Pertamina, Keppel Infrastructure, and Chevron Sign Agreement to Explore Green Hydrogen and Ammonia Projects

Published on: 11 November 2022
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Pertamina Power Indonesia (Pertamina NRE), Keppel Infrastructure, through Keppel New Energy Pte. Ltd., and Chevron Corporation, through Chevron New Energies International Pte. Ltd. (Chevron New Energies), have signed a Joint Study Agreement (JSA) to explore developing selected green hydrogen and green ammonia projects using renewable energy, mostly in Sumatera, Indonesia.

The JSA wants to see if it is possible to build a green hydrogen plant that can make at least 40,000 tonnes of hydrogen per year and is powered by 250–400 megawatts of geothermal energy in the first phase.

The hydrogen production facility could have the potential to scale up to 80,000–160,000 tonnes per annum, depending on the availability of geothermal energy as well as market demands.

The JSA aims to use the strengths of Pertamina, Indonesia's largest energy company; Keppel Infrastructure, a leading Singapore-based energy infrastructure solutions provider with a track record of developing and operating large-scale energy and environmental infrastructure projects; and Chevron, a multinational energy company that is committed to providing affordable, reliable, and cleaner energy.

According to an International Energy Agency report, Indonesia, the world's fourth most populous country, has a viable path to achieving its net zero emissions objective by 2060. As part of this strategy, hydrogen and ammonia are expected to be key low-carbon fuels. Ammonia can also be used to transport hydrogen, and it could be used as a lower-carbon alternative to bunker fuels in the global maritime industry.

Indonesia has about 40% of the world's geothermal resources. This means that geothermal energy could be used as a reliable and stable energy source to make green ammonia or hydrogen.

Dannif Danusaputro, CEO of Pertamina NRE, 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 about this strategic collaboration because we know Keppel and Chevron are trustworthy companies that share our vision for the energy transition."

Ms. Cindy Lim, CEO of Keppel Infrastructure, said:

“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 catalyze investments in green energy supply chain in the regions. In line with Keppel’s Vision 2030, which places sustainability at the core of its strategy, this collaboration will broaden Keppel Infrastructure’s geographical footprints to create and capture more value arising from the global commitment to net zero and its energy transition.”

Austin Knight, vice president of Hydrogen, Chevron New Energies, said:

“We have a long history of working in Indonesia and with Pertamina and a growing relationship with Keppel Infrastructure. We look forward to leveraging our collective strengths to study and evaluate lower carbon opportunities for the region. Chevron’s strength has always been solving big, complex energy challenges, and creating a lower-carbon future is the opportunity that motivates us. As part of this effort, we must work together to identify new, innovative ways of producing and delivering ever-cleaner energy to a growing world.”

Source: Chevron

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