PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) and PT Pertamina Gas (Pertagas) collaborate in a study on the development of green fuels. This initiative is realized in a Joint Study Agreement entitled "Using Geothermal Electricity for Beyond Energy," which is part of the Pertamina Group's synergy in supporting the decarbonization agenda.
The signing of the Joint Study Agreement was attended by the Director of Portfolio Strategy and Business Development of PT Pertamina (Persero), A. Salyadi Saputra, Director of Strategy and Business Development of PT Perusahaan Gas Negara (PGN) Rosa Permata Sari, Director of Projects and Operations of Pertamina New & Renewable Energy (Pertamina NRE) Norman Ginting, as well as the President Director and Board of Directors of PGE and Pertagas which took place at Grha Pertamina on Wednesday (05/02).
PGE, with its large capacity of geothermal power plants, is able to provide low-emission electricity that supports the production of green hydrogen and green ammonia which can be utilized in various sectors, especially for industry and transportation.
Meanwhile, Pertagas as a national energy distribution infrastructure company, which manages 2,930 km of the longest gas transmission pipeline in Indonesia, has expertise in managing energy infrastructure that can be utilized for the storage and distribution of both green fuels.
Utilizing electricity from geothermal energy in the production of green hydrogen and green ammonia will help industry and the transportation sector in decarbonization efforts. This initiative is also in line with the government's target of increasing the renewable energy mix and strengthening national energy security through diversification of energy sources, especially from renewable energy.
Director of Portfolio Strategy and Business Development of PT Pertamina (Persero), A. Salyadi Saputra stated, "The collaboration between PGE and Pertagas will accelerate the development of green hydrogen and green ammonia and become a foundation for Pertamina in building a green energy hub. Currently, there is no dominant player in green energy. By carrying the mandate to realize energy security and industrial downstreaming, Pertamina has the opportunity to become a major player in green energy, not only because of its economic scale, but also through the economics of speed approach—speed in technology development and optimization of infrastructure and supply chains."
This energy cooperation covers various aspects, including the exchange of technical information covering analysis of operating conditions, thermal composition, electrolysis, as well as identification of market potential and other related data. In addition, the two companies will collaborate in conducting technical studies such as project feasibility evaluation and identification of geothermal electricity usage schemes to produce green hydrogen and green ammonia.
PGE President Director Julfi Hadi stated, “The synergy between PGE and Pertagas will accelerate the development of geothermal energy potential as a clean energy source. The development of geothermal energy is a strategic step in realizing national energy self-sufficiency and supporting industrial decarbonization efforts and energy transition in the Pertamina Group. This is in line with PGE's commitment as a leader in the geothermal industry and Pertagas' role in opening horizons in various new business opportunities to support Pertamina in becoming a green energy giant.”
The collaboration between PGE and Pertagas in green fuel production is part of PGE's strategy to not only develop geothermal energy in the upstream sector, but also expand its utilization downstream through the development of an integrated green industrial ecosystem including green hydrogen.
Meanwhile, Pertagas President Director Gamal Imam Santoso added, "As part of the Pertamina Group, Pertagas is ready to contribute to the development of infrastructure that supports the green energy ecosystem. This collaboration with PGE is an important step to start efforts to supply green hydrogen and green ammonia to the domestic and export markets." Gamal also emphasized that this step will further expand the business portfolio of both companies.
After the technical study is completed, PGE and Pertagas will proceed to a feasibility study to review various aspects of the project, including investment potential and business scheme development, resource allocation and selection of the right technology, and implementation timeline. This collaboration project will be implemented in the Geothermal Working Area (WKP) managed by PGE, considering locations that have optimal potential to support the production of green hydrogen and green ammonia.
With this synergy, Pertagas and PGE are further strengthening the role of the Pertamina Group in supporting the national energy transition agenda and contributing to achieving the zero emission target by 2060.
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