ESG Commitment, Pertamina Develops Green Hydrogen to Realize Green Industry Cluster

Jakarta, February 25, 2022 – PT Pertamina (Persero) continues to commit and contribute to  supporting the Government's program to accelerate the energy transition and the national target of reducing 29% emissions by 2030. Within this framework, Pertamina is also committed to implement ESG (Environmental, Social & Governance) in all business lines.

One of them is through the development of green hydrogen and green ammonia or also called green energy carriers to support the Green Industry Cluster. Pertamina also doing an SEO synergize with PT PLN (Persero) and PT Pupuk Indonesia (Persero) to create an environmentally friendly Green Industry Cluster that is stated in the signing of a Memorandum of Understanding (MoU) on Wednesday, February 23, 2022.

VP Corporate Communication of PT Pertamina (Persero), Fajriyah Usman, said that following President Joko Widodo's instruction at the G20 Summit in Italy last year, G20 members and business players must be a catalyst for green recovery, and conjointly go with the principles of energy security, energy accessibility, and energy affordability.

“Pertamina identified six global trends that will affect the energy business. Namely, Decarbonization, Electrification, Decentralization, Digitalization, Integration, and Customerization. To anticipate this, Pertamina Group is developing four initiatives to answer at least the challenges of Decarbonization, Electrification, Decentralization, and Integration trend," said Fajriyah.

First, EV Ecosystem development through Cooperation between Pertamina and Gojek for Charging and or Providing Electric Vehicle Battery Replacement Infrastructure through the provision of the Electric Vehicle Battery Swap Station (SPBKLU), inaugurated by President Joko Widodo on Tuesday, February 22, 2022.

Second, Green hydrogen pilot project development was carried out by PT Pertamina Geothermal Energy (PGE) in the Ulubelu Work Area, Lampung Province.

Third, Blue hydrogen development from the electrolysis process with certified green electrical energy sources at the Plaju and Cilacap refineries owned by PT Pertamina International Refinery (KPI).

Fourth, Pertamina is also conducting a study for low-carbon hydrogen and its derivatives as alternative fuels in the maritime industry with funding from the Asian Development Bank (ADB).

"The development of green energy is in line with Pertamina's commitment to implement integrated ESG in all business lines of the company and to encourage business sustainability in the future," said Fajriyah.

Fajriyah also added that Pertamina's full commitment to implementing ESG aspects has pushed Pertamina's ESG rating to increase globally. Pertamina had received an ESG Risk Rating by Sustainalytics of 28.1 and is considered at Medium risk in experiencing a material financial impact from ESG factors. This Risk Rating experienced a significant improvement from previously reaching 41.6 (Severe Risk) in February 2021.

With this score, Pertamina ranked the 15th position out of 252 companies in the Oil & Gas industry and 8th position in the integrated Oil & Gas sub-industry. Pertamina is in the same cluster (Medium Risk) with global companies such as Repsol, ENI, PTT Thailand, and TotalEnergies. This position is also recorded as better than BP, Exxon, and Chevron.

In line with ESG implementation, Pertamina, through PNRE, has developed a low carbon generator of 2.5 GW and strategic technical partners, which  can contribute to realizing the Green Industry Cluster.

“The development of a Green Industry Cluster in Indonesia will be an important milestone to form a wider green industry ecosystem in Indonesia. This is also Pertamina's commitment to increasing the ESG Rating globally and accelerating the energy transition nationally," stated Fajriyah.**