Indonesia’s Pertamina, Chevron of the US and Singapore’s Keppel have signed a joint study agreement to explore the development of selected green hydrogen and green ammonia projects using renewable energy, located primarily on the island of Sumatra, Indonesia.

The JSA intends to evaluate the feasibility of developing a green hydrogen facility, with production capacity of at least 40,000 tonnes per annum, powered by 250 to 400 megawatts of geothermal energy in the initial phase. The hydrogen production facility could have the potential to scale up to 80,000 to 160,000 tpa, depending on the availability of geothermal energy as well as market demand.

Dannif Danusaputro, chief executive of Pertamina Power & New Renewable Energy, said: “The development of green hydrogen and green ammonia holds a significant role in Indonesia’s net zero Emissions roadmap. And with its potential, we believe that Indonesia will also play a key role in green hydrogen production in Asia. We are very excited with this strategic collaboration as we know that Keppel and Chevron are reputable companies and have the same vision in energy transition as we do.”

Indonesia accounts for approximately 40% of global geothermal resources, providing opportunities to utilise geothermal energy as a reliable and stable energy source to produce green ammonia or hydrogen.

Vast resources, enormous potential

“Indonesia is a country with vast resources and enormous potential for renewable and low-carbon energy. We are happy to partner with industry leaders, Pertamina and Chevron, to explore the first of its kind use of geothermal and other renewable energy to develop green hydrogen and green ammonia projects and support Indonesia’s energy transition efforts, as well as catalyse investments in green energy supply chain in the regions,” said Keppel Infrastructure chief executive Cindy Lim.

According to an International Energy Agency report, Indonesia - the world’s fourth most populous country - has a viable path to reaching its target of net zero emissions by 2060. Hydrogen and ammonia are expected to be important lower-carbon fuels as part of this roadmap. Ammonia can also be used to transport hydrogen and potentially be used to replace bunker fuels as a lower-carbon solution in the global maritime industry.

The JSA aims to draw on the complementary strengths of Pertamina - Indonesia’s national energy company; Keppel Infrastructure, that has expertise in developing and operating large scale energy and environmental infrastructure projects; and US supermajor Chevron.

The agreement was signed on Friday at the Business 20 (B20) Investment Forum held in conjunction with the B20 Summit in Bali, Indonesia. B20 is an official G20 engagement group that represents the global business community.

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