Pertamina Hulu Energi – Pupuk Indonesia Collaboration Aims for Low-Carbon Ammonia Through ...

Tangerang – PT Pertamina Hulu Energi (PHE), PT Pertamina (Persero), PGN, and PT Pupuk Indonesia (Persero) signed a Joint Study Agreement (JSA) to support the development of low-carbon ammonia using Carbon Capture and Storage (CCS) technology to capture CO2 emissions from fertiliser production processes.

The JSA was signed by Dannif Utojo Danusaputro, Director of Investment and Business Development at PHE; Hery Murahmanta, Director of Strategy and Business Development at PGN; Jamsaton Nababan, Director of Technical and Business Development at Pupuk Indonesia; and Hana Timoti, SVP of Technology Innovation & Implementation at Pertamina, witnessed by the Special Task Force for Upstream Oil and Gas (SKK Migas), during the IPA Convex 2026 event at ICE BSD Tangerang, Banten, on Thursday, 21 May 2026.

The initiative focuses on the production of blue ammonia and green ammonia as future clean energy alternatives. Pupuk Indonesia targets production of up to 4.3 million tonnes of blue ammonia.

The CCS technology will play a role in capturing carbon emissions generated by the ammonia plants, which will be injected back into oil wells or PHE’s saline aquifers. This also positions Indonesia as a regional CCS hub in Southeast Asia capable of accommodating up to 4.3 gigatonnes of carbon.

One of the main developments will be implemented in Aceh, leveraging the facilities of Pupuk Indonesia subsidiary plant, Pupuk Iskandar Muda (PIM). PGN collaborates with Pertamina and PHE to build the CCS Hub. The injection facility will subsequently absorb carbon emissions from the fertiliser plant and other downstream industries.

This project represents a long-term commitment by state-owned enterprises to achieve Indonesia’s Net Zero Emission (NZE) target by 2060, by transforming conventional ammonia into a more environmentally friendly product.