PGE starts low-carbon project in Banten

It aims to reach 1 gigawatt of installed capacity within two to three years.

PT Pertamina Geothermal Energy Tbk (PGE) has started work on a low-carbon energy project at a liquefied petroleum gas (LPG) terminal in Banten province at the western tip of Java Island, expanding the use of geothermal energy beyond power generation into fuel storage and distribution facilities.

President Director Ahmad Yani said the project is part of the publicly listed state-owned company’s plan to cut emissions by linking geothermal output to major energy sites.

“The Green Terminal Tanjung Sekong kick-off is a tangible integration of geothermal into the downstream energy value chain,” he said in an emailed reply to questions. “We are ensuring geothermal supports strategic energy operations, not just power production.”

The initiative will use green hydrogen produced from PGE’s Ulubelu geothermal field in Lampung province, southernSumatra. The hydrogen is part of a pilot program covering production, distribution, and use of lower-carbon energy.

Under the plan, the hydrogen will help supply electricity at the Tanjung Sekong LPG terminal. PGE aims for low-carbon sources to account for about 25% of the terminal’s power consumption in the initial phase.

“The 25% target is an initial milestone,” Yani said, adding that the company plans to develop a model that could be applied to other facilities.

The Tanjung Sekong LPG terminal, operated by PT Pertamina Energy Terminal, has a storage capacity of 98,000 metric tons and handles vessels of up to 65,000 deadweight tons.

The site supplies about 35% to 40% of Indonesia’s liquefied petroleum gas demand, making it a key part of the country’s fuel distribution network.

PGE’s move follows capacity additions in 2025, including the start-up of the 55-megawatt Lumut Balai Unit 2 geothermal plant. The addition lifted PGE’s directly managed installed capacity to 727 megawatts (MW).

Director of Exploration and Development Edwil Suzandi said last year’s projects provide a base for further growth.
“Integrating green hydrogen and the Green Terminal initiative is part of our long-term strategy toward Indonesia’s 2060 net zero emission target,” he said in a separate email.

PGE manages 15 geothermal working areas with a total installed capacity of 1,932 MW, about 70% of Indonesia’s geothermal capacity. The company estimates its portfolio can cut about 10 million tons of carbon dioxide emissions annually.

PGE aims to reach 1 gigawatt of installed capacity within two to three years and 1.8 gigawatts by 2033, as it expands geothermal output and related projects.