PGE: Power-leaping Indonesia into the global hydrogen market with geothermal

Jakarta – PT Pertamina Geothermal Energy Tbk (PGEO) highlighted the abundance of geothermal reserves that can propel Indonesia to become a significant player in the global hydrogen business.

PGEO President Director Julfi Hadi said the government should provide extra support to boost hydrogen utilisation, including transferring subsidy allocations from fossil energy to facilitate green hydrogen production, tax breaks, and price subsidies.

“By optimising geothermal potential outside Java and Sumatra, green hydrogen production can become more economical, especially since electricity transportation costs are a major consideration in hydrogen development,” Julfi said in an early April DETalk webinar session themed Status and Trends of Hydrogen Economy: Indonesia Perspectives and Experience.

In addition, he said regulatory support, including export regulations and production standards, is also necessary.

Currently, PGE is in the pilot project stage of green hydrogen development. The company is exploring various partnerships to find a hydrogen market. In collaboration with several companies, including Keppel, Chevron, and Japan’s Tepco, PGE hopes to produce up to 320 tons of hydrogen per day, equivalent to 110 ktpa (kilotons per annum).

PGE can achieve the target, provided its geothermal production capacity is more than 1.5 gigawatts (GW) within 5 to 10 years. PGE’s geothermal capacity today has reached 672 megawatts (MW).

According to Chrisnawan Anditya, Head of the Center for Data and Information Technology (Pusdatin) Ministry of Energy and Mineral Resources (EMR), the government has set a specific roadmap to develop the domestic hydrogen market.

He said that the industrial sector still dominates the use of hydrogen in Indonesia, especially as a raw material for fertilizers. However, the government also plans to use hydrogen in transportation, including buses, heavy transport vehicles, and railways. (Hartatik)

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