PT Pertamina Geothermal Energy Tbk (PGE) continues to refine its strategic steps in clean energy development by preparing a green hydrogen pilot project at the Ulubelu Geothermal Field, Lampung. This eco-friendly facility is targeted to start commercial operations (Commercial Operation Date/COD) in November 2026 with an initial production capacity of 100 kilograms per day.
This step is part of the company's efforts to build the foundation of a green hydrogen ecosystem in the country. The project also serves as concrete proof of utilizing Indonesia's geothermal potential beyond the conventional power generation sector to support future low-carbon energy needs.
President Director of PGE, Ahmad Yani, explained that the project in Lampung is designed as a primary foundation for the development of geothermal-based hydrogen business. Through this initiative, the company is committed to transforming the pilot project into a commercially viable business unit within the next two to three years as the domestic market matures.
Indonesia's geothermal potential, which reaches 24 gigawatts (GW), is considered a strong asset for Indonesia to lead the industry. Referring to the national hydrogen blueprint from the Ministry of Energy and Mineral Resources, demand for this alternative energy is projected to surge significantly in the next decade, in line with global market growth.
PGE Director of Operations, Andi Joko Nugroho, revealed that this project is part of the company's business diversification strategy into off-grid energy markets. In addition, green hydrogen is also prepared to support the needs of modern industrial sectors that demand low emissions, such as data center operations.
Although green hydrogen is currently economically uncompetitive with fossil-based hydrogen (grey hydrogen), PGE has chosen to build technological capabilities early. This anticipatory step is taken so that the company is ready to meet market demands when global energy transition regulations are fully implemented.
In the initial phase, the hydrogen supply from Ulubelu will be channeled for the internal needs of the Pertamina Group, including the Plaju Refinery and the Tanjung Sekong LNG Terminal. In addition, PGE has partnered with Toyota to supply approximately 20 kilograms of hydrogen per day to support the automotive manufacturer's operational needs, while also serving as a research platform for safety aspects and the hydrogen supply chain.
