JAKARTA – Indonesia’s state power company PT Pertamina said late Tuesday that it would jointly study carbon capture technology at its refinery in Balikpapan with the local unit of French gas company Air Liquid.
Partamina and Air Liquid Indonesia have signed a joint study agreement to capture carbon emissions from its Balikpapan hydrogen production facility and conserve carbon in the Kutai Basin area of East Kalimantan Province.
Some emissions will be converted to products such as methanol, which could be used to make low-carbon fuels, Partamina said in a statement.
Indonesia, which relies heavily on fossil fuels for its energy, aims to achieve net-zero emissions by 2060 and almost doubles the proportion of renewables in its energy mix to 23% by 2025.
Partamina aims to reduce its greenhouse gas emissions by 30% and increase its renewable energy mix by 17.7% by 2030.
“We hope that the agreement between Pertamina and Air Liquid will have a positive impact on accelerating the implementation of low-carbon technology and providing low-carbon energy resilience in Indonesia,” chief executive Nick Vidyavati said in a statement.
Partamina is exploring carbon capture, utilization and storage (CCUS) technology to offset emissions because it increases oil and gas production, Nick said.
The company has signed an agreement with US energy company Chevron Corporation to explore low-carbon business opportunities in Indonesia.
Pertamina has an agreement with ExxonMobil Corp. to evaluate the feasibility of large-scale implementation of CCUS and hydrogen production in three facilities. (Reporting by Bernadette Christina, edited by Francisca Nangay and Kanupriya Kapoor)