State energy firm PT Pertamina Geothermal Energy (PGE) plans to start production from a small-scale green hydrogen pilot project in Ulubelu, Lampung, by the end of 2026. The initiative aims to expand the company’s portfolio of geothermal-based products.
PGE President Director Ahmad Yani said the project is designed as a non-commercial trial, with a production capacity of 80–100 kilograms of hydrogen per day. The estimated investment is around US$3 million (approximately Rp50.35 billion).
“The facility is expected to begin operations in the fourth quarter of 2026 and will undergo a three-year trial period,” Ahmad said during the inauguration of a green terminal project in Cilegon, Banten, on Wednesday, February 11, 2026.
The pilot will test the feasibility of producing green hydrogen using Anion Exchange Membrane (AEM) electrolyzer technology. If successful, it could become the world’s first hydrogen production facility powered entirely by geothermal energy.
The project is designed to integrate with Pertamina Group’s broader energy ecosystem. Potential uses include green hydrogen refueling stations for vehicles, industrial applications, and fuel cell generators as an 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 added.
PGE, a geothermal subholding of state-owned energy giant Pertamina, operates 15 geothermal areas with a total installed capacity of nearly 2,000 megawatts. Ahmad noted that geothermal energy’s reliability and ability to provide a continuous power supply make it well-suited for sustainable hydrogen production.
Pertamina is also looking to secure Toyota Indonesia as a customer for the hydrogen produced at Ulubelu. Vice President Director Oki Muraza said the company is exploring collaboration with Toyota, which has a manufacturing plant in Karawang.
“We are in discussions with Toyota and hope to formalize the agreement at a major geothermal event,” 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 another 50 kilograms will be absorbed by a Pertamina subsidiary.
Indonesia’s geothermal resources have an estimated potential of 24–26 gigawatts, of which less than 10 percent has been tapped. Oki added that potential hydrogen clusters have been identified in Sumatra, Sulawesi, and Java. While production costs remain high, there could also be opportunities to export green hydrogen in the future.
