State energy company PT Pertamina Geothermal Energy (PGE) is aiming to begin production from its small-scale green hydrogen pilot project in Ulubelu, Lampung, by the end of 2026, an initiative meant to diversify its geothermal-based products.
PGE President Director Ahmad Yani said the green hydrogen facility is designed as a non-commercial project with a production capacity of 80–100 kilograms per day. The investment value is estimated at around US$3 million (approximately Rp50.35 billion).
“It is targeted to operate in the fourth quarter of 2026 with a three-year trial period,” Ahmad said during the inauguration of a green terminal project in Cilegon, Banten, on Wednesday, February 11, 2026.
He cited that the trial phase will serve as proof of concept to assess operational feasibility. The project utilizes Anion Exchange Membrane (AEM) electrolyzer technology and is expected to become the world’s first hydrogen production facility powered by geothermal energy.
The green hydrogen development is designed to integrate with Pertamina Group’s broader ecosystem, including potential use in the mobility sector through Green Hydrogen Refueling Stations, industrial applications, and fuel cell generators as a more environmentally friendly alternative to diesel.
“This year, fuel cells will be included in our future business plan under the Indonesian Standard Industrial Classification (KBLI),” Ahmad said.
PGE, a geothermal energy subholding of State energy giant Pertamina, currently operates 15 geothermal working areas with a combined installed capacity of nearly 2,000 megawatts. Geothermal energy’s advantage as a stable, reliable baseload renewable source that can operate 24 hours a day makes it highly suitable for sustainable green hydrogen production, he added.
Meanwhile, Pertamina is targeting car manufacturer Toyota Indonesia as an offtaker for the hydrogen produced from the Ulubelu pilot project. Pertamina Vice President Director Oki Muraza said the company is exploring cooperation with Toyota, which operates a manufacturing plant in Karawang.
“We are currently exploring collaboration with Toyota. Hopefully, there will be a major geothermal event where we can sign the agreement,” Oki said at the Katadata Sustainability Action for the Future Economy (SAFE) 2025 forum in Jakarta on September 10, 2025.
Pertamina expects Toyota Indonesia to purchase around 20 kilograms of green hydrogen per day, while a Pertamina subsidiary is projected to absorb another 50 kilograms daily.
The hydrogen will be produced using Indonesia’s geothermal resources, which hold an estimated potential of 24–26 gigawatts, of which less than 10 percent has been utilized.
“In Indonesia, we have identified potential hydrogen clusters in Sumatra, Sulawesi, and Java. While we continue developing the technology and production costs remain high, exports could also become an option,” Oki said.
