The Indonesia Just Energy Transition Partnership (JETP) will channel $20bn into clean energy over the next five years – as national energy company Pertamina forges new partnerships with major firms to target the development of hydrogen.
The JETP model was pioneered at the COP26 Summit in Glasgow last year, where South Africa and an International Partners Group (IPG) of France, Germany, the United Kingdom, the United States of America, and the European Union announced a long-term $8.5bn JETP.
Indonesia is the second country to launch a JETP. Among the world’s 10 largest greenhouse gas emitters, Indonesia – aiming to be Net Zero by 2060 – is now accelerating its transition to clean energy through the JETP’s strengthened commitments to maximise the use of abundant renewable energy and political commitment to phase down coal-fired power in the medium-term.
Half of the funding will be public money mobilised by International Partners Group (IPG) members and at least $10bn of private finance will be facilitated by the Glasgow Financial Alliance for Net Zero (GFANZ) Working Group.
The partnership will be a long-term political agreement between the Government of Indonesia and an IPG comprising the United States of America and Japan as joint leads, along with the United Kingdom, Germany, France, the European Union, Canada, Italy, Norway, and Denmark.
Indonesia has only tapped into about 2% of the combined potential of geothermal, solar, wind, hydro, and biomass energy sources, and only 12% of its electricity comes from renewables. In comparison, more than 20% of electricity in the Philippines comes from renewables, according to McKinsey.
Wind and solar could be competitive with new-build traditional natural gas plants by the late 2020s and with coal plants by the late 2030s.
Pertamina teams up with major firms to target hydrogen production
Aramco and PT Pertamina (Perso) recently signed an agreement to explore collaboration across the hydrogen and ammonia value chain.
Signed alongside the B20 Summit in Bali, Indonesia, the Memorandum of Understanding (MoU) involves a pre-feasibility study to assess the potential for cooperation between the companies to develop a clean ammonia and hydrogen value chain.
Pertamina is also exploring development opportunities with Singapore-based Keppel Infrastructure and global oil major Chevron, particularly the feasibility of developing a green hydrogen facility in Sumatra, with a production capacity of at least 40,000 tonnes per annum, powered by 250-400MW of geothermal energy in the initial phase.
A joint study by Pertamina and ExxonMobil found carbon dioxide (C02) potential with a capacity of up to 1bn tonnes in Pertamina’s oil and gas fields. This large capacity can permanently store CO2 emissions throughout Indonesia at the current average for the next 16 years.
ReNu Energy and its subsidiary, Countrywide Hydrogen has today (November 17), revealed they have signed an agreement with Anantara Energy Holdings for the development of a green hydrogen production facility in Indonesia.
Under the Memorandum of Understanding (MoU), Anantara and Countrywide will jointly study the development of the facility using solar power in the Karimun Special Economic Zone (SEZ) in the Riau Archipelago.