Collaboration between Pertamina NRE and PJB Targets the Utilization of PLTA for Green Hydrogen

Jakarta, December 8, 2021 – PT Pertamina Power Indonesia as a subholding Power & NRE (Pertamina NRE) and PT Pembangkit Jawa Bali (PJB) signed a memorandum of understanding on cooperation in power generation management on Thursday (2/12).

The signing was carried out by the Chief Executive Officer of Pertamina NRE Dannif Danusaputro and President Director of PJB Gong Matua Hasibuan. The purpose of the memorandum of understanding is to collaborate in managing or jointly utilizing electricity infrastructure, including the potential for providing clean energy or other cooperation in the agreed cooperation area.

“There are lots of opportunities for NRE developments in Indonesia. However, the big challenge of fulfilling the energy mix target and net zero-emission in 2060, needs to be realized through active collaboration. Pertamina NRE is ready to synergize with various parties. In this case, we are very enthusiastic to collaborate with PJB," said Dannif in his speech.

Agreeing with Dannif's statement, on the same occasion Gong conveyed, "This is the first step in the synergizing process between the two companies. We want to be part of the development and implementation of new and renewable energy in Indonesia. We cannot be alone, therefore collaborating with Pertamina NRE is one step to make it happen.”

One of the opportunities that are presented through this strategic partnership is the synergy in developing the operation and maintenance of power plants, especially those within Pertamina such as refineries. Another opportunity is the synergy in clean energy supply projects both at home and abroad, such as the development of green hydrogen.

Green hydrogen is hydrogen produced from renewable energy power plants such as solar, wind, or water (hydro). Currently, Pertamina NRE through its subsidiary PT Pertamina Geothermal Energy (PGE) is conducting a green hydrogen development pilot project in the Ulubelu geothermal working area with a production target of 100 kilograms per day. In the long term, it is targeted that green hydrogen production from all geothermal working areas reach 8,600 kilograms per day.

Currently, the potential utilization of PLTA owned by PLN and its affiliates reaches around 2.7 GW spread over Sumatera of 1.1 GW, 1.3 GW in Java, and 0.34 GW in Sulawesi. The total installed capacity is approximately equal to 0.2 million tons of hydrogen per year. Meanwhile, the trend of domestic demand for clean hydrogen in 2040 is projected to reach 17 million tons per year. The demand comes from the oil processing, chemical, transportation, and power generation sectors.

Pertamina and PLN both support the energy transition and reduce carbon emissions in Indonesia. Pertamina is fully committed to increasing its clean energy portfolio by 17 percent and integrating environmental, social, and governance (ESG) aspects into its business practices. Meanwhile, PLN's commitment is realized in the General Plan for Power Plant (RUPTL) 2021 – 2030 by boosting the development of NRE power plants by 1.1 GW.**