PT Pertamina Geothermal Energy Tbk (PGEO) and PT Toyota Motor Manufacturing Indonesia (TMMIN) have signed a joint declaration to develop a domestic green hydrogen ecosystem, leveraging Indonesia's vast geothermal reserves. The agreement was signed on September 17 and announced on September 24, marking a strategic move to accelerate the adoption of clean energy in support of the country's Net Zero Emissions 2060 target.

Strategic Partnership Details

The collaboration represents a continuation of earlier renewable energy efforts between the two companies, including work on palm-based biodiesel, lubricants, and bioethanol. This new initiative expands PGE's “beyond-electricity” strategy by utilizing geothermal heat not only for power generation but also for producing hydrogen through energy-efficient electrolysis.

“Although the economic aspect remains a challenge, PGE is optimistic that green hydrogen can be a solution for clean energy if supported by the right ecosystem and business model,” said PGEO President Director Julfi Hadi. The partnership positions Indonesia to establish a homegrown hydrogen supply chain tied directly to its vehicle and energy sectors.

Geothermal Technology Integration

TMMIN Technical Director Widjanarko emphasized the importance of diversified energy sources for Indonesia's future. “Indonesia needs a variety of energy sources, ranging from affordable to premium, with low emissions. Geothermal heat can be one of the pillars of clean energy in the future,” Widjanarko stated. The initiative builds on PGE's existing infrastructure and expertise in geothermal energy production.

By utilizing geothermal heat for hydrogen production through electrolysis, the partnership aims to create an energy-efficient process that goes beyond traditional electricity generation applications.

Production Targets and Timeline

This initiative builds on PGE's Ulubelu Green Hydrogen Pilot Project, launched earlier in September, which serves as both a production facility and a learning center for clean hydrogen. PGE is targeting 300MW of geothermal capacity to support green hydrogen production and aims to scale the ecosystem over the next five years. Julfi emphasized the need for “new breakthroughs” to accelerate green hydrogen development, citing long-term environmental benefits and industrial relevance.

Economic and Environmental Considerations

While acknowledging that economic aspects remain challenging, PGEO leadership expressed optimism about green hydrogen's potential as a clean energy solution. The success of the initiative depends on developing the right ecosystem and business model to support sustainable hydrogen production and distribution. The partnership aligns with Indonesia's broader environmental goals, particularly the Net Zero Emissions 2060 target.

By combining Toyota's automotive expertise with Pertamina's geothermal energy capabilities, the collaboration aims to create a comprehensive approach to clean energy adoption that addresses both transportation and industrial energy needs. The five-year scaling timeline suggests a measured approach to expanding the green hydrogen ecosystem, allowing for gradual development of infrastructure and market demand while building on lessons learned from the pilot project.

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