PHE and Strategic Partners Explore CCS for Low-Carbon Ammonia Production
Efforts to build a low-emission industry in Indonesia are being strengthened. PT Pertamina Hulu Energi (PHE), along with PT Pertamina (Persero), PT Perusahaan Gas Negara Tbk (PGN), and PT Pupuk Indonesia (Persero), have formally signed a Joint Study Agreement (JSA) to explore the development of Carbon Capture and Storage (CCS) technology to support low-carbon ammonia production.
The signing ceremony took place during the Indonesia Petroleum Association Convention and Exhibition (IPA Convex) 2026 at the Indonesia Convention Exhibition (ICE) BSD in Tangerang Regency, Banten Province, on Thursday, 21 May 2026.
This cross-sector collaboration is a strategic step in building a national industrial decarbonisation value chain by integrating CO₂ emissions from Pupuk Indonesia’s ammonia production facilities and affiliates, which will then be transported and injected into Pertamina’s operational areas with carbon storage potential.
The agreement was signed by Pertamina’s Senior Vice President of Technology Innovation & Implementation Hana Timoti, PHE’s Director of Investment and Business Development Dannif Utojo Danusaputro, PGN’s Director of Strategy and Business Development Hery Murahmanta, and Pupuk Indonesia’s Director of Technical and Business Development Jamsaton Nababan.
The ceremony was witnessed by SKK Migas VP of Business Support Firera, Pertamina Deputy President Director Oki Muraza, and PHE Director General Awang Lazuardi.
Through this joint study, the parties will explore the potential for CCS development in low-carbon ammonia production as part of the energy transition and industrial emissions reduction strategy. The scheme encompasses the entire CCS value chain, from CO₂ capture, transportation, to injection into potential storage sites within Pertamina’s operational areas.
The study’s scope also includes developing low-carbon ammonia production facilities using Pupuk Indonesia’s existing assets and affiliates. Excess CO₂ from these facilities will be assessed for transportation to potential storage sites in West Java and East Java.
Dannif Utojo Danusaputro viewed the collaboration as a crucial step in building an integrated CCS ecosystem in Indonesia. ‘This cross-sector partnership demonstrates a shared commitment to delivering tangible decarbonisation solutions for strategic national industries. This synergy is expected to unlock broader CCS development opportunities while supporting Indonesia’s net-zero emissions target,’ he said.
Meanwhile, Hana Timoti stated that developing CCS for low-carbon ammonia is part of the strategy to expand low-carbon technology implementation in the national industrial sector. ‘This joint study exemplifies synergy within the Pertamina Group and national strategic partners to develop an integrated carbon value chain. Through CCS technology, we aim to support the development of low-carbon products such as ammonia while strengthening the competitiveness of national industries in the global energy transition,’ she said.
Through this collaboration, PHE and its partners hope to accelerate CCS technology implementation as part of national low-carbon business development, while reinforcing Indonesia’s position in regional sustainable energy solutions.
As part of its sustainability commitment, PHE affirmed it will continue to operate and develop upstream oil and gas businesses based on Environmental, Social, and Governance (ESG) principles, including the implementation of a Zero Tolerance on Bribery policy through the ISO 37001:2016-standardised Anti-Bribery Management System (SMAP).