Pertamina NRE, Keppel Infrastructure, and Chevron Sign Agreement to Explore Green Hydrogen and Green Ammonia Development Projects in Indonesia
Bali, November 11, 2022 - Pertamina Power Indonesia (Pertamina NRE), Keppel Infrastructure, through Keppel New Energy Pte. Ltd., and Chevron Corporation (NYSE: CVX), through Chevron New Energies International Pte. Ltd., has signed a Joint Study Agreement (JSA) to explore green hydrogen and green ammonia development projects, using renewable energy, which main location is in Sumatera, Indonesia.
The JSA signing was held at the Business 20 (B20) Investment Forum ahead of the B20 Summit in Bali. B20 is the official dialogue forum of the G20 representing the global business community. The JSA was signed by the CEO of Pertamina NRE, Dannif Danusaputro; Director of Keppel New Energy, Pte., Ltd., Yong-Hwee CHUA; and Director of Chevron New Energies International, Pte., Ltd. Andrew S Mingst. It was witnessed by the Coordinating Minister for Maritime Affairs and Investment, Luhut Pandjaitan; Chairman of KADIN, Arsjad Rasjid; Head of B20, Shinta Kamdani; and Head of B20 Energy, Sustainability and Climate Task Force, Nicke Widyawati.
The Joint Study Agreement intends to explore the feasibility of developing a green hydrogen facility with a production capacity of at least 40,000 tonnes per year supported by at least 250 - 400 MW of geothermal energy at an early stage. The hydrogen production facility will have the potential to be scaled up to 80,000 and 160,000 tonnes per year, depending on the geothermal energy availability as well as market demand.
The JSA will combine the complementary strengths of Pertamina NRE, as the largest energy company in Indonesia and Keppel Infrastructure as a leading energy infrastructure solutions provider based in Singapore with a strong track record in developing and operating large-scale energy and environmental infrastructure projects, and Chevron, a multinational energy company committed to providing affordable, reliable and clean energy.
According to a report by the International Energy Agency (IEA), Indonesia, a country with the fourth largest population density in the world, has a good plan to achieving net zero emissions by 2060. Hydrogen and ammonia have been identified as low-carbon fuels, which are an important part of this plan. Ammonia can also be utilized to transport hydrogen and has the potential to replace bunker fuel as a low-carbon solution in the global maritime industry.
Indonesia, which has about 40 percent of the world's geothermal resource potential, has the opportunity to utilize geothermal energy as a reliable and stable energy source to produce green ammonia or green hydrogen.
The CEO of Pertamina NRE, Dannif Danusaputro, said, “Green hydrogen and green ammonia development has an important role in Indonesia's Net Zero Emissions roadmap. With this potential, we believe Indonesia will also play a key role in green hydrogen production in Asia. We are excited about this strategic collaboration because we believe that Keppel and Chevron are leading companies with the same energy transition vision as we do.”
Cindy Lim, CEO of Keppel Infrastructure, said, “Indonesia is a country with large resources with a very high potential for renewable energy and low carbon. We are pleased to work with industry leaders, Pertamina and Chevron, to explore geothermal and other renewable energy's prime usage to develop green hydrogen and green ammonia projects, support Indonesia's energy transition efforts, and support investment in renewable energy supply chains in the region. This follows Keppel's 2030 vision, which places sustainability as its strategy's core, this collaboration will expand Keppel Infrastructure's geographic track record in creating and capturing added value from its global commitment to achieving net zero and its energy transition.”
Austin Knight, Vice President of Hydrogen, Chevron New Energies, said, “We have a long history of operating in Indonesia and working closely with Pertamina, and have a close working relationship with Keppel Infrastructure. We look forward to leveraging this shared expertise to study and evaluate low-carbon business opportunities in the region. Chevron's strengths have always been in solving large and complex energy problems and building a low-carbon future into business opportunities that motivate us. As part of this effort, we must work together to find new and innovative ways to continue to produce and deliver cleaner energy for a growing world.”
Keppel Corporation Limited, the parent company of Keppel Infrastructure, does not expect the developments mentioned above to have a material impact on Keppel Corporation's earnings per share and net tangible assets per share for the current fiscal year.**