Saudi Aramco and Indonesian state-owned Pertamina have signed an agreement to work jointly on projects involving the hydrogen and ammonia value chains.
Aramco, in a statement on Monday, said the companies signed a “Memorandum of Understanding (MoU) outlining future cooperation on the key energy transition path” on the sidelines of the G20 summit in Bali, Indonesia.
The agreement “involves a pre-feasibility study which aims to assess the possibility of cooperation related to the development of a clean value chain for ammonia and hydrogen,” the company said.
“The study will explore the viability of investments and jointly develop commercialization options, including but not limited to a commercial organization and business structures for clean ammonia and hydrogen in Indonesia,” said Aramco. .
He added that the study “should be conducted over the next two years and, depending on the results, could be developed further”.
“This includes potential carbon capture, use and storage (CCUS) at existing Pertamina Group facilities and other agreed potential locations,” the statement said.
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Mohammed Y Al Qahtani, Aramco’s Senior Vice President Downstream, said the company’s ambition is to achieve net Scope 1 and 2 greenhouse gas emissions across its entire 100% owned operating assets by 2050.
“Our work developing new energy pathways for ammonia and hydrogen will be key to achieving this goal while helping to advance an affordable, equitable and more sustainable transition for all,” he said.
Nicke Widyawati, chairman and CEO of Pertamina, noted that the company has developed a decarbonization program through CCUS, and that hydrogen and ammonia should play a key role in a future climate-neutral economy.