Pertamina NRE and Masdar Signs MoU for PLTS and Clean Energy Development
Abu Dhabi, November 5, 2021 - President Director of Pertamina Nicke Widyawati and CEO of Masdar Mohamed Jameel Al Ramahi formally exchanged a memorandum of understanding documents at the presidential palace of the United Arab Emirates in Abu Dhabi (4/11) witnessed by the Abu Dhabi crown prince Sheikh Mohamed bin Zayed Al Nahyan and the President of the Republic of Indonesia Joko Widodo.
Pertamina Power Indonesia as a subholding Power & New Renewable Energy (Pertamina NRE) and Masdar have signed a memorandum of understanding for joint exploration of the development of floating and ground-mounted solar power plants and clean energy solutions in Indonesia. The signing was also attended by some ministers of the Republic of Indonesia, namely the Coordinating Minister for Maritime and Investment Affairs, the Coordinating Minister for Economic Affairs, the Minister of SOEs, the Minister of Foreign Affairs, and the Minister of Trade.
“The Indonesian government has an energy transition roadmap for Indonesia that is contained in the Grand National Energy Strategy, where the energy mix reaches 23 percent in 2025 for NRE and will reach 31 percent in 2050. With this roadmap, we believe that the energy sector can reduce emissions by 314 million tons of CO2. Pertamina as the largest energy SOE in Indonesia has a high commitment to support the government's targets. Some of Pertamina's EBT development initiatives to support these targets include increasing the installed capacity of self-operated geothermal to 1,128 MW by 2026, developing solar and wind power plants, as well as green and blue hydrogen," said Nicke.
Nicke continued that collaboration is very important in accelerating the energy transition. This strategic collaboration between Pertamina NRE and Masdar will have the potential to accelerate the energy transition.
Masdar is an Abu Dhabi-based company and a subsidiary of Mubadala Investment Company, the national company of Abu Dhabi. Masdar's business focuses on renewable energy. Currently, Masdar is actively operating in 30 countries, such as the UAE, the United States, Australia, India, Indonesia, and others.
“This agreement shows Masdar's deep commitment to support the energy transition in Indonesia and achieve the net zero emission target. We are hoping to be present in Indonesia and support its economic development. By committing to climate action, Indonesia will be able to reap economic and social benefits and create a sustainable future for its people and the planet,” said Mohamed.
Indonesia has abundant NRE potentials, which reach more than 400 GW and only 10 GW or equivalent to 2.5 percent of it has been utilized. For geothermal alone, the potential reaches 24 GW and is one of the largest in the world. Currently, the installed geothermal capacity operated by Pertamina Geothermal Energy (PGE) reaches 672 MW and is targeted to reach 1,128 MW by 2026. From the geothermal business, Pertamina is currently conducting a study for the development of green hydrogen with a pilot project in the Ulubelu working area, South Sumatra. It is projected that the potential for green hydrogen production will reach 8,600 kilograms per day from all of Pertamina's geothermal working areas.
With the enormous potential of EBT in Indonesia, Pertamina hopes to become the government's main partner in overseeing the energy transition. Pertamina is also fully committed to supporting the realization of sustainability in Indonesia through integrated environmental, social, and governance (ESG) aspects in its business.**