Jakarta – PT Pertamina Geothermal Energy (PGE) and PT Pertamina Gas (Pertagas) are conducting a technical study to convert electricity generated from geothermal energy into green hydrogen and green ammonia. Pertamina Group initiated this strategic initiative to build a green energy hub and support the decarbonisation of the industrial and transportation sectors, according to the state-owned company in a press release on Monday, February 10.
The technical study was agreed through a Joint Study Agreement signed at Grha Pertamina on Wednesday, February 5, and titled “Use of Geothermal Electricity for Beyond Energy”.
Pertamina Director of Portfolio Strategy and Business Development, A Salyadi Saputra, said the collaboration between PGE and Pertagas is a strategic leap to integrate geothermal potential into green fuel production.
“We are targeting the use of geothermal electricity to produce green hydrogen that can meet industrial needs while processing it into green ammonia as an alternative fuel for transportation and other applications,” Salyadi said.
PGE President Director Julfi Hadi added that the main advantages of geothermal utilisation are stable energy availability and very low emissions. “Indonesia’s geothermal potential is huge, and with the right electrolysis technology, we believe we can produce green hydrogen at a competitive cost. This is an important step in supporting the national energy transition target and achieving net-zero emissions by 2060,” he said.
Meanwhile, Pertagas President Director Gamal Imam Santoso emphasised the vital role of gas infrastructure managed by his company. “With a pipeline network of 2,930 km, Pertagas is ready to support the distribution of green hydrogen and green ammonia to domestic and export markets. We will work with strategic partners to develop an efficient storage and delivery system so that the industrial and transportation sectors can immediately access the production from this project,” Gamal said.
The study includes an analysis of the technical feasibility of producing green hydrogen and green ammonia from geothermal electricity, including an evaluation of thermal composition, potential use of electrolysis, and market studies for both products. This cooperative project is planned to be conducted in the Geothermal Working Areas (WKP) managed by PGE, which are estimated to have optimal potential to support production on an industrial scale.
This green hydrogen and green ammonia development initiative aligns with the government’s target to strengthen the renewable energy mix and reduce dependence on fossil fuels. In addition, this step also supports the decarbonisation agenda that aims to achieve zero carbon emissions by 2060.
With the economics of speed approach – that is, accelerating technology development and optimising infrastructure – Pertamina Group’s ambition is to become a major player in green energy at the global level. “This collaboration not only strengthens our clean energy portfolio but also opens up new opportunities to develop an integrated green industry ecosystem. We hope this initiative can be a catalyst in accelerating the national energy transition,” Salyadi concluded. (Hartatik)
