A subsidiary of state owned energy Pertamina, Pertamina New & Renewable Energy (Pertamina NRE) has set up a cooperation with PT Pertamina International Shipping (PIS), Pertamina’s Integrated Marine and Logistics Sub Holding, to develop a transportation business, particularly related to the transportation of green hydrogen and other sustainable fuels.
The cooperation was signed by Pertamina NRE CEO John Anies and PIS CEO Yoki Firnandi at Grha Pertamina in Jakarta on Monday, October 14, 2024.
John Anis said the coopaeration is based on several factors, including Indonesia’s strategic geographical position on international shipping lanes.
“Indonesia’s position on international shipping lanes will provide a great opportunity to develop a sustainable fuel business in the global maritime sector,” John Anies said in a statement as quoted on Thursday, October 17, 2024.
Meanwhile, based on projections from Bloomberg New Energy Finance (BNEF), demand for green hydrogen is expected to surge dramatically, with the shipping sector expected to consume around 6 million tons of green hydrogen, mainly in the form of methanol, annually by 2028.
In addition, a feasibility study conducted by PNRE shows that the transportation cost of hydrogen, both in the forms of ammonia and methanol, accounts for a significant portion of the landed cost of hydrogen (LCOH) in the target market. This collaboration is expected to reduce transportation costs and create efficiencies.
PIS CEO Yoki Firnandi said that as part of the Pertamina Group, PIS is ready to support the development of new renewable energy to expand this business portfolio in the future.
“Collaboration among Pertamina Group is needed, so that we can explore all the potential and opportunities of this business without reducing competitiveness. PIS is ready to support starting from transportation needs for distribution, terminals, and ports related to the logistics sector and sea transportation,” he said.
In addition to the transportation business, continued Yoki, commitment to develop the energy transition business in proven through the ongoing development of the Jakarta Integrated Green Terminal project, which in the future can be optimized for carbon storage facilities, LNG, and other needs.
This partnership is also expected to strengthen Pertamina’s steps in expanding its green energy portfolio and supporting a cleaner and more environmentally friendly energy transition in the maritime sector. As part of Pertamina Group, Pertamina NRE has the responsibility to carry out clean energy initiatives as an integral part of the implementation of environmental, social and governance (ESG) aspects to support the sustainability Development Goals, as well as supporting the energy transition to achieve net zero emission (NZE) aspirations.
