Saudi Aramco and Indonesia’s state-owned Pertamina have signed a deal to jointly work 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 across the key pathway of the energy transition” on the sidelines of the G20 Summit in Bali, Indonesia.
The agreement “involves a pre-feasibility study that aims to assess the possibility of cooperation related to the development of a clean ammonia and hydrogen value chain”, the company noted.
“The study will explore investment viability and jointly develop commercialisation options including, but not limited to, business organisation and commercial structures for clean ammonia and hydrogen in Indonesia,” Aramco said.
It added that the study is “expected to be conducted over the next two years, and depending on outcomes may be developed further".
“It includes potential carbon capture, utilisation and storage (CCUS) at Pertamina group's existing facilities and other agreed potential locations,” the statement claimed.
Mohammed Y Al Qahtani, senior vice president of Aramco’s downstream business said the company’s ambition is to achieve net-zero Scope 1 and 2 greenhouse gas emissions across its wholly owned operating assets by 2050.
“Our work in developing new ammonia and hydrogen energy pathways will be pivotal in achieving that goal while helping to advance an affordable, equitable and more sustainable transition for all,” he said.
Nicke Widyawati, Pertamina president director noted the company has developed a decarbonisation programme through CCUS, and hydrogen and ammonia are expected to play a key role in a future climate-neutral economy.