, to develop a clean hydrogen ecosystem. These partners include TEPCO, IGNIS, Sembcorp, Chevron, Pupuk Indonesia, and Krakatau Steel. The latest collaboration by Pertamina NRE is a memorandum of understanding with Transportasi Gas Indonesia (TGI) for clean hydrogen transportation business development. Furthermore, the collaboration with TEPCO for green hydrogen development in the Lahendong geothermal area has been approved by NEDO, the Japanese national research and development agency, to receive a grant for the research conducted in this initiative. These collaborations are necessary to accelerate development, facilitate technology transfer, and share risks.
Clean hydrogen could significantly contribute to carbon emission reduction, particularly in hard-to-abate industries such as oil refining, petrochemical industry, steel production, maritime transportation, and other heavy transportation sectors. This is because these industries rely heavily on fossil fuel energy as an integral part of their operational activities. By utilizing clean hydrogen to replace fossil fuels, carbon emissions could be reduced.
The new business development in the energy sector is one of the three strategic pillars of Pertamina NRE, alongside low-carbon solutions and renewable energy development. Pertamina NRE aims to be at the forefront of decarbonization initiatives within the Pertamina Group and is committed to implementing ESG (Environmental, Social, and Governance) practices to create a responsible and sustainable business.
On another occasion, the Vice President of Corporate Communication of PT Pertamina (Persero) stated that clean hydrogen development is one of Pertamina's strategic initiatives in the energy transition era, utilizing the existing potential in the geothermal field.
"Through the PNRE Subholding, Pertamina strives to develop renewable energy by utilizing the available potential within the country," said Fadjar.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**