Jakarta - Indonesia is striving to expedite its energy transition by collaborating with private parties to develop the green hydrogen and green ammonia value chain, as well as CCUS technology.

These efforts are aimed at reducing the utilization of coal at power plants and an early shutdown of coal-fired power plants, First Deputy Minister of State-Owned Enterprises Pahala Nugraha Mansury said in a statement issued on Thursday.

“We have developed the ammonia and biomass co-firing as well as the utilization of carbon capture technology to reduce the usage of coal at power plants,” Mansury said.

Indonesia is committed to cutting carbon emissions by 29% by 2030 and achieving net-zero emissions by 2060, he said.

However, the government cannot achieve the target alone. It needs strong collaboration and synergy with the private sector, he said.

On March 2, the deputy minister said he had witnessed the inking of a cooperation agreement among state-run fertilizer manufacturer PT Pupuk Indonesia (Persero), state-owned oil and gas company PT Pertamina (Persero), and Japanese trading company Mitsubishi Corporation.

President Director of PT Pupuk Indonesia (Persero) Bakir Pasaman said that the collaboration was highly welcomed.

"We are very optimistic on the development of green hydrogen and green ammonia. Transporting the hydrogen as a material for our industry is very difficult and expensive. Hence, transforming it to become ammonia can reduce logistics costs," said Pasaman.

Director of strategy, portfolio, and business development at PT Pertamina (Persero), Iman Rachman, said he expected to massively support the achievement of the national emissions target.

“Realizing the development of green hydrogen and green ammonia in Indonesia will become an important milestone to establish a bigger green industrial ecosystem in our country," said Rachman.

The green hydrogen will be used to produce green ammonia, he said. Meanwhile, green ammonia will be utilized for ammonia co-combustion in coal-fired power plants.

Reporting By: Antara News