Geothermal power producer PT Pertamina Geothermal Energy Tbk (PGE) and gas distribution company PT Pertamina Gas (Pertagas), subsidiaries of state-owned PT Pertamina, have signed a joint study agreement to explore the production of green hydrogen and ammonia using geothermal energy.
The partnership, signed on Wednesday, aims to support Indonesia’s push for cleaner energy and decarbonization across key industries. The study will use PGE’s geothermal power capacity to produce clean electricity that will be converted into green hydrogen and ammonia, according to a statement issued by PGE.
PGE’s geothermal plants, which generate significant amounts of clean energy, will serve as the foundation for the project, while Pertagas, with its extensive gas transmission infrastructure, will assist in storage and distribution logistics for the green fuels.
Read also : PGEO eyes green hydrogen opportunities in Japan
The project aligns with Indonesia's goals of expanding renewable energy sources and reducing reliance on fossil fuels. The partnership could help decarbonize sectors such as transportation and industry, which are major contributors to the nation’s carbon footprint.
The collaboration is part of a broader strategy by Pertamina Group to enhance its green energy portfolio. The companies are set to conduct technical studies on feasibility, resource allocation, and the potential for green hydrogen production, with plans for future investment in the sector.
Once the joint study is completed, the companies will move on to assess project feasibility, technology selection, and the overall business model.
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Editing by Reiner Simanjuntak
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