Japan’s Marubeni Corporation and Indonesia’s national oil company have signed a memorandum of understanding on a comprehensive collaboration to develop decarbonisation projects in Indonesia.

“As measures to counter global climate change become increasingly important, reducing greenhouse gas emissions has become an urgent issue. Under these circumstances, Pertamina and Marubeni are promoting carbon [dioxide] capture, utilisation and storage as an effective measure to mitigate global climate change,” said Marubeni.

Through this MoU, the companies will work on joint development of a wide range of decarbonisation projects, including a bioenergy with carbon capture and storage project at Marubeni's pulp mill in Indonesia, producing biomass fuel and creating carbon credit from such projects.

Pertamina has committed to contributing to the Indonesian government’s 2060 carbon neutrality target by reducing greenhouse gas emissions by 30% compared to 2010 and developing 10.2 gigawatts of renewable energy facilities by 2026.

Meanwhile, Marubeni is enhancing its climate change strategy through the development of CCUS projects to achieve its Long-Term Vision on Climate Change and is committed to contributing to the sustainable and economic development of Indonesia through these joint development activities with the Indonesian national oil and gas company.

Marubeni in 1995 first invested in the Tanjungenim Lestari pulp and paper facility in South Sumatra and eight years later invested in the adjacent forest plantation company, Musi Hutan Persada.

The Japanese company noted that through this integrated production process from wood to pulp, it has consistently aimed to supply more sustainable and environmentally friendly pulp to customers mainly in Asia for decades.

The bioenergy CCS project under consideration will be a new initiative to aiming for a carbon-negative pulp production process.

The Indonesian government last July submitted a long-term decarbonisation strategy, including achieving carbon neutrality in 2060, to the Secretariat of the United Nations Framework Convention on Climate Change to promote both economic growth and decarbonisation.