Pertamina NRE, a subsidiary of Indonesia’s state-owned oil and natural gas corporation Pertamina, has joined forces with France-based decarbonization technologies firm MGH Energy to co-develop renewable synthetic fuel production projects.
According to Pertamina, the two parties signed a memorandum of understanding (MoU) in order to work together on creating, manufacturing and supporting a broader application of sustainable fuels that can be applied in the maritime as well as aviation sectors. The deal was signed against the backdrop of a France-Indonesia business gathering, which was visited by French President Emmanuel Macron .
As disclosed, the bipartite initiative aims to conduct “in-depth” studies on renewable synthetic fuels, applicable regulations, the state of the market, and production and distribution infrastructures. The two companies have shared that the efforts will focus on both Indonesia and France, as well as on countries with ‘high’ potential, such as Morocco, where MGH Energy has been present, and Australia.
At the same time, it is understood that Pertamina hopes to expand its product range by focusing on delivering environmentally friendly fuels.
The state-owned player, the headquarters of which are nestled in the heart of Jakarta, has endeavored to keep up with the shifts and turns of the oil market in Indonesia—once a major exporter, but now a net importer due to rising domestic demand and limited refining capacity.
Pertamina has set its sights toward cleaner fuel sources, endeavoring to keep pace with the evermore stringent environmental guidelines, including those set under the International Maritime Organization’s (IMO) Net Zero Framework .
Adopting a multipronged approach of forming partnerships both at home and ‘overseas’, Pertamina has pursued numerous partnerships on this path. In December 2023, for example, the corporation teamed up with Japan’s energy heavyweight JERA to collaborate on business opportunities pertaining to infrastructure investments relevant for the (wider) application of low-carbon fuels like liquefied natural gas (LNG), and ammonia/hydrogen.
Through this cooperation, JERA and Pertamina said that they expected to contribute to Indonesia’s vision of achieving net zero emissions by 2060.