Pertamina and Masdar sign clean energy development deal

Indonesian state-owned oil and gas company Pertamina has signed a deal with Abu Dhabi-based Masdar Clean Energy to develop clean energy solutions in Indonesia.

Specifically, the parties have signed a memorandum of understanding. It focuses on joint exploration of the development of floating and solar power plants and clean energy solutions.

Masdar is an Abu Dhabi-based company and a subsidiary of Mubadala Investment Company. Its business focuses on renewable energy.

Under Indonesia’s energy targets, the energy mix will reach 23 per cent in 2025 and 31 per cent in 2050. Pertamina also believes that the energy sector can reduce emissions by 314 million tonnes of CO2.

“Pertamina as the largest energy SOE in Indonesia has a high commitment to support the government’s targets. Some of Pertamina’s EBT development initiatives to support these targets include increasing the installed capacity of self-operated geothermal to 1,128 MW by 2026, developing solar and wind power plants, as well as green and blue hydrogen,” said the president of Pertamina Nicke Widyawati.

Nicke continued that collaboration is very important in accelerating the energy transition. This strategic collaboration will have the potential to accelerate the energy transition, he says.

Furthermore, Pertamina is currently conducting a study for the development of green hydrogen with a pilot project in South Sumatra. It says the potential for green hydrogen production will reach 8,600 kilograms per day from all of Pertamina’s geothermal working areas.

Thus, Pertamina hopes to become the government’s main partner in overseeing the energy transition.