Chevron and Pertamina team up on low-carbon opportunities in Indonesia

Chevron and Pertamina team up on low-carbon opportunities in Indonesia Lahendong geothermal field, North Sulawesi (source: PGE)
Alexander Richter 16 May 2022

As part of a wider MOU between Chevron and Pertamina on targeting low-carbon business opportunities, new geothermal technologies are particularly mentioned by both in this context.

Reported from Indonesia, US oil giant Chevron Corporation and Indonesian state-owned oil and gas company PT Pertamina are teaming up to explore potential low-carbon business opportunities in Indonesia.

Subsidiaries Chevron New Ventures and Pertamina intend to evaluate new geothermal technology; carbon offsetting through nature-based solutions; carbon capture, use and storage (CCUS); As well as the development, production, storage and transportation of low-carbon hydrogen. This collaboration aims to serve local and regional potential clients.

Indonesia, which has the second largest installed capacity of geothermal energy in the world, has been developing renewable resources since 1974.

Currently, Pertamina has a total geothermal capacity of 1,877 GW from 13 geothermal working areas, of which 672 MW comes from work areas including Sibayak, Lumut Balai, Ulubelu, Kamojang and Lahendong which are operated independently and 1,205 GW comes from joint operating contracts.

State-owned Pertamina is also diversifying geothermal development.

Green hydrogen pilot projects are being developed, including in the Ulubelu area with a production target of 100 kilograms per day, and a brine-to-energy project being developed in the Lahindong area.

Nick Widiawati, President Director of Pertamina, noted that the company and other players are also developing CCS and CCS as a strategy to reduce carbon emissions in the Gundih and Sukowati production fields.

Pertamina is also studying the commercialization of the application of CCUS technology in the Sumatra region.

The Government of Indonesia currently has an energy transition roadmap as part of the Grand National Energy Strategy. In this roadmap, renewable energy aims to reach 23% of energy demand by 2025.

“It is undeniable that efforts to promote low-carbon energy projects cannot be done alone. Going forward, we hope that world-class oil and gas companies, such as Pertamina and Chevron, can participate in reducing carbon emissions and enhancing the energy transition. as mandated by the Government of Indonesia,” said Coordinating Minister for Maritime Affairs and Investment, Luhut Panjitan.

Jeff Gustafson, president of Chevron New Energy, said: “This MoU [signed this week] demonstrates Chevron and Pertamina’s commitment to continuing to identify low-carbon opportunities through collaborations and partnerships between Chevron, national energy companies, and the government — all of whom have a common interest in advancing national energy transition.”

Source: Kabartotabuan