Pertamina NRE - TEPCO HD Sign Joint Development Agreement for Low Carbon Hydrogen and Ammonia

Tokyo, December 16, 2023 – Pertamina New & Renewable Energy (Pertamina NRE) and Tokyo Electric Power Company Holdings, Incorporated (TEPCO HD) have signed a joint development agreement for low-carbon hydrogen and ammonia. The signing took place on Friday (15/12) in Tokyo, Japan, by Dannif Danusaputro, Chief Executive Officer of Pertamina NRE, and Chikara Kojima, Executive Vice President of TEPCO HD. This signing coincided with the Asia Zero Emission Community (AZEC) event.

This agreement outlines the structure and timeline for collaborative activities to be further executed, establishing that Pertamina NRE and TEPCO HD will collaborate on the first-phase project, scheduled to run in 2024. Pertamina NRE and TEPCO HD are preparing for hydrogen production facility construction located at the Lahendong geothermal power plant owned by PT Pertamina Geothermal Energy, Tbk, a subsidiary of Pertamina NRE located in North Sulawesi.

Previously, on October 18, 2022, Pertamina NRE and TEPCO HD signed a joint study agreement for green hydrogen and ammonia development in the Lahendong geothermal area, North Sulawesi. The joint study conducted by both entities received support from NEDO, the Japanese national research and development agency that promotes technological advancements to foster sustainable societal development.

"Clean hydrogen is one of Pertamina's future businesses. We are enthusiastic about collaborating with TEPCO as a globally reputed partner for green hydrogen and green ammonia development. We believe this cooperation will create significant value, especially in energy transition and decarbonization efforts," said Dannif Danusaputro.

Chikara Kojima, Executive Vice President of TEPCO HD, mentioned, "TEPCO HD has been producing hydrogen in Yamanashi Prefecture since 2016, utilizing cutting-edge technological expertise. We are delighted that our technology can contribute to decarbonization initiatives in Indonesia, particularly collaborating with Pertamina NRE, a leading green energy company in Southeast Asia.

In this context, hydrogen is produced through the electrolysis process. Clean hydrogen includes green hydrogen based on renewable energy sources such as geothermal power. Clean hydrogen plays a strategic role in energy transition, as it can serve as a fossil fuel alternative for industries facing challenges in decarbonizing their products or production processes (hard-to-abate industries), such as oil refineries, steel industries, other heavy industries, and heavy transportation.

Pertamina NRE and TEPCO HD aim to contribute to a carbon-neutral society by leveraging Indonesia's abundant geothermal resources for cost-effective and beneficial hydrogen and ammonia production.

Clean hydrogen development is among Pertamina NRE's portfolios, encompassing the future business pillar. Clean hydrogen development will assist Pertamina in monetizing its energy portfolio. Pertamina NRE consistently demonstrates its commitment and tangible actions in supporting decarbonization. Decarbonization efforts are part of the net zero emission roadmap and signify Pertamina's commitment to implementing ESG and conducting responsible and sustainable business practices.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**