Pertamina NRE-TEPCO HD Consolidate Green Hydrogen and Green Ammonia Development

Tokyo, March 3, 2023 – PT Pertamina Power Indonesia (Pertamina NRE) and Tokyo Electric Power Company Holdings, Incorporated (TEPCO HD) signed a memorandum of understanding on green hydrogen and green ammonia development on Friday (3/3).

The signing was carried out by the Chief Executive Officer of Pertamina NRE, Dannif Danusaputro, and the Executive Vice President & Chief Innovation Officer (CIO) of TEPCO HD, Chikara Kojima. Witnessing the signing were the Director-General of New, Renewable Energy and Energy Conservation of the Ministry of Energy and Mineral Resources of the Republic of Indonesia, Dadan Kusdiana, and President Director of Pertamina, Nicke Widyawati. This memorandum of understanding is a follow-up to a joint study agreement (JSA) between the two on October 18, 2022, in Bali.

This memorandum of understanding covers the implementation of verification surveys, joint selection of hydrogen production areas, identification of market segments, market development, and others in Indonesia. The two will develop cost-efficient green hydrogen, ammonia production, transportation, and technology. In the commercialization stage, the priority targeted by both is the Indonesian domestic market. The medium to long term target will be the export market to Japan and other countries.

The joint study conducted by the two entities received support from NEDO, Japan's national research and development institute, which encourages technological development to build a sustainable society.

"Clean hydrogen is one of Pertamina's future businesses. We are also developing a green hydrogen pilot project in the Ulubelu geothermal area with a production target of 100 kg/day. We are excited about our collaboration with TEPCO HD and NEDO for the green hydrogen and green ammonia development. We believe this collaboration will create high value, especially in energy transition and decarbonization efforts," said Dannif Danusaputro.

Indonesia is a country with the largest geothermal potential in the world. This potential can be used electricity generation development and the production of green hydrogen and ammonia.

Pertamina NRE has a geothermal energy portfolio managed by its subsidiary, PT Pertamina Geothermal Energy, Tbk. (PGE), which has just officially listed its shares on the Indonesian stock exchange with the code PGEO. Currently, PGE manages 13 Geothermal Working Areas (WKP) with an installed capacity of 1.8 GW, of which 672 MW is operated and managed directly by PGE, and 1,205 MW is managed under the Joint Operation Contract. Geothermal installed capacity in the PGE working area contributes to around 79% of the total installed geothermal capacity in Indonesia, with a potential reduction of CO2 emissions of 9.7 million tonnes of CO2 per year.

TEPCO HD's seriousness in working with Pertamina NRE in green hydrogen and green ammonia development was also demonstrated by the visit of the Japanese Ambassador to Indonesia to the PGE Lahendong geothermal area last Sunday (26/2). The visit was intended to review one of the potential geothermal areas for green hydrogen development.

Pertamina NRE is the spearhead of the Pertamina Group and the government's strategic partner to achieve Indonesia's net zero emission target in 2060. Pertamina NRE is committed to running a sustainable business through ESG implementations according to best practices.**