Pertamina NRE, Keppel, And Chevron Cooperation Exploration Of Green Hydrogen Development In Sumatra

JAKARTA - Pertamina Power Indonesia (Pertamina NRE), Kepel Infrastructure and Chevron Corporation have signed a joint study agreement (JSA) to explore certain green hydrogen and green ammonia development projects using renewable energy with the main location in Sumatra.

Pertamina NRE CEO Dannif Danusaputro in a written statement in Denpasar, Saturday, November 12, said the development of green hydrogen and green ammonia has an important role in Indonesia's Net Zero Emissions (zero emissions) roadmap.

"With this potential, we believe that Indonesia will also play a key role in the production of green hydrogen in Asia," he said, quoted from Antara.

He is very enthusiastic about this strategic collaboration and believes that Keppel and Chevron are leading companies that have the same vision in the energy transition as Pertamina RNE.

The signing of a joint study agreement (JSA) between Pertamina Power Indonesia (Pertamina NRE), Kepel Infrastructure, through Kepel New Energy Pte. Ltd, and Chevron Corporation (NYSE: CVX), through Chevron New Energies International Pte. Ltd was conducted in Business 20 (B20) Investment Forum in Nusa Dua, Badung, Bali.

The JSA was signed by Pertamina NRE CEO Dannif Danusaputro, Kepel New Energy Director, Pte, Ltd Yong-Hwee CHUA and Chevron New Energies International Director, Pte, Ltd Andrew S Mingst.

The event was witnessed by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan and the Minister of Investment of Indonesia as well as the Head of BKPM Bahlil Lahadalia.

In addition, witnessed by the President Director & CEO of PT Pertamina (Persero) as well as the Head of the B20 Energy, Sustainability and Climate Task Force, Nicke Widyawati and the CEO of the Kepel Infrastructure, Cindy Lim.

The joint study agreement intends to explore the feasibility of developing green hydrogen facilities, with a production capacity of at least 40,000 tons per year supported by at least 250 - 400 MW of geothermal energy in the early stages.

Hydrogen production facilities will have the potential to be increased to 80,000 and 160,000 tonnes per year which depend on geothermal energy availability and market demand.

According to a report by the International Energy Agency (IEA), Indonesia, which is the fourth largest population density country in the world, has good plans to achieve net zero emissions by 2060.

Hydrogen and ammonia have been identified as low-carbon fuels which are an important part of this planning.

Amonia can also be used to transport hydrogen and has the potential to replace shipping fuel oil (fuel bunker) as a low-carbon solution in the global maritime industry.

"Indonesia, which has about 40 percent of the world's potential geothermal resources, has opportunities in utilizing geothermal energy as a reliable and stable energy source to produce green ammonia or green hydrogen," said Dannif.

Cindy Lim, CEO of Kepel Infrastructure, said Indonesia is a country with large resources that has very high potential for renewable energy and low carbon.

"We are pleased to be working with industry leaders, Pertamina and Chevron to explore the initial use of geothermal energy and other renewable energy to develop green hydrogen and green ammonia projects," he said.

In addition, it supports efforts to transition Indonesia's energy, and supports investment in the renewable energy supply chain.

Austin Knight, Vice President of Hydrogen, Chevron New Energies hopes to leverage this shared expertise to study and evaluate low-carbon business opportunities in the Indonesian region.

" Chevron's strength is always in terms of solving large and complex energy problems, and building a low-carbon future into opportunities that motivate us," he said.

As a form of these efforts, he continued, must work together to find innovative new ways so that they can continue to produce and deliver cleaner energy for the world that continues to grow.