PT Pertamina Power Indonesia (Pertamina NRE) and Tokyo Electric Power Company Holdings, Incorporated (TEPCO HD) signed a memorandum of understanding on the development of green hydrogen and green ammonia.
The signing was carried out by Chief Executive Officer of Pertamina NRE Dannif Danusaputro and Executive Vice President & Chief Innovation Officer (CIO) of TEPCO HD, Chikara Kojima. Also witnessing the signing were Director General of New, Renewable Energy and Energy Conservation of the Ministry of Energy and Mineral Resources of the Republic of Indonesia Dadan Kusdiana and Main Director of Pertamina Nicke Widyawati. This memorandum of understanding is a follow-up to the signing of a joint study agreement (JSA) between the two on October 18, 2022 in Bali.
This memorandum of understanding covers the implementation of verification surveys, joint selection of hydrogen production areas, identification of market segments, market development, and others in Indonesia. Going forward, the two will develop cost-efficient green hydrogen, as well as ammonia production, transportation and technology. In the commercialization stage, the priority targets targeted by both are the Indonesian domestic market, and in the medium to long term, will be targeting the export market to Japan and other countries.
The joint study conducted by the two entities received support from NEDO, Japan’s national research and development institute which encourages technological development in order to build a sustainable society.
“Clean hydrogen is one of Pertamina’s future businesses. We are currently also developing a green hydrogen pilot project in the Ulubelu geothermal area with a production target of 100 kg/day. We are excited about the collaboration with TEPCO HD and NEDO for this green hydrogen and green ammonia development. We believe this collaboration will create high value, especially in energy transition and decarbonization efforts,” said Dannif Danusaputro.
Indonesia is a country with the largest geothermal potential in the world, where this potential can be used not only for the development of electricity generation but also for the production of green hydrogen and green ammonia.
Pertamina NRE has a geothermal energy portfolio managed by its subsidiary, PT Pertamina Geothermal Energy, Tbk. (PGE) which has just officially listed its shares on the Indonesian stock exchange with the code PGEO. Currently PGE manages 13 Geothermal Working Areas (WKP) with an installed capacity of 1.8 GW, of which 672 MW is operated and managed directly by PGE and 1,205 MW is managed under the Joint Operation Contract scenario. Geothermal installed capacity in the PGE working area contributes to around 79% of the total installed geothermal capacity in Indonesia, with a potential reduction of CO2 emissions of around 9.7 million tonnes of CO2 per year.
TEPCO HD’s seriousness in collaborating with Pertamina NRE in the development of green hydrogen and green ammonia was also demonstrated by the visit of the Japanese Ambassador to Indonesia to the PGE Lahendong geothermal area. The visit was intended to review one of the potential geothermal areas for the development of green hydrogen.
Pertamina NRE is the spearhead of the Pertamina group as well as the government’s strategic partner in carrying out the energy transition in Indonesia to achieve Indonesia’s net zero emission target in 2060. Pertamina NRE is committed to running a sustainable business through the application of ESG aspects according to best practices.