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ESSA continues its contribution to the Future Clean Energy

Jakarta, 26 September 2022 – It is with great pleasure that PT Surya Esa Perkasa Tbk. (IDX: ESSA) (“ESSA”) announces that its subsidiary, PT Panca Amara Utama (“PAU“), has signed a Memorandum of Understanding to measure Greenhouse Gas (GHG) Emissions at its Ammonia Plant in Luwuk, Banggai, Central Sulawesi, Indonesia.

PAU shall work together with JGC Corporation (“JGC“), and this work shall contribute to the improvement of guidelines on Clean Ammonia production; another step closer towards a better and cleaner world.

ESSA Vice President Director and Deputy Chief Executive Officer, Mr. Kanishk Laroya said:

“We are committed to developing a sustainable future and are honored to work with such partners with a strong track record and a like-minded commitment to the environment, like JGC. We hope that with this collaboration, us and our partners pave the way for Indonesia to play a leading role in providing fuels of the future, starting with Blue Ammonia.

 -Joint press release attached-

For more information, please contact:

 

Shinta D.U. Siringoringo

Corporate Secretary

PT Surya Esa Perkasa Tbk.

Phone: +62 21 2988 5600

E-mail: corpsec.sep@essa.id

M.Aditya

Investor Relations

Mobile: +62 81295486465

E-mail: investor.relations@essa.id

www.essa.id

 

Signing of Memorandum of Understanding Regarding GHG Emissions Measurement at Ammonia Plant in Indonesia

PT Panca Amara Utama (“PAU“) and JGC Corporation (“JGC“) signed a Memorandum of Understanding (“MOU“) to measure greenhouse gas (GHG) emissions, at PAU’s Ammonia Plant in Luwuk, Banggai, Central Sulawesi, Indonesia.

Background and Objectives

In order to contribute to smooth energy transition, JGC and Japan Oil, Gas and Metals National Corporation (“JOGMEC”) developed GHG and Carbon Intensity (CI) Guidelines (“Guidelines“) for the calculation of greenhouse gases from transition energies such as LNG, Hydrogen and Ammonia Production.

The Guidelines are recommendations for global partners who supply transition energy to Japan and to enable the simple calculation of GHG and CI according to the actual operation mode seeking accuracy. JGC has been studying the application of the Guidelines to actual plants.

JGC will measure GHG emissions at PAU’s Ammonia Plant from November to December 2022 based on the MOU signed, by using infrared cameras, drones, satellites, etc., and will also calculate GHG emissions per ton of Ammonia to calculate CI values for Ammonia products. This measurement will be the first case application of and will be utilized to improve the accuracy of the Guidelines.

 

Current Situation Surrounding Methane Emissions

To achieve carbon neutral by 2050, transition energies must be utilized with cleanness and transparency. For that, accurate measurement and then reduce of GHG emissions from the production and transportation of the transition energies is important.

Methane is one of the most common GHGs emitted during the production of LNG, Hydrogen, and Ammonia from natural gas, and has a global warming potential 28-84 times greater than CO2. Because of its significant impact, the Global Methane Pledge, an initiative led by the United States and the European Union, was launched at COP26 (the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change), and discussions began on reducing methane emissions.

On the other hand, methane emissions vary widely from facility to facility and there are concerns about the accuracy of calculations using general emission factors, and there is no globally standardized measurement method.

About Company

Mitsubishi Gas Chemical Company, Inc. and Mitsubishi Corporation are indirect shareholders of PAU.

PAU, together with JOGMEC, Mitsubishi Corporation, and Bandung Institute of Technology (ITB), are conducting a joint study for the production of clean fuel Ammonia using PAU’s Ammonia Plant.

  1. PT Panca Amara Utama

  2. JGC Corporation