Aramco and Pertamina explore hydrogen and ammonia value chain

Aramco and Indonesia’s PT Pertamina (Persero) are exploring collaboration across the hydrogen and ammonia value chain.

The companies signed a Memorandum of Understanding (MoU) outlining future cooperation across this key pathway of the energy transition, in a ceremony that took place alongside the B20 Summit in Bali, the official G20 dialogue forum with the global business community.

G20 members and global energy companies have jointly committed to be part of the solution to the global energy crisis which is affecting millions of people worldwide – and which forms the backdrop to the G20 Summit in Bali.

The MoU was signed by the Nicke Widyawati, PT Pertamina (Persero) president and director, and Mohammed Y. Al Qahtani, Aramco’s senior vice president of Downstream.

In his comments, Al Qahtani said that as a company, Aramco’s ambition is to achieve net-zero Scope 1 and 2 greenhouse gas emissions across our wholly-owned operated assets by 2050.

“Our work in developing new ammonia and hydrogen energy pathways will be pivotal in achieving that goal, while helping to advance an affordable, equitable, and more sustainable transition for all,” he said.

Clean ammonia and hydrogen development have significant roles in Indonesia’s 2060 net-zero emissions roadmap and the country is expected to be a key player in green hydrogen production in Asia.

Widyawati said that the energy transition shouldn’t jeopardize energy security and affordability, especially for countries that are still dependent on fossil fuels.

“That’s why Pertamina has developed a decarbonisation program through CCUS. Hydrogen and Ammonia are expected to play a key role in a future climate-neutral economy, enabling emission-free power generation, heavy transport, heating and industrial processes,” Widyawati said.

Details of the MoU

The MoU involves a pre-feasibility study that aims to assess the possibility of cooperation related to the development of a clean ammonia and hydrogen value chain. It includes potential carbon capture, utilization and storage (CCUS) at Pertamina Group’s existing facilities and other agreed potential locations.

The study will explore investment viability and jointly develop commercialization options, including but not limited to business organization and commercial structures for clean ammonia and hydrogen in Indonesia. The study is expected to be conducted over the next two years, and depending on outcomes may be developed further.