Going green: Pertamina’s vision for hydrogen production in Indonesia

Indonesian Pertamina, American Chevron and Singaporean Keppel have signed a joint study agreement to explore the development of selected green hydrogen and green ammonia projects using renewable energy, located mainly on the island of Sumatra , in Indonesia.

The JSA intends to assess the feasibility of developing a green hydrogen facility, with a production capacity of at least 40,000 tons per year, powered by 250 to 400 megawatts of geothermal energy in the initial phase. The hydrogen production facility could have the potential to scale up to 80,000 to 160,000 tpa, depending on the availability of geothermal energy as well as market demand.

Dannif Danusaputro, Managing Director of Pertamina Power & New Renewable Energy, said, “The development of green hydrogen and green ammonia plays an important role in Indonesia’s net zero emissions roadmap. And with its potential, we believe that Indonesia will also play a key role in the production of green hydrogen in Asia. We are very happy with this strategic collaboration because we know that Keppel and Chevron are reputable companies and have the same vision as us when it comes to energy transition.

Indonesia accounts for about 40% of the world’s geothermal resources, providing opportunities to use geothermal energy as a reliable and stable source of energy to produce green ammonia or hydrogen.

Vast resources, enormous potential

“Indonesia is a country with vast resources and enormous potential for renewable and low-carbon energy. We are pleased to partner with industry leaders, Pertamina and Chevron, to explore first-of-its-kind use of geothermal and other renewable energy to develop green hydrogen and green ammonia projects and support Indonesia’s energy transition efforts, as well as catalyze investments in green energy. supply chain in the regions,” said Cindy Lim, Managing Director of Keppel Infrastructure.

According to a report by the International Energy Agency, Indonesia – the world’s fourth most populous country – has a viable path to reaching its goal of net zero emissions by 2060. Hydrogen and ammonia should be important low-carbon fuels under this roadmap. Ammonia can also be used to transport hydrogen and potentially be used to replace bunker fuels as a low carbon solution in the global marine industry.

The JSA aims to build on the complementary strengths of Pertamina – the Indonesian national energy company; Keppel Infrastructure, which has expertise in the development and operation of large-scale energy and environmental infrastructure projects; and US supermajor Chevron.

The agreement was signed on Friday at the Business 20 (B20) Investment Forum co-hosted with the B20 Summit in Bali, Indonesia. B20 is an official G20 engagement group representing the global business community.

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