Tokyo Electric Power Company Holdings, Incorporated (TEPCO HD) and PT Pertamina Power Indonesia (Pertamina NRE) signed a Memorandum of Understanding (MOU) on the development of green hydrogen and green ammonia today.
TEPCO HD and Pertamina NRE previously signed a joint study agreement on the development of green hydrogen and green ammonia (already announced on October 18, 2022).
This MOU states that, in addition to conducting a joint survey, joint efforts will be made on the selection of candidate sites for hydrogen production, identification of market segments, customer development, etc. in Indonesia. The country has the second-largest potential for geothermal energy in the world, and TEPCO HD and Pertamina NRE will evaluate production sites for commercialization in terms of the production and transportation efficiency of green hydrogen and green ammonia using geothermal energy, ascertain the scale of demand and identify potential needs.
TEPCO HD possesses strengths in the design and development of hydrogen production facilities and transportation and storage systems, and Pertamina NRE has expertise in surveys, facility construction and operation for geothermal power plants in Indonesia. With concluding this MOU as a start, the companies together will establish cost-competitive green hydrogen and green ammonia production, transportation, and optimal operation technologies, and create a system that can swiftly employ the knowledge obtained from the joint study in commercialization.
In their commercialization activities, TEPCO HD and Pertamina NRE will first target the domestic market in Indonesia, and in the medium- to long-term, aim to export to Japan and other countries outside of Indonesia.
On October 27, 2022, this joint study was adopted in the New Energy and Industrial Technology Development Organization’s (NEDO) “International Demonstration Project on Japan’s Energy Efficiency Technologies: Basic Study 2022 (2nd)” as a “Demonstration of hydrogen technology that utilizes surplus electricity and exhaust heat from geothermal power generation to achieve economically viable hydrogen production and transportation”.
In the NEDO demonstration study, TEPCO HD and Pertamina NRE are verifying hydrogen production technology that uses surplus electricity from geothermal power generation, and technology that reduces energy consumption using geothermal steam and waste heat. The project is scheduled to run until June 2027.
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TEPCO HD aims to contribute to a carbon-neutral society by realizing cost competitive and commercially viable hydrogen and ammonia production utilizing Indonesia’s abundant geothermal resources.
