The state-backed company plans to use anion exchange membrane (AEM) electrolysis technology with efficiencies of 82-88% to produce green hydrogen. PGE has not disclosed either the chosen electrolyser supplier or the expected commissioning date.

Using geothermal energy to produce green hydrogen provides a flexible offtake for its baseload electricity, creating value beyond traditional power sales.

Julfi Hadi, the company’s President Director, confirmed plans to generate green ammonia and green methanol too, opening up new revenue streams beyond selling power to the grid.

“Through this step, PGE emphasises business transformation towards beyond electricity and beyond business, making geothermal the foundation of the clean energy supply chain and strengthening national energy sustainability,” the company stated.

Hadi added, “We want to make Ulubelu an innovation centre that can be replicated in other geothermal regions, as well as open up utilisation opportunities for low-carbon transportation and industry.”

Indonesia aims to meet Net Zero emissions by 2060.

Hydrogen, CCUS and other low-carbon technologies are central to the country’s targets, with analysts highlighting growth in renewables and green hydrogen. Last year, the government announced plans to invest over $25bn into the green hydrogen sector.

Fadjar Djoko Santoso, Pertamina’s Vice-President of Corporate Communication, called the Ulubelu project an “important contribution” to the Net Zero 2060 target.