Accelerating Innovation and Optimizing Green Hydrogen Economics, PGE and Pertamina NRE Partner with Genvia

Jakarta, October 1, 2024 – PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) is committed to optimizing geothermal energy utilization, one of which is by accelerating the commercial-scale production of green hydrogen. This commitment is realized through PGE's initiative to conduct a green hydrogen pilot project at the Ulubelu PGE Area, aiming to create new revenue streams beyond the electricity sector.

To accelerate the development and improve the green hydrogen economy using geothermal electricity, it is crucial to reduce the Levelized Cost of Green Hydrogen (LCOGH) by selecting the appropriate technology in the green hydrogen production chain. One of the strategic steps recently taken by PGE is the signing of a Memorandum of Understanding (MoU) with PT Pertamina Power Indonesia (Pertamina New & Renewable Energy/Pertamina NRE) and Genvia—a French company focused on Solid Oxide Electrolyzer (SOEL) electrolysis research, which can reduce electricity use in the hydrogen production process by up to 30%.

The MoU was signed by the President Director of Pertamina NRE, John Anis, President Director of PGE, Julfi Hadi, and the President Director of Genvia, Florence Lambert, at the Indonesia-France Business Forum in Paris, France (26/9). Also present at the forum was the Indonesian Ambassador Extraordinary and Plenipotentiary of France, Andorra, Monaco, and the Permanent Delegate of Indonesia of UNESCO, Mohamad Oemar.

This MoU outlines the collaboration between Pertamina NRE, PGE, and Genvia for a joint study on low-carbon hydrogen development by integrating Genvia’s SOEL technology with PGE's geothermal combined heat and power (CHP) plants.

The low-carbon hydrogen development study stems from an agreement between Pertamina NRE and Genvia in July 2024 for initial research for geothermal energy integration with SOEL technology. The result of the technology implementation study will be applied at one of PGE's Geothermal Working Areas (WKP). This technology scheme is expected to become a model for a competitive geothermal-based green hydrogen business economy in the market.

Julfi Hadi appreciated this partnership as a form of synergy and commitment from the Pertamina Group and Genvia, which provides strategic value and marks PGE's entry into the global green energy market. "This partnership is a concrete step in strengthening cross-country collaboration to advance green energy development and adoption. The strategic value of green hydrogen development creates new revenue sources while serving as an initiative to non-conventional utilize Indonesia's abundant geothermal potential," Julfi Hadi said.

John Anis added that this collaboration enhances Pertamina Group's best practices portfolio in green energy production and strengthens global decarbonization efforts. "We at Pertamina are very excited about this partnership with Genvia, which we believe will accelerate green hydrogen development in Indonesia. This collaboration reaffirms our commitment to exploring innovative solutions for efficient hydrogen production and maximizing Indonesia's green energy potential, such as geothermal," said John Anis.

Genvia is a public-private joint venture formed by several leading companies and organizations, including CEA (the French Alternative Energies and Atomic Energy Commission), Schlumberger, Vinci Construction, Vicat, and the Occitanie regional government in France, to accelerate the development of clean hydrogen technology.

Vice President of Corporate Communication at Pertamina, Fadjar Djoko Santoso, said that Pertamina has 15 geothermal working areas, making it the most prepared to develop green hydrogen as a future business in Indonesia.

"Green hydrogen development is part of Pertamina's commitment to reducing emissions and supporting the government's target of achieving NZE by 2060 or sooner," Fadjar said.

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.