Two subsidiaries of state-owned oil and gas company PT Pertamina (Persero), PT Pertamina Geothermal Energy Tbk (PGE) and PT Pertamina Gas (Pertagas), are collaborating to explore the development of green fuel in the form of green hydrogen and green ammonia.

This initiative is embodied in a Joint Study Agreement titled The Use of Electricity from Geothermal Energy for Beyond Energy, as part of the Pertamina Group’s synergy to support the decarbonization agenda. PT PGE Corporate Secretary, Kitty Andhora, stated that utilizing geothermal electricity for green hydrogen and ammonia production will aid industries and the transportation sector in their decarbonization efforts.

“This initiative also aligns with the government’s target to increase the renewable energy mix and strengthen national energy resilience through energy diversification, especially from renewable sources,” Kitty said in a public disclosure to the Indonesia Stock Exchange (IDX), quoted on Thursday, February 6.

Kitty explained that the collaboration between PGE and Pertagas would accelerate the development of green hydrogen and ammonia while establishing a foundation for Pertamina to create a green energy hub. Currently, there is no dominant player in the green energy sector.

As a result, Pertamina has the opportunity to become a major player in green energy due to its large-scale economy, rapid technological development, and optimization of infrastructure and supply chains. This partnership will cover various aspects, including the exchange of technical information related to operational conditions, thermal composition analysis, electrolysis, and market potential identification, along with other relevant data.

Furthermore, the two companies will collaborate on technical studies such as project feasibility evaluations and schemes for using geothermal electricity to produce green hydrogen and ammonia.

“The synergy between PGE and Pertagas will accelerate the development of geothermal energy potential as a clean energy source,” she stated.

She continued by saying that developing geothermal energy is a strategic step toward achieving national energy self-sufficiency and supporting industrial decarbonization and the energy transition within the Pertamina Group.

Kitty also emphasized that the collaboration between PGE and Pertagas in green fuel production is part of PGE's strategy to not only advance geothermal energy development upstream but also expand its downstream utilization through an integrated green industrial ecosystem.

“This initiative also serves as a diversification step for off-grid (non-electrical) products, including green hydrogen, which opens opportunities for geothermal downstream product development beyond the electricity sector,” she explained.

Kitty further elaborated that the collaboration with PGE is a move to supply green hydrogen and ammonia to both domestic and export markets, expanding the business portfolios of both companies.

Once the technical studies are completed, PGE and Pertagas will proceed with a feasibility study to examine various project aspects, including potential investments, business development schemes, resource allocation, technology selection, and implementation timelines.

“This collaboration project will be carried out in Geothermal Working Areas (GWAs) managed by PGE, focusing on locations with optimal potential to support green hydrogen and ammonia production,” she concluded.

This article is published in partnership with Katadata

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