Pertamina Declares Readiness to be Indonesia's Main Carbon Storage Player at a World Climate Meeting

Dubai, December 4, 2023 – During the United Nations Climate Change Conference 2023 or Conference of the Parties (COP) 28, PT Pertamina (Persero) declared its readiness to become Indonesia’s leading carbon storage player. Pertamina's readiness was demonstrated through the Carbon Capture Utilisation Storage (CCS) and Carbon Capture Utilisation Storage (CCUS) programs. 

It was announced by the Senior Vice President of Research and Technology Innovation of Pertamina, Oki Muraza, at the COP28 in Dubai, United Arab Emirates. In his presentation, Oki identified several opportunities that Pertamina could leverage. He mentioned a potential of 400 gigatons (GT) for CCS and a CCS/CCUS business capacity reaching 60 million tons per year (MTPA) in Indonesia.

To seize these opportunities, Pertamina currently has eight CCS/CCUS locations, developed in collaboration with other strategic partners. These sites include two in Sumatra, four in Java, and two in Sulawesi. The CCS/CCUS initiative is currently in the feasibility study phase, covering subsurface technical aspects, surface facilities, and economic viability.

"As a state-owned enterprise in the oil and gas sector that required to fulfill Indonesia's energy needs while simultaneously pursuing decarbonization initiatives, Pertamina sees CCUS as an effort to increase our oil and gas reserves while supporting the Net Zero Emissions (NZE) target," said Oki during the discussion titled "Harnessing Potential of Indonesia CCS Development for Carbon Removal Implementation Towards a Cleaner Future" at the Indonesia Pavilion during COP28 on Saturday (2/12).

Pertamina is developing a CCUS project in Jatibarang Subdistrict, Indramayu Regency, West Java, with a carbon storage potential of 146 thousand tons. Additionally, Pertamina is working on a CCS project to support low-carbon ammonia and hydrogen production.

Carbon dioxide (CO2) from the ammonia plant and refineries will be removed from the hydrogen plant using high-concentration technology and from the combustion unit with low concentrations. Subsequently, CO2 will be compressed and transported to areas around the plants, where CO2 injection or the CCS process will occur.

This process will result in the hydrogen and ammonia compounds creation as low-carbon raw materials. This process has already been implemented in the Kutai Basin area in East Kalimantan. On average, CO2 from the Balikpapan hydrogen plant amounts to 1.4 million tons per year, with a storage capacity of 270 million tons.

Meanwhile, ammonia production takes place at the Banggai Ammonia Plant. CO2 emissions from the ammonia plant reach one million tons per year, with a storage capacity of 273 million tons. "If everything goes smoothly, by 2030, the storage can be utilized," stated Oki.

Pertamina has been advocating for CCS and CCUS utilization since the Glasgow Meeting two years ago. Since then, Pertamina has consistently been considering the application of this technology. "We continue to develop step by step, awaiting policy certainty from the government," said Oki.

Several agreements have been made to form these policies, including incorporating CCS/CCUS calculations into the Nationally Determined Contributions (NDC), inter-agency collaborations, and other dialogues.

One crucial aspect of CCS and CCUS development is capital expenditure. This issue can be addressed by developing nature-based solutions (NBS) since they are the most cost-effective. Another solution is methane capture.

Oki emphasized that all of this can be achieved through synergistic efforts from all parties involved. "CCS/CCUS is a business we can learn from and build knowledge together," he added.

The session was also attended by Belladonna Maulianda, Executive Director of the Indonesia CCS Center. She added that CCS is the most feasible innovation to tackle climate change and drive towards carbon-neutral targets. CCS has various benefits, such as cost reduction, mitigating trade risks, job creation, and fostering low-carbon industry development.

Meanwhile, Guloren Turan, General Manager Advocacy of the Global CCS Institute, believes Indonesia is on the right path for CCS development. According to her, Indonesia has storage resources and has been striving to develop capacity and policy frameworks.

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.**