Committed to Reduce CO2 Emissions, Pertamina Collaborates with Japanese Companies & ITB for CCUS Study in Gundih Field

Jakarta, June 18, 2021 - PT Pertamina (Persero) continues its contribution to supporting the commitment of the Government of Indonesia to reduce Greenhouse Gas (GHG) emissions by 29% or with international support targeted to reach 41% by 2030. This global commitment is stated in the Paris Agreement at the Conference Climate Change (The Conference of Parties-COP 21) in Paris.

This commitment is following Pertamina's implementation of Environment, Social, and Governance (ESG) principles. It was reaffirmed by Pertamina's collaboration with the Japan Group, namely JANUS, JGC Corporation, J-Power, and the Bandung Institute of Technology (ITB) through a Joint Study Agreement to review the implementation of Carbon Capture, Utilization and Storage, and Enhanced Gas Recovery (CCUS/ EGR) on the Gundih field project in Cepu, Central Java.

The signing of the JSA was carried out virtually by Dannif Danusaputro as Chief Executive Officer (CEO) of Pertamina's Power and New & Renewable Energy Subholding, together with Kazuhiko Chikamoto, Representative Director and President of JAPAN NUS Co., Ltd, Yutaka Yamazaki, Representative Director, President of JGC Corporation, Sugiyama Hiroyasu, Director & Executive Vice President of Electric Power Development Co., Ltd (J-POWER) and Prof. Ir. I Gede Wenten, M.Sc., Ph.D. as Vice Rector for Research & Innovation ITB.

The agreement on the JSA CCUS/EGR project in the Gundih Field will be a milestone. It is one of Pertamina's initiatives to reduce carbon emissions with the potential for CO2 reduction of 300,000 tons per year from a total of 3 million tons of CO2 for ten years. It also has the potential to contribute to increasing gas production.

This CO2 will be stored in the subsurface formation and will provide the benefit of Enhance Gas Recovery. The CO2 will be declared as carbon credit and divided between the governments of Indonesia and Japan.

"We have the mandate to transition Pertamina from an oil and gas company into energy company, in which we will increase our portfolio and energy mix of Renewable Energy. We will also reduce CO2 emissions to decarbonize Pertamina's footprint," said Dannif Danusaputro, CEO Subholding Power and New & Renewable Energy Pertamina.

Currently, Pertamina is preparing a Decarbonization Roadmap to support global climate change control. The CCUS and will be one of the initiatives that can have a significant impact on carbon reduction. The feasibility study collaboration will take place from June 2021 to February 2022. Furthermore, FEED and EPC will be carried out in 2022-2024 and are expected to be operational in 2026.

"We took the initiative to be involved in this Joint Study. Hopefully, we can get into commercialization soon. I appreciate all parties, and I hope we can meet after this pandemic is over and make this breakthrough happen," he added.

Kazuhiko Chikamoto, Representative Director and President of JAPAN NUS Co., Ltd., said that decarbonization is a must for governments and private companies over the world. The Japanese government has set an ambitious  goal for reducing CO2 emissions by 46% by 2030. Therefore, changes are made together to attribute these aspirational goals. The CCUS at Gundih Field is not only a decarbonization project but also the best practice model of decarbonizing projects in the Asian region. It is a very innovative model that could be further expanded in the near future.

"We appreciate Pertamina for giving us a great opportunity in the new Gundih field. This collaboration is an unprecedented big step," said Kazuhiko Chikamoto.**

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