U.S. energy company Chevron Corp. and Indonesia’s state energy company PT Pertamina have signed a deal to explore lower carbon business opportunities in Indonesia, the companies said in a statement late on May 12.

Chevron signed the deal through its subsidiary, Chevron New Ventures Pte. Ltd, and is looking at potential businesses in new geothermal technology, carbon offsets through nature-based solutions, carbon capture, utilization and storage (CCUS), Pertamina said.

The companies would also be looking into lower carbon hydrogen development, production, storage, and transport, the statement said.

Chevron Jay Pryor - Pertamina Nicke Widyawati - Lower Carbon signing
Jay Pryor, vice president of corporate business development for Chevron, and Nicke Widyawati, president director and CEO of PT Pertamina (Persero), commemorate the signing of an agreement to explore lower carbon opportunities in Indonesia. (Photo: Business Wire)

The memorandum of understanding was signed during a trip by Indonesian officials to Washington D.C. to attend a summit between the U.S. and Southeast Asian nation leaders.

“Through our potential work in Indonesia, and the entire Asia Pacific region, we hope to provide affordable, reliable, ever-cleaner energy, and help the industries and customers who use our products advance their lower carbon goals,” Jeff Gustavson, President of Chevron New Energies, said.

Indonesia aims to achieve net zero emissions by 2060 and has targeted to increase its renewable energy portfolio in its energy mix to 23% by 2025, from around 12% currently.

“This partnership is a strategic step for Pertamina and Chevron to complement each other's strengths and develop lower carbon energy projects and solutions to promote energy independence and domestic energy security,” Pertamina CEO Nicke Widyawati said.

Pertamina is currently running a trial for a binary geothermal power plant that could help the company maximize energy output from its geothermal wells as it aims to double its geothermal capacity by around 2027-2028 from 700 MW currently.