Pertamina, Marubeni join to cut emissions in Indonesia

Japanese trading house Marubeni will work with Indonesian state-owned refiner Pertamina to cut carbon emissions in Indonesia.

Marubeni said today it has signed an agreement to develop decarbonisation projects together with Pertamina in Indonesia. These include developing bioenergy with carbon capture and storage (Beccs) at Marubeni's pulp mill in Indonesia, producing biomass fuels, and participating in or developing projects to generate carbon credits.

Japan has a bilateral carbon offset deal with Indonesia, encouraging Japanese firms to develop low-carbon technology, products, services, systems and infrastructure in Indonesia.

Marubeni has set a target to withdraw from coal-fired power projects by 2050 to achieve carbon neutrality the same year. It has sold its UK upstream subsidiary Moguk to North Sea-focused oil and gas firm Ithaca Energy as part of efforts to achieve its net zero emissions goal.

Pertamina is pursuing efforts to help achieve an Indonesian government target to reduce greenhouse gas emissions by 29pc by 2030 from 2010 levels. The state-owned firm plans to add 10GW of clean energy power generation capacity by 2026.

By Reina Maeda